Robert McFarlane EVP & Chief Financial Officer January 11, 2005 Entertainment, Media & Telecommunications Conference

2 forward-looking statement This presentation and answers to questions contain forward- looking statements about expected future events including a normal course issuer bid, dividends 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. all dollars in Cdn$ unless otherwise specified

3  Executing national growth strategy focused on data, IP & wireless  2 nd largest Canadian telco  2004 guidance 1 : Revenues$7.5 to 7.575B EBITDA 2 $3.05 to 3.1B FCF$1.25 to 1.3B  Dividend per share20¢ per quarter  Enterprise value:$19B (~70% equity)  Average daily trading:1.5M  Listings:TSX: T, T.NV; NYSE: TU  Operating segments:wireline: TELUS Communications wireless: TELUS Mobility 1 Per update on December 17, EBITDA defined as earnings before interest, taxes, depreciation & amortization, after restructuring and workforce reduction costs. about TELUS

4 ILEC: full service in W. Canada and E. Quebec non-ILEC: data & IP for businesses in Central Canada 2004 guidance 1 : Revenue $4.725 to 4.775B Non-ILEC Revenue $545 to 555M EBITDA $1.925 to 1.95B Total Internet Subscribers~975K (687K high-speed) Network Access Lines4.8M Fibre IP backbonenational Next Generation Network (NGN) 1 Per guidance as at December 17, TELUS Communications segment

5 31.8M: Cdn. PopulationLicensed POPs 29.7M (93% of POPs)Network coverage 55 MHz in major markets Spectrum position only one in Canada (Nextel in US) iDEN Mike network coast to coast 1X (CDMA) National footprint $1.125 to 1.15BEBITDA $2.775 to 2.8BRevenue 3.85 to 3.9M Subscribers leading Canadian national wireless provider 1 Per guidance as at December 17, TELUS Mobility segment 2004 guidance 1 :

6 strategic imperatives  Go to market as one team  Provide integrated solutions  Partner, acquire & divest as necessary  Invest in internal capabilities  Build national capabilities  Focus on growth markets consistent strategy

7 build national capabilities TELUS’ infrastructure

8 build national capabilities TELUS’ infrastructure

9 delivering growth focused on data & wireless $5.7B 43% 18% 10% 6% Other 12ME Q3-04 $7.4B Local Voice Wireless Data 29% 36% 19% 4% Other LD Wireless 12ME Q2-00 Local Voice 23% Data 12% LD TELUS Communications TELUS Communications TELUS Mobility TELUS Mobility focus on growth markets consolidated revenue profile

10 focus on growth markets - cash flow profile  Mobility as % of total consolidated Mobility expected to represent >50% of TELUS’ consolidated cash flow in % 29% 42% 2004E E 44% 29% 53% 2004E E EBITDA EBITDA less capex

TELUS Communications

12 0 to 5%$950 to 1,000MCapex (5) to (2)% change 1 EBITDA (after restruc.) 2 Revenue 2005 targets $1.85 to 1.9B $4.7 to 4.75B 1 Variance calculated based on midpoint of latest 2004 guidance 2 Includes $100M in restructuring & workforce reduction costs (1) to 0% 2005 targets reflect competitive wireline markets 2005 Communications targets summary  9 to 18%non-ILEC Revenue$600 to 650M $0 to 10Mnon-ILEC EBITDA  23 to 33M

13 EBITDA (before restructuring) EBITDA essentially flat before restructuring costs to to E2005E EBITDA (before restructuring costs 1, $B) Communications segment 1 Excludes restructuring & workforce reduction costs of $50M in 2004E & $100M in 2005E

to E 600 to E 9 to 18% non-ILEC growth in Central Canada focused on recurring data and IP revenues in the business market Communications segment non-ILEC revenue target Revenue ($M)

15 (20) to (25) (29) E 2005E targeting positive non-ILEC EBITDA in 2005 non-ILEC EBITDA target Communications segment 0 to (107) EBITDA ($M)

~ E ~100 Subscriber base Net additions (000s) ~125 ~ E Communications segment 100K target reflects obtaining continuing majority share of net adds in a maturing market 2005E Total Internet subs. High Speed Dial-up > 1M high-speed Internet net additions target

17  Geographic expansion  Refocused on high quality, recurring, IP-based revenues in non- ILEC to leverage Next Generation Network (NGN) leadership  Bundling & price increases  bundling strategy protects legacy revenues  LD plan administration charge increased  “Future Friendly” home  continuing high-speed Internet growth  Home Networking and HomeSitter TM  IPTV over ADSL trials since April 2004  other new applications to come revitalizing wireline growth Communications segment business: consumer:

18 TV Ad – Future Friendly Home

TELUS Mobility

20  0 to 14%$350 to 400MCapex  19 to 23% change EBITDA Revenue 2005 targets $1.35 to 1.4B $3.2 to 3.25B  15 to 17% 2005 targets reflect continuing profitability increases 2005 Mobility targets summary

21 Mobility segment 15 to 17% revenue growth driven by continued strong subscriber growth & premium ARPU to to E2005E Revenue ($B) revenue target

22 (000s) 3, to 475 3,850 to 3,900 Subscriber base Net additions 2005E E 4,300 to 4,350 Target 425 to 475K net adds 2005 net additions consistent with 2004E Mobility segment subscriber net additions target

23 19 to 23% EBITDA growth driven by strong revenue growth and continued cost containment Mobility segment EBITDA target to to E2005E EBITDA ($B)

24  $0 to 50M$350 to 400MCapex change2005 target 2004E 2005E ~13% 11 to 12% Capex intensity 1 1 Ratio of capex to total revenues Mobility cash flow increasing by 27% to ~$1B Mobility segment capex target

25 TELUS Mobility EBITDA & cash flow growth 51% compounded EBITDA growth rate over five years 1 Pro forma acquisition of Clearnet. 2 EBITDA (excluding restructuring) for 2001 & Per guidance mid-points announced December 17, ~1, E 3 (360) 455 (288) 75 EBITDA EBITDA less capex ($M) Mobility segment ~ E 3 ~1,375 ~1,000

26 11 to 12%Capex intensity 2 EBITDA margin (total revenue) 42 to 43% Cash flow yield 3 ~31% 2005E 1 Per guidance as at December 17, Capex as % of total revenue 3 EBITDA less capex, as a % of total revenue ~13% ~40% ~28% 2004E 1 operating cash flow yield Attractive wireless cash flow yield Mobility segment

27 31% 24% 19% 22% 15% 6% TELUS Nextel Rogers Verizon PCS Cingular 1 North America comparison – cash flow yield 1 Includes AT&T Wireless Source: Morgan Stanley estimates EBITDA less Capex / Total Revenue targeted cash flow yield of 31% in 2005 is best in class Mobility segment (6)% T-Mobile

28 4 million net adds expected over next 3 years Source: Industry analysts % 2007E 55-59% Q % 13.4M subs 18-19M subs 14.4M subs Canadian wireless penetration growth prospects Mobility segment

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

30 TV Ad – Wireless

TELUS Consolidated

32  0 to 8%$1.3 to 1.4BCapex  8 to 21%$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 Free Cash Flow $1.2 to 1.3B  5 to 6% 2005 targets reflect solid revenue & earnings growth 2005 consolidated targets summary -

E ($M) 20 Add back: option & RSU expense less RSU cash paid (10) Net cash income tax ~(625) Net cash interest paid (1,300 to 1,400) Capital expenditures $3,200 to 3,300 EBITDA (after rest. & workforce reduction costs) ~1,200 to 1,300 Free Cash Flow (per public guidance methodology) (35) Cash restructuring pmts (in excess of 2005 expense) free cash flow generation remains strong 2005 consolidated targets – Free Cash Flow

34 <2.2x2.2x2.7x3.3xNet Debt : EBITDA 53.7% % Sept Net Debt : Capital Long-term Policy to 50% 57.1% Current leverage within long-term policy 2005 consolidated targets – leverage

35  quarterly dividend  33% to 20¢ for Jan. 1, 2005  new dividend payout ratio guideline of 45 to 55% of net earnings  Normal Course Issuer Bid for 25.5M TELUS shares  effective Dec 20, 2004  purchased 2.2M shares in December for $78M  measures to restrict issue of TELUS shares  Verizon transaction increased liquidity recent shareholder value enhancing initiatives balanced approach to stakeholder interests

36  Enhance our leadership position in wireless  Grow brand value through superior customer experience (via leading IP services and customer care)  Embrace continual improvement in productivity  Leverage our investments in high speed Internet through Future Friendly home services  Accelerate non-ILEC performance in Central Canada  Reach a new collective agreement that reflects competitive industry corporate priorities for priorities consistent with 2004

37 framework for medium term growth Regulatory Framework Technology Substitution Competitive Intensity + + Non-ILEC Growth Future Friendly Home Organization Effective- ness + + Tip the scales and strive to hold EBITDA (before restructuring) flat over medium term for wireline business  = Growth in revenues and EBITDA from large exposure in wireless business Continued improvements in consolidated results Wireline Growth Opportunities _________Risks_________ Short-term dilutive

38 e.Com Report Watch  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, Canadian Investor Relations Institute and Toronto Society of Financial Analysts.  2003 annual report rated best in Canada  IR website ranked 3rd among global telcos by IR Web Report  member of DJSI for 4 consecutive years – only N. American telco  recognized as Canada’s Best Environmental Corporate Citizen disclosure TELUS

39  great exposure to wireless drives consolidated growth  full suite of wireline & wireless product/service offerings provides competitive advantage  strong EPS growth  continued strong cash flows and attractive FCF yield  strong balance sheet with continued de-leveraging to boost future earnings growth  shareholder value focus reflected by recent initiatives to increase return of capital to shareholders why invest in TELUS?

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