1. 1 2005 guidance update & 2006 targets December 16, 2005 Robert McFarlane EVP & Chief Financial Officer

2. 2 all dollars in C$ unless otherwise specified forward-looking statements This presentation and answers to questions contain forward-looking statements that require assumptions about expected future events including competition, financing, financial and operating results and targets that are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward looking statements will not prove to be accurate. Factors that could cause actual results to differ materially include but are not limited to: economic growth; competition; financing and debt requirements (including share repurchases); tax matters; human resources (including the ongoing impact of introducing the new collective agreement and return to work on operating expenses, customer service and revenue); business integrations; pension performance, funding and expenses; technology (including reliance on systems and information technology); regulatory developments; process risks (including conversion of legacy systems); health and safety; litigation; business continuity events (including man-made and natural threats); and other risk factors discussed herein and listed from time to time in TELUS’ reports. For additional information on potential risk factors and assumptions, see TELUS’ 2004 Annual Report, updates in 2005 quarterly interim reports and other filings with securities commissions in Canada and the United States.

3. 3  2005 guidance update  Recent developments  2006 targets  2006 priorities  Summary  Questions and answers Agenda

4. 4 Changes reflect end of labour disruption, updated estimates for restructuring costs and continued strong wireless growth 2005 guidance changes 1 Provided November 10, 2005. 2 Provided December 16, 2005 3 Updated guidance includes estimated restructuring & workforce reduction costs of approx. $50M Wireless $625 to 650M Non-ILEC revenue updated 2005 guidance 2 Wireline EBITDA 3 previous 2005 guidance 1 $3.250 to 3.325B $625 to 635M $3.275 to 3.325B Consolidated > 525K Wireless net adds> 550K approx. 65K High speed net adds>65K $1.800 to 1.875B EBITDA 3 $1.840 to 1.865B

5. 5 2005 wireless performance well ahead of original targets 2005 wireless guidance summary 1 Provided December 17, 2004 2 Provided December 16, 2005 425 to 475KWireless Net Adds $350 to 400MCapex updated 2005 guidance 2 EBITDA Revenue original 2005 targets 1 $1.35 to $1.40B $3.2 to $3.25B >550K approx. $400M $1.425 to $1.450B $3.275 to 3.3B On track

6. 6 Strong execution against original 2005 targets shows resilience of TELUS wireline business 2005 wireline guidance summary 1 Provided December 17, 2004 2 Provided December 16, 2005 3 Original target Included restructuring & workforce reduction costs of approx. $100M, vs. approx. $50M for updated guidance $0 to $10MNon-ILEC EBITDA $1.85 to $1.90BEBITDA 3 updated 2005 guidance 2 Non-ILEC Revenue Revenue original 2005 targets 1 $600 to $650M $4.7 to $4.75B Capex High-Speed Net Adds $950M to $1.0B approx. 100K $15 to 20M $1.84 to $1.865B $625 to 635M $4.825 to $4.85B approx. $900M >65K ~  On track

7. 7 2005 outlook ahead of original targets reflecting continued operating strength in spite of 4 month labour disruption 2005 consolidated guidance summary 1 Provided on December 17, 2004 2 Updated or reaffirmed December 16, 2005 3 Original target included restructuring & workforce reduction costs of approx. $100M, vs. approx. $50M for updated guidance $1.2 to 1.3BFree Cash Flow $1.3 to 1.4BCapex $1.65 to 1.85EPS updated 2005 guidance 2 EBITDA 3 Revenue original 2005 targets 1 $3.2 to 3.3B $7.9 to 8.0B $1.4 to 1.5B approx. $1.3B $1.90 to 2.00 $3.275 to 3.325B $8.1 to 8.15B On track

8. 8 corporate priorities for 2005  Enhance our leadership position in wireless  Accelerate wireline performance in ON & PQ  Reach a new collective agreement  Grow brand value through superior customer experience  Leverage investments in high speed Internet  Drive continual improvements in productivity TTV phased launch underway ongoing ongoing

9. 9 Wireless-wireline merger rationale Separate wireless and wireline reporting to continue  Advance our industry leading strategy  Achieve meaningful commercial differentiation in the market  Capitalize technology convergence of wireless and wireline  Drive continued operating efficiency and effectiveness One team, united behind one strategy, defined by one brand recent developments

10. 10 TELUS executive leadership team structure DARREN ENTWISTLE President & CEO KAREN RADFORD EVP & President Partner Solutions & TELUS Quebec JOE NATALE EVP & President Business Solutions JOHN WATSON EVP & President Consumer Solutions EROS SPADOTTO EVP Technology Strategy JANET YALE EVP Corporate Affairs KEVIN SALVADORI EVP Business Transformation & CIO JOE GRECH EVP Network Planning & Operations ROBERT MCFARLANE EVP & Chief Financial Officer JUDY SHUTTLEWORTH EVP Human Resources TELUS Mobility merged into customer facing structure

11. 2006 targets

12. 12  3.1% GDP growth consistent with Conference Board of Cda  Increased competitive activity from cable-TV, VoIP players  Wireless industry penetration growth similar to 2005  Assume price cap regulatory regime extended for all of 2006  $100M of restr. & workforce reduction costs (~$50M in 2005)  Pension expense increase of ~$40M in 2006 (Discount rate 5.25% vs. 6.0% in 2005) 2006 target considerations (1 of 2)

13. 13  Effective tax rate of approximately 35%  Avg. shares outstanding of 340 to 350M shares depending on NCIB and option exercises  new Normal Course Issuer Bid (NCIB) announced today  Review of tax position indicates cash tax payments expected to be deferred to 2008, from 2007 2006 target considerations (2 of 2)

14. 14 2006 wireless revenue target ($B) Wireless revenue growth of 15 to 16% driven by continued subscriber & ARPU growth 2005E 1 2006E ~3.288 3.775 to 3.825 1 Midpoint of 2005 guidance

15. 15 2006 wireless subscriber net additions target Wireless net adds expected to remain strong at >550K 2005E2006E >4.49M >5.04M >550K net adds

16. 16 2006 wireless EBITDA target ($B) EBITDA growth of 18 to 22% driven by strong revenue growth and disciplined cost containment 2005E 1 2006E ~1.438 1.70 to 1.75 1 Midpoint of 2005 guidance

17. 17 2006 wireless capex target Wireless capex intensity at best in class 12% level leading to continued strong growth in simple cash flow approx. $450Mapprox. $400MCapex $3.775 to 3.825BRevenue$3.275 to 3.30B approx. 12%Capex intensity approx. 12% 2006E2005E

18. 18 wireless cash flow yield trend ~12% Capex intensity 45 to 46%EBITDA margin 1 ~44% 33 to 34%Cash flow yield~32% 2006E20042005E Strong margins and low capex intensity driving continued premium cash flow yield in 2006 12.5% 40.3% 27.8% 1 based on total revenue

19. 19 Source: Company reports, Morgan Stanley estimates TELUSVerizon Wireless T-Mobile USA wireless cash flow yield – N.A. peer comparison 2006E wireless EBITDA less capex / total revenue CingularBCERogersSprint Nextel 33 to 34% 30% 26% 20% 15% 9% 8% Premium wireless cash flow yield best in North America

20. 20 Wireless expected to represent 49% and 63% of consolidated EBITDA and cash flow profitability profile - wireless as % of consolidated EBITDA less capex 2006E $2.0 to $2.05B wireline 37% wireless 63% EBITDA 2006E $3.5 to 3.6B wireline 51% wireless 49%

21. 21 2006 wireline revenue target ($B) Flat to 1% revenue growth reflects resilience in face of increasing competitive intensity 2005E 1 2006E ~4.838 4.825 to 4.875 1 Midpoint of 2005 guidance

22. 22 2006 wireline EBITDA target ($B) Wireline EBITDA (before restructuring) flat to up $50M 2005E 1 2006E 2 ~1.903 1.9 to 1.95 2005E 1 2006E 2 ~1.853 1.8 to 1.85 wireline EBITDA after restructuring wireline EBITDA before restructuring 1 Midpoint of 2005 guidance. Restructuring & workforce reduction costs of approx. $50M in 2005 2 Restructuring & workforce reduction costs of approx. $100M in 2006

23. 23 2006 non-ILEC wireline revenue & EBITDA target Continued focus on profitable, long term growth in C. Canada 2005E 1 2006E ~630 650 to 700 2005E 1 2006E ~18 25 to 40 EBITDA ($M)Revenue ($M) 1 Midpoint of 2005 guidance

24. 24 2006 high-speed Internet subscriber target >100K target reflects regaining fair share of net adds in maturing market 2005E2006E >755K >855K >100K net adds >65K net adds

25. 25 2006 wireline capex target ($B) 2006 capex reflects catch-up on deferred capex from 2005 2005E2006E 1.05 to 1.1 ~0.9

26. 26 2006 revenue & EBITDA targets 6 to 7% revenue & 6 to 9% EBITDA growth driven by wireless 2005E 1 2006E ~8.1 8.6 to 8.7 TELUS Consolidated EBITDA ($B)Revenue ($B) 2004 7.6 2005E 1 2006E ~3.3 3.5 to 3.6 2004 3.1 1 Midpoint of 2005 guidance 2003 7.1 2003 2.8

27. 27 EPS target ($) Earnings growth of 23 to 33% driven by operating profitability growth & lower financing costs 2005E 1 2006E ~1.95 2.40 to 2.60 TELUS Consolidated 2004 1.58 1 Midpoint of 2005 guidance 2003 0.92

28. 28 2006 EPS continuity Normalized EPS growth of 17 to 27% 2005E 1 2006E  32 to 50¢ $2.40 to 2.60 TELUS Consolidated ~$2.05 ~$1.95  17¢ non-recurring  9¢  21¢  9¢  7¢  0 to 7¢ 2005E normal. redemption & litigation tax 1 Midpoint of 2005 guidance.  ~22¢ labour disrup. EBITDA Growth interest expense restruct. costs otherpension expense

29. 29 2006 free cash flow target ($B) Increased EBITDA and lower financing costs lead to significant FCF growth TELUS Consolidated 2005E 1 2006E ~1.45 1.55 to 1.65 2004 1.30 1 Midpoint of 2005 guidance 2003 0.84

30. 30 2006 targets build upon track record of outstanding growth 2006 consolidated targets summary 1 Including restructuring & workforce reduction costs of approx. $50M in 2005 and $100M in 2006 $1.55 to 1.65BFree Cash Flow $1.50 to 1.55BCapex $2.40 to 2.60EPS change EBITDA 1 Revenue 2006 targets $3.5 to 3.6B $8.6 to 8.7B TELUS consolidated  7 to 14%  15 to 19%  23 to 33%  6 to 9%  6 to 7%

31. 31 Repurchased 84% of shares permitted under current NCIB return of capital - share buy back update No. of Shares Repurchased Total Authorized % Repurchased vs. Auth. Since Inception Common1.8M10.2M14.0M73% Non-Voting1.8M11.3M11.5M98% Total3.6M21.5M25.5M84% Total cost$159M$901M TELUS consolidated Q4-05 1 Since inception 1 Repurchases up to and including December 15, 2005

32. 32 2.5% 6.4% 5.1% 4.8% 2.3% 5.8% 1.1% 0.4% TELUSMTSAT&T (SBC) VerizonBCEAlltel 2005 return of capital - comparables TELUS best in class shareholder return of capital in 2005 Dividend Share Repurchase Source: Company reports and filings. Note: Share repurchases based on LTM. Dividend yield based on current annualized dividend. 8.3% 6.4% 6.2% 5.1% 4.8% 2.7% Bellsouth 4.2%

33. 33  Completed $1.6B early debt redemption on Dec. 1, 2005  Announced in November 38% quarterly dividend increase to 27.5 cents per share, for Jan. 1, 2006 payment  Consistent with dividend payout ratio guideline of 45 to 55% of sustainable net earnings  New 24 million share NCIB effective Dec. 20, 2005  Authorized to repurchase up to 12M common and 12M non- voting (up to 7.1% of total shares outstanding) return of capital summary TELUS has strong track record for returning capital to investors TELUS Consolidated

34. 34  Advance TELUS’ leadership position in the Consumer, Business and Wholesale markets  Drive improvements in productivity and service excellence  Strengthen the spirit of the TELUS team and the brand  Develop the best talent in global communications industry Key priorities for 2006 Focused on executing our growth strategy

35. 35 Summary  2005 outlook revised for non-ILEC revenue, wireline and Consolidated EBITDA, and increased high speed Internet and wireless net additions 2006 targets consistent with TELUS growth model  2006 targets reflect:  Strong revenue growth  EBITDA growth driven by Mobility  Significant EPS growth driven by strong EBITDA growth, and lower financing and tax costs  Significant FCF generation  Continued subscriber growth

36. 36 2006 targets call questions? investor relations 1-800-667-4871 TELUS.com ir@telus.com

37. 37 appendix

38. 38  EBITDA: Earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization  Capital intensity: capex divided by total revenue  Cash flow: EBITDA less capex  Free Cash Flow: 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 definitions appendix TELUS definitions for non-GAAP measures

39. 39 $1,550 to 1,650 ~(500) (1,500 to 1,550) $3,500 to 3,600 2006E Free Cash Flow Net Cash Interest Capex EBITDA ($M) 50 to 100 Other 1 : free cash flow TELUS consolidated Continued strong free cash flow generation 1 Restructuring expense (net of cash payments), non-cash share based compensation, & net cash tax recoveries