1. 1 the future is friendly Investor meeting June 8, 2005 Robert McFarlane EVP & Chief Financial Officer

2. 2 leading the way with a proven strategy  Focusing on growth markets of data & wireless  Building national capabilities  Providing integrated solutions  Investing in internal capabilities  Partnering, acquiring and divesting as necessary  Going to market as one team strategic intent… to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move. Consistent strategy and execution 2000  2005

3. 3 corporate priorities for 2005  Enhance our leadership position in wireless  Leverage investments in high speed Internet  Accelerate wireline performance in Ontario and Quebec  Grow brand value through superior customer experience  Drive continual improvements in productivity  Reach a new collective agreement 2005 priorities building off success from 2004

4. 4 framework for medium term growth Price Cap Regulatory Framework Competitive Intensity Technological Substitution + + Non-ILEC Growth Future Friendly Home Organization Effectiveness + + Strive to hold wireline EBITDA (before restructuring) flat over medium term  = Growth in revenues and EBITDA from large exposure to wireless business Continued improvements in consolidated results Growth Opportunities Challenges Short-term dilutive Wireline

5. 5 questions? investor relations 1-800-667-4871 telus.com ir@telus.com

6. 6 appendix

7. 7  Challenge is real and is not “US only”  Canadian business leaders should embrace need for comprehensive governance change  Ethics at the top are critical  TELUS advocates a top down “ SOX smart” approach = proactive, balanced risk-based approach  No single checklist can provide good governance  New guidance is taking us in the right direction in Canada and needs constructive leadership Corporate governance summary [TELUS logo] With appropriate executive leadership, challenge can be met effectively in a manner that adds shareholder value

8. 8 $5.7B strategic focus on data and wireless 2005 $7.8B Voice TELUS Mobility Data 31% 38% 19% 2000 12% LD Significant exposure to data and wireless @ 57% 49% 18% 10% LD TELUS Mobility Voice 23% Data Twelve months trailing to March 31

9. 9 Source: Company reports TELUS MobilityRogers Wireless 1 BCE Wireless $57 $44 $47 $58 $48 $46 Q1-04 Q1-05 1 Pro forma Microcell TELUS maintaining ~20% premium to competitors ARPU comparison Mobility segment

10. 10 Achieving profitable subscriber growth Mobility segment TELUS achieving profitable subscriber growth $936M 182K EBITDA net adds TELUS Mobility 36% $693M cash flow 1 1 EBITDA - Capex Canadian national wireless carriers in Q1-05 44% TELUS Mobility 40% TELUS Mobility Source: Company reports. Sum of reported results for BCE, Rogers Wireless pro forma Microcell, & TELUS Mobility

11. 11 TELUS Mobility EBITDA & cash flow growth 1 Pro forma acquisition of Clearnet 2 EBITDA (excluding restructuring) for 2001 & 2002 3 Mid-point of latest guidance announced May 4, 2005 (360) 173 815 20032000 1 356 2001 2 535 2002 2 1,142 2004 456 (288) 75 EBITDA EBITDA less capex ($M) 788 2005E 3 ~1,388 ~988 Tremendous trend of value creation Mobility segment

12. 12 EV-DO strategic rationale 3G Evolution Data Only (EV-DO) provides: 1.Next necessary evolutionary step in CDMA technology  Follows transition adopted by major US carriers  Potential future evolutionary path for voice  Sprint-Nextel merger to adopt EV-DO as future PTT infrastructure under-pinning 2.Increased wireless data speeds opens up new services potentials  Average user download speeds of 400 – 500 kilobits per second and up to 1 Megabit per second (with compression techniques) 3.Greater effectiveness of service models in the enterprise market 4.New consumer service models drive consumer data revenue 5.First strike advantage over Rogers wireless (and GSM platform)  TELUS playing catch-up to Rogers’ GSM technology and earlier introduction of Blackberry devices  EV-DO allows TELUS to leap-frog ahead of EDGE technology Mobility segment

13. 13 CDMA 2000 evolutionary roadmap (data) 1995 2005 2007 Effective end-user characteristics (excluding compression) 2009+ 2001 RTT = Round Trip Delay underscores = advancement from previous standard Download channel characteristics (excluding compression) 300-500 kbps Asymmetric 300ms RTT 40-60 kbps Symmetric 400ms RTT EV-DO+ 1xRTT EV-DO 400-600 kbps Symmetric 70 ms RTT IS-95 NO packet data capability 14.4 kbps circuit 3G-nX 400-600 kbps times n carriers Symmetric 70 ms RTT 153.1 kbps2.4 mbps3.2 mbps3.2 mbps times n carriers IS-95b1x rev aEV-DV 300-500 kbps Asymmetric 300ms RTT Limited Deployment or abandoned commercial standards Contracted upgrade 80-120 kbps Asymmetric 400ms RTT 38 kbps Circuit switched Korea only Mobility segment

14. 14 CDMA vs. 3GSM (Rogers Wireless) data evolution 300-500 kbps Asymmetric 300ms RTT 50-80 kbps Symmetric 400ms RTT EV-DO+ 1xRTT EV-DO 400-600 kbps Symmetric 70 ms RTT 3G-nX 400-600 kbps times n carriers Symmetric 70 ms RTT 20052007 Effective end-user characteristics (excluding compression) 2009+ 500-700 kbps Asymmetric 70ms RTT GPRSEDGE 10-30 kpbs Symmetric 400ms RTT 80-100 kpbs Symmetric 400ms RTT UMTS HSDPA UMTS HSUPA 2002200320042006 700-900 kbps Symmetric 70ms RTT Major evolutionary change UMTS Rel. 99 Mobility segment

15. 15 3rd straight quarter of year over year wireline revenue growth driven by data 10%  6573Other 11%  378340Data 1.4%  226230Voice – Long Distance 4.5%  553529Voice – Local ChangeQ1-05Q1-04 External Revenue$1,171$1,222 ($M) Communications segment revenue profile  4.4%

16. 16 Normalized local revenue flat & data growth of 11% Q1-04Q1-05Change Local revenue (reported)529553  4.5% TQ portable subsidy-(7) CDNS - def. account-(18) Local revenue (normalized)529528  0.2% Data revenue (reported)340378  11% Acquisitions-(19) CDNS impact - data-18 Data revenue (normalized)340377  11% ($M) Communications segment local and data revenue - normalized

17. 17 long distance revenues Communications segment Canadian industry quarterly CAGR comparison TELUS Bell MTS/Allstream TELUS has adopted a differentiated approach to LD pricing

18. 18 data revenues Communications segment TELUS Bell MTS/Allstream Canadian industry quarterly CAGR comparison Industry and TELUS data growth evident in last few quarters

19. 19 Q1-04Q2-04Q3-04Q4-04Q1-05 -1.3% -1.4% -1.2% -1.3% -1.1% Strongest NAL result in 5 quarters despite growing competition % of network access lines lost, YoY network access line results Q4-03 -0.8% Communications segment

20. 20 Year over Year NAL declines Source: Morgan Stanley (April 2005), company reports Trailing five quarters ended Q4-04 % Q4Q1Q2Q3Q4 20032004

21. 21 Why is TELUS NAL loss experience < US:  Proportionately less 2nd lines  Less wireless substitution  Strong economic growth in AB/BC  US regulatory framework – UNE-P losses & now reversal  Cable telephony launches in their infancy in Canada Gaining lines out-of-region  TELUS non-ILEC gains offset competitive ILEC losses Network Access Lines (NALs)

22. 22 8(3)(14)4(9) Q1-04Q2-04Q3-04Q4-04Q1-05 128 145 131 156 160 Positive trend with record revenue; 2nd quarter of positive EBITDA benefited in part from non-recurring items Revenue EBITDA non-ILEC revenue & EBITDA ($M) ~$ 3-4M run rate Communications segment

23. 23 Business  Geographic expansion  building high quality, recurring revenues in non-ILEC leveraging IP network & application leadership  $245M long-term contract with Gov’t of B.C. Consumer  “ Future Friendly” home  continued high-speed Internet growth  launched suite of IP applications  Home Networking, HomeSitter TM launched in 2004  IPTV employee trials continue  Bundling  bundling strategy protects legacy revenues revitalizing wireline growth Communications segment

24. 24 TELUS Service Development Roadmap New Solutions Existing Solutions 2003 Games/Music 20042005 mytelus.com + VoIP + Possible TTV Launch + IP Messaging + HomeSitter + Home Networking + Internet + Wireless Local/LD/PCMS Bundle 2006 Future Friendly Home IP Messaging + HomeSitter + Home Networking + TTV Trial + Games/Music + Internet Wireless Local/LD/PCMS Bundle Internet Wireless Local/LD/PCMS Bundle Home Portal + Remote Access + VoIP + Possible TTV Launch + IP Messaging + HomeSitter + Home Networking + Internet + Wireless Local/LD/PCMS Bundle 16 Mbps Bandwidth Requirements 1.5 Mbps 7 Mbps ADSL @ 2200 m ADSL2+ @ 1500 m

25. 25 strategic rationale of potential IPTV offering  Grow new sources of revenue and expand share of wallet of Alberta and BC consumers  Protect TELUS high value customers and increase customer loyalty through introduction of key entertainment services  Offer “Quadruple Play” bundle of voice, high-speed data, mobility and video  Provide an alternative to Shaw cable and Bell’s ExpressVu satellite systems  Decrease Shaw’s ability to erode traditional voice services with its “Triple Play” bundle  Offer differentiated services

26. 26 Positive changes reflect Q1 momentum and tax settlement 2005 consolidated guidance summary 1 Provided on December 17, 2004 2 Updated May 4, 2005 3 Includes ~$100M in restructuring & workforce reduction costs 4 Updated guidance includes $0.15 in 2005 for favourable settlement of tax matters $1.2 to $1.3BFree Cash Flow $1.3 to $1.4BCapex $1.65 to $1.85EPS 4 updated 2005 guidance 2 EBITDA 3 Revenue original 2005 targets 1 $3.2 to $3.3B $7.9 to $8.0 B $1.25 to $1.35B approx. $1.4B $1.85 to $2.05 $3.25 to $3.325B $7.95 to $8.05B

27. 27  Effective May 4, 2005, TELUS entered into new credit facilities totaling $1.6 billion  $800M five-year revolving term expiring May 2010  $800M three-year revolving term expiring May 2008  Facilities mature subsequent to 06/07 debt maturities  Will replace TELUS’ existing $1.6B committed facilities  Favourable changes to pricing & extended terms reinforce strong liquidity position Renewal of credit facilities reflect strong financial position renewed bank credit facilities

28. 28  Collective bargaining with TWU resumed, Feb. 10  Tabled comprehensive offer to TWU, Apr. 13  Declared impasse and delivered notice of lockout measures, Apr. 18  Presented the comprehensive offer to employees, Apr. 21  cash impact of offer would be up to approx. $200M  Federal Court of Appeal denied TWU application challenging TELUS, Apr. 22  CIRB dismissed application by TWU for interim relief, Apr. 24  Lock-out measures implemented, Apr. 25, May 12 & June 2 labour relations update

29. 29 TWU appeal to CIRB on unfair labour practice regarding TELUS’ tabling of comprehensive offer directly to employees  Heard late May 2005 TWU application to Federal Court of Appeal seeking to overturn CIRB’s reconsideration decision, and restore order of binding arbitration  Heard May 31 – June 1, 2005 TELUS Mobility application to Supreme Court of Canada for leave to appeal CIRB decision regarding automatic sweep in of TELUS Mobility East team members  No decision on application labour relations update Actions not affecting business operations

30. 30 CRTC VoIP decision  ILECs subject to regulation for VoIP  Phase II costing – prices can differ from local  Expedited, 10-day confidential tariff process  12 month winback period extended  Cablecos are CLECs and deregulated for VoIP TELUS issues with decision  Canada is unique in regulating retail rates  Fails to adapt to disruptive technology  Gives regulatory head start to some competitors  Disadvantages Canadian telephone companies Decision as expected, but missed opportunity