2004 – 3rd quarter review Robert McFarlane EVP & Chief Financial Officer October 29, 2004

16  TELUS Mobility  excellent subscriber growth & retention  record margins and significant cash flow growth  TELUS Communications  good quarter for ILEC performance  strong rebound in profitability for non-ILEC  TELUS Consolidated  excellent revenue, profitability & cash flow growth  EPS $0.44 (normalized $0.48 up 77%) Q3 highlights

17 consolidated results Change 1 Incl. restructuring & workforce reduction costs of $16.2M & $2.3M for Q3-04 & Q3-03, respectively. 2 Incl. impacts of interest on tax settlements of approx. nil & $0.05 in Q3-04 and Q3-03, 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.  37%$157M$114MNet Income  38% $0.44$0.32EPS 2  7.8%$1.95B$1.81BRevenue  8.7%$818M$752MEBITDA 1 Q3-04Q3-03 excellent revenue, profitability & free cash flow growth  14%$503M$440MFree Cash Flow 3

18 consolidated – EPS continuity normalized quarterly EPS increase of $0.21 or 77% growth $0.44 Q3-04 EPS reported Q %$ Restr. & workforce reduction- 0.01Share-based compensation - $0.48EPS normalized77%$0.27  - Income tax settlement(0.05)

19 outstanding results across the board Mobility segment financial summary 1 EBITDA less capex Mobility segment  21%747620External Revenue  32%324246EBITDA  46%220150Cash Flow 1  8.7%10395Capex Q3-04 Change($M)Q3-03

20 Wireless subscriber growth Q3 net adds up 35%, with strong postpaid growth - net additions guidance revised upwards by 50K Mobility segment Total wireless subscribersWireless net additions 3.8M 17% Prepaid 83% Postpaid 67K K Q1 Q2 431K 76K K Q1 Q2 425 to 475K QActualQOutlook 136K Q3 101K Q3  new guidance

21 communications segment financial summary 1 Incl. restructuring & workforce reduction costs of $16.2M & $2.3M for Q3-04 & Q3-03, respectively. 2 EBITDA (aft. Restructuring) less capex. Q3-04Change ($M) Q3-03  1.1% 1,2001,186External Revenue  2.4% EBITDA (aft. restructuring) 1  6.6%278298Cash Flow 2  3.6% Capex revenue growth reverses historical trend EBITDA flat excluding $16M in restructuring costs Communications segment  0.3% EBITDA (bef. restructuring)

22 communications segment revenue profile Communications segment positive revenue growth driven by data growth & lower LD revenue decline Q3-04Change ($M) Q3-03  0.8% Voice - Local  7.9% Data  1.1%1,2001,186External Revenue  4.1%7073Other  2.1%234239Voice – Long Distance

23 high-speed Internet subscriber growth on track to achieve 2004 annual target of 125K Communications segment Total Internet subscribers 69% High Speed High-speed Internet net additions 31% Dial-up 948K 32K K Q1 Q2 152K 44K K Q1 Q2 ~125K QActualQOutlook 31K Q3 47K Q3

(6) (3) Revenue Q3 non-ILEC revenue & EBITDA Q3 EBITDA Q ($M) Communications segment large deals and higher CPE revenue deliver improved revenue and EBITDA in Q3

25 non-ILEC revenue & EBITDA non-ILEC delivers improved revenue and EBITDA in Q3 Communications segment (36) (30) (23) (18) (15) (6) (2) (9) (14) (3) Core Revenue Asset DispositionEBITDA Q1-02Q2-02Q3-02Q4-02Q1-03Q2-03Q3-03Q4-03Q1-04Q2-04Q3-04

26 Operational Efficiency Program (OEP) – 2001 to 2003  Cumulative annual savings of $530 to 535M YE 2004 & onward 2004 efficiency initiatives  $16M in restruct. & workforce reduction costs in Q3 ($33M YTD)  Now expect $50M in restruct. & workforce reduction costs in 2004 up from previous guidance of $30M  Combining Business & Client Solutions into one unit to improve efficiency & effectiveness under leadership of Joe Natale  Consolidating IT operations from 15 to 2 locations continued focus on institutionalizing cost efficiency Communications segment delivering operational efficiency

27 $ (45) (21) (320) $818 Q3-04 $ (42) (14) (304) $752 Q3-03 Cash avail. for debt reduction & pref. redemp. Working Capital/Other Cash Dividends Free Cash Flow Net Cash Tax Recovery Net Cash Interest Capex EBITDA 1 ($M) 1 Includes restructuring & workforce reduction costs. 2 Proceeds from Treasury shares issued under the employee share purchase and option plans. 3 $37M of preference & preferred shares were redeemed during Q3-04 (nil in Q3-03). strong consolidated free cash flow 6(30)Cash Restructuring Payments (net of expense) 7-Non-Cash Share Based Compensation -(4)Acc. Rec. Securitization Program reduction 2721Share Issuance 2 (non-public) (248)(434)Net change in LTD & Preferred share redemption 3 $265$86 Net Change in Cash

28 long-term financial policy targets long-term de-leveraging targets achieved 15 mos ahead of plan 45 to 50% (long term) 49.7%53.7%Net Debt : Capital Q3-04 Guidance Q3-03 <2.3X 1 (end of 2004) <2.2X 2 (new target for end of 2004) 2.2X2.7XNet Debt : EBITDA 1 As provided August 6, As provided October 29, 2004

29  Maintaining net-debt to EBITDA & capitalization targets  TELUS continues to target credit ratings of BBB+ to A-  further debt reduction expected given strong FCF generation  Today announcing several shareholder value enhancing initiatives long-term financial policy targets balanced approach to debt holders and shareholders

30  Quarterly dividend increased by 5¢ to 20¢ for Jan. 1, 2005 payment  Dividend increase moves TELUS into top quartile among dividend paying S&P/TSX companies for both yield & payout ratio  Consistent with a dividend growth approach, targeting a dividend payout ratio guideline of 45 to 55% of net earnings dividend increase quarterly dividend increased by 33%

31  Board approval for NCIB to repurchase up to 10% of public float or 25.5M shares upon obtaining regulatory approval  14.0M common shares & 11.5M non-voting shares  Maximum shares to be purchased over rolling 30 day period is 2% of outstanding shares  Expect de-levering to continue despite NCIB due to strong free cash flow generation  Capital flexibility maintained with NCIB normal course issuer bid (NCIB) normal course issuer bid for up to 10% of float

32  DRIP amended to allow purchase on open market as well as issue from Treasury  Effective January 1, 2005 open market purchases  3% discount on DRIP discontinued  Puts TELUS in line with other NA telcos changes to Dividend Reinvestment Plan (DRIP)

33  425 to 475K375 to 425KWireless net adds no change  $1.1 to 1.125B  $2.775 to 2.8B updated 2004 guidance approx. $350M $1.05 to 1.1B $2.675 to 2.725B previous 2004 guidance 1 Capex EBITDA Revenue (external) revised 2004 guidance - Mobility 1 Previously updated August 6, 2004.

34 $(30) to (35)M$(30) to (40)M Non-ILEC EBITDA no change $1.925 to 1.95B no change $4.725 to 4.775B updated 2004 guidance approx. $950M $1.925 to 1.975B $525 to 550M $4.7 to 4.8B previous 2004 guidance 1 EBITDA Capex Non-ILEC revenue Revenue (external) no changeapprox. 125KHigh-speed net adds revised 2004 guidance - Communications 1 Previously updated August 6, 2004.

35 no changeapprox. $1.3BCapex  $1.25 to 1.3B $1.40 to 1.50 $3.025 to 3.075B  $7.5 to 7.575B updated 2004 guidance $1.15 to 1.25B $1.30 to 1.50 $2.975 to 3.075B $7.45 to 7.55B previous 2004 guidance 1 EPS Free Cash Flow EBITDA Revenue  2.2X or less2.3X or lessNet Debt : EBITDA revised 2004 guidance - consolidated 1 Previously updated August 6, positive guidance changes reflect strong performance at both TELUS Communications & TELUS Mobility

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