Transalta Announces Buyer for Alberta Transmission Assets

CALGARY, AB -- - TransAlta announced today it signed an agreement to sell its Alberta-based transmission business to AltaLink, a consortium of companies comprising SNC Lavalin Energy, Trans-Elect Inc., the Ontario Teachers' Pension Plan and Macquarie North America Ltd. (a subsidiary of Macquarie Group of Sydney, Australia). Completion of the transaction, including regulatory approval, is anticipated by first quarter 2002. Proceeds are expected to be approximately $850 million and the anticipated gain from the sale is approximately $100 million or $0.60 per share.

The sale reflects TransAlta's decision to focus its growth on generation where it has a low-cost competitive edge.

"We have an excellent, well-run transmission business with a great team of employees, but we are focusing future investments in our core growth strategy" said Steve Snyder, TransAlta president and Chief Executive Officer.

The Alberta transmission business represents 10 per cent of the company's assets and involves about 250 employees. "Employees moving with the sale will benefit from working with a company focused on growth in transmission," says Snyder. "Employees staying with TransAlta will be part of a company dedicated to a focused growth strategy in power generation and marketing."

SNC-Lavalin is one of the leading groups of engineering and construction firms in the world, with significant global expertise in the ownership and management of infrastructure. The company provides engineering, procurement, project management and project financing services in the power, industrial, transport, infrastructure, buildings, telecommunications, environment and defense sectors. The SNC-Lavalin Group has offices in approximately 30 countries worldwide. It is currently engaged in projects in approximately 100 countries.

The Ontario Teachers' Pension Plan, with assets of over $70 billion, invests to secure the retirement income of Ontario's 230,000 active and retired teachers.

Macquarie is the parent of Macquarie North America Ltd., and Australia's only independent full service investment bank. It is also one of a relatively small number of substantial independent investment banks remaining globally. Macquarie and its subsidiaries operate in a range of investment, commercial and retail financial services markets from 22 offices in 14 international locations.

Trans-Elect is an independent, non-utility affiliated electric transmission company working to create a North American network of independently owned and operated electric transmission systems.

TransAlta is Canada's largest non-regulated electric generation and marketing company, with more than $7 billion in assets and 8,000 megawatts of capacity. As one of North America's lowest cost operators, our growth is focused on developing coal and gas-fired generation in Canada, the U.S., and Mexico.