1. 2004 – 3rd quarter review Robert McFarlane EVP & Chief Financial Officer October 29, 2004

2. 16  TELUS Mobility  excellent subscriber growth & retention  record margins and significant cash flow growth  TELUS Communications  good quarter for ILEC performance  strong rebound in profitability for non-ILEC  TELUS Consolidated  excellent revenue, profitability & cash flow growth  EPS $0.44 (normalized $0.48 up 77%) Q3 highlights

3. 17 consolidated results Change 1 Incl. restructuring & workforce reduction costs of $16.2M & $2.3M for Q3-04 & Q3-03, respectively. 2 Incl. impacts of interest on tax settlements of approx. nil & $0.05 in Q3-04 and Q3-03, respectively. 3 Free Cash Flow defined as: EBITDA (including restructuring & workforce reduction costs) less capex, net cash interest, net cash taxes, net cash restructuring payments, and excess share compensation expense over share compensation payments.  37%$157M$114MNet Income  38% $0.44$0.32EPS 2  7.8%$1.95B$1.81BRevenue  8.7%$818M$752MEBITDA 1 Q3-04Q3-03 excellent revenue, profitability & free cash flow growth  14%$503M$440MFree Cash Flow 3

4. 18 consolidated – EPS continuity normalized quarterly EPS increase of $0.21 or 77% growth $0.44 Q3-04 EPS reported Q3-03 38%$0.32 0.03 Restr. & workforce reduction- 0.01Share-based compensation - $0.48EPS normalized77%$0.27  - Income tax settlement(0.05)

5. 19 outstanding results across the board Mobility segment financial summary 1 EBITDA less capex Mobility segment  21%747620External Revenue  32%324246EBITDA  46%220150Cash Flow 1  8.7%10395Capex Q3-04 Change($M)Q3-03

6. 20 Wireless subscriber growth Q3 net adds up 35%, with strong postpaid growth - net additions guidance revised upwards by 50K Mobility segment Total wireless subscribersWireless net additions 3.8M 17% Prepaid 83% Postpaid 67K 2003 103K Q1 Q2 431K 76K 2004 114K Q1 Q2 425 to 475K QActualQOutlook 136K Q3 101K Q3  new guidance

7. 21 communications segment financial summary 1 Incl. restructuring & workforce reduction costs of $16.2M & $2.3M for Q3-04 & Q3-03, respectively. 2 EBITDA (aft. Restructuring) less capex. Q3-04Change ($M) Q3-03  1.1% 1,2001,186External Revenue  2.4% 494507EBITDA (aft. restructuring) 1  6.6%278298Cash Flow 2  3.6% 216209Capex revenue growth reverses historical trend EBITDA flat excluding $16M in restructuring costs Communications segment  0.3% 511509EBITDA (bef. restructuring)

8. 22 communications segment revenue profile Communications segment positive revenue growth driven by data growth & lower LD revenue decline Q3-04Change ($M) Q3-03  0.8% 538543Voice - Local  7.9% 358332Data  1.1%1,2001,186External Revenue  4.1%7073Other  2.1%234239Voice – Long Distance

9. 23 high-speed Internet subscriber growth on track to achieve 2004 annual target of 125K Communications segment Total Internet subscribers 69% High Speed High-speed Internet net additions 31% Dial-up 948K 32K 2003 27K Q1 Q2 152K 44K 2004 19K Q1 Q2 ~125K QActualQOutlook 31K Q3 47K Q3

10. 24 138 145 (6) (3) Revenue Q3 non-ILEC revenue & EBITDA Q3 EBITDA Q3 2003 2004 ($M) Communications segment large deals and higher CPE revenue deliver improved revenue and EBITDA in Q3

11. 25 non-ILEC revenue & EBITDA non-ILEC delivers improved revenue and EBITDA in Q3 Communications segment 145 131 128 138 139 141 152 136 123 117 (36) (30) (23) (18) (15) (6) (2) (9) (14) (3) Core Revenue Asset DispositionEBITDA Q1-02Q2-02Q3-02Q4-02Q1-03Q2-03Q3-03Q4-03Q1-04Q2-04Q3-04

12. 26 Operational Efficiency Program (OEP) – 2001 to 2003  Cumulative annual savings of $530 to 535M YE 2004 & onward 2004 efficiency initiatives  $16M in restruct. & workforce reduction costs in Q3 ($33M YTD)  Now expect $50M in restruct. & workforce reduction costs in 2004 up from previous guidance of $30M  Combining Business & Client Solutions into one unit to improve efficiency & effectiveness under leadership of Joe Natale  Consolidating IT operations from 15 to 2 locations continued focus on institutionalizing cost efficiency Communications segment delivering operational efficiency

13. 27 $513 28 (45) 503 12 (21) (320) $818 Q3-04 $520 105 (42) 440 36 (14) (304) $752 Q3-03 Cash avail. for debt reduction & pref. redemp. Working Capital/Other Cash Dividends Free Cash Flow Net Cash Tax Recovery Net Cash Interest Capex EBITDA 1 ($M) 1 Includes restructuring & workforce reduction costs. 2 Proceeds from Treasury shares issued under the employee share purchase and option plans. 3 $37M of preference & preferred shares were redeemed during Q3-04 (nil in Q3-03). strong consolidated free cash flow 6(30)Cash Restructuring Payments (net of expense) 7-Non-Cash Share Based Compensation -(4)Acc. Rec. Securitization Program reduction 2721Share Issuance 2 (non-public) (248)(434)Net change in LTD & Preferred share redemption 3 $265$86 Net Change in Cash

14. 28 long-term financial policy targets long-term de-leveraging targets achieved 15 mos ahead of plan 45 to 50% (long term) 49.7%53.7%Net Debt : Capital Q3-04 Guidance Q3-03 <2.3X 1 (end of 2004) <2.2X 2 (new target for end of 2004) 2.2X2.7XNet Debt : EBITDA 1 As provided August 6, 2004 2 As provided October 29, 2004

15. 29  Maintaining net-debt to EBITDA & capitalization targets  TELUS continues to target credit ratings of BBB+ to A-  further debt reduction expected given strong FCF generation  Today announcing several shareholder value enhancing initiatives long-term financial policy targets balanced approach to debt holders and shareholders

16. 30  Quarterly dividend increased by 5¢ to 20¢ for Jan. 1, 2005 payment  Dividend increase moves TELUS into top quartile among dividend paying S&P/TSX companies for both yield & payout ratio  Consistent with a dividend growth approach, targeting a dividend payout ratio guideline of 45 to 55% of net earnings dividend increase quarterly dividend increased by 33%

17. 31  Board approval for NCIB to repurchase up to 10% of public float or 25.5M shares upon obtaining regulatory approval  14.0M common shares & 11.5M non-voting shares  Maximum shares to be purchased over rolling 30 day period is 2% of outstanding shares  Expect de-levering to continue despite NCIB due to strong free cash flow generation  Capital flexibility maintained with NCIB normal course issuer bid (NCIB) normal course issuer bid for up to 10% of float

18. 32  DRIP amended to allow purchase on open market as well as issue from Treasury  Effective January 1, 2005 open market purchases  3% discount on DRIP discontinued  Puts TELUS in line with other NA telcos changes to Dividend Reinvestment Plan (DRIP)

19. 33  425 to 475K375 to 425KWireless net adds no change  $1.1 to 1.125B  $2.775 to 2.8B updated 2004 guidance approx. $350M $1.05 to 1.1B $2.675 to 2.725B previous 2004 guidance 1 Capex EBITDA Revenue (external) revised 2004 guidance - Mobility 1 Previously updated August 6, 2004.

20. 34 $(30) to (35)M$(30) to (40)M Non-ILEC EBITDA no change $1.925 to 1.95B no change $4.725 to 4.775B updated 2004 guidance approx. $950M $1.925 to 1.975B $525 to 550M $4.7 to 4.8B previous 2004 guidance 1 EBITDA Capex Non-ILEC revenue Revenue (external) no changeapprox. 125KHigh-speed net adds revised 2004 guidance - Communications 1 Previously updated August 6, 2004.

21. 35 no changeapprox. $1.3BCapex  $1.25 to 1.3B $1.40 to 1.50 $3.025 to 3.075B  $7.5 to 7.575B updated 2004 guidance $1.15 to 1.25B $1.30 to 1.50 $2.975 to 3.075B $7.45 to 7.55B previous 2004 guidance 1 EPS Free Cash Flow EBITDA Revenue  2.2X or less2.3X or lessNet Debt : EBITDA revised 2004 guidance - consolidated 1 Previously updated August 6, 2004. positive guidance changes reflect strong performance at both TELUS Communications & TELUS Mobility

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