February 12, 2010 Q TELUS investor conference call Darren Entwistle President & CEO Robert McFarlane EVP & Chief Financial Officer

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 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 targets), qualifications and risk factors (including those associated with the deployment and operation of the new national high-speed packet access network and associated introduction of new products, services and systems) referred to in the Management’s discussion and analysis in the 2008 annual report, and in the 2009 quarterly 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. TELUS forward looking statements

 Wireless and wireline segment review  Consolidated financial review  Updates  New TELUS TV developments  Broadband build update  Defined benefit pension assumptions update  2009 summary  Questions and answers  Appendix 3 Agenda

($M) Q4-08Q4-09Change Revenue (external)1,1881,2253.1% Operational expenses % Restructuring costs63n.m. EBITDA492435(12)% Capex236192(19)%  As expected EBITDA impacted by higher retention costs to support smartphone adoption As expected EBITDA impacted by higher retention costs to support smartphone adoption 4  Wireless segment – Q financial results   

19% Wireless subscribers 1 81% Total net additions 6.5 million total 5.3M 1.2M High quality postpaid net adds reflected 89% of subscriber mix compared to 80% a year ago High quality postpaid net adds reflected 89% of subscriber mix compared to 80% a year ago Q K 5 Wireless subscriber results Q K 109K 119K Postpaid Prepaid 1 Opening balances for postpaid and total wireless subscribers for Q4-09 were reduced by 11K to reflect prior period reporting adjustments.

Smartphone subscriber base increased 61% and expected to be a positive factor for future ARPU Smartphone subscriber base increased 61% and expected to be a positive factor for future ARPU 6 Smartphone mix  Smartphone subscribers represent 20% of postpaid base compared to 13% a year ago  Post HSPA network & device launch on November 5:  More than 40% of gross postpaid loading came from smartphones  More than 100% increase in retention subscriber upgrades to smartphones

Data Q4-09 $57.38 Voice $62.16 Q Q4-09Q4-08 % of ARPU Wireless ARPU ARPU lower due to continued voice erosion partially offset by data growth ARPU lower due to continued voice erosion partially offset by data growth % 18% 82% 78%

Data growth of 20% driven by continued smartphone adoption and to be enhanced with HSPA smartphones Data growth of 20% driven by continued smartphone adoption and to be enhanced with HSPA smartphones 8 Q4-08 $203M Wireless data revenue Q4-09 $243M $131M Q4-07 BlackBerry Bold

Q4-08Q4-09Change Gross adds (000s)441431(2.3)% Churn1.62%1.60%(0.02) pts COA per gross add ($) % COA expense ($M)164163(0.6)% Retention expense ($M) %  Increased investments in retention focused on continued smartphone adoption Increased investments in retention focused on continued smartphone adoption 9    Wireless marketing and retention Note: Measurement of costs of acquisition and retention refined in Prior year comparisons restated. 

($M) Q4-08Q4-09Change Revenue (external)1,2661,218(3.8)% Operational expenses % Restructuring costs3274n.m. EBITDA445354(20)% Capital expenditures395322(18)% 10 EBITDA impacted by higher restructuring and pension costs   Wireline segment – Q financial results    1 Excluding defined benefit pension expenses from both periods, operating expenses down 3.2%

($M) Q4-08Q4-09Change EBITDA445354(20)% Defined Benefit pension expense/(recovery) (23)6 Restructuring costs 3274 EBITDA normalized454434(4.4)% 11 Wireline segment – EBITDA normalized   Significant restructuring investment impacted Q4 profitability but expected to lower 2010 cost structure

1.2 million total Internet subscribers High-speed Internet net additions Q4-08Q M 87K 19K 11K 12 High-speed 93% HSIA net adds lower YoY Internet subscribers

TELUS TV net additions 1 Q4-08Q K 33K 13 TTV continues to show strong results with net adds up 120% and total subscriber base up 118% TELUS TV subscribers Q4-08Q K 170K TELUS TV subscribers 1 1 Includes both TELUS IP TV and TELUS Satellite TV subscribers

14 In Q4/09 TELUS TV and Internet loading exceeded residential NAL losses In Q4/09 TELUS TV and Internet loading exceeded residential NAL losses Stabilized residential NAL losses Q K Q2-09Q1-09Q K Q K 44K 31K 20K 34K TELUS TV & high-speed Internet Residential NAL’s

15 Building the future of TELUS TV 15  Microsoft Mediaroom launched Feb. 2 across various B.C. and Alberta communities  PVR Anywhere – record and watch on any connected TV  Multiple TV’s in a home with multiple HD streams  Superior picture quality  Enhanced channel guide with picture in picture display  Instantaneous channel changing  Faster Internet speeds Introducing innovative new features that differentiates against cable-TV Introducing innovative new features that differentiates against cable-TV

16 Broadband build update 16 Continued ramp-up in broadband coverage  Expanded FTTN coverage to > 75% of households in top 48 communities in Western Canada at YE 2009  Greater Vancouver coverage increased to >70% in Q4  Expect coverage of up to 90% of households in top 48 communities in Western Canada by YE 2010  Cost effective upgrade to VDSL2 technology underway  Provides data download speeds of up to 30 Mbps  Enables expanded IPTV coverage and features  Continuing FTTH to new developments and FTTB to MDU’s

($M excluding EPS) Q4-08Q4-09Change Revenue2,4542,443(0.4)% Operating expenses1,4791,5776.6% Restructuring costs3877n.m. EBITDA937789(16)% EPS (46)% Capital Expenditures631514(19)%   Consolidated results in-line with most recent guidance 17  Consolidated – Q financial results   

($M) Q4-08Q4-09Change EBITDA937789(16)% DB pension expense/(recovery) (25)5 Restructuring costs 3877 EBITDA (normalized)950871(8.3)% 18 Consolidated – EBITDA normalized  Normalized EBITDA impacted by lower legacy voice revenues and increased wireless retention costs Normalized EBITDA impacted by lower legacy voice revenues and increased wireless retention costs 

Investing in operational efficiency Increased restructuring costs reflect an accelerated emphasis on operational efficiency initiatives 19 Total restructuring costs ($M) * See forward looking statement caution 2010E*

Improving overall efficiency and cost competitiveness YE 2008YE 2009 Change Total (domestic) 1 27,90025,750(2,150) TELUS International 7,9508, Black’s Photography 850 Total 35,85035,300(550) Breakdown of full time equivalent employees 20   1 Total (domestic) excludes 850 FTE’s from the Black’s Photography acquisition.  

Quarterly domestic FTE reductions Q Q Q3-09Q4-09 Approx. 1, E* 2,150 domestic FTE reduction in 2009 Targeting approx. 1,000 reduction in ,150 domestic FTE reduction in 2009 Targeting approx. 1,000 reduction in 2010 * See forward looking statement caution ,150

($M) Change Salaries, benefits* & employee- related expenses 1,9441,792(7.8)% Other operating expenses 1,4741,4850.7% Subtotal opex 3,4183,277(4.1)% DB pension expense (91)20 Restructuring costs Total operating expenses3,3783,4752.9% 22 Wireline segment – annual operating expenses   Employee-related expenses down 8%   * Excluding defined benefit pension plans

EPS continuity ($)  (0.18)  (0.22)  (0.09)  (0.06)  (0.01) 0.24 Excl. Tax Adj Excl. Tax Adj. 1 Normalized EBITDA excludes restructuring and pension costs. Per guidance, EPS impacted by debt redemption, restructuring and pension costs Per guidance, EPS impacted by debt redemption, restructuring and pension costs Q4/08 reported Q4/09 reported 2009 debt redemption Normalized EBITDA 1 Restr. costs Pension costs Dep & Amort. and other 23 Tax Adj Tax Adj.

TELUS refinancing update  In December, successfully issued $1B senior unsecured notes  5.05% 10 year notes, maturing December 2019  Proceeds used to fund partial redemption of notes due in June 2011  Redeemed US$577M (Cdn$607M) of 8% US$1.925B notes  Paid $315M to terminate associated cross-currency interest rate swaps  As expected, recorded pre-tax charge of $99M for early partial redemption and associated swaps  After-tax impact of $69M or 22 cents per share Completed successful $1B debt issue in December 24

Defined Benefit pension assumptions update E* Discount rate7.25%5.85% Long-term expected return7.25%No change Pension expense ($M)$18$28 Pension funding ($M)$179$143 99% fully funded * See forward looking statement caution

Summary  Invested strategically in 2009 for enhanced competitiveness and future growth  Launched 3G+ wireless network  Expanded wireline broadband reach  Improved organizational cost efficiency through accelerating OEP initiatives to address J-curve dilution and recessionary impacts  Benefits from strategic investments in 2010*  Leverage 3G+ wireless network to accelerate data and roaming growth  Leverage enhanced broadband network and Mediaroom for TV growth  Lower cost structure with estimated EBITDA savings of $135M  Targeting $400M reduction in capital spending  Estimating 50%+ growth in free cash flow due to decrease in capex, despite peak year of cash taxes 26 Expect significant FCF growth in 2010 * See forward looking statement caution

Questions? investor relations telus.com

Appendix  Free cash flow – Q4 and 2010E  2010 targets  2010 corporate priorities  Definitions

2009 Q Q4 C$ millions Appendix – Q4 free cash flow EBITDA Capex (631)(514) Net Employee Defined Benefit Plans Expense (Recovery) (27) 8 Employer Contributions to Employee Defined Benefit Plans (26) (45) Interest expense paid (includes income tax interest income)* (192) (296) Cash Income Taxes and Other (2) 4 Non-cash portion of share-based compensation 14 7 Restructuring payments (net of expense) Donations and securitization fees included in other expense (8) (7) Free Cash Flow (before share-based compensation payment) 95 (3) Share Based Compensation Paid (34) (32) Free Cash Flow (per current public guidance methodology) 61 (35) Purchase of shares for cancellation (NCIB) (6) - Dividends (144) (151) Working Capital and Other (7) 46 Funds Available for debt redemption (96) (140) A/R Securitization Net Issuance (Repayment) of debt Increase (Decrease) in cash (32)7 * Includes debt redemption charge of $99 million. Excluding the impact FCF would increase 4.9% to $64 million.

~(450) 2010E* Net Cash Interest $3,500 to 3,700 EBITDA ($M) ~(80) Other 1 : Free Cash Flow 1 Includes restructuring expense (net of cash payments), share based compensation (net of cash payments) and cash payments related to charitable donations and securitization fees ~(1,700) Capex 865 to 1,065 Net cash tax payment (385) to (425) Cash pension contribution (in excess of expense) ~(115) Free Cash Flow (incl. cash pension contribution) 750 to Appendix – 2010E free cash flow 2009 (513) $3, (2,103) 660 (266) (160) 500 * See forward looking statement caution / Provided December 15, 2009

($B, excl. EPS) 2010 targets*Change Revenue $9.8 to $10.12 to 5% EBITDA $3.5 to $3.70 to 6% EPS 1 $2.90 to $3.303 to 17% Capex Approx $1.7(19)% * See forward looking statement caution / Provided December 15, Appendix targets* 1 EPS change excludes 55 cents of positive income-tax related adjustments and 22 cents for a loss on early partial redemption of long-term debt in 2009.

Appendix TELUS corporate priorities  Capitalize on the full potential of TELUS’ leading wireless and wireline broadband networks  Enhance TELUS’ position in the Small and Medium Business (SMB) market  Deliver on our future friendly brand promise to clients  Continue to improve TELUS’ operational efficiency to effectively compete in the market and fund future growth  Invigorate TELUS Team engagement and continue to drive the philosophy of “Our Customers, Our Business, Our Team, My Responsibility 32 Opportunity to build value from strategic investments made in 2009 Opportunity to build value from strategic investments made in 2009

 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, 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 Appendix – definitions