Canadian Hydro Developers, Inc.
TSX : KHD

Canadian Hydro Developers, Inc.

September 09, 2009 23:59 ET

Canadian Hydro Shareholder Rights Plan Remains in Place

CALGARY, ALBERTA--(Marketwire - Sept. 9, 2009) - Canadian Hydro Developers, Inc. (TSX:KHD) ("Canadian Hydro" or the "Company") confirms that pursuant to a consent order issued by the Alberta Securities Commission earlier today, the Canadian Hydro shareholder rights plan (the "Plan") will remain in effect for its 60 day duration until September 21, 2009, following which time it will be terminated solely in relation to the offer by 1478860 Alberta Ltd., a wholly-owned subsidiary of TransAlta Corporation (collectively, "TransAlta"). Otherwise, the Plan remains in full force and effect.

The Board of Directors of Canadian Hydro continues to recommend unanimously that shareholders of Canadian Hydro reject TransAlta's unsolicited offer ("TransAlta offer") of $4.55 cash per share, which was extended today for the second time and is now due to expire on Tuesday, September 22, 2009.

"We remain confident that we can do better for our shareholders than this inadequate bid," said Dennis Erker, Chairman of the Board of Directors of Canadian Hydro. "We are continuing to pursue a full range of alternatives to generate superior value to the TransAlta offer, and this process takes a certain amount of time to conduct properly. Since the end of August, a number of new qualified interested parties have come forward and signed confidentiality agreements in order to review the detailed information about the Company contained in the data room we opened on July 30, 2009. We are pleased to report that discussions continue to advance with several of these parties; however, there can be no assurances a transaction will result."

Canadian Hydro issued a Directors' Circular on August 4, 2009, which lists seven reasons why shareholders should reject the TransAlta offer, with full detail explaining each. To reject the TransAlta offer, shareholders do not need to take any action. Anyone who has already tendered Common Shares to the TransAlta offer can withdraw those Common Shares by contacting his or her broker or Laurel Hill Advisory Group at the number listed below.

The Directors' Circular was mailed to all shareholders on August 6, 2009. The Circular is also available on the Canadian Hydro website, at www.canhydro.com, and has been filed on SEDAR and with Canadian securities regulators. Shareholders are advised to read the Canadian Hydro Directors' Circular in full, as it contains important information regarding the TransAlta offer. Inquiries concerning the information in the Directors' Circular should be directed to Laurel Hill Advisory Group, the information agent retained by Canadian Hydro, North American toll free at 1-888-534-1152, collect 416-637-4661 or via email at assistance@laurelhillag.com.

About Canadian Hydro

"Recognized as one of Jantzi/Maclean's Top 50 Responsible Corporations in
Canada"

Canadian Hydro is committed to Building a Sustainable Future®. The Company is the largest and most diversified developer, owner, and operator of 21 renewable energy generation facilities in Canada totaling net 694 MW of capacity in operation, 160 MW in and nearing construction, and 1,660 MW in development. The renewable generation portfolio is diversified across three technologies (water, wind, and biomass) in the provinces of Alberta, British Columbia, Ontario, and Quebec. This portfolio is unique in Canada as all facilities are certified, or slated for certification, under Environment Canada's EcoLogo(M) Program.

Advisory Respecting Forward-Looking Statements:

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws.

The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", "confident", "might" and similar expressions are intended to identify forward-looking information or statements. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. The forward looking information or statements in this news release relate to, but are not limited to, statements with respect to the results of any evaluation of the take-over proposal by TransAlta and any course of action Canadian Hydro may undertake in response to the take-over proposal by TransAlta.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Forward-looking statements are based on current expectations, estimates and projections that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated and described in the forward-looking statements. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements. The forward-looking information and statements contained in this news release speak only as of the date of this news release, and the Company assumes no obligation to publicly update or revised them to reflect new events or circumstances, except as may be required pursuant to applicable securities laws.

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