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AnnualMeeting

April 22, 2008

We’re readyfor a changing world

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Board of Directors

William D. Anderson

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Board of Directors

Stanley J. Bright

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Board of Directors

Timothy W. Faithfull

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Board of Directors

Gordon D. Giffin

Board of Directors

Gordon D. Giffin

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Board of Directors

C. Kent Jespersen

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Board of Directors

Michael M. Kanovsky

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Board of Directors

Gordon S. Lackenbauer

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Board of Directors

Dr. Martha C. Piper

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Board of Directors

Luis Vázquez Senties

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Board of Directors

Stephen G. Snyder

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Board of Directors

Donna Soble Kaufman

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Board of DirectorsBoard of Directors

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AnnualMeeting

April 22, 2008

We’re readyfor a changing world

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Remarks from Chair of the BoardDonna Soble Kaufman

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Monitoring progress against strategic plan

Growth investmentsPortfolio optimizationShare buybacksDividends

Eight per cent increaseFormal dividend policy

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Championing sustainable development

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Board of DirectorsBoard of Directors

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Chief Financial Officer’s ReportBrian Burden

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Forward looking statements

This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. All forward-looking statements are based on our beliefs and assumptions based on information available at the time the assumption was made. These statements are not guarantees of our future performance and 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 cost of fuels to produce electricity, 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. Given these uncertainties, the reader should not place undue reliance on this forward-looking information, which is given as of this date. The material assumptions in making these forward-looking statements are disclosed in our 2007 Annual Report to shareholders and other disclosure documents filed with securities regulators.

Unless otherwise specified, all dollar amounts are expressed in Canadian dollars.

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Outline

Financial Results

2008 – 2010 Outlook

Financial Strategy

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2007 Financial Results : A record year

7.4%48%

$620$1.00

$0.94

$0.82

$186$1612005

$1.16$1.31Comparable earnings

$234$264Comparable earnings (MM)

9.0%9%

$490$1.00

$0.22

$45

2006

9.7%29%

$847$1.00

$1.53

$309

2007

Per share

Comparable Return on Capital Employed (ROCE)

Total Shareholder Return

Cash flow from Operations (MM) Dividends

Net earnings

Net earnings (MM)

Results

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Q1 2008 – Another strong quarter

$0.28$0.50Comparable earnings

$56$99Comparable earnings (MM)

$331$0.25$0.28

$56

Q1 2007

$237$0.27$0.17

$33

Q1 2008

Per share

Cash flow from Operations (MM) DividendsNet earnings

Net earnings (MM)

Results

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EPS and cash flow growth

2008 – 2010Expect low double digit EPS growth and strong cash flow from operations

$2.20

$2.00

$1.80

$1.60

$1.40

$1.20

$1.00

2004 2005 2006 2007 2008 - 2010e

$2.00

$1.44$1.31

$1.16

$0.80

$0.60

$0.82

$0.66

Comparable EPSMM

$1,000

$600

$4002004 2005 2006 2007 2008-2010e

Cash Flow from Operations

$950

$850

$675

$777

$620$591

$500

$700

$800

$900

1. Range based on low double digit growth estimate2. Cash flow adjusted for timing of PPA and contracted revenue payments

1 2 2

COMPARABLE EPS CASH FLOW FROM OPERATIONS

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Financial strategy supports consistent shareholder value creation

Financial strength provides shareowners an advantage in a long-cycle, capital intensive, cyclical industry

Maintain balanced capital allocation plan

Maintain financial flexibility

Maintain focus on IRR, ROCE, and TSR objectives

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Balanced capital allocation plan creates consistent value over time

NCIB expanded to full 10%; in 2007 purchased 2.4M shares = $75 million2008, intent is to renew and utilize significant portion of NCIB

Provide shareholders incremental return of capital

Share Buyback

2008 annual dividend increased 8% to $1.08;Board policy is to target a payout of 60 - 70% of comparable EPS

Provide shareholders sustainable dividend growth

Dividend

Mexico – PSA signed for USD $303.5 MMSarnia - pursuing improved long-term contractCentralia Gas - assessing contracting optionsAustralia - no action at this time

Divest or improve under-performing assets

Divest non-core assets

PortfolioOptimization

Projects must deliver unlevered, free cash, after tax IRR >10%:Greenfield Acquisitions

Announced ~$1.2 billion to date225 MW Keephills 3 $815 MM 96 MW Kent Hills $170 MM66 MW Blue Trail $115 MM53 MW Sun 5 Uprate $ 75 MM

Targeting W. U.S. and W. Canada

Asset Investment

Increasing capital efficiency is the focus of management and the Board

ALTERNATIVES DIRECTION ACTION

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9.9%

9.4%

9.1%

8.3%

7.6%

7.5%

7.0%

6.7%

5.8%

5.6%

0% 2% 4% 6% 8% 10% 12%

Mirant

Reliant

Dynegy

NRG

TransAlta

Enbridge

TransCanada

Canadian Utilities

Fortis

Emera

Non-Investment Grade Investment Grade

Corporate Spreads to Treasuries (bps)

Spread to BBB (bps)

Date BBB BB B BB B

2004 YE 113 203 292 90 179

2005 YE 140 269 328 129 188

2006 YE 122 194 286 72 164

2007 YE 245 459 571 214 326

Current 349 572 820 223 471

Increase Since 2004 236 369 528

We maintain a competitive weighted average cost of capital

Increasing Debt Spreads for Non-Investment Grade Credits

Lower Weighted Average Cost of CapitalFor Investment Grade Companies

TransAlta

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0%

4%

8%

12%

16%

2005 2006 2007 2008e 2009e 2010e

Sustainable shareholder returns in a long-cycle, capital intensive, commodity power industry

COMPARABLE ROCE

0%

20%

40%

60%

80%

100%

120%

140%

2005 2006 2007 2008e 2009e 2010e

WACC

CUMULATIVE TSR

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President and CEO’s ReportSteve Snyder

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Our messages

Strong financial shape

Strong cash flow

Balanced approach to capital allocation

Sustainable development and technical knowledge

Customer base in growing markets

2,201 dedicated employees

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Delivering results

Competitivestrengths

Favourablemarket

conditions

low double-digit earnings growth

and strong cash flow

+ =

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A diverse portfolio of fuels

Our diversification supports stable, steady income and cash flow

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

1998 2008

Hydro, Wind, GeothermalNatural GasCoal

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Our market focus

CANADA6,023 MW

UNITED STATES2,043 MW

AUSTRALIA300 MW

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Growth Focus

Geothermal

Wind

Cogeneration

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Announced growth projects

Keephills 3

Kent HillsBlue Trail

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New technologies

Post combustion CO2 capture is expected to be available commercially in the long-term to retrofit existing thermal plants and any new build

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Markets outside of western Canada and U.S.

Mexico: Executed on strategy

Australia:Great value

Ontario:ComplexAssets are performing well

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Challenges

Environment

Emerging Technologies

Plant replacement costs

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The triple E equation

Environment

EconomicHealth

EnergyGrowth

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Addressing the challenge

A complex problem

Infrastructure costs to consumers and shareowners

Requirement for government/ research/industry partnerships

Demand management

The strategic value of coal

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The path forward

Carbon Capture and Sequestration

Investment in renewables

Increase interconnections

Encourage use of all fuel sources

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An exciting time for TransAlta and the industry

Short-termGrow earnings and dividend

Medium-termOptions to grow asset baseFramework for sustained earnings growth

Long-termIncreasing capability to break “Triple E” equationMeet environmental standardsDeliver excellent shareowner value

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Executive Team

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We’re readyfor a changing world