1

the future is friendly

2005second quarter review & conference call

August 5, 2005

2 All dollars in C$ unless otherwise specified

forward-looking statementsThis 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

2005second quarter review & conference call

August 5, 2005

Darren Entwistlemember of the TELUS team

the future is friendly

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

Q2 2005 highlights TELUS Communications industry-leading performance

TELUS Mobility achieves record performancePositive update to 2005 wireless net additions

maintaining consolidated annual guidance

Maintaining guidance despite labour action

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

Labour relations update 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 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 accruedProvides flexibility TELUS needs to compete on an even playing field with competitors

9

2005second quarter review & conference call

August 5, 2005

George CopePresident & CEO, TELUS Mobility

10

industry subscriber growth

5.1%4.4%Penetration gain

1.7M1.5MNet subscriber additions32.0MPopulation 31.8M

15.6MCdn wireless market 13.9M

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

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.

TELUSMobility32%

Capturing disproportionate share of industry EBITDA growth

$814M

12ME Q2-05 EBITDA growth

TELUSMobility42%

12

Source: Company reports

TELUS Mobility Rogers Wireless1 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

$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 revenue 14%

$4,500

$342

1.37%

TELUS

8%

Q2-05

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

2005second quarter review & conference call

August 5, 2005

Robert McFarlaneEVP & Chief Financial Officer

16 Continued strong revenue, earnings & cash flow growth

21%252208Cash Flow (EBITDA less capex)

46%11578Capex

28%367286EBITDA1

19%802677Revenue

ChangeQ2-05Q2-04

1 Earnings before interest, taxes, depreciation and amortization

($M)

Mobility segment

financial results

17 Outstanding quarter with record net adds on 10% in COA

10%$342$381COA per gross add

5 bps1.37%1.32%Blended churn

3.4%$61$59ARPU

15%131K114KNet additions

ChangeQ2-05Q2-04

profitable growthMobility segment

18

subscriber results

Net adds & total subscribers up 15% with strong postpaid focus

net additions

Q2-04 Q2-05

114K131K

4.1 Mtotal wireless subscribers

postpaid82%

prepaid18%

3.4 M

0.7 M

Mobility segment

postpaid prepaid

19 Solid YTD results lead to net adds guidance increase to > 525K

wireless net additions Mobility segment

Q2-04 Q2-05

114131

YTD Q2-04

YTD Q2-05

190211

(000s)

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

-229229Voice – Long Distance

0.2%543544Voice – Local

ChangeQ2-05Q2-04

Total Revenue $1,189 $1,217

($M)

Communications segment

revenue profile

2.3%

21 EBITDA up 2% when normalized for restructuring, acquisitions, and regulatory decisions

11%$205M$231MCash Flow (EBITDA less capex)

9.8%$294M$268MCapex

-$499M$499MEBITDA1

2.3%$1.22B$1.19BRevenue

ChangeQ2-05Q2-04

1 Earnings before interest, taxes, depreciation and amortization

financial results

Communications segment

22 19% revenue growth and 3rd straight quarter of positive EBITDA

non-ILEC revenue & EBITDACommunications segment

Q2-04 Q2-05

131156

Q2-04

Q2-05

(14)3.5

EBITDArevenue($M)

23

high-speed Internet subscriber growth

High-speed Internet base up 17% YoY in seasonally slow quarter

high-speed Internet net additions

Q2-04 Q2-05

19K 17K

990K

total Internet subscribers

high-speed 74%

dial-up26%

729K

261K

Communications segment

24

Q2-04 Q3-04 Q4-04 Q1-05

-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 resultsCommunications segment

Q2-05

-1.8%

-1.5%

25 Strong increases in revenue and earnings

$409M$346MCapex

10%$0.53$0.48EPS1

10%$865M$785MEBITDA

8.2%$2.02B$1.87BRevenue

ChangeQ2-05Q2-04financial results

1 Including favourable impacts for tax settlements on EPS of $0.13 in Q2-04 & nil in Q2-05

TELUS consolidated

18%

26 Communication and consolidated capital intensity down YTD

capital intensityTELUS 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

$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 TELUS has repurchased 50% of shares permitted under NCIB

share buy back updateNo. of Shares

Repurchased Q2-05

No. of Shares

Repurchased Since

Inception

Total

Authorized

% Repurchased

vs. Auth. Since

InceptionCommon 3.0M 5.8M 14.0M 42%Non-Voting 3.5M 7.0M 11.5M 61%Total 6.5M 12.8M 25.5M 50%Total cost $272M $508M

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

ChangeQ2-05Q2-04

EPS normalized $0.35 $0.56 60%

TELUS consolidated

-$(0.13) Income tax settlement

30

$112(86)(48)

$23081

(286)(346)$785

Q2-04

$18161

(144)

$20820

(275)(409)$865

Q2-05

Cash avail. for debt reduction & share redemp.Working Capital/OtherCash Dividends

Free Cash FlowNet Cash Tax Recovery

Net Cash InterestCapexEBITDA($M)

(9) (1)Cash Restructuring Payments (in excess of expense)

6 7Non-Cash Share Based Compensation

17 56Share Issuance (non-public)

$84 $(106)Net change in cash8 (15)Funds for redemption of debt

free cash flowTELUS consolidated

- (272)Purchase of shares for cancellation (NCIB)(36) -Redemption of Preferred Shares

31 Maintaining guidance despite TWU strike

2005 consolidated guidance

1 Provided on May 4, 20052 Updated August 5, 20053 Including ~$100M in restructuring & workforce reduction costs4 Including favourable impacts for tax settlements of $0.15 in Q1-05

$1.25 to 1.35BFree Cash Flowapprox. $1.4BCapex$1.85 to 2.05EPS4

updated 2005 guidance2

EBITDA3

Revenue

previous 2005 guidance1

$3.250 to 3.325B$7.950 to 8.050B

no change

32

2005second quarter review

questions?

investor relations1-800-667-4871

TELUS.comir@telus.com

33

AppendicesSummaries: Chronology of collective bargaining events Chronology of legal decisions Definitions

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

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

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

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

definitionsappendix

TELUS definitions for non-GAAP measures