Q2 2006 TELUS investor conference call

Robert McFarlane • EVP & Chief Financial Officer

August 4, 2006

17%$293M$252MCash flow (EBITDA less capex)

28%$147M$115MCapital expenditures

20%$ 441M$367MEBITDA1

18%$945M$802MRevenue

ChangeQ2-06Q2-05

Wireless segment – financial results

2006 – second quarter review

Excellent revenue, EBITDA and cash flow growth

1 Includes $1M in restructuring & workforce reduction costs in Q2-06

2

Total wireless subscribers

Postpaid 81%

Prepaid 19%

Wireless subscriber results

Net additions

Total subscribers up 14% with strong postpaid mix

3

Q2-05 Q2-06

131K 124K

4.7 million

3.8M

897K

103K104K

83%79%

Wireless data ARPU growth

ARPU growth led by 94% increase in wireless data

4

Q2-05 Q2-06

$61

$63Data ARPU

$2.30$4.45

Industry ARPU comparison

$61

$51 $50

$63

$56

$51

TELUS Rogers Wireless BCE Wireless

review of operations – wireless

Increased usage and data driving positive industry trend

5

Q2-05

Q2-06

7 bps1.30%1.37%Blended churn

3.8%$63.18$60.84ARPU

ChangeQ2-06Q2-05

Review of operations - wireless

TELUS subscriber economics best in class

Profitable growth strategy

6

9.5%$4860$4440 Lifetime revenue

15%$394$342 COA

8.1%7.7%COA/lifetime revenue 40 bps

$419 $397$394COA per gross add

1.60% 1.82%11.30%Blended churn

BCE RogersTELUS

$3188 $3074$4860Avg. lifetime revenue per sub

13.1% 12.9%8.1%COA / lifetime revenue

Q2-06

$51 $55.951$63.18ARPU

Wireless industry economics comparison

TELUS subscriber economics compare favourably

7

1Calculated using prepaid and postpaid metrics due to non-disclosure by Rogers

2006 wireless guidance update1

approx. 450MCapex

EBITDA

Revenue

$1.7 to $1.75B

$3.775 to $3.825B

Guidance changes reflect good YTD momentum

8

Previous 2006 guidance 2

Updated 2006 guidance

Wireless net adds > 550K

1 See forward looking statement caution

no change

no change

$3.8 to $3.875B

560 to 590K

2 Originally set December 17, 2005

29%$145M$205MCash flow (EBITDA less capex)

6.0%$311M$294MCapital expenditures

8.5%$456M$499MEBITDA1

2.2%$1.19B$1.22BRevenue

ChangeQ2-06Q2-05

Wireline segment – financial results

2006 – second quarter review

9

Results reflect challenging wireline environment and increased restructuring charges

1 Includes $7M and $30M in wireline restructuring costs in Q2-05 and Q2-06 respectively

3.9%$486M$506MEBITDA (excl. restructuring)

12%$58M$65MOther

6.1%$403M$380MData

10%$206M$229MVoice – Long Distance

3.6%$523M$543MVoice – Local

ChangeQ2-06Q2-05

External Revenue $1.22B $1.19B 2.2%

Wireline revenue profile

10

Solid data growth offset by increased erosion in local and LD

1.05 million

Total Internet subscribers

High-speed79%

Dial up21%

High-speed Internet subscriber growth

17K

29K

High-speed Internet net additions

11

Q2-05 Q2-06

831K

217K

Net additions up a strong 71% to 29K

12

Network access line results

NAL results improved as business gains offset increased residential erosion to competitors

% of network access lines lost, YoY

Q2-05

-1.8%

Q3-05

-2.2%

Q4-05

-2.4%

Q1-06

-2.7%

Q2-06

-2.6%

2006 wireline guidance update1

$1.05 to $1.1BCapex

EBITDA

Revenue

$1.8 to $1.85B

$4.825 to $4.875B

Guidance revisions reflect minor adjustments to wireline outlook

13

Previous 2006 guidance 2

Updated 2006 guidance

High speed net adds > 125K

approx. $1.15B

no change

$4.825 to $4.850B

no change

Non-ILEC Revenue $650 to $700M $650 to $675M

Non-ILEC EBITDA $25 to $40M $25 to $30M

1 See forward looking statement caution2 Originally set December 17, 2005. High speed net adds guidance increased May 3, 2006

3.7%$897M$865MEBITDA

5.8%$2.14B$2.02BRevenue

ChangeQ2-06Q2-05

TELUS Consolidated

2006 – second quarter review

Strong gains in revenue and EPS

27%$378M$297MEBIT

14

$31M$7MRestructuring costs

6.4%$928M$872MEBITDA (excl. restructuring)

94%$1.03$0.53EPS

Net credit from lower tax rates

94%$1.03EPS reported

% ChangeQ2-06Q2-05

EPS (normalized)1 $0.56 $0.69 23%

EPS normalization

Normalized second quarter EPS increase 23%15

($0.32)

($0.02)

2006 – second quarter review

1 Normalized further for $0.01 and $0.06 in restructuring costs in Q2-05 & Q2-06, EPS would have been $0.57 and $0.75, up 32%

-

$0.03

$0.53

Investment tax credits

-BCTel bonds accrual

-

Tax changes, EBITDA growth, lower financing costs drive EPS 16

2006 – second quarter review

$0.53

Q2-05

$0.32

Tax rate changes

$0.06$0.05

$0.03$0.03

$0.01

$0.02 $1.03

Lower financing charges

BC TelBondsaccrual (2005)

Lower depr’n

Decr. in avgo/st

shares

Higher Other

expense

EBITDA growth

Q2-06

Common 2.9M 5.3M 12.0M 44%

Non-Voting 2.6M 6.6M 12.0M 55%

Total 5.6M 11.9M 24.0M 50%

Total cost $249M $539M

Share buy back program1 update

Share repurchase run rate consistent with full annual program

Repurchased this quarter

Repurchased since inception

Total Authorized

% of authorized repurchased since

inception(Shares)

17

1 NCIB effective December 20, 2005 for 12 months

1.7x 1.5 to 2.0xNet Debt : EBITDA

Q2-06Long-term financial policy

Target1

Net Debt : Total Cap 45 to 50% 45.5%

Met

Financing update

TELUS taking steps to refinance 2007 maturities

18

Moody’s reiterated “Baa2” rating, changed outlook to “positive” $300M debt offering of 5.00% Notes, with 7 year maturity

Proceeds used for early termination of cross-currency swaps

associated with 2007 U.S. dollar Notes Forward starting interest rate swaps arranged in Q1-06, had effect of

fixing lower rates on further $300M of debt to be refinanced

2006 consolidated guidance update1

$1.5 to $1.55BCapex

$1.55 to $1.65BFree cash flow

$2.40 to $2.60EPS (basic)

EBITDA

Revenue

$3.5 to $3.6B

$8.6 to $8.7B

Revenue and EPS guidance increased, FCF unchanged

19

Previous 2006 guidance 2

Updated 2006 guidance

approx. $1.6B

no change

$2.90 to $3.10

no change

$8.625 to $8.725B

1 See forward looking statement caution2 Originally set December 17, 2005

investor relations1-800-667-4871

telus.comir@telus.com

($91)

-

(272)

$208

20

(275)

(409)

$865

Q2-05

($8)

135

(249)

$199

(1)

(271)

(459)

$897

Q2-06

Funds avail. for debt redemption

Accounts Receivable Securitization

Purchase of shares for cancellation (NCIB)

Free Cash Flow

Net Cash Tax Recovery

Net Cash Interest

Capex

EBITDA

($M)

(1) 19Cash Restructuring Payments (in excess of expense)

7 13Non-Cash Share Based Compensation

(144) (95)Dividends

56 13Share Issuance (non-public)

($106) ($18)Net change in cash

(15) (10)Funds applied to redemption of debt

Free cash flow

Appendix

Working capital & other 61 (10)

21

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

Appendix

Definitions

TELUS definitions for non-GAAP measures