Montreal investor luncheonJune 28, 2006

Darren EntwistlePresident & Chief Executive Officer

Robert McFarlaneEVP & Chief Financial Officer

Forward-looking statements

Presentations and answers to questions today contain forward-looking

statements that require assumptions about expected future events

including competition, financing, financial and operating results, and

guidance and targets dated May 3, 2006, 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 first quarter report, and other filings with securities

commissions in Canada and the United States.

Table of contents

About TELUS 4 Strategy 5 Corporate priorities 14 Financial update 29 Investor considerations 38 Appendix 49

slides starting

About TELUS

Executing national growth strategy focused on data, IP & wireless

2006 financial targets

Revenue $8.6 to 8.7B 6 to 7%

EBITDA $3.5 to 3.6B 6 to 9%

EPS $2.40 to 2.60 22 to 33%

FCF $1.55 to 1.65B 5 to 12%

Daily trading: 1.4M shares (recent 90 day avg)

Enterprise value: ~$21B (equity ~$15.5B)

Listings: Common: TSX T; non-voting: TSX T.A; NYSE TU

Reporting segments: wireless and wireline

Best performing Canadian telco

4

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

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

Wireless-wireline merger rationale

Recent strategic developments

Separate wireless and wireline reporting to continue

6

Strategic journey highlights

purchase of Quebec Tel purchase of national wireless operator Clearnet divestiture of non-core assets completion of national IP backbone & fibre network first in N.A. to launch Next Generation Network, enabling IP based

solutions for customers won landmark national managed data solutions contract with IBM

Canada for TD Bank Verizon divested 20.5% ($2.2B) equity interest increasing TELUS

liquidity by 26% #1 or #2 North American wireless operator for past 8 quarters five year (2010) progressive collective agreement ratified staged launch of TELUS TV® in certain western markets wireless merger into customer facing business units

2000

20067

Build national capabilities

TELUS’ infrastructure - 2000

8

Wireless Jan 2000 today1

• PoPs covered (millions) 7 30.6

• Mike (iDEN) (millions) - 25.6

• Generation 1G 3G

Wireline

• Ont/Que cities 3 41

• Co-locations 2 94

• Customer POPs 5 904

• Fibre lit (km) 0 14,320

• Platform Stentor TELUS

• Network Circuit-based Next Generation (NGN)

National transformation

1 as of March 31, 2006

9

Build national capabilities

TELUS’ infrastructure - today

10

Price Cap Regulatory Framework

Competitive Intensity

Technological Substitution + +

Non-ILEC Growth

Future Friendly

Home

Organization Effectiveness+ +

Strive to hold wireline EBITDA (before restructuring) flat over medium term

=

Growth in revenues and EBITDA from large exposure to wireless business

Continued improvements in consolidated results

Growth opportunities Challenges

Short-term dilutive

Wireline

Framework for long term growth

11

Strategic focus on data and wireless

Data and wireless now represent 60% of revenue

$8.2B

Voice

Wireless

Data29%

41%

19%

11%LD

20062Revenue

20001

$5.7B

49%

18%

10%

LD

Wireless

Voice

23%

Data

2 12 months ending Mar. 2006

12

60%

1 12 months ending Jun. 2000

Strategic focus on wireless

Wireless now represents 57% of Cash Flow

$1.9B

20062

20001

$1.1B1 12 months ending Jun. 2000 2 12 months ending Mar. 2006

13

Wireless

57%Wireline

43%

Wireless

22%Wireline

78%

Cash Flow(EBITDA less capex)

Corporate priorities

Advance TELUS’ leadership position in the Consumer market

Advance TELUS position in the Business market

Advance TELUS position in the Wholesale market

Drive improvements in productivity and service excellence

Strengthen the spirit of the TELUS team and brand, and develop the best talent in global communications industry

2006 priorities support national growth strategy

Continued on strategy execution for benefit of investors15

Staying ahead on wireless data

Launched high speed wireless service 17 major urban markets have EVDO

Cool applications

Music downloads and video games

Watch 15 channels on Mobile TV

Five times faster

Fostering continued data growth

16

Total wireless subscribers

Postpaid 81%

Prepaid 19%

Subscriber results

Net additions

Wireless net adds up 15% over first quarter of 2005

17

Review of operations – wireless

Q1-05 Q1-06

80K

93K

4.6 million

3.7M

876K

Industry ARPU comparison

$58

$48 $46

$60

$52$48

TELUS Rogers Wireless BCE Wireless

review of operations – wireless

Increased usage and data driving positive industry trend

18

Q1-05

Q1-06

Review of operations – wireless

Source: Company reports

TELUS

Low churn relative to North American peers

Q1 2006 wireless churn (%)

VerizonT-mobile BCECingular

1.9

Rogers Wireless

2.1

1.6

1.3 1.2

2.7

Sprint Nextel

2.1

Growing brand value through superior customer experience

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Review of operations – wireless

$394 $410$429COA per gross add

1.6% 2.0%11.33%Blended churn

BCE RogersTELUS

$3000 $2600$4500Avg. lifetime revenue per sub

13.1% 15.8%9.5%COA / lifetime revenue

Q1-06

$48 $52$60ARPU

Review of operations - wireless

Profitable growth strategy

TELUS subscriber economics remain very attractive

20

1Calculated using prepaid and postpaid churn

TELUS wireless EBITDA & cash flow growth

2000¹

173

(360)

356

2001²

(288)

535

75

2002

815

455

2003

1,142

788

2004 2005

¹ Pro forma acquisition of Clearnet

² EBITDA (excluding restructuring) for 2001 & 2002

³ Midpoints of 2006 targets. See forward looking statement caution.

1,443

1,038

EBITDA ($M)

EBITDA less Capex ($M)

2006E³

~1,725

~1,275

21

Increasing Canadian wireless penetration

review of operations

4 to 5 million net additions expected over next 3 years

22

Source: Industry analysts

2003

42%

2008E*

65 - 68%

2005

53%Penetration:

13.4M 21 - 22M16.8MSubscribers:

* See forward looking statement caution

Collective agreement highlights

Ratified collective agreement Nov. 2005

Five year agreement to 2010

Improved flexibility to serve customers

Allows management to productively run the business

outsourcing, consolidating, scheduling

Supports a performance culture not one of seniority

New Common Interest Forum meetings

CIRB* and legal proceedings to be dismissed or withdrawn

New constructive era for TELUS and our team

* Canada Industrial Relations Board

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1.03 million

Total Internet subscribers

High-speed78%

Dial up22%

High-speed Internet subscriber growth

22K

39K

High-speed Internet net additions

Net additions up 74% to 39K leading to 25% increase in guidance to more than 125K

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Review of operations – wireline

Q1-05 Q1-06

802K

228K

Launched suite of IP applications:

Home Networking (wireless LAN)

HomeSitterTM

TELUS TV moving to next stage with targeted roll-outs in

Edmonton and Calgary 2005/2006 Vancouver lower mainland 2006/2007

Future Friendly Home

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Launching TELUS TV

financial review

26

Offering customers differentiated entertainment

Choice of 200+ digital stations

Customized channel packaging

Interactive programming guide

Video on demand

myTELUS channel

Call display

Targeted launch in Edmonton and Calgary in 2005

TELUS TV – interactive programming guide

27

2005 2006E1

632650-700

EBITDA ($M)Revenue ($M)

2004

561

2005 2006E1

21

25-40

2004

(22)2003

555

2003

(29)

Non-ILEC revenue & EBITDA

1 May 3, 2006 guidance. See forward looking statement caution.

Advance TELUS’ position in business market

Continued focus on profitable, long-term growth in Central Canada

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Financial update

13%$640M$567MFree Cash Flow

17%$321M$273MCapital expenditures

0.8%$863M$856MEBITDA1

5.4%$2.08B$1.97BRevenue

ChangeQ1-06Q1-05

TELUS Consolidated

2006 – first quarter review

Strong gains in normalized EPS and free cash flow

1 Includes restructuring costs of $9 million and $17 million in Q1-05 and Q1-06 respectively

10%$0.60$0.67EPS2

20%$0.60$0.50EPS (excl. non-recurring items)

2 Q1-05 includes favourable impacts for tax related adjustments of $0.15 per share, and regulatory decisions of $0.02 per share

30

20%$334M$278MCash flow (EBITDA less capex)

3.2%$62M$60MCapital expenditures

17%$396M$337MEBITDA1

17%$882M$753MRevenue

ChangeQ1-06Q1-05

Wireless segment – financial results

2006 – first quarter review

Excellent results with strong revenue and EBITDA growth

1 Includes $2M in restructuring & workforce reduction costs in Q1-06

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32%$208M$305MCash flow (EBITDA less capex)

21%$259M$214MCapital expenditures

10%$467M$519MEBITDA1

1.9%$1.20B$1.22BRevenue

ChangeQ1-06Q1-05

Wireline segment – financial results

2006 – first quarter review

32

Wireline results reflect increased competition and investments for growth

1 Includes $9M and $15M in wireline restructuring costs in Q1-05 and Q1-06 respectively

2006 consolidated guidance summary

1 May 3, 2006 guidance. See forward looking statement caution2 Including restructuring & workforce reduction costs of $54M in 2005 and up to $100M in 2006

$1.55 to 1.65BFree Cash Flow

$1.5 to 1.55BCapex

$2.40 to 2.60EPS

Change

EBITDA2

Revenue

2006 guidance1

$3.5 to 3.6B

$8.6 to 8.7B

5 to 12%

14 to 17%

22 to 33%

6 to 9%

6 to 7%

Guidance builds upon track record of strong operational execution33

2006 wireless guidance summary

>550KWireless net adds

approx. $450MCapex

Change

EBITDA

Revenue

2006 guidance1

$1.7 to 1.75B

$3.775 to 3.825B

6%

11%

18 to 21%

15 to 16%

1May 3, 2006 guidance. See forward looking statement caution.

2006 wireless guidance builds upon track record of strong growth

34

2006 wireline guidance summary

>125KHigh speed net adds

$1.05 to 1.1BCapex

$1.8 to 1.85BEBITDA2

Change

non-ILEC revenue

Revenue

2006 guidance1

$650 to 700M

$4.825 to 4.875B

71%

15 to 20%

(3) to 0%

3 to 11%

0 to 1%

$25 to 40M non-ILEC EBITDA 19 to 90%

1 May 3, 2006 guidance. See forward looking statement caution. 2 Includes restructuring costs.

2006 wireline guidance shows resiliency

35

1.7x 1.5 to 2.0xNet Debt : EBITDA

Q1-06Long-term financial policy target

1 Net debt to EBITDA target updated November 10, 2005

Target1

Net Debt : Total Cap 45 to 50% 45.7%

Met

Financial update

Strong balance sheet consistent with policy targets

36

TELUS early redeemed $1.6B of debt in December 2005

Credit rating changes in 2005

All four rating agencies upgraded TELUS ratings in 2005

Bond rating policy target: BBB+ to A-

Credit profile

Agency Rating Outlook

DBRS BBB (high) Stable

S&P BBB+ Stable

Fitch BBB+ Stable

Moody’s “BBB (mid)” 1 Positive

Credit rating overview for TELUS Corporation

37

1 Moody’s rating is Baa2

Investor considerations

2006 regulatory update Deferral account 95% of accumulated funds to be used to expand broadband

facilities in rural areas

Telecom Policy Review (TPR) recommendations Rely on market forces over regulation No obligation on incumbents to subsidize broadband expansion Foreign ownership restrictions should be liberalized

39

2006 regulatory update

Forbearance decision Geographic forbearance when 25% market share lost Elimination of marketing restrictions when 20% share lost Winback restrictions reduced to 90 days from 1 year TELUS & other ILECS appealed decision to cabinet CRTC to review measurement of market share loss

Mobile television broadcasting Unregulated, to fall under existing new media exemption order

40

2006 regulatory update

Government refers VOIP decision back to CRTC

Government policy direction on June 13 Tabled proposed policy direction in Parliament CRTC would be required to “rely on market forces to

maximum extent feasible” Direction in line with TPR recommendations Definition of essential facilities to be reviewed

Price Caps review proceeding Underway in 2006 for May 2007

41

2.5%

6.4%

5.1% 5.1% 4.8%

2.3%

5.8% 1.1%

0.4%

TELUS MTS AT&T(SBC) Verizon BCE Alltel

2005 return of capital - comparables

Dividend

Share repurchase

Source: Company reports and filings, up to Dec. 15, 2005 Note: Share repurchases based on LTM. Dividend yield based on last dividend annualized.

8.3%

6.4% 6.2%

5.1%4.8%

2.7%

BellSouth

4.2%

4.2%

TELUS best in class shareholder return of capital in 2005

42

38% quarterly dividend increase to 27.5 cents per share for Jan., Apr. and Jul. 2006 payments

Consistent with dividend payout ratio guideline of 45 to 55% of sustainable net earnings

Repurchased 30.5M shares for $1.3B under two NCIB programs (Dec 2004 – May 2006)

Second 24M share NCIB effective Dec. 20, 2005 for 12 mos.

Authorized for up to 12M common and 12M non-voting (up to 7.1% of total shares outstanding)

Repurchased 8.8M shares (Dec 2005 - May 2006)

Return of capital summary

TELUS has strong track record for returning capital to investors

43

1 EBITDA less capital expenditures * See forward looking statement caution

Source: TD Securities data on major global incumbent telecoms

Leading global telecom performance

Met or exceeded 88% targets since 2000

20052004Growth in 2003

Cash flow1

#1Operating profit

#1Revenue

EPS

top 25%

top 25%

#1

- top 25%

top 25%

top 25%

#1 # 2

top 25%

44

Annual Report on Annual Reports TELUS 2004 AR ranked 2nd in world of 1,100 reviewed

Canadian Institute of Chartered Accountants (CICA) Best Corporate Governance Disclosure in Canada 2004 Annual Report received Award of Excellence

Corporate Reporting - Communications & Media sector 11 consecutive years of recognition

IR Magazine (Canada) awards 2006: Best annual report & disclosure policy 2005: Best mgmt. communications & web site

e.ComReport Watch

45

TELUS recognized as a leader in disclosure

Member of 2006 Dow Jones Sustainability Index

only North American telco in global index

one of nine Canadian companies

2004 Corporate Social Responsibility Report ranked 2nd in Canada by Stratos

TELUS Board ranked 3rd best in Canada by . magazine – Aug. 2005

TELUS excellence in sustainability & governance

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Why invest in TELUS?

Strong revenue growth EBITDA growth driven by wireless Significant EPS growth

driven by EBITDA growth and lower financing costs Significant Free Cash Flow generation Continued subscriber growth Track record of returning capital to investors Excellence in reporting, transparency and governance

Strong execution against consistent national growth strategy

47

Investor Relations

1-800-667-4871telus.com

ir@telus.com

48

Appendix

49

$1,550 to 1,650

~(500)

(1,500 to 1,550)

$3,500 to 3,600

2006E

Free Cash Flow

Net Cash Interest

Capex

EBITDA

($M)

50 to 100Other1:

Free cash flow

1 Restructuring expense (net of cash payments), non-cash share based compensation, & net cash tax recoveries

TELUS consolidated

Continued strong free cash flow generation

50

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

51