Luminus Group, the beneficial holder of approximately 8% of TransAlta’s shares, has put forth various shareholder proposals for inclusion in TransAlta’s Management Proxy Circular for the 2008 Annual and Special Meeting, including a proposal that reserves Luminus Group’s right to nominate directors for election at that meeting. Luminus Group intends to announce its director nominees shortly.

Luminus Group urges TransAlta shareholders to take the necessary steps with their custodial banks and brokerage firms to ensure they have the ability to vote at the upcoming Annual and Special Meeting. TransAlta shareholders should pay particular attention to any shares presently held in swap arrangements or in margin accounts. In order to ensure that TransAlta shareholders have the ability to vote, they should begin the process of promptly unwinding any swap accounts to allow sufficient time before the February 25 record date. Likewise, Luminus Group is also recommending that TransAlta shareholders with any shares held in margin accounts that may be loaned by a broker should move the shares into a cash account in advance of the February 25 record date. Shareholders also interested in adding to their ownership of TransAlta should complete any such purchases by February 20 to allow for trade settlement by the record date, permitting them to vote those shares at the Annual and Special Meeting.

For more information, please visit www.ImproveTransAlta.com.

About the Luminus Group:

Luminus Management

Founded in 2002, Luminus Management is the Investment Advisor to two investment partnerships – Luminus Energy Partners Master Fund, Ltd. and Luminus Asset Partners, LP. Luminus Management focuses primarily on investing in independent power and utility securities. The investment partnerships to which Luminus Management is Investment Advisor have approximately $1.4 billion of equity under management.

LS Power

Founded in 1990, LS Power is a fully integrated development, investment and asset management group with a proven track record of successful development activities, operations management and commercial contract origination and optimization. As a developer, LS Power has successfully developed gas-fired facilities and coal-fired facilities representing over 7,000 MW of total capacity, and is currently developing more than 6,000 MW of coal, natural gas and renewable power generation facilities. LS Power currently owns and manages three natural gas-fired power generation facilities representing approximately 1,765 MW. LS Power has purchased eighteen power generation projects with approximately 11,800 MW of generation capacity and manages two investment funds with approximately $4.3 billion of committed equity capital