Transalta Sells Interest in Fort Saskatchewan Power Plant

CALGARY, AB - -- TransAlta Corporation has announced its intention to sell its 60 per cent interest in the Fort Saskatchewan cogeneration facility to TransAlta Cogeneration, L.P.

TransAlta owns a 50.01 per cent interest in TransAlta Cogeneration and will continue to manage this plant, which is located at the Dow Chemical site in Fort Saskatchewan, Alberta.

TransAlta expects to realize cash proceeds of approximately $35 million from the sale, resulting in a gain of approximately $0.03 per share. The proceeds will be used to fund corporate growth initiatives. The transaction is expected to close Sept. 30, 2001.

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.

This news release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. 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.