Q2 2010 TELUS investor conference call

1. Q2 2010 TELUS investor conference call Robert McFarlane EVP & Chief Financial Officer Darren Entwistle President & Chief Executive Officer Joe Natale EVP & Chief Commercial Officer August 6, 2010

2. TELUS forward looking statements Today's presentation and answers to questions contain statements about expected future events and financial and operating performance of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and predictions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future performance and events to differ materially from that expressed in the forward-looking statements. Accordingly our comments are subject to the disclaimer and qualified by the assumptions (including assumptions for 2010 guidance), qualifications and risk factors referred to in the Management’s discussion and analysis in the 2009 annual report and in the 2010 first and second quarter reports. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual targets and guidance.

3. agenda 3 • Wireless and wireline segment review • Consolidated financial review • Updates • TELUS TV • Refinancing June 2011 notes • 2010 guidance • IFRS • Question and answers

4. Q2 2010 wireless financial results        Wireless cash flow up significantly due to lower capex and EBITDA increase

5. subscriber results Total net adds Postpaid net adds Wireless subscribers 1.2M 124K 111K 109K prepaid 18% 95K postpaid 82% 5.5M Q2-10 Q2-09 Q2-10 Q2-09 6.7 million total Strong total net adds growth of 12% y/y with higher value postpaid representing 88% of net adds

6. smartphone subscriber mix • Smartphone subs represent 25% of postpaid base compared to 16% a year ago • In Q2, 34% of all smartphone loading new to TELUS • BlackBerriesand iPhones continue to dominate smartphone retention loading Smartphone base increased 65% y/y to 1.4M

7. data revenue $273M $216M $159M BlackBerry Bold Q2-09 Q2-10 Q2-08 Data growth of 26% driven by continued smartphone adoption and expected to be enhanced further with HSPA + devices

8. marketing and retention       Improved churn reflects improving economic conditions and availability of new 3G+ handsets including the Apple iPhone

9. blended ARPU breakdown Data Voice % of ARPU $58.61 $57.47 20% 11.56 24% 13.80 47.05 80% 43.67 76% Q2-09 Q2-10 Q2-09 Q2-10 Strong data growth with improving trend in overall ARPU down 1.9% y/y compared to 4.4% decline in Q1/10 and 7.7% in Q4/09

10. TELUS to increase wireless data network speeds* • This week, TELUS announced it will be launching HSPA+ Dual Cell technology in select cities • Increasing manufacturer-rated maximum download speeds to up to 42 Mbps when deployed • TELUS only N.A. carrier to successfully test HSPA+ Dual Cell technology and announce deployment • New devices starting with mobile Internet keys expected to be commercially available starting in 2011 • Deployment of Dual Cell technology represents small investment and within TELUS’ 2010 capex guidance * See forward looking statement caution Dual Cell technology consistent with TELUS’ evolution towards long-term evolution

11. Q2 2010 wireline financial results        EBITDA growth driven by a decline in expenses and restructuring costs offsetting continued revenue decline

12. wireline operating stats High-speed Internet net additions Residential*NAL losses Business* NALlosses 3K 3K Q2-10 Q2-10 Q2-09 Q2-09 Q2-09 Q2-10 -5K -12K -43K -51K * Historic NALs restated for prior periods starting in 2007 as a result of a periodic subscriber measurement review and correction. Wireline operating stats impacted by competition

13. TELUS TV subscribers TELUS TV net additions* TELUS TV subscribers* 228K 29K 115K 17K Q2-09 Q2-10 Q2-09 Q2-10 * Includes both TELUS IP TV and TELUS Satellite TV subscribers TELUS TV net adds up 71% y/y with subscriber base doubling

14. TELUS TV developments 14 • In June, TELUS launched Optik TV powered by Microsoft Mediaroom and Optik High-Speed • Optik TV footprint now covers 1.9M households and expanding • This week, TELUS launched Microsoft Xbox 360 to be used to directly access Optik TV including new promotional offer • TELUS customers among first to use Xbox 360 as set top box with Optik TV • Also this week, TELUS launched Remote Recording for Optik TV customers • New feature allows customers to manage PVR Anywhere content using web enabled computer or iPhone Investments in broadband have enabled TELUS to offer differentiated and integrated TV service and applications

15. Q2 2010 consolidated financial results        Significant cash flow expansion driven by improved profitability and capex decline

16. EPS continuity ($) + 0.01 0.92 + 0.03 + 0.03 + 0.04 - 0.01 + 0.08 0.77 Tax Adj. 0.89 Excl. Tax Adj. 0.71 Excl. Tax Adj. Q2-09 reported Restr. costs Dep & Amort Normalized EBITDA1 Lower tax rates & other Normalized Financing costs2 Pension costs Q2-10 reported 1 Normalized EBITDA excludes restructuring and pension costs. 2 Normalized financing costs excludes interest income for Q2/09. EPS excluding income-tax related adjustments up 25%

17. breakdown of full time equivalent employees • International and Black’s FTE decline largely represents Q4 and Q1 seasonality Significant domestic FTE reduction in first half of 2010

18. TELUS refinancing update • In July, successfully issued $1B senior unsecured notes • 5.05% 10-year notes, maturing July 2020 • Proceeds to be used in September to fund partial early redemption of US notes due in June 2011 • Redemption price is approx US$640M and estimated payment to terminate associated swaps is approx $313M • Expect Q3 pre-tax charge of $58M for early partial redemption • After-tax impact of 13 cents per share • Benefits include reduced refinancing risk, staggered debt maturity profile and interest expense savings (5% vs 8.5%) Completed landmark $1B debt issue in July - $240 million larger than the next non-bank or non-government issue

19. update on Cdn GAAP to IFRS transition • Transparent status report on key topics and progress against key milestones of changeover plan in MD&A • Expect to quantify impacts on key financial statement line items and other measures in Q3 disclosure on Nov 5 • Currently estimate pro forma net income YTD under IFRS approximately the same as under Cdn and US GAAP Comprehensive disclosure in section 8.2 in MD&A

20. 2010 annual guidance* update • Revenue guidance updated to reflect change in wireline revenue guidance 1 Normalized EPS y/y growth of 2 to 16%. See appendix. * See forward looking statement caution Earnings guidance for 2010 reconfirmed despite reduced wireline revenue guidance

21. Q2 2010 summary • Wireless • ARPU decline trend continuing to improve • Strong wireless subscriber growth and improved churn • Improving trend in revenue and EBITDA growth • Wireline • Continued strong TELUS TV subscriber growth • Improved cost structure generating EBITDA expansion despite legacy revenue declines • Robust free cash flow growth • Earnings guidance for 2010 reconfirmed Strategic investments resulting in improved TELUS 2010 performance as planned

23. appendix – free cash flow 2009 Q2 2010 Q2 C$ millions 873 919 EBITDA (557) (397) Capex 5 7 Net Employee Defined Benefit Plans Expense (Recovery) (51) (44) Employer Contributions to Employee Defined Benefit Plans (185) (149) Interest expense paid (includes income tax interest income) (8) (58) Cash Income Taxes and Other 15 10 Non-cash portion of share-based compensation 31 (3) Restructuring payments (net of expense) (4) (11) Donations and securitization fees included in other expense 148 245 Free Cash Flow (before share-based compensation payment) (4) (4) Share Based Compensation Paid 241 144 Free Cash Flow (per current public guidance methodology) 32 Issuance of non-voting shares* - 2 Issuance of common shares - (152) (151) Dividends (107) 52 Working Capital and Other 45 16 Funds Available for debt redemption 100 - A/R Securitization (184) (21) Net Issuance (Repayment) of debt Increase (Decrease) in cash (39) (5) * Non-voting share issuance from treasury for shareholders in the DRIP

24. appendix – definitions • EBITDA: earnings, after restructuring and workforce reduction costs, before interest, taxes, depreciation and amortization • Capital intensity: capital expenditures divided by total revenue • Cash flow: EBITDA less capex • Free cash flow: EBITDA, adding Restructuring and workforce reduction costs, net employee defined benefit plans expense, cash interest received and excess of share compensation expense over share compensation payments, subtracting cash interest paid, cash taxes, capital expenditures, cash restructuring payments, employer contributions to employee defined benefit plans, and cash related to Other expenses such as charitable donations and securitization fees • Cost of retention (COR): total costs to retain existing subscribers, often presented as a percentage of network revenue • EPS normalized: growth rates are based on 2010 expected EPS ($2.90 to $3.30) compared with 2009 actual results when excluding 52 cents of positive income tax-related adjustments and a 22 cent loss on early partial redemption of long-term debt TELUS definitions for non-GAAP measures