Robert McFarlane EVP & Chief Financial Officer August 6, 2004 2004 – 2nd quarter review Robert McFarlane EVP & Chief Financial Officer August 6, 2004

Q2 highlights TELUS Mobility TELUS Communications TELUS Consolidated outstanding results across the board excellent subscriber growth & retention record margins and cash flow growth TELUS Communications continued revenue softness excellent customer service levels TELUS Consolidated strong profitability and cash flow growth EPS $0.48 (normalized $0.36 up 71%)

consolidated results significant earnings & free cash flow generation Q2-03 Q2-04 Change Revenue $1.77B $1.87B  5.2% EBITDA1 $717M $785M  9.5% Net Income $73M $172M  136% EPS2 $0.21 $0.48  129% Free Cash Flow3 $66M $230M  250% 1 Incl. restructuring & workforce reduction costs of $0.7M & $3.3M for Q2-04 & Q2-03, respectively. 2 Incl. impacts of tax settlements & related interest of approx. $0.13 & nil in Q2-04 and Q2-03, 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. significant earnings & free cash flow generation

consolidated – EPS continuity Cum. growth $0.48 Q2-04 EPS reported Q2-03 129% $0.21 - Restr. & workforce reduction 64% $0.01 71% Share-based compensation $0.36 EPS normalized $0.22  $(0.13) Income tax settlement 67% normalized quarterly EPS increase of $0.14 or 64%

Mobility segment financial summary  20% 677 564 External Revenue  42% 286 201 EBITDA  $85M 208 123 Cash Flow1 flat 78 Capex Q2-04 Change ($M) Q2-03 1 EBITDA less capex. outstanding results across the board

Wireless subscriber growth Mobility segment Wireless subscriber growth Wireless net additions Total wireless subscribers 431K 375 to 425K Postpaid Prepaid Q2 Q2 82% 18% 114K 103K Q1 Q1 67K 76K Q Actual Q Outlook 3.6M 2003 2004 Q2 net adds up 11% with strong postpaid growth

enhancing wireless performance - churn Mobility segment enhancing wireless performance - churn 3.3 Q2-03 Q2-04 (%) 2.2 2.0 1.4 1.3 1.3 1.3 TELUS Mobility BCE Wireless Rogers Wireless Microcell1 Source: Company reports 1 Microcell Q2-04 results not yet released TELUS maintaining world class churn rate

enhancing wireless performance - ARPU Mobility segment enhancing wireless performance - ARPU TELUS Mobility Rogers Wireless BCE Wireless $56 $47 $48 $59 $50 Microcell1 $39 Q2-03 Q2-04 Source: Company reports 1 Microcell Q2-04 results not yet released TELUS maintaining premium with positive industry trend

high Mobility revenue flow through Mobility segment high Mobility revenue flow through Change 86% EBITDA flow through (% of network revenue)  $99 $626 $526 Network revenue  $85 $286 $201 EBITDA Q2-04 Q2-03 ($M) 19% 42% % $ scale & efficiencies  86% of incremental network revenue flowed to EBITDA in Q2

communications segment financial summary Q2-04 Change ($M) Q2-03  1.7% 1,189 1,209 External Revenue1  3.2% 499 515 EBITDA  20% 231 288 Cash Flow2  18% 268 227 Capex  0.6% 690 694 Opex 1 Normalizing to exclude cumulative asset disposition impacts of $2.8M in Q2-03 & a $10.2M positive regulatory adjustment in Q2-04, revenue declined 2.3%. 2 EBITDA less capex. continued revenue softness affecting results

high-speed Internet subscriber growth Communications segment high-speed Internet subscriber growth High-speed Internet net additions Total Internet subscribers 152K ~125K High Speed Dial-up 67% 33% Q2 Q2 19K 27K Q1 Q1 32K 44K Q Actual Q Outlook 925K 2003 2004 slow Q2 but should achieve 2004 annual target

non-ILEC revenue & EBITDA1 Communications segment non-ILEC revenue & EBITDA1 2004 ($M) 2003 136 131 Q2 Q2 Q2 Q2 (7) Revenue (14) EBITDA 1 Normalized for the 2003 asset disposition. continued focus on revenue quality and up-front costs from large deals impacted Q2 results

improving EBITDA margins1 (%) 2004 2003 42.1 42.0 41.8 41.2 40.4 35.4 Q2 Q2 Q2 Q2 Q2 Q2 Mobility Communications Consolidated 1 Includes restructuring & workforce reduction costs; based on total revenue. strong 6.6 pt Mobility margin expansion drove consolidated margin to 42.1%

Mobility’s share of TELUS’ EBITDA & cash flow 2003 2004 30% 47% Q2 28% 36% Q2 EBITDA EBITDA less capex Mobility generating ~ ½ of consolidated cash flow in Q2

strong consolidated free cash flow ($M) Q2-03 Q2-04 EBITDA1 $717 $785 Capex (306) (346) Cash Restructuring Payments (net of expense) (44) (9) Net Cash Interest (299) (287) Non-Cash Share Based Compensation - 6 Net Cash Tax Recovery (3) 81 Free Cash Flow 66 230 Share Issuance2 (non-public) 21 17 Cash Dividends (44) (48) Acc. Rec. Securitization Program proceeds 31 - Working Capital/Other 84 (86) Cash avail. for debt reduction & pref. redemp. $157 $112 Net change in LTD & Preferred share redemption3 (148) (28) Net Change in Cash $9 $84 1 Includes restructuring & workforce reduction costs. 2 Proceeds from Treasury shares issued under the employee share purchase and option plans. 3 $35.8M of preference & preferred shares were redeemed during Q2-04 (nil in Q2-03).

deleveraging continues 45 to 50% long term 51.9% 55.7% Net Debt : Capital Q2-04 Guidance Q2-03 <2.5X (end of 2004) <2.3X (new target for end of 2004) 2.4X 3.0X Net Debt : EBITDA  Net Debt:EBITDA well ahead of plan – new 2004 guidance

status of Microcell bid TELUS offered to purchase all outstanding publicly traded securities of Microcell Telecommunications on May 17, 2004 Entered confidentiality agreement & commenced diligence in June Offers extended twice – most recently to expire on August 20 Industry Canada & Competition Bureau review well underway TELUS offers outstanding for a total of 85 days, yet still no competing offer TELUS bid fair & reasonable

revised 2004 guidance - Mobility no change 375 to 425K Wireless net adds  $1.05 to 1.10B  $2.675 to 2.725B updated 2004 guidance2 approx. $350M $1.0 to 1.05B $2.65 to 2.7B previous 2004 guidance1 Capex EBITDA Revenue (external) 1 Previously updated May 5, 2004. 2 Excludes any impact from prospective Microcell acquisition.

revised 2004 guidance - Communications  $(30) to (40)M $(20) to (30)M Non-ILEC EBITDA  approx. $950M no change  $525 to 550M updated 2004 guidance approx. $875M $1.925 to 1.975B $550 to 575M $4.7 to 4.8B previous 2004 guidance1 EBITDA Capex Non-ILEC revenue Revenue (external) approx. 125K High-speed net adds 1 Previously updated May 5, 2004.

revised 2004 guidance - consolidated  approx. $1.3B approx. $1.225B Capex  $1.15 to 1.25B  $1.30 to 1.50  $2.975 to 3.075B no change updated 2004 guidance2 $1.13 to 1.23B $1.10 to 1.30 $2.95 to 3.05B $7.45 to 7.55B previous 2004 guidance1 EPS Free Cash Flow EBITDA Revenue  2.3X or less 2.5X or less Net Debt : EBITDA 1 Previously updated May 5, 2004. 2 Excludes any impact from prospective Microcell acquisition.

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