TransCanada to Issue $1.6 Billion of Common Shares

CALGARY, ALBERTA, Jun 16 (MARKET WIRE) --
TransCanada Corporation (TSX: TRP)(NYSE: TRP) (TransCanada) today
announced that it has entered into an agreement with a syndicate of
underwriters, led by RBC Capital Markets, BMO Capital Markets, and TD
Securities Inc. under which they have agreed to purchase from TransCanada
and sell to the public 50,800,000 Common Shares.

The purchase price of $31.50 per Common Share will result in gross
proceeds of approximately $1.6 billion. The offering is expected to close
on or about June 24, 2009. TransCanada has also granted the underwriters
an option to purchase up to an additional 7,620,000 Common Shares at a
price of $31.50 per Common Share at any time up to 30 days after closing
of the offering. Purchasers under the offering will be entitled to
receive a quarterly dividend of $0.38 per common share for the quarter
ending June 30, 2009. The dividend is payable on July 31, 2009.

The net proceeds of the offering will be used by TransCanada to partially
fund capital projects of the Corporation, including the acquisition of an
additional interest in the Keystone Pipeline System, for general
corporate purposes and to repay short-term indebtedness.

The common shares will be offered to the public in Canada and the United
States through the underwriters or their affiliates and will be issued by
way of a prospectus supplement that will be filed with securities
regulatory authorities in Canada and the United States under
TransCanada's short form base shelf prospectus which was previously filed
with securities regulatory authorities across Canada and in the United
States under the multi-jurisdictional disclosure system.

This news release does not constitute an offer to sell or the
solicitation of any offer to buy nor will there be any sale of these
securities in any province, state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such province, state or
jurisdiction.

A written prospectus relating to the offering may be obtained from RBC
Capital Markets in Canada, Attention: Distribution Centre, 277 Front St.
W., 5th Floor, Toronto, Ontario M5V 2X4 (fax: 416-313-6066); or in the
U.S. from RBC Capital Markets Corporation, Attention: Prospectus
Department, Three World Financial Center, 200 Vesey Street, 8th Floor,
New York, NY 10281-8098 (fax: 212-428-6260).

With more than 50 years' experience, TransCanada is a leader in the
responsible development and reliable operation of North American energy
infrastructure including natural gas pipelines, power generation, gas
storage facilities, and projects related to oil pipelines and LNG
facilities. TransCanada's network of wholly owned pipelines extends more
than 59,000 kilometres (36,500 miles), tapping into virtually all major
gas supply basins in North America. TransCanada is one of the continent's
largest providers of gas storage and related services with approximately
370 billion cubic feet of storage capacity. A growing independent power
producer, TransCanada owns, or has interests in, over 10,900 megawatts of
power generation in Canada and the United States. TransCanada's common
shares trade on the Toronto and New York stock exchanges under the symbol
TRP.

Note: All financial figures are in Canadian dollars unless noted
otherwise.

Forward-Looking Information

This news release may contain certain information that is forward looking
and is subject to important risks and uncertainties. The words
"anticipate", "expect", "believe", "may", "should", "estimate",
"project", "outlook", "forecast" or other similar words are used to
identify such forward-looking information. Forward-looking statements in
this document are intended to provide TransCanada security holders and
potential investors with information regarding TransCanada and its
subsidiaries, including management's assessment of TransCanada's and its
subsidiaries' future financial and operations plans and outlook.
Forward-looking statements in this document may include, among others,
statements regarding the anticipated business prospects and financial
performance of TransCanada and its subsidiaries, expectations or
projections about the future, and strategies and goals for growth and
expansion. All forward-looking statements reflect TransCanada's beliefs
and assumptions based on information available at the time the statements
were made. Actual results or events may differ from those predicted in
these forward-looking statements. Factors that could cause actual results
or events to differ materially from current expectations include, among
others, the ability of TransCanada to successfully implement its
strategic initiatives and whether such strategic initiatives will yield
the expected benefits, the operating performance of TransCanada's
pipeline and energy assets, the availability and price of energy
commodities, regulatory processes and decisions, changes in environmental
and other laws and regulations, competitive factors in the pipeline and
energy sectors, construction and completion of capital projects, labour,
equipment and material costs, access to capital markets, interest and
currency exchange rates, technological developments and the current
economic conditions in North America. By its nature, forward-looking
information is subject to various risks and uncertainties, which could
cause TransCanada's actual results and experience to differ materially
from the anticipated results or expectations expressed. Additional
information on these and other factors is available in the reports filed
by TransCanada with Canadian securities regulators and with the U.S.
Securities and Exchange Commission (SEC). Readers are cautioned to not
place undue reliance on this forward-looking information, which is given
as of the date it is expressed in this news release or otherwise, and to
not use future-oriented information or financial outlooks for anything
other than their intended purpose. TransCanada undertakes no obligation
to update publicly or revise any forward-looking information, whether as
a result of new information, future events or otherwise, except as
required by law.

Contacts:
Media Inquiries:
TransCanada
Cecily Dobson/Terry Cunha
(403) 920-7859 or (800) 608-7859

Investor & Analyst Inquiries:
TransCanada
David Moneta/Myles Dougan/Terry Hook
(403) 920-7911 or (800) 361-6522

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