1. 10 2005 fourth quarter review & conference call February 17, 2006 Robert McFarlane EVP & Chief Financial Officer

2. 11 Excellent results despite EBITDA dilution from record gross adds 12%  182162Cash Flow (EBITDA less capex) 17%  144123Capex 14%  326285EBITDA 16%  877756Revenue ChangeQ4-05Q4-04 1 Q4-05 EBITDA normalized to exclude $3M net expense impact of labour disruption ($M) wireless segment financial results 15%  329285EBITDA (normalized) 1

3. 12 subscriber results Record fourth quarter net additions with stable postpaid and strong prepaid growth net additions Q4-04Q4-05 186K 235K 4.5 M total wireless subscribers postpaid 81% prepaid 19% 3.7 M 0.9 M wireless segment postpaid prepaid

4. 13 industry subscriber growth 5.1%4.4%Penetration gain 1.8M1.6MNet subscriber additions 32.4MPopulation32.1M 16.8MCdn wireless market15.0M 20052004 51.8%46.7%Penetration Source: Company reports, CWTA Canadian wireless market growth continues to accelerate wireless segment 4.1% 1.4M 31.7M 13.4M 2003 42.3%

5. 14 Source: Company reports TELUSRogers Wireless 1 BCE Wireless $61 $49 $50 $63 $54 $51 Q4-04 Q4-05 1 Pro forma Microcell Increased usage and data uptake driving ARPU growth industry ARPU wireless segment

6. 15 TELUS’ wireless marketing efficiency remains best in Canada $409$425$449COA per gross add 1.5%2.04%1.42%Blended churn BCERogersTELUS profitable growth wireless segment $3400$2600$4400Avg. lifetime revenue per sub 12%16%10%COA / lifetime revenue Q4-05 $51$54$63ARPU

7. 16 North American leader in wireless cash flow yield 31%Cash flow 1 yield (total rev.) 12%Capex intensity (total rev.) 44%EBITDA margin (total rev.) TELUS wireless cash flow yield 2005 1 EBITDA less capex

8. 17 Met or exceeded original wireless targets for revenue, EBITDA and net adds 2005 results comparison to original targets 584KWireless Net Adds $405MCapex original 2005 targets 1 EBITDA Revenue 2005 actual results $1.44B $3.30B wireless segment 425 to 475K $350 to 400M $1.35 to 1.40B $3.20 to $3.25B met or exceeded 1 Provided December 17, 2004 

9. 18 Achieved updated wireless guidance across the board 2005 results comparison to guidance 584KWireless Net Adds $405MCapex most recent guidance 1 EBITDA Revenue 2005 actual results $1.44B $3.30B wireless segment >550K approx. $400M $1.425 to $1.45B $3.275 to $3.3B met or exceeded 1 Updated December 16, 2005

10. 19 Wireline revenue displays resilience despite labour disruption 15%  6172Other 7.2%  400373Data 7.7%212230Voice – Long Distance 0.4%  537534Voice – Local changeQ4-05Q4-04 Total Revenue$1,209$1,210 ($M) wireline segment revenue profile - % 

11. 20 EBITDA decline due to labour disruption and higher restructuring costs 32%  $179M$261MCash Flow (EBITDA less capex) 4.3%$230M$221MCapex 15%$409M$482MEBITDA -$1.21B Revenue changeQ4-05Q4-04 financial results  wireline segment  1.6%$494M$502MEBITDA (normalized) 1  1 Normalized to exclude $20M & $36M in restructuring charges in Q4-04 and Q4-05, respectively. Q4-05 also normalized to exclude $49M net expense impact of labour disruption

12. 21 Continued revenue and profitability growth in Central Canada non-ILEC revenue & EBITDA wireline segment Q4-04Q4-05 156 165 Q4-04Q4-05 3.7 7.1 EBITDArevenue ($M)

13. 22 high-speed Internet subscriber growth High-speed net adds slowed by labour disruption TELUS now has 1M Internet subs with 76% on high-speed high-speed Internet net additions Q4-04Q4-05 35K 27K 1.0M total Internet subscribers high-speed 76% dial-up 24% 763K 236K wireline segment

14. 23 Q4-04 -1.3% NAL results impacted by labour disruption & increased competition from cable telephony % of network access lines lost, YoY network access line results wireline segment Q2-05 -1.8% Q1-05 -1.1% Q3-05 -2.2% Q4-05 -2.4%

15. 24 Exceeded original wireline revenue and Non-ILEC EBITDA targets 2005 results comparison to original targets 1 Provided on December 17, 2004 $21MNon-ILEC EBITDA $1.85BEBITDA original 2005 targets 1 Non-ILEC Revenue Revenue 2005 actual results $632M $4.85B wireline segment Capex High-Speed Net Adds $914M 73K $0 to 10M $1.85 to 1.90B $600 to $650M $4.70 to 4.75B $950 to 1,000M approx. 100K met or exceeded 

16. 25 Achieved updated wireline guidance 2005 results comparison to guidance 1 Updated on December 16, 2005 $21MNon-ILEC EBITDA $1.85BEBITDA most recent guidance 1 Non-ILEC Revenue Revenue 2005 actual results $632M $4.85B wireline segment Capex High-Speed Net Adds $914M 73K $15 to $20M $1.84 to $1.865B $625 to $635M $4.825 to $4.85B approx. $900M > 65K met or exceeded

17. 26 Profitability significantly impacted by labour disruption and one- time debt redemption charge $374M $343M Capex 42%  $0.22$0.38 EPS 4.2%  $734M$767M EBITDA 6.2%  $2.09B$1.96B Revenue changeQ4-05 Q4-04 financial results TELUS Consolidated 8.9% 

18. 27 Normalized consolidated EBITDA growth of 4.4% EBITDA - normalized Q4-04Q4-05change Consol. EBITDA (reported)767734  4.3% Restruc. & w. r. costs2036 Consol. EBITDA (bef. restruc.)787770  2.2% Net labour disruption impacts-52 Consol. EBITDA (normalized)787822  4.4% ($M) TELUS Consolidated

19. 28 Strong normalized EPS growth at 40% EPS continuity $0.01(0.07)Tax related matters 42% $0.22 $0.38EPS reported change Q4-05Q4-04 TELUS Consolidated $0.10 - Labour disruption impact $0.07 $0.04 Restr. & workforce reduction EPS normalized$0.33 $0.4640%   Early bond redemption - $0.06 Other(0.02) -

20. 29 $122 (2) (290) (343) $767 Q4-04 $110 47 (306) (374) $734 Q4-05 Free Cash Flow Net Cash Tax Recovery Net Cash Interest Capex EBITDA ($M) (15)5Cash Restruct. Payments (in excess of expense) 63Non-Cash Share Based Compensation free cash flow $351 116 (113) $352 (30) (97) Cash avail. for debt reduction & share redemp. Working Capital/Other Cash Dividends 7719 Share Issuance (non-public) - 350 A/R securitization 148 - Payment Received from Verizon

21. 30  Repurchased 5.1M shares for $229M under both NCIB programs in Q4-05  Repurchased 20.8M shares for $892M during 2005 under both NCIB programs  Current 24 million share (7% of outstanding) NCIB effective Dec. 20, 2005 to Dec. 19, 2006  5% completed in 7 trading days in Dec-05 return of capital – share buy back TELUS committed to share repurchases TELUS Consolidated

22. 31  Completed $1.6B early debt redemption of 7.5% Series CA Notes on Dec. 1, 2005  Funded by cash on hand, $350M increase in A/R securitization program and $142M in bank facilities  Incurred $33.5M loss on redemption & settlement of interest rate hedges  Interest savings benefit in Dec-05 and 2006  Previously announced a 38% quarterly dividend increase to 27.5 cents per share, for Jan. 1, 2006 payment  Consistent with dividend payout ratio guideline of 45 to 55% of sustainable net earnings return of capital – continued TELUS has strong track record for returning capital to investors TELUS Consolidated

23. 32 All four rating agencies upgraded TELUS in 2005 credit ratings & financial policy targets TELUS consolidated Previous RatingCurrent RatingDate of Change Moody’s Baa3 (stable)  Baa2 (stable) June 27 S&P BBB (positive)  BBB+ (stable) Sept 27 Fitch BBB (positive)  BBB+ (stable) Oct 18 DBRS BBB (stable)  BBB high (stable) Oct 24 1.7x 1.5 to 2.0xNet Debt : EBITDA Q4-05 Long-term financial policy target 1 Net debt to EBITDA target updated November 10, 2005 target 1 Net Debt : Total Cap45 to 50% 45.7% Met

24. 33 Original targets challenging as compared to analyst estimates 2005 results versus analyst estimates 1 Analyst consensus estimates for TELUS, as at Nov 30/04, preceding 2005 targets provided Dec 17/04 2 Provided December 17, 2004 Capex EPS EBITDA Revenue 2005 consensus estimates 1 TELUS Consolidated $1.35B $1.80 $3.25B $7.84B Free Cash Flow$1.20B 2005 original targets 2 $1.3 to 1.4B $1.65 to 1.85 $3.2 to 3.3B $7.9 to 8.0B $1.2 to 1.3B

25. 34 TELUS achieved original 2005 financial targets on the back of solid wireless results despite labour disruption 2005 results comparison to original targets 1 Provided December 17, 2004 2 Includes actual restructuring costs of $54M versus original restructuring costs of approx. $100M $1.47BFree Cash Flow $1.32BCapex $1.96EPS original 2005 targets 1 EBITDA 2 Revenue 2005 actual results $3.30B $8.14B $1.2 to $1.3B $1.3 to 1.4B $1.65 to $1.85 $3.2 to 3.3B $7.9 to 8.0B TELUS Consolidated met or exceeded

26. 35 Consolidated results consistent with December 2005 guidance 2005 results comparison to guidance 1 Updated December 16, 2005 2 Actual 2005 results include restructuring costs of $54M $1.47BFree Cash Flow $1.32BCapex $1.96EPS most recent guidance 1 EBITDA 2 Revenue 2005 actual results $3.30B $8.14B $1.4 to 1.5B approx. $1.3B $1.90 to 2.00 $3.275 to 3.325B $8.10 to 8.15B TELUS Consolidated met or exceeded

27. 36 Pension plans – update  Strong investment performance in Q4-05 and lower discount rate for 2006  In aggregate, TELUS pension funds are 98% funded  Approx. $165M in cash contributions expected in 2006 (DB & DC plans)  Discount rate assumption for 2006 lowered to 5.0% (vs. 5.25% guidance on Dec. 16, 2005, and 6.0% in 2005)  TCI defined benefit pension plans ceased accepting new management employees Lower discount rate offset by strong investment performance TELUS Consolidated

28. 37 2006 targets build upon track record of strong operational execution 2006 Consolidated targets summary 1 Including restructuring & workforce reduction costs of $54M in 2005 and approx. $100M in 2006 $1.55 to 1.65BFree Cash Flow $1.50 to 1.55BCapex $2.40 to 2.60EPS change EBITDA 1 Revenue 2006 targets $3.5 to 3.6B $8.6 to 8.7B TELUS Consolidated  6 to 13%  14 to 18%  22 to 33%  6 to 9%  6 to 7%

29. 38  Solid quarterly and annual consolidated results despite one-time labour disruption impact and increasingly competitive environment  Continued strong profitable wireless growth  Reached 5-year collective agreement allowing for increased flexibility  Generating significant cash flow  Strong 2006 revenue, earnings and cash flow growth outlook Summary TELUS Consolidated Continued execution into a future friendly 2006

30. 39 2005 fourth quarter review questions? investor relations 1-800-667-4871 TELUS.com ir@telus.com

31. 40 definitions appendix TELUS definitions for non-GAAP measures  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