TransAlta to redeem preferred securities

    News Editors

    CALGARY, Alberta--(BUSINESS WIRE)--Jan. 6, 2005--TransAlta Corporation (TSX:TA) (NYSE:TAC) today announced that in order to reduce interest costs it will redeem on Feb. 15, 2005 (the "Redemption Date") all of its 7.50% Preferred Securities (the "7.50% Preferred Securities"), which have an aggregate principal amount of $175,000,000 and all of its 8.15% Preferred Securities (the "8.15% Preferred Securities"), which have an aggregate principal amount of $125,000,000. The redemption will be funded with cash on hand and short-term debt.

    The redemption price of the 7.50% Preferred Securities will be $25.23630 per 7.50% Preferred Security, which is comprised of the $25.00 principal amount and $0.23630 of accrued and unpaid interest to the Redemption Date. The redemption price of the 8.15% Preferred Securities will be $25.25678 per 8.15% Preferred Security, which is comprised of the $25.00 principal amount and $0.25678 of accrued and unpaid interest to the Redemption Date.

    The 7.50% and 8.15% Preferred Securities are registered in the name of CDS&Co. and trade on the TSX under the symbols TA.Pr.A and TA.Pr.B, respectively. The redemption price will be credited to the accounts of beneficial holders of the 7.50% and 8.15% Preferred Securities through their individual brokers in the normal manner. Beneficial holders may contact their individual brokers for additional information about payments.

    TransAlta is among Canada's largest non-regulated power generation and wholesale marketing companies. We have coal-fired, gas-fired, hydro and renewable generation assets in Canada, the U.S., Mexico and Australia. With approximately 10,000 megawatts of capacity either in operation, under construction or in development, our focus is to efficiently operate our assets in order to provide our wholesale customers with a reliable, low-cost source of power.



    TransAlta Corporation (TSX:TA) (NYSE:TAC)

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CONTACT: TransAlta Corporation - Media inquiries Tim Richter Senior Advisor, Media & Government Relations Phone: (403) 267-7238 Pager: (403) 213-7041 Email: media_relations@transalta.com OR TransAlta Corporation - Investor inquiries Daniel J. Pigeon Director, Investor Relations Phone: (403) 267-2520 or 1-800-387-3598 in Canada and U.S. Fax: (403) 267-2590 Email: investor_relations@transalta.com Website: www.transalta.com

KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: UTILITIES SOURCE: TransAlta Corporation

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