Full Over-Allotment Option Exercised on TransCanada's Share Offering

TransCanada has announced that the syndicate of underwriters led by RBC Capital Markets, BMO Capital Markets and TD Securities Inc. of its recent Common Share offering have exercised their full over-allotment option to purchase an additional 4,575,000 Common Shares at a price of $33.00 per Common Share.

The gross proceeds from the over-allotment option total approximately $151 million. Gross proceeds from the common share offering and the over-allotment option total approximately $1.157 billion. The net proceeds of the offering will be used by TransCanada to partially fund capital projects of the Corporation including the Keystone Pipeline System, for general corporate purposes and to repay short-term debt.

TransCanada also announced today that the Board of Directors has approved an increase in the discount on the issuance of common shares from treasury under TransCanada's Dividend Reinvestment Plan from two to three per cent for the common share dividend payable on January 30, 2009 to the shareholders of record at the close of business on December 31, 2008. Dividends on TransCanada Pipelines Limited outstanding preferred shares are also eligible to participate in the Dividend Reinvestment Plan.