TransAlta Board of Directors increases annual dividend 8 per cent to $1.08

Feb 1, 2008

CALGARY, Alberta (Feb. 1, 2008) – The Board of Directors of TransAlta Corporation (TSX: TA; NYSE: TAC) today announced it has approved an increase to the annual dividend to common shareowners to $1.08 from $1.00 per share.  The Board also declared a quarterly dividend of $0.27 per share on common shares payable April 1, 2008 to shareowners of record at the close of business March 1, 2008.

Donna Soble Kaufman, Chair of the Board of Directors said, “Paying an attractive dividend continues to be a key component of TransAlta’s strategy to create and deliver consistent, long-term value for its shareowners. The Board’s decision to increase the dividend reflects the progress the Company has made over the past several years in strengthening its balance sheet and growing earnings through investing in its base assets and growth projects.”

Dividends are paid quarterly as determined by the Board. In determining the dividend, the Board reviews the Company’s financial performance and balances financial liquidity requirements, capital reinvestment, and returning capital to shareowners. The Board continues to focus on building sustainable earnings and dividend growth.

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, Mexico 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.

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, unanticipated accounting or audit issues with respect to our financial statements or our internal control over financial reporting, plant availability, and general economic conditions in geographic areas where TransAlta Corporation operates. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause TransAlta’s actual results and experience to differ materially from the anticipated results or other expectations expressed.  Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date of this news release or as otherwise stated. TransAlta undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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

For more information:

Media Inquiries:

Michael Lawrence
Senior Advisor, Media Relations
Phone: (403) 267-7330

Investor Inquiries:

Jennifer Pierce
Director, Investor Relations
Phone: (403) 267-7622
Fax: (403) 267-2590