investor conference call Q1 2010 TELUS investor conference call Robert McFarlane EVP & Chief Financial Officer Joe Natale EVP & Chief Commercial Officer May 5, 2010

TELUS forward looking statements Today's presentation and answers to questions contain statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results and events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2010 guidance), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2009 annual report and in the 2010 first quarter report. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.

agenda Wireless and wireline segment review 3 Wireless and wireline segment review Consolidated financial review Updates Operating efficiency program Cash and accounting for taxes Dividend policy and payout IFRS Question and answers

Q1 2010 wireless financial results ($M) Q1-09 Q1-10 change Revenue (external) 1,130 1,177 4.2% Operational expenses 647 685 5.9% Restructuring costs 2 - EBITDA 488 497 1.8% EBITDA margins (total revenue) 42.9% 42.0% (0.9) pts Capex 196 59 (70)% EBITDA less capex 292 438 50%       Wireless cash flow up significantly on back of lower capex and EBITDA increase

subscriber results Total net adds Postpaid net adds Wireless subscribers 1.2M 65K prepaid 19% 51K 48K 44K postpaid 81% 5.4M Q1-09 Q1-10 Q1-09 Q1-10 6.6 million total High quality postpaid net adds increased 48% y/y and represented >100% of net adds

smartphone mix Smartphone subscribers represent 22% of postpaid base compared to 15% a year ago One third of all smartphone loading new to TELUS iPhone and Blackberries dominate retention loading 26% of iPhone subscribers new to TELUS Smartphone subscriber base increased 64% y/y

blended ARPU breakdown Data Voice % of ARPU $58.39 $55.80 11.26 19% 13.14 24% 47.13 81% 42.66 76% Q1-09 Q1-10 Q1-09 Q1-10 Strong data growth with improving trend in overall ARPU down 4.4% y/y compared to 7.7% decline in Q4/09

data revenue Q1-08 Q1-09 Q1-10 $258M $208M $147M BlackBerry Bold Data growth of 24% driven by continued smartphone adoption and expected to be enhanced with HSPA

marketing and retention Q1-09 Q1-10 change Gross adds (000s) 346 356 2.9% Churn 1.62% 1.55% (7) pts COA per gross add $336 $322 (4.2)% COA expense $116M $114M (1.7)% Retention expense $113M $123M 8.8%      Improving trend in wireless operating metrics. Increased retention spending driven by smartphone adoption

Q1 2010 wireline financial results ($M) Q1-09 Q1-10 Change Revenue (external) 1,245 1,198 (3.8)% Operational expenses 834 787 (5.6)% Restructuring costs 26 4 n.m. EBITDA 418 443 6.0% EBITDA margins (total revenue) 32.7% 35.9% 3.2 pts Capex 278 252 (9.4)% EBITDA less capex 140 191 36%       EBITDA growth of 6% driven by decline in expenses and lower restructuring costs

operating expenses     ($M) Q1-09 Q1-10 Change Salaries, benefits* & employee-related expenses 452 425 (6.0)% Other operations expenses 382 362 (5.2)% Operations expenses 834 787 (5.6)% Restructuring costs 26 4 n.m. Total operating expenses 860 791 (8.0)%     * Includes DB pension expenses of $4M and $7M in Q1/09 and Q1/10, respectively Lower expenses and reduced restructuring costs driving 8% decline in total operating expenses

business and residential NALs NAL losses Residential* NAL losses Q1-09 Q1-10 Q1-09 Q1-10 -9K -8K -44K -50K * Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction. Stable business NAL losses. Residential NAL decline reflects aggressive price competition from cable-TV competitor

Internet subscribers High-speed Internet net additions 14K 3K Q1-09 Lower HSIA also reflects aggressive price competition from cable-TV competitor

TELUS TV net additions* TELUS TV subscribers TELUS TV net additions* TELUS TV subscribers* 199K 29K 98K 20K Q1-09 Q1-10 Q1-09 Q1-10 * Includes both TELUS IP TV and TELUS Satellite TV subscribers TV continues to show strong results with 101K net adds in one year and doubling subscriber base

Q1 2010 consolidated financial results ($M excl. EPS) Q1-09 Q1-10 change Revenue (external) 2,375 - Operating expenses 1,441 1,429 (0.8)% Restructuring costs 28 6 n.m. EBITDA 906 940 3.8% EPS 1.01 0.84 (17)% Capex 474 311 (34)% Free cash flow 125 246 97%      Growth in earnings and free cash flow resulting from expense control and reduced capital expenditures

Pension & Normalized Financing EPS continuity ($) 1.01 + 0.02 + 0.03 0.84 + 0.05 Tax Adj. - 0.06 - 0.02 0.83 Excl. Tax Adj. 0.81 Excl. Tax Adj. Q1-09 reported Restr. costs Normalized EBITDA1 Lower tax rates Dep & Amort Pension & Normalized Financing costs2 Q1-10 reported 1 Normalized EBITDA excludes restructuring and pension costs. 2 Normalized financing costs excludes interest income for Q1/09. EPS excluding income-tax related adjustments up 2.5%

breakdown of full time equivalent employees   YE 2009 Q1-10 Change Domestic - telecom 25,750 25,150 (600) Domestic - Black’s 850 700 (150) International 8,700 8,250 (450) Total 35,300 34,100 (1,200) International and Black’s FTE decline largely represents Q4 and Q1 seasonality Significant domestic FTE reduction primarily reflects 2009 restructuring initiatives as well as seasonal reduction

consolidated operating expenses breakdown ($M) Q1-09 Q1-10 change Salaries, benefits* & employee-related expenses 591 570 (3.6)% Other operating expenses 850 859 1.1% Total operational expenses 1,441 1,429 (0.8)%    * Includes DB pension expenses of $4M and $7M in Q1/09 and Q1/10, respectively Consolidated employee-related expenses down 3.6%

cash and accounting for taxes Cash taxes Cash income tax payments of $251M paid in Q1-10 Consists of final 2009 tax payments and commencement of 2010 instalments Q1/10 expected to be peak quarter* 2010 expected to be peak year* Accounting tax Effective tax rate of 27% due to revaluations of future income tax liabilities and reassessments of prior years tax issues * See forward looking statement caution 2010E net cash tax payment guideline unchanged at approx. $385 million to $425 million

strong balance sheet and credit policies Net debt to EBITDA within long-term policy target range of 1.5 to 2.0x Continued strong investment grade credit ratings BBB+/A- Reduced future interest expenses by refinancing $1.7 billion in debt at lower rates of ~5% in 2009 $2.1 billion in debt and foreign exchange hedges (effective interest rate of 8.6%) to be refinanced in 2010/2011 Effective January 2010, dividend reinvestment plan participants receive TELUS non-voting shares issued from treasury at a 3% discount Long-standing commitment to balancing interests of debt and equity holders

dividend policy and payout Based on management confidence in mid-term outlook: Dividend payout guideline revised upward to 55 - 65% of prospective sustainable earnings (from 45 - 55%) Quarterly dividend increased 5.3% to $0.50 per share for July 2, 2010 (from $0.475 cents) TELUS is committed to sustainable dividend growth model

cash flow outlook Dividend is supported by outlook for sustainable FCF Capex intensity moderating June 2011 notes are refinanced at lower rates (albeit with one-time redemption cost) Cash taxes expected to decrease from peak year 2010 levels Restructuring expenses decrease J-curve dilution (e.g. smartphones, large non-ILEC contract implementations) expected to moderate in 2011 Possible spectrum auctions in 2011/2012 New dividend payout ratio consistent with maintaining strong balance sheet and debt policies

2010 annual guidance* 2010 ($B, excl. EPS) guidance $9.8 to $10.1 Revenue $9.8 to $10.1 EBITDA $3.5 to $3.7 EPS $2.90 to $3.30 Capex Approx $1.7 * See forward looking statement caution 2010 consolidated and segmented guidance confirmed

IFRS changeover update Beginning Q1/10, TELUS began preparing Canadian GAAP to IFRS for internal use Starting January 1, 2011 TELUS will prepare and report interim and annual 2011 financial statements The company has completed its initial identification, evaluation and selection of accounting policies necessary to change over to IFRS Fulsome changeover plans and status in section 8.2 in MD&A

Q1/10 summary Positive trends for wireless and wireline results ARPU decline trend improving Strong postpaid subscriber growth Improved cost structure helping EBITDA expansion TELUS TV subscriber growth remains strong Free cash flow growth of 97% Dividend policy and payout increased 2010 guidance confirmed Investments made in wireless and wireline broadband positioning TELUS well for future growth

appendix – free cash flow 2009 Q1 2010 Q1 C$ millions EBITDA 906 940 Capex (474) (311) Net Employee Defined Benefit Plans Expense (Recovery) 4 7 Employer Contributions to Employee Defined Benefit Plans (53) (45) Interest expense paid (includes income tax interest income) (49) (36) Cash Income Taxes and Other (214) (251) Non-cash portion of share-based compensation 13 8 Restructuring payments (net of expense) (1) (49) Donations and securitization fees included in other expense (3) (10) Free Cash Flow (before share-based compensation payment) 129 253 Share Based Compensation Paid (4) (7) Free Cash Flow (per current public guidance methodology) 125 246 Issuance of non-voting shares* 21 Dividends (151) (151) Proceeds from sale of property and other assets (Acquisitions) - 3 Working Capital and Other 12 (42) Funds Available for debt redemption (14) 77 A/R Securitization - (100) Net Issuance (Repayment) of debt 75 28 Increase (Decrease) in cash 61 5 * Non-voting share issuance from treasury for shareholders in the DRIP

appendix – definitions EBITDA: earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization Capital intensity: capital expenditures divided by total revenue Cash flow: EBITDA less capex Free cash flow: EBITDA, adding Restructuring and workforce reduction costs, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, and cash related to Other expenses such as charitable donations and securitization fees Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue TELUS definitions for non-GAAP measures