CALGARY, ALBERTA -- (Marketwired) -- 07/29/14

TransAlta Renewables Inc. (the "Company") (TSX:RNW) today reported second quarter Comparable EBITDA(1) of $35.2 million. Net Earnings for the second quarter were $5.9 million, or $0.05 per share.

"Our second quarter results came in below Q1, but are fully in line with our expectations as seasonal wind patterns tend to put downward pressure on our second and third quarter results. We remain on track to deliver a solid first year", said Brett Gellner, President. "We also continue to focus on our strategy to grow TransAlta Renewables."

Historically, financial statements have not been prepared by TransAlta for the assets of the Company, as they had not been operated as a separate business by TransAlta. Accordingly, the financial statements for periods prior to the initial public offering ("IPO") on August 9, 2013, reflect the financial statements for the assets in a manner consistent with how TransAlta managed the assets and as though the assets had been a separate Corporation. Therefore, historical financial information is not directly comparable to current results due to the implementation of certain commercial arrangements between the Company and TransAlta Corporation that took effect upon closing of the Company's IPO, including the entering into of firm priced power purchase agreements for generating facilities whose power was previously sold on a merchant basis. Prior to the IPO, these commercial arrangements did not exist and the Company's assets were held directly or indirectly by TransAlta. More details in regards to the basis of preparation can be found in Note 1 of our 2013 audited consolidated financial statements.

Summary Results

Q2 2014

--  Comparable EBITDA of $35.2 million 
--  Funds from operations of $26.9 million 
--  Production of 743 GWh compared to732 GWh for the same period last year 

Year-to-Date 2014

--  Comparable EBITDA of $90.9 million 
--  Funds from operations of $73.3 million 
--  Production of 1,724 GWh compared to 1,500 GWh for the same period last
    year 

The following table depicts key financial results and statistical operating data:

Second Quarter 2014 Highlights

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                                      3 months  3 months  6 months  6 months
                                         ended     ended     ended     ended
In $CAD thousands, unless otherwise   June 30,  June 30,  June 30,  June 30,
 stated                                   2014      2013      2014      2013
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Production (GWh)(1)                        743       732     1,724     1,500
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Revenue                                 50,013    70,940   117,978   131,857
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Net earnings attributable to common                                         
 shareholders                            5,890    19,512    27,024    33,516
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Comparable EBITDA(2)                    35,194    55,193    90,856   101,577
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Funds from operations(2)                26,950    47,764    73,304    86,955
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Cash flow from operating activities     35,782    45,738    80,992    98,966
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Cash available for distribution(2)      22,936    44,423    39,771    81,325
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Net earnings per share attributable                                         
 to common shareholders, basic and                                          
 diluted                                  0.05      0.17      0.24      0.29
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Comparable earnings per share(2)          0.05      0.17      0.24      0.29
----------------------------------------------------------------------------
Funds from operations per share(2)        0.23      0.42      0.64      0.76
----------------------------------------------------------------------------
Cash available for distribution per                                         
 share(2)                                 0.20      0.39      0.35      0.71
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Dividends paid per common share           0.19         -      0.38         -
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(1) Includes production from Wyoming Wind                                   
(2) Comparable EBITDA refers to Earnings before interest, taxes,            
    depreciation and amortization including dividends on the Wyoming Wind   
    preferred shares and adjusted for certain other items. Cash available   
    for distribution represents the amount the cash generated from          
    operations by our business, before changes in working capital and after 
    sustaining and productivity capital, distributions to non-controlling   
    interest and principal repayments of debt. Comparable EBITDA, funds from
    operations, cash available for distribution, comparable net earnings,   
    comparable net earnings per share, funds from operations per share and  
    cash available for distribution per share are not defined under IFRS.   
    Presenting these measures from period to period provides supplemental   
    information to help management and shareholders evaluate earnings' and  
    cash flow trends in comparison with prior periods' results. Refer to the
    Non-IFRS Measures section of the Management's Discussion and Analysis   
    ("MD&A") for further discussion of these items.                         

A complete copy of TransAlta Renewables' second quarter report including MD&A and unaudited financial statements is available in the Investors Centre section of our website: www.transaltarenewables.com.

About TransAlta Renewables Inc.

TransAlta Renewables owns 29 wind and hydroelectric power generation facilities, including our economic interest in Wyoming Wind, having an aggregate installed generating capacity of 1,376 MW, in which it holds a net ownership interest of approximately 1,255 MW. TransAlta Renewables' power generating capacity is among the largest of any publicly-traded renewable independent power producer ("IPP") in Canada, with more wind power generating capacity than any other Canadian publicly-traded IPP. TransAlta Renewables' strategy is focused on the efficient operation of its portfolio of renewable power generation assets and expanding its asset base through the acquisition of additional renewable power generation facilities in operation or under construction. TransAlta Renewables objectives are to (i) create stable, consistent returns for investors through the ownership of contracted renewable power generation assets that provide stable cash flow through long-term power purchase agreements with creditworthy counterparties, including TransAlta; (ii) pursue and capitalize on strategic growth opportunities in the renewable power generation sector; and (iii) pay out a portion of cash available for distribution to the shareholders of TransAlta Renewables on a monthly basis.

Cautionary Statement Regarding Forward Looking Information

This news release may contain forward looking statements, including statements regarding the business and anticipated financial performance of the Company. These forward-looking statements are not historical facts but reflect the Company's current expectations concerning future plans, actions and results. These statements are subject to a number of risks and uncertainties that could cause actual plans, actions and results to differ materially from current expectations including, but not limited to, the ability to successfully obtain regulatory approvals; changes in tax, environmental, and other laws and regulations; competitive factors in the renewable power industry; operational breakdowns, failures, or other disruptions; changes in economic and market conditions; and other risks and uncertainties discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time and as also set forth in the Company's MD&A and 2014 Annual Information Form. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this news release. The Company disclaims any intention or obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

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

Contacts:
TransAlta Renewables Inc. - Investor inquiries:
Brent Ward
Director, Corporate Finance and Investor Relations
1-800-387-3598 in Canada and U.S. Cell: 587-216-2242
investor_relations@transalta.com

TransAlta Renewables Inc. - Media inquiries:
Stacey Hatcher
Manager, Communications
Toll-free media number: 1-855-255-9184
Alternate local number: 403-267-2540
ta_media_relations@transalta.com