TransCanada Corporation Declares Dividends

CALGARY, Alberta - June 18, 2003 - (TSX: TRP) (NYSE: TRP) - TransCanada Corporation today declared a quarterly dividend of $0.27 per share on the company's outstanding common shares for the quarter ending June 30, 2003. The dividend is payable on July 31, 2003 to common shareholders of record at the close of business on June 30, 2003.

Today's dividend declaration replaces the common share dividend declaration made by TransCanada PipeLines Limited on April 25, 2003, which preceded shareholder approval of the arrangement to establish TransCanada Corporation as the parent company of TransCanada PipeLines Limited. When the arrangement became effective May 15, 2003, common shareholders of TransCanada PipeLines Limited automatically became common shareholders of TransCanada Corporation. Each TransCanada PipeLines Limited common share has been recognized as one TransCanada Corporation common share.

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 of pipeline transports the majority of Western Canada's natural gas production to the fastest growing markets in Canada and the United States. Including the recently announced Bécancour power plant, TransCanada owns, controls or is constructing more than 4,500 megawatts of power - an equal amount of power can meet the needs of about 4.5 million average households. Our common shares trade under the symbol TRP on the Toronto and New York stock exchanges.

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

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:
Kurt Kadatz
(403) 920-7877

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