1. 1 the future is friendly 2005 second quarter review & conference call August 5, 2005

2. 2 All dollars in C$ unless otherwise specified forward-looking statements This presentation and answers to questions contain forward- looking statements about expected future events including competition, labour relations including duration and impact of current strike, 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.

3. 3 2005 second quarter review & conference call August 5, 2005 Darren Entwistle member of the TELUS team the future is friendly

4. 4 Q2 2005 highlights  TELUS consolidated results  Revenue 8%  EBITDA 10%  EBIT 24%  Net Income 10%  Net Income normalized 60%    Benefits of consistent growth strategy continue  

5. 5 Q2 2005 highlights  TELUS Communications industry-leading performance  TELUS Mobility achieves record performance  Positive update to 2005 wireless net additions  maintaining consolidated annual guidance Maintaining guidance despite labour action

6. 6  TELUS measures* escalated pressure for settlement  commenced implementing offer July 22  TWU responded with multiple legal challenges, work to rule and rotating strikes  called full scale strike on July 21  TWU has not conducted votes on offer or this strike  2005 legal decisions* have upheld TELUS actions and largely dismissed TWU challenges *see Appendices for chronological summary TELUS moving to settlement thru collective bargaining process Labour relations update

7. 7  Comprehensive contingency plans activated to minimize customer impacts  meeting or exceeding call centre standards and ahead of expectations on field service  Significant and increasing numbers of Alberta union members coming to work  BC union members not being allowed to cross  BC and AB court injunctions in place to allow facilities access and reduce intimidation 70% of TELUS employees on the job serving customers

8. 8 Offer is generous and shares TELUS’ ongoing financial success TELUS’ Comprehensive Offer  Top quality Offer for compensation, benefits and employment security  Lump sum and past payments, variable pay and certain benefit changes deferred until ratification  Approx. $200M initial payment or avg. $16K per employee  Cost of Offer fully accrued  Provides flexibility TELUS needs to compete on an even playing field with competitors

9. 9 2005 second quarter review & conference call August 5, 2005 George Cope President & CEO, TELUS Mobility

10. 10 industry subscriber growth 5.1%4.4%Penetration gain 1.7M1.5MNet subscriber additions 32.0MPopulation31.8M 15.6MCdn wireless market13.9M Q2-05Q2-04 48.9%43.8%Penetration 12ME Source: Company reports, CWTA. Includes subscriber results for Bell Wireless Alliance, Rogers Wireless p.f. Microcell, and TELUS Mobility. Canadian wireless market continues to grow at strong pace

11. 11 industry subscriber & EBITDA growth 1.7M 12ME Q2-05 net additions Source: Company reports. EBITDA is sum of reported EBITDA for BCE, Rogers Wireless p.f. Microcell, and TELUS Mobility. TELUS Mobility 32% Capturing disproportionate share of industry EBITDA growth $814M 12ME Q2-05 EBITDA growth TELUS Mobility 42%

12. 12 Source: Company reports TELUS MobilityRogers Wireless 1 BCE Wireless $59 $48 $50 $61 $51 $50 Q2-04 Q2-05 1 Pro forma Microcell TELUS Mobility maintaining 20% ARPU premium industry ARPU’s

13. 13 $3,100 $401 1.6% 13% TELUS Mobility subscriber economics best in class $2,700Lifetime revenue $374COA per gross addition 1.91%Blended churn BCERogers profitable subscriber growth COA / Lifetime revenue14% $4,500 $342 1.37% TELUS 8% Q2-05

14. 14 North American leader in wireless cash flow yield 12%25%31%Cash flow yield (total rev.) 20%16%14%Capex intensity (total rev.) 35%42%49%EBITDA margin (network rev.) 1 US avg.Other CdnTELUS wireless cash flow yield Q2-05 1 TELUS Mobility EBITDA margin of 45.4% based on total revenue Source: Company reports. Merrill Lynch for US averages

15. 15 2005 second quarter review & conference call August 5, 2005 Robert McFarlane EVP & Chief Financial Officer

16. 16 Continued strong revenue, earnings & cash flow growth 21%  252208Cash Flow (EBITDA less capex) 46%  11578Capex 28%  367286EBITDA 1 19%  802677Revenue ChangeQ2-05Q2-04 1 Earnings before interest, taxes, depreciation and amortization ($M) Mobility segment financial results

17. 17 Outstanding quarter with record net adds on 10%  in COA 10%  $342$381COA per gross add 5 bps  1.37%1.32%Blended churn 3.4%  $61$59ARPU 15%  131K114KNet additions ChangeQ2-05Q2-04 profitable growth Mobility segment

18. 18 subscriber results Net adds & total subscribers up 15% with strong postpaid focus net additions Q2-04Q2-05 114K 131K 4.1 M total wireless subscribers postpaid 82% prepaid 18% 3.4 M 0.7 M Mobility segment postpaid prepaid

19. 19 Solid YTD results lead to net adds guidance increase to > 525K wireless net additions Mobility segment Q2-04Q2-05 114 131 YTD Q2-04 YTD Q2-05 190 211 (000s)

20. 20 Best LD growth since 1999 merger plus strong data growth led to 4th straight quarter of YoY wireline growth 7.9%  6571Other 9.9%  380346Data -229 Voice – Long Distance 0.2%  543544Voice – Local ChangeQ2-05Q2-04 Total Revenue$1,189$1,217 ($M) Communications segment revenue profile  2.3%

21. 21 EBITDA up 2% when normalized for restructuring, acquisitions, and regulatory decisions 11%  $205M$231MCash Flow (EBITDA less capex) 9.8%$294M$268MCapex -$499M EBITDA 1 2.3%$1.22B$1.19BRevenue ChangeQ2-05Q2-04 1 Earnings before interest, taxes, depreciation and amortization financial results   Communications segment

22. 22 19% revenue growth and 3 rd straight quarter of positive EBITDA non-ILEC revenue & EBITDA Communications segment Q2-04Q2-05 131 156 Q2-04 Q2-05 (14) 3.5 EBITDArevenue ($M)

23. 23 high-speed Internet subscriber growth High-speed Internet base up 17% YoY in seasonally slow quarter high-speed Internet net additions Q2-04Q2-05 19K 17K 990K total Internet subscribers high-speed 74% dial-up 26% 729K 261K Communications segment

24. 24 Q2-04Q3-04Q4-04Q1-05 -1.4% -1.2% -1.3% -1.1% NALs impacted by various competitive offerings, large wholesale business account loss & ongoing wireless substitution % of network access lines lost, YoY network access line results Communications segment Q2-05 -1.8% -1.5%

25. 25 Strong increases in revenue and earnings $409M $346M Capex 10%  $0.53$0.48EPS 1 10%  $865M$785MEBITDA 8.2%  $2.02B$1.87BRevenue ChangeQ2-05 Q2-04 financial results 1 Including favourable impacts for tax settlements on EPS of $0.13 in Q2-04 & nil in Q2-05 TELUS consolidated  18%

26. 26 Communication and consolidated capital intensity down YTD capital intensity TELUS consolidated Mobility YTD Q2-04 YTD Q2-05 10% 11% Communications YTD Q2-04 YTD Q2-05 22% 20% Consolidated YTD Q2-04 YTD Q2-05 18% 17%

27. 27  $132M or 88% of $150M convertible debentures converted into 3.3M non-voting shares prior to redemption  Remaining debentures redeemed for $17.9M  Difference between redemption value & book value treated as expense, a pre-tax charge of approx $0.9M  Options & warrant exercises resulted in 2.2M share issue  repurchased 6.5M shares under normal course issuer bid (NCIB) 1.0M net reduction to 357.4M shares outstanding convertible debentures & shares outstanding

28. 28 TELUS has repurchased 50% of shares permitted under NCIB share buy back update No. of Shares Repurchased Q2-05 No. of Shares Repurchased Since Inception Total Authorized % Repurchased vs. Auth. Since Inception Common3.0M5.8M14.0M42% Non-Voting3.5M7.0M11.5M61% Total6.5M12.8M25.5M50% Total cost$272M$508M

29. 29 Normalized EPS increase of 21 cents, up 60% EPS continuity $0.03 - Provision for BCTel bond redemption litigation, & convertible deb. redemption expense 10%  $0.53 $0.48EPS reported Change Q2-05Q2-04 EPS normalized$0.35 $0.56  60% TELUS consolidated - $(0.13) Income tax settlement

30. 30 $112 (86) (48) $230 81 (286) (346) $785 Q2-04 $181 61 (144) $208 20 (275) (409) $865 Q2-05 Cash avail. for debt reduction & share redemp. Working Capital/Other Cash Dividends Free Cash Flow Net Cash Tax Recovery Net Cash Interest Capex EBITDA ($M) (9)(1)Cash Restructuring Payments (in excess of expense) 67Non-Cash Share Based Compensation 1756Share Issuance (non-public) $84$(106) Net change in cash 8(15) Funds for redemption of debt free cash flow TELUS consolidated -(272) Purchase of shares for cancellation (NCIB) (36)- Redemption of Preferred Shares

31. 31 Maintaining guidance despite TWU strike 2005 consolidated guidance 1 Provided on May 4, 2005 2 Updated August 5, 2005 3 Including ~$100M in restructuring & workforce reduction costs 4 Including favourable impacts for tax settlements of $0.15 in Q1-05 $1.25 to 1.35BFree Cash Flow approx. $1.4BCapex $1.85 to 2.05EPS 4 updated 2005 guidance 2 EBITDA 3 Revenue previous 2005 guidance 1 $3.250 to 3.325B $7.950 to 8.050B no change

32. 32 2005 second quarter review questions? investor relations 1-800-667-4871 TELUS.com ir@telus.com

33. 33 Appendices Summaries: Chronology of collective bargaining events Chronology of legal decisions Definitions

34. 34  Apr 13 - Company tabled Offer to the TWU  Apr 18 – Company declared negotiations to be at an impasse and delivered first notice of lockout to TWU  Apr 21 - terms and conditions of the Offer communicated to bargaining unit team members  Apr 25 – Company began implementing numerous soft lockout measures  May to July – TELUS continued escalating lockout measures; TWU responded with overtime ban and work-to-rule campaign  Jun 14 – TELUS provided addendum to offer, which provided additional benefits  Jun 22 – TWU tabled its counter proposal Labour Relations – summary of events

35. 35  Jun 24 – TELUS rejected counter proposal  July – TWU began rotating strike activity (“study sessions”) to which Company normally imposed short lockouts to participants  Jul 12 – TELUS informed TWU, it would commence implementation of its comprehensive offer on July 22 - TWU further escalated rotating strike activity  Jul 21 – TWU initiated full scale strike and Company implemented contingency plan  Jul 22 – Phase I of Company’s Offer implemented Labour Relations - summary of events (cont’d)

36. 36 Labour relations - 2005 legal ruling summary  Feb 2 - CIRB ruled in TELUS favour and overturned its year old ruling ordering TELUS into binding arbitration.  Apr 22 - TWU allegations challenging TELUS’ ability to implement lockout measures dismissed by Federal Court of Appeal (FCA)  Apr 24 - TWU application at CIRB seeking to prevent TELUS from implementing its lockout measures on Apr 25 dismissed  July 21 – CIRB dismissed TWU allegations regarding improper lockout and company communications  July 23 – BC Court grants sweeping injunction against TWU impeding access to Company and customer locations  July 25 – TWU loses appeal to FCA to overturn Feb. CIRB ruling that returned both sides into collective bargaining process  July 27 – AB Court grants TELUS injunction on posting website images and TWU impeding access to Company and customer locations  July 29 – BC Court grants TELUS injunction on posting website images, TWU intimidation, and blocking entrances by pickets

37. 37  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: 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 definitions appendix TELUS definitions for non-GAAP measures