TransCanada Closes $1.6 Billion Common Share Offering

CALGARY, ALBERTA, Jun 24 (MARKET WIRE) --
TransCanada Corporation (TSX: TRP) (NYSE: TRP) (TransCanada) today
announced that it has completed its public offering of common shares. The
offering was announced on June 16, 2009 when TransCanada entered into an
agreement with a syndicate of underwriters, led by RBC Capital Markets,
BMO Capital Markets and TD Securities Inc. under which they agreed to
purchase from TransCanada and sell to the public 50,800,000 common shares.

The purchase price of $31.50 per common share resulted in gross proceeds
of approximately $1.6 billion. 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.

TransCanada has 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 the closing of the offering.

The common shares were issued by way of a prospectus supplement that was
filed with securities regulatory authorities in Canada and the U.S. 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.

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. 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:
TransCanada
Media Inquiries
Cecily Dobson
(403) 920-7859 or (800) 608-7859

Investor & Analyst Inquiries
David Moneta/Myles Dougan/Terry Hook
(403) 920-7911 or (800) 361-6522
Website: www.transcanada.com

Copyright 2009, Market Wire, All rights reserved.

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