TransAlta Board of Directors increases annual dividend 8 cents to $1.16

Jan 29, 2009

CALGARY, Alberta (Jan 29, 2009) – The Board of Directors of TransAlta Corporation (TSX: TA; NYSE: TAC) today declared a quarterly dividend of $0.29 per share on common shares payable April 1, 2009 to shareowners of record on March 1, 2009. This represents an increase of $0.02 per share to the quarterly dividend and on an annual basis will yield a dividend of $1.16 versus $1.08.

Donna Soble Kaufman, Chair of the Board of Directors said, “Our dividend is a fundamental part of the on-going value we provide to shareholders. The Board’s decision to increase the dividend is indicative of the strength of our low to moderate risk business model and our ability to generate strong cash flow throughout market cycles.”


TransAlta is a power generation and wholesale marketing company focused on creating long-term shareholder value. We maintain a low-to-moderate 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. TransAlta is recognized for its leadership on sustainability by the Dow Jones Sustainability North America Index, the FTSE4Good Index and the Jantzi Social Index.

This news release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. These statements are based on TransAlta Corporation’s belief and assumptions based on information available at the time the assumption was made. These statements are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include legislative or regulatory developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels and general economic conditions in geographic areas where TransAlta Corporation operates.

Note: All financial figures are in Canadian dollars unless noted otherwise.

For more information:

Media Inquiries:

Michael Lawrence
Manager, External Relations
Phone: (403) 267-7330
Email: michael_lawrence@transalta.com

Investor Inquiries:

Jennifer Pierce
Vice President, Communications and Investor Relations
Phone: (403) 267-7622
Fax: (403) 267-2590
Email: investor_relations@transalta.com

Jess Nieukerk
Manager, Investor Relations
Phone: (403) 267-3607
Email: jess_nieukerk@transalta.com