Europe investor meetings January 2007 Robert McFarlane EVP & Chief Financial Officer

Forward looking statements All dollars in C$ unless otherwise specified 2 This meeting and answers to questions contain forward-looking statements that require assumptions about expected future events including 2007 targets, competition, financing, financial and operating results, and regulation 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 so do not place undue reliance on them. Factors that could cause actual results to differ materially include but are not limited to: competition; capital expenditure levels (including possible spectrum purchases); financing and debt requirements (including share repurchases and debt redemptions); tax matters (including deferral of payment of significant cash taxes); regulatory developments (including local forbearance, local price cap regulation and wireless number portability); process risks (including conversion of legacy systems and billing system integrations); and other risk factors discussed herein and listed from time to time in TELUS’ reports. There are many factors that could cause actual results to differ materially. For a full listing and description of the potential risk factors and assumptions, please refer to the TELUS 2005 annual report and updates in the 2006 quarterly reports (see Section 10 Risks and Risk Management in Management’s discussion and analysis), 2007 targets news release issued on Dec. 14, 2006 and other filings with securities commissions in Canada (sedar.com) and the United States (sec.gov).

 About TELUS 4  Strategy 5  Operational update 10  Financial update 29  Investor considerations 39  Appendix 47 slides starting Table of contents 3

About TELUS  Executing national growth strategy focused on data, IP & wireless  2006 guidance update 1 :  Revenues$8.65 to $8.70B 6 to 7%  EBITDA$3.55 to $3.6B 6 to 9%  EPS (basic) 2 $3.15 to $ to 40%  Capexapprox. $1.625B 20%  Enterprise value: ~$24B (equity ~$18B)  Daily Trading: ~2.4M (Recent 90 day avg.)  Listings: Common: TSX T; non-voting: TSX T.A; NYSE TU  Reporting segments: wireless and wireline targets reflect healthy performance expected in wireless 1 Provided or re-affirmed on December 14, EPS includes $0.42 YTD Q3-06 of unbudgeted positive tax-related adjustments    

Leading the way with a proven strategy Strategic imperatives  Focusing on growth markets of data and wireless  Building national capabilities  Providing integrated solutions  Investing in internal capabilities  Partnering, acquiring and divesting as necessary  Going to market as one team strategic intent… to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move. Consistent strategy and execution 2000 

Strategic journey highlights  purchase of Quebec Tel  purchase of national wireless operator Clearnet  divestiture of non-core assets (real estate and directories)  completion of national IP backbone & fibre network  first in N.A. to launch Next Generation Network, enabling IP based solutions for customers  won national managed data solutions contract for TD Bank  Verizon divested 20.5% ($2.2B) equity interest  #1 or #2 North American wireless operator for past 8 quarters  five year (2010) progressive collective agreement ratified  staged launch of TELUS TV ® in certain western markets  wireless merger into customer facing business units  won landmark Government of Ontario managed network contract valued at $140 million over 5 years

Wireless Jan 2000today 1 PoPs covered (millions)731 Mike (iDEN) (millions)-26 Generation1G3G Wireline Ont/Que cities341 Co-locations294 Customer POPs5904 Fibre lit (km)014,000 PlatformStentorTELUS NetworkCircuit-basedNext Generation (NGN) National transformation 1 as of September 30,

8 87% Wireline 13% 49% Wireline 51% Wireless TELUS infrastructure today

$8.5B Revenue Data and wireless now represent 63% of TELUS revenue $5.7B Wireline local 27% LD 10% Wireline Data 19% Wireless Voice 41% Wireless Data 3% LD 23% Wireline local 49% Wireless 18% 10% Data 1 12 months ending Jun months ending Sep TELUS’ strategic focus on data and wireless

Operational update

 Advance TELUS’ leadership position in the Consumer market  Advance TELUS position in the Business market  Advance TELUS position in the Wholesale market  Drive improvements in productivity and service excellence  Strengthen the spirit of the TELUS team and brand, and develop the best talent in global communications industry 2006 priorities support national growth strategy Continued on strategy execution for benefit of investors 11

TELUS total subscriber connections Connections increased 1 million due to wireless and Internet 12 Wireless High-speed Internet Dial-up Internet Res NALs Bus NALs (millions) Q3-06Q3-05 Q

Total wireless subscribers Postpaid 81% Prepaid 19% Net additions Total subscribers up 14% and strong postpaid mix million total 3.9M 925K Q3-05Q %81% 282K 283K 349K 354K Wireless subscriber results YTD

14 Fostering continued data growth Launched wireless high speed (EVDO)  24+ major urban markets  Cool applications  Music downloads and video games  Watch 15 channels on Mobile TV  Five times faster Wireless data growth opportunity

Industry ARPU comparison $61 $49 $63 $55 $51 TELUS Rogers WirelessBCE Wireless review of operations – wireless Increased usage and data driving positive industry trend usage 15 YTD Q3-05 YTD Q3-06 $51

Wireless data growth opportunity $2.85 $5.11 $6.23 TELUS Rogers Wireless review of operations – wireless TELUS Q3 data ARPU up 79% 16 Q3-05 Q3-06 $4.60

T-mobile USA 2.9% 17 YTD Q3-06 wireless churn low churn relative to global peers Sprint Nextel 2.2% 1.8% Cingular 1.60% Rogers Wireless 1.86% BCE 1.33% TELUSVerizon 1.2% 2.3% Orange France 1.70% T-mobile Germany 1.1% TIM Italy 2.4% KPN Mobile 2.8% Vodafone UK Source: Merrill Lynch Wireless Matrix Q3 2006

TELUS wireless EBITDA & cash flow growth 2000 ¹ 173 (360) ² (288) , ¹ Pro forma acquisition of Clearnet ² EBITDA (excluding restructuring) for 2001 & ,443 1,038 EBITDA ($M) EBITDA less Capex ($M) 1,737 1, , E 4 1,427 ³ Midpoints of 2006 targets. See forward looking statement caution. 4 Midpoint of 2007 targets normalized for pre-tax option expense of $50 million. 2006E 3

Wireless profitability and economic growth review of operations TELUS a North American leader 19 Source: Company Reports, using total revenue TELUS 46% US avg.Other Cdn YTD Q3-06 EBITDA margin42%32% Capex intensity Cash flow yield 35% 11%12%16% 30%

Increasing Canadian industry wireless penetration review of operations 4 to 5 million net additions expected in Canada over 3 years 20 Source: Industry analysts % 2009E* ~70% 2006 (Sep) 54% Penetration: 13.4M ~23M 17.8M Subscribers: * See forward looking statement caution

Exclusive arrangement and investment 21  Amp’d Mobile responsible for marketing, freshest and exclusive entertainment content, and optimized handsets  TELUS responsible for managing sales and distribution, billing, client care, network options and pricing  Targeting 18 to 35 age demographic and lifestyle  Exclusive licensing and service agreement – not a traditional MVNO  Amp’d Mobile is a premium brand with high ARPUs focused on mobile media (not traditional voice) and postpaid  TELUS Ventures investing US $7.5M in Amp’d Mobile, Inc.

Amp’d Is Mobile Media

E EBITDA ($M)Revenue ($M) E 1 21 ~ (22) (29) Non-ILEC (Ontario and Quebec) revenue & EBITDA 1 December 14, 2006 guidance. See forward looking statement caution. Continued focus on profitable, long-term growth in Central Canada 23

1.1 million total Total Internet subscribers High-speed 81% Dial up 19% High-speed Internet subscriber growth 46K 109K High-speed Internet net additions 24 Q3-05Q K 206K Continued strong net addition growth due to effective marketing YTD

Rolling out TELUS TV financial review 25  Offering customers differentiated entertainment  Choice of 200+ digital stations  Customized channel packaging  Interactive programming guide  Video on demand  myTELUS channel  Call display  Operating on ADSL2+ platform Launched in Edmonton, Calgary and Vancouver

26 TELUS TV

Close Incoming call from Kim Smith (604)

Price Cap Regulatory Framework Competitive Intensity Technological Substitution + + Non-ILEC Growth Future Friendly Home Organization Effectiveness + + Strive to hold wireline EBITDA (before restructuring) flat over medium term  = Growth in revenues and EBITDA from wireless business Continued improvements in consolidated results growth opportunities challenges Short-term dilutive wireline 28 Framework for long term growth

Financial update

2006 Consolidated guidance summary $1.5 to $1.55BCapex $1.55 to $1.65BFree cash flow $2.40 to $2.60EPS (basic) 4 EBITDA 3 Revenue $3.5 to $3.6B $8.6 to $8.7B Overall positive revisions to original guidance throughout year 30 Original 2006 guidance 1 Updated 2006 guidance 2 approx. $1.625B $1.6 to $1.65B $3.15 to $3.25 $3.55 to $3.6B $8.65 to $8.70B On track 1 Provided on December 16, Provided or re-affirmed on December 14, Original targets included restructuring & workforce reduction costs of approx. $100M, vs. up to $80M for re-affirmed guidance  4 EPS includes $0.42 YTD Q3-06 of unbudgeted positive tax-related adjustments

2007 Consolidated targets summary approx. $1.75BCapex Revenue$9.175 to 9.275B 2007 targets reflect healthy performance expected in wireless targetschange 8% 6 to 7%   1 Restructuring and workforce reduction costs are estimated to be up to $80 million in 2006 and approximately $50 million in EBITDA normalized for expected 2007 pre-tax option expense of $200 million consolidated ($150 million in wireline and $50 million in wireless). Reported EBITDA in 2007 would be $3.525 to $3.625 billion consolidated, $1.625 to $1.675 billion in wireline, and $1.90 to $1.95 billion in wireless. 3 EPS normalized for $0.40 for expected 2007 cash settlement option expense. Reported EPS in 2007 would be $2.85 to $3.05. Normalized EBITDA 1 $3.725 to 3.825B 2  4 to 7% Normalized EPS$3.25 to  17 to 24%

2007 Wireline targets approx. $1.2B Capex Revenue $4.85 to 4.9B targetschange - 1 to 2%  1 Restructuring and workforce reduction costs are estimated to be up to $80 million in 2006 and approximately $50 million in EBITDA normalized for expected 2007 pre-tax option expense of $200 million consolidated ($150 million in wireline and $50 million in wireless). Reported EBITDA in 2007 would be $3.525 to $3.625 billion consolidated, $1.625 to $1.675 billion in wireline, and $1.90 to $1.95 billion in wireless. Normalized EBITDA 1 $1.775 to 1.825B 2 (1) to (3)% High-speed sub. net addsmore than 135,000 - 

2007 Wireless targets summary approx. $550MCapex Revenue $4.325 to 4.375B targetschange 12 to 13%  1 Restructuring and workforce reduction costs are estimated to be up to $80 million in 2006 and approximately $50 million in EBITDA normalized for expected 2007 pre-tax option expense of $200 million consolidated ($150 million in wireline and $50 million in wireless). Reported EBITDA in 2007 would be $3.525 to $3.625 billion consolidated, $1.625 to $1.675 billion in wireline, and $1.90 to $1.95 billion in wireless. Normalized EBITDA 1 $1.95 to 2.0B 2  12 to 15%  29% Wireless sub. net addsmore than 550,000-

2007 Consolidated revenue targets ($B) 34 Revenue growth of 6 to 7% driven by 12 to 13% wireless and modest wireline growth 2006E E ~ to Midpoint of updated 2006 guidance

2007 Consolidated EBITDA target ($B) 35 Target represents normalized EBITDA growth of 4 to 7% due to 12 to 15% growth in wireless 2006E E reported ~ to Midpoint of updated 2006 guidance EBITDA target normalized for cash settlement option expense of $200M 2007E 2 normalized target to 3.825

2007 EPS ($) 36 1 Midpoint of updated 2006 guidance 2006E E ~ to Reported 2007 EPS down 5 to 11%

2007 EPS continuity 37 Strong normalized EPS growth of 17 to 24% 2006E 1 ~$ ¢ Higher dep. Lower fin. costs Decr. in avg o/s shares EBITDA growth Tax- related adjust.  ~$ E normal. 35 to 55 ¢  9¢9¢   11 ¢ 10 to 15 ¢  2007E $2.85 to ¢  Cash settlement for options 1 Midpoint of updated 2006 guidance $3.25 to E normal.

2007 free cash flow detail ($B) Free Cash Flow expected to remain high 1 Midpoint of updated 2006 guidance 2006E E ~ to 1.55 Free cash flow (2006 definition)

Investor considerations

 Renewed 24 million share repurchase program in Dec  Authorized to repurchase up to 12M common and 12M non-voting (up to 7% of total shares outstanding)  Introducing cash settlement for vested options - mitigates shareholder dilution  Dividend increased by 36% to 37.5 cents per quarter for Jan 1, 2007, consistent with dividend growth approach  Annualized dividend in line with targeted payout ratio guideline of 45 to 55% of sustainable net earnings Annualized dividend now at all time high of $ Return of capital summary

E 2, Dividends Share repurchases $ per share 1 Actual dividend, plus share repurchases for year ended December 31, Strong record of returning capital Annualized dividend, plus share repurchases in 2006 as estimate for See forward looking statement caution. Assumes continuation of share repurchase program

Positive step toward reliance on competitive market forces 42 Recent regulatory development  Forbearance policy announcement by Minister of Industry:  ILEC deregulation test  Residential – ILEC, unaffiliated wireless, and cableco  Business – ILEC plus unaffiliated facilities-based competitor  Winback and promotions restrictions to be eliminated  Geographic forbearance areas reduced (e.g. local exchanges)  Quality of Service indicators reduced  a reduction from 14 to 9 required to be met  Expect to obtain forbearance in major urban ILEC markets in second half of 2007

Cash flow 1 EBITDA Revenue Growth in EPS EBITDA less capital expenditures. See forward looking statement caution Source: Bloomberg and TD Securities data on major global incumbent telecoms 43 Leading global telecom performance #1 top 25% #1 -top 25% #1 top 25% #2 TELUS performing well relative to global telecom peers 2006 top 25% top 50%

Annual Report on Annual Reports  TELUS 2005 AR ranked 1st in world Canadian Institute of Chartered Accountants (CICA)  Best Corporate Governance Disclosure in Canada (December 2006)  2005 Annual Report received Award of Excellence  Corporate Reporting - Communications & Media sector  12 consecutive years of recognition IR Magazine (Canada) awards  2006: Best 2004 annual report & disclosure policy  2005: Best mgmt. communications & web site Dow Jones Sustainability Index  Only North American telco in global index e.Com Report Watch 44 Excellence in disclosure and governance

 Strong revenue growth with high exposure to wireless  EBITDA growth driven by wireless  Continued wireless and Internet subscriber growth  Focus on investment in growth areas  Track record of returning capital to investors  Excellence in reporting, transparency and governance investor considerations summary targets consistent with TELUS growth model

Investor Relations telus.com 46

Appendix 47

Share repurchase programs Total cost ($M) $78 Track record of share repurchases $1,800 1 percentage of 25.5 million share repurchase program Dec. 20, 2004 to Dec. 19, percentage of 24 million share repurchase program Dec 20, 2005 to Dec. 19, 2006 Total Shares (M) % of total program Total $892$ % 1 73% 2 79%

2007 free cash flow detail ($B) Free Cash Flow expected to remain high 2 Expected cash impact due to option cash settlement of approximately $100M midpoint 2006E2007E 2 ~ to normalized Free cash flow (2007 definition 1 ) definition of FCF subtracts cash payments related to Other expenses

E free cash flow detail $1,425 to 1,525 ~(430) ~200 $3,525 to 3, E Free Cash Flow Net Cash Interest Add back: cash settled option expense EBITDA ($M) ~(20)Other 1 : 1 Includes restructuring expense (net of cash payments), net cash taxes, other share based compensation (net of cash payments) and cash payments related to Other expenses 2 Cash settled option payments are tax deductible and reduce treasury share issuance $3,725 to 3,825 EBITDA normalized ~(1,750) Capex Free Cash Flow (before cash settled option pmt.) $1,525 to 1,625 Cash settled options paid 2 (75) to (125)

TELUS definitions for non-GAAP measures 51 Definitions  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 (2006): 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  Free Cash Flow (2007): Consistent with FCF above and subtracting cash payments related to Other expenses such as charitable donations and A/R securitization expense

TELUS Corporation AgencyRatingOutlook DBRSBBB (high)Stable trend S&PBBB+Stable outlook FitchBBB+Stable outlook Moody’sBaa2Under Review for upgrade Solid investment grade Credit rating overview 52

53 Robert G. McFarlane Executive Vice-President & Chief Financial Officer  Appointed TELUS CFO in late 2000 and assumed corporate strategy and M&A responsibilities in 2005  Formerly EVP, CFO and secretary-treasurer of Clearnet Communications Inc. from its 1994 IPO until its acquisition by TELUS.  Vice-chair of Business Council of British Columbia and a member of its Economic Policy Committee. Director and Chair of Audit Committees of Royal & SunAlliance Insurance Company of Canada and Ascalade Communications Inc. Serves on Vancouver Advisory Board of Salvation Army, British Columbia Division.  Bachelor of Commerce (Honours) degree from Queen’s University in 1983 and MBA from Richard Ivey School of Business at University of Western Ontario in 1985.