Q TELUS investor conference call Robert McFarlane EVP & Chief Financial Officer Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer August 6, 2010

2 TELUS forward looking statements Today's presentation and answers to questions contain statements about expected future events and financial and operating performance 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 performance 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 and second quarter reports. 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.

3 agenda  Wireless and wireline segment review  Consolidated financial review  Updates  TELUS TV  Refinancing June 2011 notes  2010 guidance  IFRS  Question and answers 3

Q wireless financial results 4 Wireless cash flow up significantly due to lower capex and EBITDA increase ($M)Q2-09Q2-10change Revenue (external)1,1461,2176.2% Operational expenses % Restructuring costs4-(100)% EBITDA % EBITDA margins (total revenue) 42.8%42.7%(0.1) pts Capex18999(48)% EBITDA less capex %       

subscriber results 5 Strong total net adds growth of 12% y/y with higher value postpaid representing 88% of net adds prepaid 18% Wireless subscribers postpaid 82% Postpaid net adds 6.7 million total 5.5M 1.2M Q K 109K Q2-10 Total net adds Q K 124K Q2-10

smartphone subscriber mix 6 Smartphone base increased 65% y/y to 1.4M  Smartphone subs represent 25% of postpaid base compared to 16% a year ago  In Q2, 34% of all smartphone loading new to TELUS  BlackBerries and iPhones continue to dominate smartphone retention loading

data revenue 7 Data growth of 26% driven by continued smartphone adoption and expected to be enhanced further with HSPA + devices Q2-09 $216M Q2-10 $273M $159M Q2-08 BlackBerry Bold

marketing and retention 8 Improved churn reflects improving economic conditions and availability of new 3G+ handsets including the Apple iPhone Q2-09Q2-10change Gross adds (000s) % Churn1.55%1.45% 10 pts COA per gross add$311$342 10% COA expense$125M$142M 14% Retention expense$116M$114M (1.7)% Lifetime revenue$3,781$3,9634.8%      

blended ARPU breakdown 9 Strong data growth with improving trend in overall ARPU down 1.9% y/y compared to 4.4% decline in Q1/10 and 7.7% in Q4/09 Data Q2-10 $57.47 Voice $58.61 Q2-09 % of ARPU Q2-10Q % 80% 76% 24%

TELUS to increase wireless data network speeds* 10 Dual Cell technology consistent with TELUS’ evolution towards long-term evolution  This week, TELUS announced it will be launching HSPA+ Dual Cell technology in select cities  Increasing manufacturer-rated maximum download speeds to up to 42 Mbps when deployed  TELUS only N.A. carrier to successfully test HSPA+ Dual Cell technology and announce deployment  New devices starting with mobile Internet keys expected to be commercially available starting in 2011  Deployment of Dual Cell technology represents small investment and within TELUS’ 2010 capex guidance * See forward looking statement caution

Q wireline financial results 11 EBITDA growth driven by a decline in expenses and restructuring costs offsetting continued revenue decline ($M)Q2-09Q2-10Change Revenue (external)1,2311,181(4.1)% Operational expenses (3.2)% Restructuring costs4919(61)% EBITDA % EBITDA margins (total revenue) 30.1%32.4%2.3 pts Capex368298(19)% EBITDA less capex %       

wireline operating stats 12 Wireline operating stats impacted by competition Q K -43K -12K Q2-09Q2-10 Q K Business* NAL losses Residential* NAL losses * Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction. High-speed Internet net additions Q2-09 3K Q2-10

TELUS TV subscribers 13 TELUS TV net adds up 71% y/y with subscriber base doubling Q K 29K Q2-10 TELUS TV net additions * TELUS TV subscribers* * Includes both TELUS IP TV and TELUS Satellite TV subscribers Q2-10Q K 228K

14 TELUS TV developments 14 Investments in broadband have enabled TELUS to offer differentiated and integrated TV service and applications  In June, TELUS launched Optik TV powered by Microsoft Mediaroom and Optik High-Speed  Optik TV footprint now covers 1.9M households and expanding  This week, TELUS launched Microsoft Xbox 360 to be used to directly access Optik TV including new promotional offer  TELUS customers among first to use Xbox 360 as set top box with Optik TV  Also this week, TELUS launched Remote Recording for Optik TV customers  New feature allows customers to manage PVR Anywhere content using web enabled computer or iPhone

Q consolidated financial results 15 Significant cash flow expansion driven by improved profitability and capex decline ($M excl. EPS)Q2-09Q2-10change Revenue (external)2,3772,3980.9% Operating expenses1,4511, % Restructuring costs5319(64)% EBITDA % EPS % Capex557397(29)% Free cash flow %       

EPS continuity ($) 16 EPS excluding income-tax related adjustments up 25% Excl. Tax Adj. Q2-09 reported Tax Adj. Normalized EBITDA 1 Restr. costs Normalized Financing costs 2 Dep & Amort 1 Normalized EBITDA excludes restructuring and pension costs. 2 Normalized financing costs excludes interest income for Q2/09. Q2-10 reported Lower tax rates & other Excl. Tax Adj Pension costs

breakdown of full time equivalent employees 17 Significant domestic FTE reduction in first half of 2010 YE 2009Q2-10 Change Domestic - telecom 25,75025,000(750) Domestic - Black’s (100) International 8,7008,450(250) Total 35,30034,200(1,100)  International and Black’s FTE decline largely represents Q4 and Q1 seasonality

TELUS refinancing update Completed landmark $1B debt issue in July - $240 million larger than the next non-bank or non-government issue  In July, successfully issued $1B senior unsecured notes  5.05% 10-year notes, maturing July 2020  Proceeds to be used in September to fund partial early redemption of US notes due in June 2011  Redemption price is approx US$640M and estimated payment to terminate associated swaps is approx $313M  Expect Q3 pre-tax charge of $58M for early partial redemption  After-tax impact of 13 cents per share  Benefits include reduced refinancing risk, staggered debt maturity profile and interest expense savings (5% vs 8.5%) 18

update on Cdn GAAP to IFRS transition 19  Transparent status report on key topics and progress against key milestones of changeover plan in MD&A  Expect to quantify impacts on key financial statement line items and other measures in Q3 disclosure on Nov 5  Currently estimate pro forma net income YTD under IFRS approximately the same as under Cdn and US GAAP Comprehensive disclosure in section 8.2 in MD&A

2010 annual guidance* update 20 Earnings guidance for 2010 reconfirmed despite reduced wireline revenue guidance Consolidated2010 guidancechangey/y growth Revenue (external) $9.7 to 9.95B $(100) to $(150)M 1 to 4% EBITDA$3.5 to 3.7Bno changeFlat to 6% EPS – basic 1 $2.90 to 3.30no change(8) to 5% CapexApprox. $1.7Bno change(19)% 1 Normalized EPS y/y growth of 2 to 16%. See appendix. * See forward looking statement caution  Revenue guidance updated to reflect change in wireline revenue guidance

Q summary 21 Strategic investments resulting in improved TELUS 2010 performance as planned  Wireless  ARPU decline trend continuing to improve  Strong wireless subscriber growth and improved churn  Improving trend in revenue and EBITDA growth  Wireline  Continued strong TELUS TV subscriber growth  Improved cost structure generating EBITDA expansion despite legacy revenue declines  Robust free cash flow growth  Earnings guidance for 2010 reconfirmed

appendix – free cash flow 2010 Q Q2 C$ millions EBITDA Capex (557)(397) Net Employee Defined Benefit Plans Expense (Recovery) 5 7 Employer Contributions to Employee Defined Benefit Plans (51) (44) Interest expense paid (includes income tax interest income) (149) (185) Cash Income Taxes and Other (8) (58) Non-cash portion of share-based compensation Restructuring payments (net of expense) 31 (3) Donations and securitization fees included in other expense (11) (4) Free Cash Flow (before share-based compensation payment) Share Based Compensation Paid (4) Free Cash Flow (per current public guidance methodology) (151) (152) Dividends Working Capital and Other 52 (107) Funds Available for debt redemption A/R Securitization 100 Net Issuance (Repayment) of debt (184) (21) Increase (Decrease) in cash (39)(5) Issuance of non-voting shares* - 32 * Non-voting share issuance from treasury for shareholders in the DRIP - Issuance of common shares - 2

appendix – definitions TELUS definitions for non-GAAP measures  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  EPS normalized: growth rates are based on 2010 expected EPS ($2.90 to $3.30) compared with 2009 actual results when excluding 52 cents of positive income tax-related adjustments and a 22 cent loss on early partial redemption of long-term debt