1. 1 the future is friendly 2005 annual and special meeting Edmonton – May 4, 2005

2. 2 financial review Robert McFarlane EVP & Chief Financial Officer

3. 3 all dollars in C$ unless otherwise specified 3 These CEO & CFO presentations and answers to shareholder questions contain forward-looking statements about expected future events including competition, labour relations developments and financial and operating results that are subject to risks and uncertainties. TELUS’ actual results, performance, or achievement could differ materially from those expressed or implied by such statements. For additional information on potential risk factors, see TELUS’ 2004 Annual Report, and other filings with securities commissions in Canada and the United States. TELUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. forward-looking statements

4. 4 Exceeded Original Target? 1 Revenue$ 7.6B  6.1% EBITDA$ 3.1B  9.8% EPS 2 $ 1.58  72% Free Cash Flow 3 $ 1.3B  54% Net Debt to EBITDA2.1 times  22% 1 Provided Dec. 18, 2003 3 EBITDA, adding Restructuring and workforce reduction costs, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, and cash restructuring payments 2 EPS included $0.20 in 2003 and $0.21 in 2004 for favourable settlement of tax matters Change2004 consolidated performance 2004 review

5. 5 2005 – first quarter review

6. 6 Record first quarter results 1 Including restructuring and workforce reduction costs of $16M in Q1-04 and $9M in Q1-05 TELUS consolidated Revenue$ 1.80B$ 1.98B  9.5% EBITDA 1 $ 721M$ 856M  19% Net Income 2 $ 101M$ 242M  139% EPS 2 $ 0.28$ 0.67  139% EPS (excl. tax settlements) $ 0.24$ 0.52  117% Dividend per share$ 0.15$ 0.20  33% Q1-05Q1-04Change 2 Including favourable impacts for tax settlements on net income of $14M or $0.04 per share in Q1-04, and $54M or $0.15 per share in Q1-05

7. 7 Strong margin expansion across both segments 1 Earnings before interest, taxes, depreciation and amortization divided by total revenue 40 42 43 40 2005 2004 39 45 Q1 MobilityCommunicationsConsolidated 2005 – first quarter review EBITDA margin 1 (%)

8. 8 Significant 28% increase in free cash flow $ 443M 2005 2004 $ 567M Q1 free cash flow - consolidated 2005 – first quarter review

9. 9 Strong gains in wireline profitability and cash flow 43%  $ 305M $ 214MCash Flow (EBITDA less capex) 4.5 pts17.2%21.7%Capital Intensity 2 9.6%  $ 519M$ 474MEBITDA 1 4.4%$ 1.22B$ 1.17BExternal Revenue ChangeQ1-05Q1-04 1 Earnings before interest, taxes, depreciation and amortization   Communications segment 2005 – first quarter review 2 Capital expenditures divided by total revenue

10. 10 8(3)(14)4(9) Q1-04Q2-04Q3-04Q4-04Q1-05 128 145 131 156 160 Communications segment Positive trend with record revenue; 2nd quarter of positive EBITDA benefited in part by non-recurring items Revenue EBITDA ($M) review of operations - Communications non-ILEC revenue & EBITDA ~$ 3-4M run rate

11. 11 High-speed Internet subscriber additions of 22K in quarter; base up 18% year over year in maturing market 605K 712K 2004 high-speed Internet 982K total Internet subscribers 2005 high-speed 72% dial-up 28% 712K 270K high-speed Internet subscriber growth review of operations - Communications

12. 12 Continued outstanding wireless revenue, earnings & cash flow growth 41%  $278M$198MCash Flow (EBITDA less capex) -7.9% Capital Intensity 2 36%  $337M$248MEBITDA 1 19%  $753M$633MExternal Revenue Change Q1-05 Q1-04 1 Earnings before interest, taxes, depreciation and amortization 2 Capital expenditures divided by total revenue 2005 – first quarter review mobility segment

13. 13 Strong subscriber economics lead the Canadian industry 4 bps  1.45%1.49%Churn 1.8%  $58$57 Avg. Revenue Per Unit (ARPU) 5.4%  8076Net Adds (thousands) 15%  4.0M3.5MSubscribers ChangeQ1-05Q1-04 2005 – first quarter review mobility segment

14. 14 TELUS Mobility generates nearly half of consolidated cash flow RevenueEBITDA Mobility 39% Communications 61% Cash Flow Mobility 38% Communications 62% Mobility 48% Communications 52% 2005 – first quarter review mobility’s share of TELUS corporate

15. 15 Positive revisions to guidance current 2 previous 1 Communications Revenue$ 4.7 to 4.75B$ 4.75 to 4.8B EBITDA 3 $1.85 to 1.9B$1.875 to 1.925B Capex$ 950M to 1Bapprox. $ 1B Mobility EBITDA$ 1.35 to 1.4B$ 1.375 to 1.4B Capex$ 350 to 400Mapprox. $ 400M Wireless net adds425 to 475K475 to 525K 1 Provided on December 17, 2004 2 Updated May 4, 2005 3 Includes ~$100M in restructuring & workforce reduction costs 2005 guidance changes made today

16. 16 Positive revisions to consolidated guidance current 2 previous 1 Consolidated Revenue$ 7.9 to 8.0B$ 7.95 to 8.05B EBITDA 3 $ 3.2 to 3.3B$ 3.25 to 3.325B EPS$ 1.65 to 1.85$ 1.85 to 2.05 Capex$ 1.3 to 1.4Bapprox. $ 1.4B Free cash flow$ 1.2 to 1.3B$ 1.25 to 1.35B 1 Provided on December 17, 2004 2 Updated May 4, 2005 3 Includes ~$100M in restructuring & workforce reduction costs 2005 guidance changes made today

17. 17 $7.95 to 8.05B $3.25 to 3.325B $1.85 to 2.05 approx. $1.4B $1.25 to 1.35B Current outlook reflects strong expected growth  5 to 6% 1 2005 Includes ~$100M in restructuring & workforce reduction costs 2 Includes $0.21 in 2004 and $0.15 in 2005 guidance for favourable settlement of tax matters Normalized EPS growth would be 24 to 39% flatFree Cash Flow  6% Capex  17 to 30%EPS 2  5 to 8% annual change EBITDA 1 Revenue 2005E 2005 consolidated guidance summary

18. 18  Renewed bank credit facilities totaling $1.6B  $800M five-year term & $800M three-year term  Will replace TELUS’ existing $1.6B facilities  Favourable changes & extended term support strong liquidity position  Normal Course Issuer Bid for 25.5M shares  Repurchased 4.1M shares in Q1, for a total of 6.3M shares since inception  Dividend declared - $0.20 per share  Represents  33% over last year Strong financial position enables attractive return of capital to shareholders 2005 highlights financial highlights

19. 19 2005 annual & special meeting

20. 20 the future is friendly 2005 first quarter review & conference call May 5, 2005 Robert McFarlane EVP & Chief Financial Officer

21. 21 Strong increases in revenue and profitability 12%  $273M$310MCapex 139%  $0.67$0.28EPS 2 19%  $856M$721MEBITDA 1 9.5%  $1.98B$1.80BRevenue ChangeQ1-05 Q1-04 1 Earnings before interest, taxes, depreciation and amortization financial results Free Cash Flow 3 $443M$567M  28% 3 EBITDA, adding Restructuring and workforce reduction costs, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, and cash restructuring payments 2 Including favourable impacts for tax settlements on EPS of $0.04 in Q1-04 & $0.15 in Q1-05 TELUS consolidated 4

22. 22  15 cent impact on EPS in Q1-05 versus 4 cents in Q1-04  reflects change in tax estimates for available temporary differences, other tax adjustments, and related interest income on settlements tax normalization TELUS consolidated 5

23. 23 CDNS  35% of TELUS ILEC local voice revenue regulated  Feb-05, Competitive digital network services (CDNS) decision  Positive consolidated impact of $25M in 2005  unfavourable ILEC impacts effectively offset by mandated price reductions accrued in deferral account  expense reductions for non-ILEC & Mobility Portable Subsidy  TELUS Quebec benefited from decision on portable subsidy retroactive to 2003 & 2004  positive impact of $10M in 2005 regulatory update TELUS consolidated positive regulatory impacts 6

24. 24 Normalized quarterly EPS increase of $0.27 EPS continuity ($0.01)- Retroactive impacts of TQ, CDNS regulatory decisions ($0.15) ($0.04) Income tax settlement 139%  $0.67$0.28EPS reported Change Q1-05Q1-04 EPS normalized$0.24 $0.51  113% TELUS consolidated 7

25. 25 $274 (4) (42) $443 88 (9) (310) $721 Q1-04 $510 (145) - $567 (1) (7) (273) $856 Q1-05 Cash avail. for debt reduction & share redemp. Working Capital/Other Cash Dividends Free Cash Flow Net Cash Tax Recovery Net Cash Interest Capex EBITDA ($M) (53)(12)Cash Restructuring Payments (in excess of expense) 54Non-Cash Share Based Compensation (150)-Acc. Rec. Securitization Program Reduction 2788Share Issuance (non-public) $267$351 Net change in cash (7)(159) Net change in LTD & share repurchase free cash flow TELUS consolidated 8

26. 26 Continued strong revenue, earnings & cash flow growth 41%  278198Cash Flow (EBITDA less capex) 19%  6050Capex 36%  337248EBITDA 1 19%  753633External Revenue ChangeQ1-05Q1-04 1 Earnings before interest, taxes, depreciation and amortization ($M) Mobility segment financial results 9

27. 27 subscriber results Continued strong postpaid mix net additions Q1-04Q1-05 76K 80K 4.0M total wireless subscribers postpaid 83% prepaid 17% 3.3M 0.7M Mobility segment 10

28. 28 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 11

29. 29 Continued strong operating metrics 7.3%  355383COA 4 bps  1.45%1.49%Blended churn 1.8%  $58$57ARPU 5.4%  80K76KNet additions ChangeQ1-05Q1-04 profitable growth strategy Mobility segment 12

30. 30 Achieving profitable subscriber growth Mobility segment TELUS achieving profitable subscriber growth $936M 182K EBITDA net adds TELUS Mobility 36% 44% TELUS Mobility $693M cash flow 1 40% TELUS Mobility 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 13

31. 31 Positive revisions to guidance 2005 guidance summary 1 Provided on December 17, 2004 2 Updated May 4, 2005 425 to 475KWireless Net Adds $350 to 400MCapex updated 2005 guidance 2 EBITDA Revenue original 2005 targets 1 $1.35 to 1.4B $3.2 to 3.25B 475 to 525K approx. $400M $1.375 to 1.4B no change Mobility segment 14

32. 32 Strong gains in profitability & cash flow 43%  $305M$214MCash Flow (EBITDA less capex) 18%$214M$259MCapex 9.6%  $519M$474MEBITDA 1 4.4%$1.22B$1.17BExternal Revenue ChangeQ1-05Q1-04 1 Earnings before interest, taxes, depreciation and amortization financial results   Communications segment 15

33. 33 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

34. 34 Normalized revenue growth 3.8%, organic revenue growth 2.2% revenue - normalized Q1-04Q1-05Change Reported external revenue1,1711,222  4.4% TQ portable subsidy-(7) External revenue (normalized)1,1711,216  3.8% Acquisitions-(19) External revenue (organic)1,1711,197  2.2% ($M) Communications segment 17

35. 35 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 18

36. 36 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 19

37. 37 Normalized Communications EBITDA growth of 5.7% EBITDA - normalized Q1-04Q1-05Change Comm. EBITDA (reported)474519  9.6% Restruc. & w. r. costs169 Comm. EBITDA (bef. restruc.)490528  7.8% Regulatory impacts (retroactive) 1 -(7) Comm. EBITDA (normalized)490521  6.3% Acquisitions-(3) Comm. EBITDA (organic)$490M$518M  5.7% ($M) Communications segment 1 Retroactive regulatory impacts include TQ portable subsidy and CDNS 20

38. 38 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 21

39. 39 high-speed Internet subscriber growth High-speed Internet base up 18% in maturing market high-speed Internet net additions Q1-04Q1-05 44K 22K 982K total Internet subscribers high-speed 72% dial-up 28% 712K 270K Communications segment 22

40. 40 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 23

41. 41 Expected additional restructuring costs of $91M for Q2 to Q4-05 restructuring and workforce reduction costs Programs initiated in 2005 Programs prior to 2005 Total Beginning period liability-$70.7 Restructuring and workforce reduction costs 7.9 1.5 9.4 Cash payments(0.6)(21.1)(21.7) Total liability$7.3$51.1$58.4 ($M) Communications segment 24

42. 42 Positive revisions to guidance 2005 guidance summary 1 Provided on December 17, 2004 2 Updated May 4, 2005 3 Includes ~$100M in restructuring & workforce reduction costs approx. 100,000High-Speed Net Adds $950M to 1BCapex updated 2005 guidance 2 EBITDA 3 Revenue original 2005 targets 1 $1.85 to 1.9B $4.7 to 4.75B no change approx. $1B $1.875 to 1.925B $4.75 to 4.8B Non-ILEC Revenue$600 to 650M$625 to 650M Non-ILEC EBITDA$0 to 10M$15 to 20M Communications segment 25

43. 43  collective bargaining with TWU resumed, Feb. 16  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. 21  CIRB dismissed application by TWU for interim relief, Apr. 25  lock-out measures implemented, Apr. 25  business remains as usual Negotiations continue labour relations update 26

44. 44 TELUS has repurchased 25% of shares permitted under NCIB share buy back update No. of Shares Repurchased This Quarter No. of Shares Repurchased Since Inception Total Authorized % of Auth. Repurchased Since Inception Common2.1M2.8M14.0M20% Non-Voting2.0M3.5M11.5M30% Total4.1M6.3M25.5M25% Total cost$158M$236M 27

45. 45  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

46. 46 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 29

47. 47 2005 first quarter review questions?