News Release February 17, 2006 TELUS Reports Fourth Quarter Results 2005 financial guidance achieved despite impact of labour disruption in West Vancouver, B.C. – TELUS Corporation (TSX: T and T.NV / NYSE: TU) today reported for the fourth quarter of 2005 revenues of $2.1 billion that increased 6% from a year ago due to continued strong wireless performance, including record wireless net additions. Operating earnings (EBITDA) were down 4% due to higher temporary expenses associated with the extended labour disruption in Western Canada that ended in late November. Reported earnings per share (EPS) for the fourth quarter were 22 cents, compared to 38 cents for the same period a year ago, reflecting primarily the labour disruption, higher restructuring costs and a non-recurring six cent financing charge for the early retirement of $1.6 billion of debt. Normalizing for these items and tax related and other adjustments, EPS would have increased 40% over the same period last year. Free cash flow remained robust at $110 million during the quarter, down $12 million or 10% from a year ago. TELUS has achieved or exceeded its original 2005 consolidated financial guidance set over a year ago despite the impact of the labour disruption. The 2005 results were also consistent with the latest guidance update made in December 2005. In 2005, TELUS reported revenue and EBITDA growth of 7 per cent, and a 24 per cent increase in net income. TELUS generated strong free cash flow of $1.5 billion, which has been used to repurchase $892 million of TELUS shares in 2005, increase the quarterly dividend level by 38% for the first two payments in 2006 and to reduce outstanding debt. FINANCIAL HIGHLIGHTS C$ in millions, except per share amounts 3 months ended December 31 (unaudited) 2005 2004 % Change Operating revenues 2,086.7 1,964.9 6.2 EBITDA(1) 734.4 766.6 (4.2) Operating income 321.2 349.1 (8.0) Net income 78.5 135.6 (42.1) Earnings per share (EPS), basic (2) 0.22 0.38 (42.1) Capital expenditures 374.1 343.4 8.9 Cash provided by operating activities 805.0 613.8 31.2 Free cash flow (3) 109.8 121.9 (9.9) (1) Earnings before interest, taxes, depreciation and amortization (EBITDA) is defined as Operating revenues less Operations expense less Restructuring and workforce reduction costs. See Section 11.1 of Management’s discussion and analysis. (2) EPS for the three month period in 2005 includes approximate unfavourable impacts of 10 cents for labour disruption net expenses, seven cents for restructuring and workforce reduction charges, six cents for financing loss on redemption of long-term debt and one cent for tax adjustments. (3) See Section 11.2 of Management’s discussion and analysis. 1 Darren Entwistle, president and CEO, stated “During the 2005 financial year, TELUS once again demonstrated the robustness of our business strategy, focused on national wireless and data growth. TELUS’ fourth quarter results reflect strong growth in wireless and data. TELUS achieved record fourth quarter and full year wireless subscriber net additions and continued increases in revenue per unit that resulted in annual wireless revenue and EBITDA growth of 16% and 14% respectively. A significant milestone was accomplished in the fourth quarter with a landmark five- year collective agreement that provides excellent operating flexibility and productivity and facilitates better service for our customers in an increasingly competitive marketplace. Moreover, the recent merger of our wireline and wireless operations into a single operating structure improves our economies of scale and ability to leverage the ongoing convergence of wireline and wireless technology for our customers. TELUS is now well positioned to direct our full energy to satisfying customers, staying ahead of our competition with differentiated solutions, and achieving our leading financial growth targets for 2006.” Robert McFarlane, executive vice president and CFO, said “It is a remarkable achievement that TELUS met or exceeded all of our original financial targets for 2005, which were considered challenging at the time, despite the impact from the labour disruption that was not factored into the targets. As for the fourth quarter, an informed understanding of operational results should adjust for temporary expenses incurred as a result of the labour disruption and the one time cost of an early debt redemption, which together with restructuring costs and tax related adjustments negatively impacted EPS by 24 cents per share in the quarter. The strength of our underlying operations in the fourth quarter is reflected by the 40% year over year increase in net earnings when normalized for these factors. Noteworthy again this quarter was TELUS’ ability to return significant amounts of capital to our investors. In December we used our strong cash position to early redeem $1.6 billion of notes, resulting in two more credit rating upgrades in the fourth quarter. During the quarter we also repurchased 5.1 million shares for $229 million and in total we have now repurchased 23 million shares for $970 million since commencing our repurchases in December 2004. Finally and as previously announced, we increased the quarterly dividend by 38% going into 2006. With an expected $1.55 to $1.65 billion of free cash flow in 2006, we are well positioned to continue returning capital to investors and building further value.” This news release contains statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions 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 results and events to differ materially from that expressed in the forward-looking statements. Accordingly this news release is subject to the disclaimer and qualified by the assumptions (including assumptions for 2006 targets), qualifications and risk factors referred to in the Management’s discussion and analysis – February 15, 2006. 2 OPERATING HIGHLIGHTS TELUS wireless Strong revenue growth and record subscriber net additions • Revenues increased by $121 million or 16% to $877 million in the fourth quarter of 2005, when compared with the same period in 2004 • EBITDA increased by $41 million over the fourth quarter of 2004 representing 14% growth, despite higher cost of acquisition expenses from record gross additions • ARPU (average revenue per subscriber unit) improved by $2 to $63 over the fourth quarter of 2004 • Cost of acquisition (“COA”) per gross addition increased 10% in the quarter to $449 due to increased promotional activity • Record quarterly net subscriber additions of 235,000, 26% higher than the fourth quarter of 2004, driven by strong prepaid growth, and stable postpaid additions of 143,200 • Blended monthly churn improved slightly to 1.42% from 1.45% when compared to the same quarter a year ago • Cash flow (EBITDA less capital expenditures) increased by $20 million or 12% to $182 million in the fourth quarter due to higher EBITDA, partly offset by higher capital expenditures TELUS wireline Stable revenues, but increased temporary expenses from labour disruption • Revenues were flat in the fourth quarter at $1,210 million despite the labour disruption in Western Canada when compared to the same quarter in 2004 • Data revenue increased 7% driven by increased Internet and enhanced data services revenues • Long-distance revenue declined 8% to $212 million, reflecting increased competition and constrained resources during the labour disruption • EBITDA declined 15%, as stable revenues were offset by increased temporary expenses from the labour disruption in Western Canada which ended in November • non-incumbent EBITDA was $7.1 million, representing a fifth consecutive quarter of positive EBITDA and a 92% increase over the fourth quarter of the previous year • high-speed Internet net adds were 27,000, down 22% from a year ago but up strongly from the third quarter as we began recovering from impacts of the labour disruption. The total Internet subscriber base ended the year at just under 1.0 million • network access lines declined by 18,000 in the quarter, down 2.4% from a year ago reflecting residential line losses caused by competitive activity, wireless substitution and the impact of the labour disruption • cash flow (EBITDA less capital expenditures) was down 32% to $179 million, compared to the last quarter of 2004, primarily due to lower EBITDA and higher capital expenditures from deferred spending into the fourth quarter as a result of the labour disruption 3 CORPORATE DEVELOPMENTS TWU members ratify new five-year agreement with TELUS On November 18, Telecommunications Worker’s Union (TWU) members voted to accept the second memorandum of agreement reached on November 6 between the Company and the TWU executive council and bargaining committee. The first memorandum of agreement was narrowly defeated in a vote on October 30. The new collective agreement covering approximately 14,000 employees is effective from November 20, 2005 to November 19, 2010. The ratified agreement concludes a complex five-year process of merging six separate collective agreements, formerly represented by five different unions, into one. Ratification brought an end to a labour disruption that began on July 21, 2005 and the staged recall to work of approximately 8,000 employees, who were substantially all working by the first week of December. The new five-year agreement provides increased operating flexibility and productivity, focuses team members on our core business, and facilitates better service for customers in an increasingly competitive marketplace. It fosters a performance culture with universal variable pay, when performance metrics are met, and career advancement based on performance as well as seniority.