TransAlta suspends five per cent discount on its Dividend Reinvestment and Share Purchase Plan

Oct 20, 2006

CALGARY, Alberta (Oct. 20, 2006) –TransAlta Corporation (TransAlta) (TSX: TA; NYSE: TAC) has amended its Dividend Reinvestment and Share Purchase Plan (DRASP) effective Jan. 1, 2007. As a result, after Dec. 31, 2006 the five per cent discount on the price of shares purchased through the DRASP and issued from treasury will be suspended. After Dec. 31, 2006 shares purchased under the DRASP will be acquired in the open market at 100 per cent of the average purchase price of common shares acquired on the Toronto Stock Exchange on the investment dates.

At the discretion of the Board of Directors a discount of up to five per cent may be reinstated on common shares issued from treasury. The Corporation will communicate in its quarterly dividend announcements or by way of news release if and when the discount is applicable.

A copy of the revised TransAlta DRASP brochure will be available on TransAlta’s website (www.transalta.com) under the Shareholder Information section of the Investor tab. Participants may also contact CIBC Mellon Trust Company at 1-800-387-0825 to request for a brochure to be mailed to them.

The TransAlta common shares issuable under the DRASP have not been registered under the US Securities Act of 1933 or under the securities laws of any US state, and are not being offered for sale in the US or any of its territories or possessions. US persons and residents are not eligible to participate in the DRASP. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy any securities in the US, or any offer to or solicitation from any US person or resident.

Should you have any questions regarding the changes to the DRASP, please contact CIBC Mellon in writing, by phone or email at:

CIBC Mellon Trust Company
Dividend Reinvestment Services
PO Box 7010 – Adelaide Street Station
Toronto, Ontario M5C 2W9

Investor Inquiries:

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