TransCanada Announces US$350 Million Note Issue

CALGARY, Alberta - June 9, 2003 - (TSX: TRP) (NYSE: TRP) - TransCanada Corporation announced today that its wholly owned subsidiary, TransCanada PipeLines Limited, has entered into an underwriting agreement to issue US$350 million of 4.0% notes maturing in 10 years, due June 15, 2013. The net proceeds of this offering will be used to repay outstanding indebtedness.

The notes will be offered and sold under the company's base shelf prospectus dated May 30, 2003. The notes are being offered only in the United States. A prospectus supplement reflecting the terms of the offering will be filed with securities regulatory authorities in Alberta and the United States.

Citigroup Global Markets Inc. is the lead manager for the offering. Copies of the U.S. final prospectus relating to the offering may be obtained from Citigroup Global Markets Inc. at Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th St., Brooklyn, New York, 11220

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

TransCanada is a leading North American energy company. We are focused on natural gas transmission and power services with employees who are expert in these businesses. Our network of approximately 38,000 kilometres (24,000 miles) of pipeline transports the majority of Western Canada's natural gas production to the fastest growing markets in Canada and the United States. TransCanada has interests in more than 4,000 megawatts of power - an equal amount of power can meet the needs of about four million average households. Our common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in this information may differ from actual results or events. Factors which could cause actual results or events to differ materially from current expectations include, among other things, the ability of TransCanada to successfully implement its strategic initiatives and whether such strategic initiatives will yield the expected benefits, the availability and price of energy commodities, regulatory decisions, competitive factors in the pipeline and power industry sectors, and the current economic conditions in North America. For additional information on these and other factors, see the reports filed by TransCanada with Canadian securities regulators and with the United States Securities and Exchange Commission. TransCanada disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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For further information, please contact:

Media Inquiries:
Glenn Herchak / Kurt Kadatz
(403) 920-7877

Investor & Analyst Inquiries:
David Moneta / Debbie Persad
(403) 920-7911