TELUS investor booklet Merrill Lynch Communications Forum Dallas, Texas March 2005

2 This booklet and answers to questions contain forward- looking statements about expected future events including competition, labour relations developments and financial and operating results that are subject to risks and uncertainties. TELUS’ actual results, performance, or achievement could differ materially from those expressed or implied by such statements. For additional information on potential risk factors, see TELUS’ 2004 Annual Information Form, and other filings with securities commissions in Canada and the United States. TELUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. forward-looking statements all dollars in C$ unless otherwise specified

3 2 nd largest Canadian telco  executing national growth strategy focused on data, IP & wireless from position of financial strength  2004Revenues$7.58B EBITDA 1 $3.09B FCF$1.30B  Enterprise value$20B (~$13B equity)  ListingsTSX: T, T.NV; NYSE: TU  Daily Trading million shares  Operating segmentswireless: TELUS Mobility wireline: TELUS Communications 1 Earnings before interest, taxes, depreciation & amortization, after restructuring & workforce reduction costs 2 Recent 6 month average about TELUS

4 about TELUS Mobility 32.0M: Cdn. PopulationLicensed POPs 30.0M (94%)Network coverage 55 MHz in major marketsSpectrum position only one in Canada (Nextel in US)iDEN Mike network coast to coast 1XCDMA footprint $1.14BEBITDA (2004) $2.81BRevenue (2004) 3.94MSubscribers leading Canadian national wireless provider

5 ILEC: full service in W. Canada and E. Quebec non-ILEC: data & IP for businesses in Central Canada Revenue (2004) $4.77B EBITDA (2004) $1.95B Network access lines 4.8M Internet subs 971K total - 71% hi-speed Fibre IP backbone national about TELUS Communications

6 consistent strategic imperatives 2000  2005  provide integrated solutions  partner, acquire & divest as necessary  invest in internal capabilities  build national capabilities  focus on growth markets of data & wireless  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.

7 build national capabilities – TELUS today

8 focus on data & wireless growth: 28% to 56% $5.7B 43% 18% 10% 6% Other 12ME Q4-04 $7.6B Local Voice Wireless Data 28% 37% 19% 4% Other LD Wireless 12ME Q2-00 Local Voice 23% Data 12% LD TELUS Communications TELUS Communications TELUS Mobility TELUS Mobility consolidated revenue profile evolution

9 consolidated results Change 1 Incl. restructuring & workforce reduction costs of $28M & $53M for 2003 & 2004, respectively 2 Incl. impacts of tax settlements of $0.20 & $0.21in 2003 and 2004, 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  74%$566M$324MNet Income  72% $1.58$0.92EPS 2  6.1%$7.58B$7.15BRevenue  9.8%$3.09M$2.82BEBITDA excellent revenue, profitability & free cash flow growth  54%$1,297M$845MFree Cash Flow 3

TELUS Mobility

11 Canadian subscriber growth accelerating 5.0%4.5%Penetration gain 1.6M1.3MNet additions 32.0MPopulation31.7M 15.0MCdn wireless market13.4M %42.4%Penetration 12ME

12 up to 5 million net adds expected over next 3 years Source: Industry analysts % 2007E 55-59% % 13.4M subs 18-20M subs 15.0M subs Canadian wireless penetration growth prospects

13 TELUS achieving profitable subscriber growth 1 EBITDA less Capital expenditures Sum of reported results for BCE Wireless, Rogers Wireless pro forma Microcell, & TELUS Mobility Source: Company reports EBITDA growth subscriber growth + $800M + 1.5M TELUS Mobility 41% 34% TELUS Mobility + $660M cash flow 1 growth 50% TELUS Mobility Canadian wireless industry 2004

14 net additions net additions up 19% in K K

15 profitable subscriber mix more importantly….industry leading postpaid net add growth of 33% 512K 2004 net add mix 84K postpaid prepaid 84% 431K 2003 net add mix prepaid 25% postpaid 75% 321K 429K 110K 16%

16 Source: Company reports ARPU TELUS maintaining 20% premium to competitors TELUS MobilityRogers Wireless 1 BCE Wireless $57 $45 $48 $60 $48 $ Pro forma Microcell

17 9%11%COA/ Lifetime revenue 1.40%1.46%Blended churn $60ARPU$57 $389COA$ $4,300      $3,900Lifetime revenue Subscriber economics continue to improve profitable subscriber growth strategy

18 Network revenue EBITDA EBITDA margin (network rev.) Capex intensity Cash flow 1 1 EBITDA less capex change $2,184M$2,600M  19% $815M$1,142M  40% 37.3%43.9%  6.6 pts 15.2%12.5%  2.7 pts $456M$788M  73% TELUS Mobility value creation in 2004 TELUS Mobility results contributing significant shareholder value

19 how does TELUS Mobility measure up? Sources: Company Reports; US Statistics - Morgan Stanley 1 Capex as a % of total revenue 2 EBITDA less Capex divided by total revenues 3 Wireless penetration gain divided by # of carriers in market. For TELUS, net adds divided by covered POPs Penetration gain/carrier 3 No. of carriers in market Mkt penetration (cov. POPs) Cash flow yield 2 Capex intensity 1 Annual EBITDA growth rate EBITDA margin 0.6% 5 to 7 58% 12% 20% 17% 32% US Avg % 3 47% 22% 15% 32% 37% Cdn Avg % - 13% 28% 13% 40% TELUS 2004 TELUS Mobility is best-in-class in fundamentally stronger 3 player Canadian wireless industry

20 28% 21% 18% 12% 10% 7% 6% TELUS Verizon Nextel PCS Rogers Cingular T-Mobile USA 2004 cash flow yield - North America Source: Company reports EBITDA less Capex / Total Revenue cash flow yield of 28% in 2004 was best in class

21 data revenue expanding exponentially Data revenue growth driven by expanding number of applications text & picture messaging mobile browser downloads mobile computing & other applications RIM wireless Internet (1X cards) wireless data business & consumer

22 (1) to 13%$350 to 400MCapex  18 to 23% change EBITDA Revenue 2005 targets $1.35 to 1.4B $3.2 to 3.25B  14 to 16% 2005 targets reflect continuing profitability increases 2005 Mobility targets summary  (17) to (7)% 425 to 475KWireless net adds

23 TELUS Mobility EBITDA & cash flow growth 60% EBITDA CAGR over five years to Pro forma acquisition of Clearnet 2 EBITDA (excluding restructuring) for 2001 & Mid-point of 2005 targets announced December 17, 2004 (360) , (288) 75 EBITDA EBITDA less capex ($M) E 3 ~1,375 ~1,000

TELUS in 2005

25  Enhance our leadership position in wireless  Leverage our investments in high speed Internet through Future Friendly home services  Accelerate our wireline performance in Ontario & Quebec  Grow brand value through superior customer experience (via leading IP solutions and improved customer care)  Drive continual improvements in productivity  Reach a new collective agreement corporate priorities for priorities entirely consistent with 2004

26 (1) to 6%$1.3 to 1.4BCapex  4 to 17% 2 $1.65 to 1.85EPS  4 to 7% change EBITDA 1 Revenue 2005 targets $3.2 to 3.3B $7.9 to 8.0B 1 Includes ~$100M in restructuring & workforce reduction costs 2 20 to 35% normalized for $0.21 favourable impacts for the settlement of tax matters in 2004 Free Cash Flow $1.2 to 1.3B  4 to 6% 2005 targets reflect solid revenue & earnings growth 2005 consolidated targets summary (8)% to flat

27  Normal Course Issuer Bid for 25.5M TELUS shares  effective Dec 20, 2004  2.2M shares repurchased for $78M in Q  Quarterly dividend  33% to 20¢ for Jan. 1, 2005  New dividend payout ratio guideline of 45 to 55% of net earnings  Measures to restrict issue of TELUS shares  Liquidity  26% due to 73.5M share offering by Verizon shareholder value enhancing initiatives - update balanced approach to stakeholder interests

28  TELUS Mobility  top performing wireless carrier in N. America  industry consolidation benefits without integration risks  TELUS Communications  strong performance relative to other telcos  improving results driven by stronger data & non-ILEC  high exposure to wireless  strong EPS growth  free cash flow of >$1B, resulting in attractive FCF yield  material debt & leverage reduction – exceeded targets  shareholder value focus reflected by recent initiatives leading the way into 2005 with positive outlook why invest in TELUS

investor relations telus.com

Appendix

31  Price changes continue to roll through the base  per minute billing - Jul-02  evening & weekend clock change - Jul-03  select calling features - Jul-04  minutes of use up 21% in 2003, 10% in 2004  expanding data offering (intercarrier SMS, 1X & RIM)  roaming/resale agreements  Verizon’s preferred Canadian PCS roaming partner  iDEN roaming with Nextel in U.S. ARPU drivers Mobility segment

32  3 year contracts  improved coverage  significant improvement in drop call rate  expanded national footprint  better phones  grandfathered rate plans  dedicated retention team  excellent customer care levels Churn control & retention drivers Mobility segment

33  excellent spectrum position - minimal cell splitting  CDMA/1X roaming/resale agreements in Central & Eastern Canada  Network digitization largely complete  Mike (iDEN) network largely built out  1X network implemented, voice capacity improvement Capex drivers Mobility segment

34 e.Com Report Watch excellence in investor communications  ranked 9 th globally by Corporate Essentials, “Annual Report of Annual Reports”  1 st in Canada; 2 nd in North America  ranked #1 in world for “strategy, objectives & outlook”  10 years of disclosure excellence in corporate reporting awards by Canadian Institute of Chartered Accountants  2003 annual report rated best in Canada  IR website ranked 3 rd among global telcos by IR Web Report  member of DJSI, only N. American telco

35 excellence in …  recognized as Canada’s Best Environmental Corporate Citizen  only Canadian company to receive BEST award (ranked 6 th globally) for employee learning and development  Illuminati Award for Best Leadership Development Program  long time “Imagine” company  focused on support of education, health & sports and arts