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TELUS investor conference call

Announcement of Income Trust conversion

September 11, 2006

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Forward looking statements

Reference Sept. 11, 2006 news release on proposal for reorganization

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This presentation and answers to questions today contain forward-looking statements that require assumptions about expected future events including income trust conversion, benefits 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 release and other filings with securities commissions in Canada and the United States.

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TELUS investor conference call

Announcement of Income Trust conversion

Darren Entwistle • member of the TELUS team

Sept. 11, 2006

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Transaction overview

Conversion to increase cash distributions by 255 to 273%

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 versus current dual class share structure

Conversion on 1 for 1 basis

Anticipate initial distributions of between $3.90 to $4.10 on annualized basis

compares to current $1.10 annualized dividend

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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

Converting TELUS in its entirety ensures integrated businesses drive operational excellence and competitive differentiation

Avoids costs and governance complexity of a partial conversion

Increased liquidity from collapsing into single Unit class

Offers investors superior assets, strong predictable cash flow and prospect of growth with cash distribution growth model

Creating Canada’s premier income trust

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TELUS investor conference call

Announcement of Income Trust conversion

Robert McFarlane • EVP & Chief Financial Officer

Sept. 11, 2006

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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

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Initial cash distribution compared to dividends

Cash distribution more than 3.5 times dividend

1 See forward looking statement caution

Note: TELUS has also undertaken Normal Course Issuer Bids in 2004, 2005 and 2006 (August YTD), in the amounts of $78M, $892M, and $528M, respectively.

$ per share

Dividend paid

Income trust cash distribution

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2

3

4

0.60 0.600.80

3.90 to 4.10

1.10

2003 2004 2005 2006 2007E1

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1.7x

45 to 50%Net Debt : Capital

long term policy

1.5 to 2.0x Net Debt : EBITDA

Q2-06

45.5%

BBB+ BBB+ to A-Credit rating

~$1.5B >$1BMinimum liquidity

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Conversion does not change TELUS debt targets / lessens risk profile

Long term financial policy targets

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2006 consolidated TELUS guidance

1 Sept. 11, 2006 guidance unchanged from August 4, 2006 and includes estimated $7M of expenses related to trust conversion. See forward looking statement caution

2 Including restructuring & workforce reduction costs of $54M in 2005 and up to $100M in 20063 Including 34 cents of positive tax-related adjustments in 2006

$1.55 to 1.65BFree Cash Flow

approx. $1.6BCapex

$2.90 to 3.10EPS3

annual change

EBITDA2

Revenue

2006 guidance1

$3.5 to 3.6B

$8.625 to 8.725B

6 to 13%

21%

48 to 58%

6 to 9%

6 to 7%

Annual consolidated financial guidance remains unchanged 2007 guidance planned for Dec. 2006

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Transaction time line

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

See forward looking statement caution

To create Canada’s premier income trust

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investor relations1-800-667-4871

telus.comir@telus.com

On income trust conversion

One question per person please

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EBITDA: Earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization

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

Appendix

Definitions

TELUS definitions for non-GAAP measures

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