Telecom & Cable TV Fixed Income Conference September 13, 2006 Robert McFarlane EVP & Chief Financial Officer

1. Telecom & Cable TV Fixed Income Conference September 13, 2006 Robert McFarlane EVP & Chief Financial Officer

2. Forward-looking statements • Presentations and answers to questions today contain forward-looking statements that require assumptions about expected future events including income trust conversion and timing, financing, financial and operating results, and 2006 guidance that are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate so do not place undue reliance on them. • There are many factors that could cause actual results to differ materially. For a full listing and description of the potential risk factors and assumptions, please refer to the TELUS 2005 annual report, updates in the 2006 quarterly reports, Sept. 11, 2006 income trust proposal news releaseand other filings with securities commissions in Canada and the United States.

3. Agenda • About TELUS • TELUS wireless review • TELUS wireline review • TELUS consolidated review • Credit profile • Q&A • Appendix • Definitions 3

4. About TELUS • Executing national growth strategy focused on data, IP & wireless • Financial results (12ME June 30, 2006) • Revenue $8.4B • EBITDA $3.3B • FCF $1.5B • Enterprise value: ~$26B (net debt ~$5.7B) • Listings: TSX: T, T.A; NYSE: TU • Reporting segments: wireless and wireline Best performing Canadian telco 4

5. Leading the way with a proven strategy • Focusing on growth markets of data & wireless • Building national capabilities • Providing integrated solutions • Investing in internal capabilities • Partnering, acquiring and divesting as necessary • Going to market as one team Strategic intent… to unleash the power of the Internet to deliver the best solutions to Canadians at home, in the workplace and on the move. Consistent strategy and execution 2000  2006 5

6. Wireless-wireline merger rationale • Advance our industry leading strategy • Achieve meaningful commercial differentiation in the market • Capitalize on technology convergence of wireless and wireline • Drive continued operating efficiency and effectiveness One team, united behind one strategy, defined by one brand 6

7. Strategic focus on data and wireless Revenue 20062 20001 LD Wireless Voice LD 10% 23% 41% Wireless 18% Voice Data Voice 10% 28% 49% Wireline Data Wireless Data 19% 2% $5.7B $8.4B 2 12 months ending June 2006 1 12 months ending June 2000 Data and wireless now represent 62% of revenue 7

8. Strategic focus on wireless generating cash flow Cash Flow 20062 20001 (EBITDA less capex) Wireless 22% Wireless 59% Wireline 41% Wireline 78% $1.1B $1.9B 1 12 months ending June 2000 2 12 months ending June 2006 Wireless now represents 59% of Cash Flow 8

9. Total subscriber connections 10.4 9.9 (millions) 9.4 Res NALs Bus NALs Dial-up Internet High-speed Internet Wireless Q2-05 Q2-06 Q2-04 Connections increasing with strong wireless and Internet growth 9

10. TELUS subscriber trends • 3-year trend • Jun-04 • Jun-06 • Change • Wireless subscribers • 3.6M • 4.7M •  • 31% • High-speed Internet • 624K • 831K •  • 33% •  • 4.6M • NALs • 4.8M • (4)% 10

11. Wireless

12. Wireless segment – financial results • H1-05 • H1-06 • Change • Revenue • $1,555M • $1,827M •  • 18% • EBITDA1 • $704M • $ 837M •  • 19% • $209M • Capital expenditures • $174M •  • 20% • Cash flow (EBITDA less capex) • $530M • $628M •  • 19% 1 Includes $3M in restructuring & workforce reduction costs in H1-06 Excellent revenue, EBITDA and cash flow growth 12

13. review of operations 21 - 22M 17.4M Subscribers: 13.4M Increasing Canadian wireless penetration Dec-03 Jun-06 Dec-08E 42% 53.5% 65 - 68% Penetration: Source: Industry analysts, CWTA 4 to 5 million net additions expected over next 2.5 years 13

14. Wireless data ARPU growth $63.18 $60.84 Data ARPU $4.45 $2.30 Q2-05 Q2-06 ARPU growth led by 93% increase in wireless data 14

15. review of operations – wireless Industry ARPU comparison Q2-06 prepaid ARPU Q2-06 postpaid ARPU $72 $67 $63 $26 $14 $13 TELUS Wireless Rogers Wireless BCE Wireless TELUS Wireless Rogers Wireless BCE Wireless Significant ARPU premium over peers 15

16. Staying ahead on wireless data • Expanding EVDO high speed wireless service • 24 major urban markets • Cool new applications • Music downloads and video games • Watch 15 channels on Mobile TV • TELUS Mobile Radio – powered by XM Canada • 5 times faster • Amp’d “Powered by TELUS” coming in 2007 Fostering continued wireless data growth 16

17. Exclusive Amp’d arrangement and investment • Amp’d Mobile responsible for marketing, freshest and exclusive entertainment content, and optimized handsets • Targeting 18 to 35 age demographic and lifestyle • TELUS responsible for managing sales and distribution, billing, client care, network options and pricing • Exclusive licensing and service agreement – not a traditional MVNO • Amp’d Mobile is a premium brand with high ARPUs focused on mobile media (not traditional voice) and postpaid • TELUS Ventures invested US$7.5M in US business of Amp’d Mobile, Inc. 17

18. Wireless industry economics comparison • Q2-06 • TELUS • BCE • Rogers • ARPU • $63.18 • $51 • $55.951 • Blended churn • 1.30% • 1.60% • 1.82%1 • Avg. lifetime revenue per sub • $4860 • $3188 • $3074 • COA per gross add • $394 • $419 • $397 • COA / lifetime revenue • 8.1% • 13.1% • 12.9% 1Calculated using prepaid and postpaid metrics due to non-disclosure by Rogers TELUS subscriber economics compare favourably 18

19. Staying ahead in North American performance Q2 YTD cash flow yield1 of national wireless companies (%) 34% 33% 26% 21% 21% 12% 12% Sprint Nextel TELUS Wireless BCE Wireless Rogers Wireless Verizon Wireless Cingular T-Mobile • 1 EBITDA less capex as a percentage of total revenue. Source: Company reports Highest Q2 YTD cash flow yield in North America 19

20. 2006 wireless guidance • 2006 guidance2 • annual change  • Revenue • $3.8 to $3.875B • 15 to 18%  • EBITDA • $1.7 to $1.75B • 18 to 21%  • Capex • approx. $450M • 11% • Wireless net adds • 560 to 590K • flat 1 See forward looking statement caution 2 August 4, 2006 Solid wireless momentum 20

21. Wireline

22. Wireline segment – financial results • H1-05 • H1-06 • Change • Revenue • $2.44B • $2.39B •  • 2.1% • EBITDA1 • $1,017M • $923M •  • 9.3% • EBITDA (excl. restructuring) • $1,034M • $968M •  • 6.4% • Capital expenditures • $508M • $570M •  • 12% • Cash flow (EBITDA less capex) • $510M • $353M •  • 31% 1 Includes $17M and $45M in wireline restructuring costs in H1-05 and H1-06 respectively Results reflect challenging wireline environment and increased restructuring charges 22

23. Year-over-year NAL declines Trailing six quarters ended Q2-06 % Q1 Q2 Q3 Q4 Q1 Q2 Source: Merrill Lynch, company reports 2006 2005 23

24. Future Friendly Home • Suite of IP applications: • Home Networking (wireless LAN) • HomeSitterTM • TELUS TV targeted roll-outs in • Edmonton and Calgary 2005/2006 • Vancouver lower mainland 2006/2007 24

25. financial review Expanding TELUS TV availability • Offering customers differentiated entertainment • Choice of 200+ digital stations • Customized channel packaging • Interactive programming guide • Video on demand • myTELUS channel • Call display Targeted launches to continue 25

26. Non-ILEC revenue & EBITDA Revenue ($M) EBITDA ($M) 650-675 632 561 555 25-30 21 2003 2004 2003 2004 2005 2006E1 2005 2006E1 (22) (29) 1 August 4, 2006 guidance. See forward looking statement caution. Continued focus on profitable, long-term growth 26

27. 2006 wireline guidance1 • 2006 guidance 2 • annual change • Revenue • $4.825 to $4.850B  • 0 to (1%)  • Non-ILEC Revenue • $650 to $675M • 3 to 7%  • EBITDA • $1.8 to $1.85B • 0 to (3%)  • Non-ILEC EBITDA • $25 to $30M • 18 to 42%  • Capex • approx. $1.15B • 26%  • High speed net adds • > 125K • >52K 1 See forward looking statement caution 2 August 4, 2006 Guidance reflects challenging wireline environment 27

28. Consolidated Review

29. TELUS Consolidated • H1-05 • H1-06 • Change • Revenue • $3.99B • $4.22B •  • 5.6% • EBITDA • $1,721M • $1,760M •  • 2.2% • Restructuring costs • $17M • $47M • EBITDA (excl. restructuring) • $1,738M • $1,807M •  • 4.0% • EBIT • $611M • $706M • 16% •  • EPS (reported) • $1.20 • $1.63 • 36% •  1 Normalized for tax-related adjustments, retroactive regulatory decisions and and a BC Tel bond litigation accrual, EPS in H1-05 & H1-06, would have been $1.06 and $1.29, up 22% Strong gains in revenue and EPS 29

30. Wireline Strategic operating model Challenges Growth opportunities Non-ILEC Growth Future Friendly Home Organization Effectiveness Technological Substitution Competitive Intensity Price Cap Regulatory Framework + + + + Short-term dilutive Strive to hold wireline EBITDA (before restructuring) flat over medium term  Growth in revenues and EBITDA from wireless business = Continued improvements in consolidated results 30

31. Push to implement the Telecom Policy Report • Supporting TPR panel and Industry Canada’s thought leadership Other CRTC developments • 2005 VoIP decision re-affirmed by CRTC • Re-assessing aspects of local forbearance decision • Mobile TV broadcasting not regulated • Third local price cap proceeding underway for 2007 Opportunity for positive regulatory and policy change 31

32. 2006 consolidated guidance summary • 2006 guidance1 • annual change • Revenue • $8.625 to 8.725B •  6 to 7% • EBITDA2 • $3.5 to 3.6B •  6 to 9% • EPS3 • $2.90 to 3.10 •  48 to 58% • Capex • approx. $1.6B •  21% • Free Cash Flow • $1.55 to 1.65B •  6 to 13% 1 September 11, 2006 guidance (unchanged from Aug 4/06), and reflects est. $7M of expenses in 2006 related to trust conversion. See forward looking statement caution 2 Including restructuring & workforce reduction costs of $54M in 2005 and up to $100M in 2006 3 Including 34 cents of positive tax-related adjustments in 2006 Annual consolidated financial guidance remains unchanged 2007 guidance planned for December 2006 32

33. Income trust transaction overview • Sept. 11/06 announced approved proposal for reorganization into income trust • Represents conversion of TELUS in its entirety • Via plan of arrangement under Business Corporations Act (B.C.) • Subject to approval of 2/3rds of each class of shares • To be one class of Fund Unit vs current dual class share structure • Anticipate initial distributions of between $3.90 to $4.10 on annualized basis • Compares to current $1.10 annualized dividend Conversion entails increase in cash distributions by 255 to 273% 33

34. Strategic rationale for TELUS conversion into Income Trust • Transaction supports advancement of national growth strategy • Optimizes ability to make future growth investments • Enhances tax efficiency at TELUS and significantly increases cash distributions to shareholders • Ensures integrated operations drive customer service excellence and competitive differentiation • Avoids costs and governance complexity of a partial conversion • Offers investors high quality assets, strong predictable cash flow and prospect of growth Creating Canada’s premier income trust 34

35. Benefits of proposed conversion in January 2007 • Tax efficiency as TELUS has fully utilized its tax assets as of June 30, 2006 • TELUS now generating current tax liability on go forward basis • Status quo would entail paying cash taxes commencing in 2008 • Optimal timing for TELUS as expect to be able to shelter 2006 tax liability on conversion, in addition to ongoing tax efficiencies • Optimal timing for shareholders as taxable deemed disposition on conversion of shares for units generally not payable until April 2008 • Beneficial to debt holders as increases future cash flow for debt servicing 35

36. Return of capital pre and post conversion $ per share 3.90 to 4.10 Normal Course Issuer Bid 4 Dividends paid 3.38 2,3 3.30 Income trust cash distribution 3 2.62 1 2 0.82 1 0.60 2003 2004 2005 2006 2007E3 1 Total Cash per Share – annualized 2006 dividend, plus YTD NCIB as at Aug 30, 2006 2 Total Cash per Share – annualized 2006 dividend, plus YTD NCIB as at Aug 30, 2006 annualized 36 3 See forward looking statement caution

37. Transaction time line1 • Notice of special meeting of TELUS shareholders Nov. 2006 • Information circular mailing Dec. 2006 • Special shareholder meeting Jan. 2007 • Obtain regulatory and other approvals • Closing and conversion expected late Jan. 2007 1 See forward looking statement caution To create premier income trust in Canada 37

38. Credit Profile

39. Debt overview • Simplified debt structure with 86% of total debt now at TELUS Corporation • Average term to maturity is 5.0 years (at June 30, 2006) • Fixed to floating ratio currently 99% fixed • $3.7B of existing debt denominated in US$ and fully hedged • No long-term debt maturities until 2007 when US$1.2B TELUS Notes and $70M TCI Medium Term Notes mature 39

40. Credit profile Current debt structure TELUS Corporation Maturity Bank1 - 3 Year $0.8B revolver May 2008 - 5 Year $0.8B revolver May 2010 US$ 7.5% Notes C$1.5B June 2007 US$ 8.0% Notes C$3.0B June 2011 C$ 5.0% Notes C$0.3B June 2013 100% • TELUS Communications Inc. • Maturity • Mortgage Bonds $0.030B July 2010 • MTNs $0.070B Feb 2007 • Debentures $0.799B 2010 to 2025 • Net Sr. Notes to TC $2.5B 1 Canadian dollars or U.S. dollar equivalent. At June 30, 2006, $74M in borrowings existed under the Bank credit facilities. TCI may also borrow on the bank credit facility. 86% of total debt at TELUS Corporation 40

41. Credit profile Current debt structure - maturities Process of refinancing 2007 maturity already begun 41

42. TELUS US$1.2B Notes maturing in 2007 • TELUS US$1.2B 7.50% Notes mature June 1, 2007 • At time of issue, swapped into C$1.8B liability with yield of 8.109% • Notes are redeemable at any time in whole or in part at the US Treasury yield plus 25 basis points • TELUS may consider early redeeming a portion of notes • TELUS has already taken two steps to refinance notes • Interest rates locked for $500M of future fixed rate debt through forward starting interest rate swaps • In May 2006 TELUS issued $300M 5% 7 year Note to repay a portion of the foreign exchange liability May 2006 $300M 7-year note offering met strong demand 42

43. Committed credit facilities • Total committed credit facilities of $1.6B • 3-year $800M credit facility due in May 2008 • 5-year $800M term facility due in May 2010 • Term of facilities extend beyond the maturity date of TELUS' June 2007 public note maturity • Reinforces TELUS' strong liquidity position 43

44. Consolidated leverage • Jun-06 • Jun-03 • Jun-04 • Jun-05 • Net debt ($M) • 9,120 • 7,223 • 6,096 5,740 • Net debt : Capital • 55.7% • 51.9% • 46.0% 45.5% • Net debt : EBITDA • 3.0x • 2.4x • 1.8x • 1.7x • FCF1 : Net debt • 4% • 16% • 23% 27% 112-month trailing Free cash flow Strong leverage improvement / credit enhancement 44

45. Credit ratings • All four rating agencies upgraded TELUS ratings in 2005 • Moody’s reiterated rating, changed outlook to “positive” May/06 • DBRS rating under review Sep/06 • Moody’s affirmed rating, with a “developing” outlook Sep/06 • Credit rating changes in 2005 & 2006 • Credit rating overview for TELUS Corporation 45

46. Long term financial policy targets • long term policy • Q2-06 • 45.5% • Net Debt : Capital • 45 to 50% •  • Net Debt : EBITDA • 1.5 to 2.0x • 1.7x •  • Minimum liquidity • >$1B • ~$1.5B •  •  • 3 of 4 • Credit rating • BBB+ to A- • BBB+ Conversion does not change TELUS debt targets / lessens risk profile 46

47. Recognized leader in disclosure e.Com Report Watch • Annual Report on Annual Reports • TELUS 2005 Annual Report ranked BEST in world Canadian Institute of Chartered Accountants (CICA) • Best Corporate Governance Disclosure in Canada • 2004 Annual Report received Award of Excellence • 11 consecutive years of recognition • IR Magazine (Canada) awards • 2006: Best annual report & disclosure policy Member of 2007 Dow Jones Sustainability Index • only North American telco in global index 47

48. Why invest in TELUS? • Premium asset mix - high wireless exposure • Offer investors high quality assets, strong predictable cash flow and prospect of growth • Orderly refinancing of 2007 notes already underway • Significant >$1B of annual free cash flow generation pre-trust conversion • Trust conversion announced • Increases cash flow and lessens TELUS risk profile • Beneficial to debt holders as increased future cash flow for debt servicing • TELUS has met or exceeded all leverage targets • Excellence in reporting, transparency and governance Track record of delivering on commitments to investors 48

49. investor relations 1-800-667-4871 telus.com ir@telus.com

50. Appendix Definitions • 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 • Cash flow yield: EBITDA less capex, divided by total revenue • 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 TELUS definitions for non-GAAP measures