TransAlta Corporation
TSX : TA
NYSE : TAC

TransAlta Corporation

November 12, 2009 16:30 ET

TransAlta Announces $400 Million of Medium-Term Notes due 2019

CALGARY, ALBERTA--(Marketwire - Nov. 12, 2009) - TransAlta Corporation (TSX:TA) (NYSE:TAC) today announced it has priced an offering of $400 million of 6.40 per cent medium-term notes due in 2019. The medium-term notes were priced at 99.708 per cent of the principal amount. TransAlta intends to use the net proceeds from the offering to repay a portion of the indebtedness relating to its acquisition of Canadian Hydro Developers, Inc. The notes are expected to be rated BBB (stable) by DBRS and Standard & Poor's Rating Services, a division of McGraw-Hill, Inc.

RBC Dominion Securities Inc., CIBC World Markets Inc. and Scotia Capital Inc. acted as joint lead agents and book-runners for the offering. Copies of the final prospectus and pricing supplement relating to the notes offering may be obtained from the SEDAR (www.sedar.com) and EDGAR (www.sec.gov) websites.

The offering of the notes was made pursuant to TransAlta's Canadian $1 billion base short form prospectus that was effective Nov. 8, 2007.

About TransAlta

TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. We maintain a low-risk profile by operating a highly contracted portfolio of assets in Canada, the United States and Australia. Our focus is to efficiently operate our coal-fired, gas-fired, hydro and renewable facilities in order to provide our customers with a reliable, low-cost source of power. For nearly 100 years, we've been a responsible operator and a proud contributor to the communities where we work and live.

Caution Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate," "believe," "expect," "plan," "intend," "forecast," "target, " "project," "guidance," "may," "will," "should," "could," "estimate," "predict" or similar words suggesting future outcomes or language suggesting an outlook. Forward-looking statements in this press release include, but are not limited to, the anticipated use of proceeds of the offering and expected ratings for the notes.

Forward-looking statements and information contained in this press release are based on our current beliefs as well as assumptions we have made and information currently available to us. Although we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.

By their very nature, the forward-looking statements included in this press release involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking statements will not be achieved, including, without limitation, the failure to close the offering discussed herein on the terms disclosed herein or at all, the failure to use the proceeds of the offering as disclosed herein and the failure to obtain the anticipated ratings for the notes. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations and anticipations, estimates and intentions expressed in such forward-looking statements as may be found under the heading "Risk Factors" in our annual information form for the year ended December 31, 2008 and under the heading "Business Risks" in our management's discussion and analysis for the year ended December 31, 2008.

Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to TransAlta, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Furthermore, the forward-looking statements contained in this press release are made as of the date of this document and we do not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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