- On track to deliver low double-digit EPS growth in 2008 and through to 2012

- Balance sheet and credit ratios are strong; disciplined capital allocation remains a priority

- Growth plans outlined could significantly increase renewable and co-generation capacity in next five years

CALGARY, ALBERTA -- (Marketwire) -- 10/06/08 -- TransAlta Corporation (TSX: TA)(NYSE: TAC) held its annual Investor Day Conference in Toronto today where its executive leadership team provided investors with a comprehensive review of its financial outlook and growth opportunities for 2008 to 2012.

"TransAlta is on track to deliver low double-digit earnings growth in 2008 and is well-positioned to generate significant shareowner value in the years ahead," said President and CEO Steve Snyder. "At a time when the North American economy and capital markets are under stress, TransAlta is financially strong and ready to capitalize on increasing demand in our core markets, asset re-contracting potential and a pipeline of compelling renewable growth opportunities."

"Market fundamentals, together with our efforts to achieve top decile operating performance across our fleet, should sustain low double digit earnings growth from our base business, while organic growth investments including Keephills 3 and a number of new renewable and natural gas co-generation projects will begin to add earnings and cash flow post-2012," said Mr. Snyder.

At today's meeting, TransAlta outlined specific new growth projects totaling more than 1,800 (megawatts) MW of capacity - of which more than half are renewable energy - that can be added to its fleet over the next five years. These projects are in addition to 500 MW of capacity already under construction and due to be commissioned in the 2008-2011 period. The growth projects would more than double TransAlta's renewable energy capacity. TransAlta is already a leading generator of wind power in Canada.

"We will continue to be disciplined in our allocation of capital. We are committed to paying dividends to shareowners in-line with the Board's payout policy of returning 60 - 70 per cent of comparable earnings. We also have ample internal cash flow and balance sheet capacity to support our growth plans," said Mr. Snyder.

Mr. Snyder added TransAlta remains confident it will close the sale of its Mexico business shortly and on the terms previously announced. Once completed, TransAlta's current intent is to use a significant portion of the cash proceeds to buy back shares under its current normal course issuer bid program.

Updating its sustaining capital budget for the 2009 - 2010 period, TransAlta expects to spend $300 to $350 million and $270 - $315 million, respectively.