Robert McFarlane EVP & Chief Financial Officer September 16, Telecom & Cable Debt Conference

2 This presentation and answers to questions contain forward- looking statements about expected future events 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 including those associated with the potential completion of the Microcell bid, see TELUS’ Annual Information Form, the Offers to Purchase and Circular, 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 C$ unless otherwise specified. forward-looking statement

3  Executing national growth strategy focused on data, IP & wireless from position of financial strength  2 nd largest Canadian telco  2004E 1 :Revenues$7.45 to 7.55B EBITDA 2 $2.975 to 3.075B FCF$1.15 to 1.25B  Enterprise value:$16.5B ($7.2B debt - book value)  Listings:TSX: T, T.A; NYSE: TU  Operating segments:wireline: TELUS Communications wireless: TELUS Mobility 1 Updated guidance on August 6, 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 Revenue (2004E) 1 $4.7 to 4.8B EBITDA (2004E) 1 $1.925 to 1.975B Network Access Lines4.8M Total Internet Subscribers925K (624K high-speed) Fibre IP backbonenational 1 Updated guidance on August 6, 2004 TELUS Communications segment

5 31.8M: Cdn. PopulationLicensed POPs 29.7M (93% of POPs)Network coverage best in CanadaSpectrum position only one in Canada (Nextel in US)iDEN Mike network coast to coast 1X (CDMA)National footprint $1.05 to 1.1BEBITDA (2004E) 1 $2.675 to 2.725BRevenue (2004E) 1 3.6MSubscribers leading Canadian national wireless provider 1 Updated guidance on August 6, 2004 TELUS Mobility segment

6  65%  $340M  68%$274M$163MNet Income $0.76$0.46EPS 2  4.4%$3.67B$3.51BRevenue  9.1%$1.51B$1.38BEBITDA 1 YTD Q2-04change YTD Q After restructuring & workforce reduction costs of $17M & $ 10M for YTD Q2-04 & YTD Q2-03, respectively. 2 Incl. impacts of tax settlements & related interest of $0.17 & $0.15 in YTD Q2-04 & YTD Q2-03, respectively significant earnings & free cash flow generation $673M$333MFree Cash Flow 3 3 Defined as 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 YTD review - consolidated

7 Voice focused balanced growth $5.7B 43% 18% 10% 6% Other 12ME Q2-04 $7.3B Local Voice Wireless Data 29% 36% 19% 4% Other LD Wireless 12ME Q2-00 Local Voice 23% Data 13% LD TELUS Communications TELUS Communications TELUS Mobility TELUS Mobility Consolidated revenue profile evolution

8 33% of TELUS EBITDA now coming from Mobility $2.2B 83% 17% 12ME Q2-04 $2.9B 12ME Q2-00 TELUS Communications TELUS Communications TELUS Mobility TELUS Mobility Consolidated EBITDA profile evolution 67% 33%

9 significant cash flow generation from Mobility $1.3B 82% 18% 12ME Q2-04 $1.5B 12ME Q2-00 TELUS Communications TELUS Communications TELUS Mobility TELUS Mobility Consolidated cash flow 1 profile evolution 60% 40% EBITDA less Capex 1 EBITDA less Capex

guidance implies significant improvement in profitability, cash flow & leverage approx. 1.3B$1.25BCapex $1.15B to 1.25B $1.30 to 1.50 $2.975 to 3.075B $7.45 to 7.55B current 2004 guidance 1 $845M $0.92 $2.82B $7.15B 2003 actuals EPS Free Cash Flow EBITDA Revenue < 2.3x2.6xNet Debt : EBITDA change  0.3x  4%  36 to 48%  41 to 63%  6 to 9%  4 to 6% 1 Updated guidance provided on August 6, financial outlook - consolidated

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

corporate priorities  Reaching a collective agreement  Growing brand value through superior customer service  Revitalizing wireline growth  Driving towards leadership in high-speed Internet  Enhancing our leadership position in wireless  Embracing continual cost efficiency Status ongoing ongoing ongoing

13 labour relations update  Feb/04 - arbitration reconsideration application to CIRB remains outstanding  May/04 - CIRB TELE-MOBILE decision (common employer, automatic inclusion of TM East employees ) appeal to Federal Court scheduled early October  Labour relations developments within telecom sector reflect industry realities on-going process - awaiting CIRB reconsideration ruling reaching a collective agreement

14 customer service update Wireline:  Service levels substantially improved since Q3-03 challenges  Meeting or exceeding standards for up to 10 consecutive months on key CRTC service indicators  Area of continued focus Wireless:  Best-in-class service levels as evidenced by low churn growing brand value through superior customer service Wireline operating at superior levels of customer service

15  Digital home  continuing high-speed Internet growth  home networking  new applications (e.g. home security, IPTV, etc.)  Bundling & price increases  bundling strategy protects legacy revenues  LD system access fee increased  Geographic expansion  high quality, recurring, IP-based revenues in non-ILEC  leverage technological leadership and service differentiation that TELUS Next Generation Network (NGN) provides revitalizing wireline growth consumer & business initiatives

16 high speed Internet subscriber growth Total Internet subscribers 67% High Speed 33% Dial-up 925K continued market share growth Driving towards leadership in high-speed Internet 35% 30% 39% TELUS high-speed market share 1 Q2-03Q2-02Q In ILEC operating areas

17 Canadian wireless penetration growth prospects 4 million or more net adds expected over next 3 yrs enhancing our leadership position in wireless Source: Industry analysts % 2007E 55-59% 2004 ~46% 13.4M subs 18-19M subs ~15M subs

18 TELUS Mobility ranked #1 operator in North America #1. TELUS Mobility 2. Verizon Wireless 3. Nextel 4. Alltel 5. Bell Mobility 6. Alamosa PCS 7. Nextel Partners 8. AirGate PCS 9. Sprint PCS 10. T-Mobile (USA) 11. Rogers Wireless 12. Western Wireless 13. US Cellular 14. Cingular 15. US Unwired 16. Ubiquitel 17. MetroPCS 18. AT&T Wireless 19. Leap Wireless 20. Dobson 21. Triton PCS 22. Microcell Source: N. Moore Capital, Value Metric Rankings, Q2-04 enhancing our leadership position in wireless

19 TELUS MobilityBCE WirelessRogers Wireless $55 $46 $45 Source: Company reports $58 $48 $49 Microcell $38 $39 continued leadership in ARPU YTD Q2-03 YTD Q2-04 significant premium with positive industry-wide trend enhancing our leadership position in wireless

20 leading performance in churn BCET-Mobile 2.7% 2.3% 1.4% 1.8% 1.6% 1.3% TELUSNextelSprint PCS Rogers Verizon 3.5% CingularMicrocell 3.4% 2.8% AT&T TELUS’ Q2 churn rate is best-in-class enhancing our leadership position in wireless

21 Profitable subscriber growth strategy TELUS achieving profitable subscriber growth enhancing our leadership position in wireless $737M 1.5M 12ME Q2-04 EBITDA growth 12ME Q2-04 subscriber growth Source: Company reports. Sum of reported net adds & wireless EBITDA for BCE, Rogers Wireless, Microcell, TELUS Mobility TELUS Mobility 40% 31% TELUS Mobility

22 status of Microcell bid  $1.1B offer to purchase all outstanding publicly traded securities of Microcell May 17, 2004  Entered confidentiality agreement & commenced diligence in June  Microcell released poor Q2 results with negative value implications  Industry Canada lifted wireless spectrum cap  Offers extended three times – latest to expire Sept 20  Competition Bureau review of TELUS offer in advanced stages  TELUS offers outstanding for 4 months, yet still no competing offer TELUS bid fair & reasonable enhancing our leadership position in wireless

23  Achieved $50M in incremental annual OEP savings YTD 2004  Cumulative annual savings of $504M to June 30, 2004  On track for cumulative annual savings of ~$550M in 2004 & onward  Combining Business & Client Solutions into one business unit to improve efficiency & effectiveness under leadership of Joe Natale View successful OEP as platform for further necessary improvements operational efficiency program (OEP) delivering operational efficiency

strengthening financial position credit profile

25  Average term to maturity ~5.7 years 1  No long-term debt maturities until June, 2006  Consolidated fixed to floating ratio a conservative 93%  Foreign currency debt is fully hedged  TCI A/R securitization program at minimum $150M level  Continued simplification of debt structure  TELUS Communications (Quebec) Inc. amalgamated into TELUS Communications Inc effective July, 2004  85% of total debt at TELUS Corp. 1 As at June 30, 2004 credit profile debt overview

Day (extendible) with a one-year term out. At June 30, 2004, no borrowings exist under the Bank credit facilities. TCI may also borrow on the bank credit facility. Does not include additional $500M Backstop facility available until the earlier of 364 days after closing of Microcell transaction or October 31, $70M of MTN’s and $30M of mortgage bonds are former TELUS Communications (Quebec) Inc. notes that were transferred to TELUS Communications Inc. in July, credit profile current debt structure TELUS Corporation Maturity Bank Day $0.8B revolver May Year $0.8B revolver May 2008 C$ 7.5% Notes $1.6BJune 2006 US$ 7.5% NotesC$1.8BJune 2007 US$ 8.0% NotesC$3.0BJune 2011 TELUS Communications Inc. Mortgage Bonds 2 $0.030B MTN’s 2 $0.070B Debentures $0.799B Net Sr. Notes to TC $2.3B 100%

27 Strong free cash flow generation means limited refinancing required in 2006/2007 debt structure - maturities credit profile 1 TELUS Communications Inc. repaid $210M of maturing debt in August,

28 bank credit facility (1 of 2)  Early 2004, TELUS approached banks to renew maturing facilities  Received commitments well in excess of $1.6B of facilities accepted  $800M 364-day facility (extendible) with a one-year term out  $800M 4-year facility  Superior pricing, more flexible reporting & other covenants relative to previous facilities improved credit facility terms & lengthened maturity credit profile

29 bank credit facility (2 of 2)  No drawn amounts under either facility, at June 30, 2004  4-year facility expires in May 2008, one year after the 2007 US Notes  Additional underwritten commitment for $500M unsecured credit facility for Microcell bid  Available until the earlier of Oct 31, 2005 or 364 days after the offer to purchase Microcell is completed TELUS’ liquidity position expected to remain strong credit profile

30 credit rating update – changes in 2004  March 2, 2004 – Moody’s upgrade to Baa3 from Ba1  May 14, 2004 – Following TELUS’ bid for Microcell:  Moody’s – reaffirmed ratings, stable outlook  Fitch – reaffirmed ratings, stable outlook  DBRS – under review, developing  S&P – creditwatch, negative (due to transaction uncertainty) bid for Microcell not expected to have long-term ratings impact credit profile

31 current credit ratings TELUS Corporation (TC) DBRS BBB Under Review (Developing) S&P BBB CreditWatch (Negative) Fitch BBB Stable Outlook Moody’s Baa3 Stable Outlook TELUS Communications Inc. (TCI) DBRSBBB(high) Under Review (Developing) S&P BBB CreditWatch (Negative) FitchBBB Stable Outlook 100% credit profile DBRS rates TCI one notch better than TC

32 1,185379(692)FCF 1 ($M) 85%86%85%Parent debt : Total Debt 2 2.4x3.0x3.6xNet Debt : EBITDA 51.9%55.7%59.6%Net Debt : Capital BBB/Ba1 9,120 June 2003 Actual BBB/Baa3BBB/Ba1Credit Rating 7,2239,241Net Debt ($M) June 2004 Actual June 2002 Actual demonstrated credit improvement 1 12-month trailing Free Cash Flow 2 Percentage of total debt at TELUS Corp. (Parent level) - inclusive of bank facility & hedge liability significantly enhanced credit metrics credit profile

33 long-term financial policy targets Deleveraging well ahead of plan 45 to 50% ( long term) 51.9%55.7%Net Debt : Capital Q2-04 Current Guidance 2 Q2-03 <2.3X (end of 2004) <2.2X (long-term) 2.4X3.0XNet Debt : EBITDA Former Guidance 1 50% ( long term) <2.5X (end of 2004) <2.2X (long-term) 1 As provided on December 18, As provided on August 6, 2004

34 strong free cash flow generation credit profile 2004E 1 ($M) $900 to 1,000 Cash available for net debt & A/R Sec. reduction $1,150 to 1, ~(70) Working capital/other Free Cash Flow 155 Net cash tax recovery ~(615) Net cash interest ~(1,300) Capex $2,975 to 3,075 EBITDA (incl. rest. & workforce reduction costs) Stock compensation (non-cash portion) ~(95) Cash restructuring pmts (in excess of 2004 expense) Cash dividends ~(180) 1 Updated guidance on August 6, 2004

35 improving free cash flow $1.1B Microcell acquisition funding approximates only one year of consolidated TELUS free cash flow $(1.14)B $(140)M $1.15B to 1.25B 2004E $845M credit profile

36 impact of Microcell acquisition credit profile <2.6x<2.3x Net Debt : EBITDA $3.075 to 3.185B$2.975 to 3.075BEBITDA 2 YE 2004EYE 2004E pro forma 1 1 Based on current public Microcell guidance, assuming Microcell acquisition completed at current offer price 2 Before restructuring & workforce reduction costs. TELUS long-term financial policy targets still achievable by YE 2005 even with prospective Microcell acquisition

37 10 year comparable new issue spreads credit profile TELUS spreads have narrowed but remain much higher versus Cdn peers Q4 Earnings Release – strong wireless results (-15 to 20 bps) MTS announcement of Allstream bid (+30 bps) TELUS 130bps BCE 85bps MTS 109bps Q2 Results Receive investment grade rating by Moody’s (Baa3) (-15 bps) Bid for Microcell (+20 bps)

38 As at August 4, 2004 Notes: TELUS data based on 2003 results & mid-point of 2004 guidance Other estimates provided by Bloomberg, company and analyst reports 2004E global telecom performance projected EBITDA % growth rates (4) (6) (7) (30) (0.2) (2) TELUSFTDTBCESprintTelstraBTVZAliantKPN NipponPCCWSBCTeliaMTSBLSAT&T

39 As at August 4, 2004 Notes: TELUS data based on 2003 results & mid-point of 2004 guidance Other estimates provided by Bloomberg, company and analyst reports 2004E global telecom performance (4) (5) (9) (17) (25) (0.6) (2) (1) (0.5) 9 TELUSSprintAliantBCEVZFTTelstra SBCNipponDTTeliaPCCWBTBLS KPNMTSAT&T projected Cash Flow (EBITDA - Capex) % growth rates

40  TELUS Mobility  high proportion of consolidated revenue and cash flow  executing materially ahead of plan  TELUS Communications  good results relative to peers  revenue composite de-emphasizes LD  Strong 2004 cash flow & earnings outlook  Generating significant cash flow of >$1B  Continued material debt & leverage reduction  TELUS demonstrating ability to meet or exceed all leverage targets strong investment-grade credit profile why invest in TELUS?

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appendix

44 TELUS Corporation TELUS Communications Inc. Senior Notes: $3.1B Subordinated Equity Settled Note: $3.6B intercompany financing 1 (as at June 30, 2004) Senior Note: $0.8B Subordinate Note: $3.2B 1 Excludes net advances owed from TC to TCI of $1.6B at June 30, TELUS Corporation has a net $2.3B senior claim at TCI thereby mitigating structural subordination concerns appendix

45 TELUS Communications Inc. key metrics June 30/03June 30/04 (12 months ended) Net Debt : Total Capitalization31.6%30.3% Net Debt : EBITDA 1 2.2x1.5x Net Debt ($M)4,1284,139 1 after restructuring & workforce reduction costs appendix

46 Comparative credit ratios appendix 1 Defined as EBITDA less capex, cash taxes, and interest for trailing 12 months. 2 As per TDNewcrest analyst estimates (August 2004). 3 As per TELUS public guidance mid-points.