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November 3, 2006

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News Release Highlights

TELUS Reports Third Quarter Results
Strong revenue and earnings growth based on strength in wireless and data
Guidance adjustments include increased 2006 EPS
Dividend increased 36%

Vancouver, B.C. – TELUS Corporation (TSX: T and T.A / NYSE: TU) today reported for the third quarter of 2006 a seven per cent increase in revenues to $2.2 billion from a year ago due to continued strong wireless and data growth. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 13% due to strong wireless and wireline growth, aided by higher 2005 expenses due to the labour disruption. Earnings per share (EPS) for the third quarter were 94 cents, compared to 53 cents for the same period a year ago. EPS this quarter included favourable tax related adjustments of 9 cents per share. When normalizing for tax and the labour disruption impacts from 2005, EPS this quarter increased 42% due primarily to EBITDA growth, lower depreciation and lower financing costs. The quarterly dividend was increased by 10 cents to 37.5 cents payable on January 1, 2007.

FINANCIAL HIGHLIGHTS

C$ in Millions, except per share amounts	3 months ended September 30
(unaudited)	2006	2005	% Change
Operating revenues	2,210.7	2,062.8	7.2
EBITDA⁽¹⁾	952.4	839.7	13.4
Operating income	569.1	430.5	32.2
Income before income taxes and non-controlling interest	448.5	278.6	61.0
Net income⁽²⁾	319.6	190.1	68.1
Earnings per share (EPS), basic⁽²⁾	0.94	0.53	77.4
Capital expenditures	423.9	263.3	61.2
Cash provided by operating activities	570.4	693.5	(17.8)
Free Cash Flow ⁽³⁾	528.3	581.3	(9.1)

⁽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. Restructuring and workforce reduction costs were $12.5 million in the third quarter of 2006 compared to $1.6 million in the third quarter of 2005. Net expenses from the labour disruption were $65M in the third quarter of 2005. Underlying EBITDA growth before restructuring costs and net labour disruption expenses was 6.5%, compared to same period a year ago.
⁽²⁾Net income and EPS includes favourable impacts of tax recoveries and related interest of approximately $30 million or nine cents per share for the three month period in 2006, and $17 million or five cents per share for tax-related adjustments for the same period in 2005.
⁽³⁾See Section 11.2 of Management's discussion and analysis.

Darren Entwistle, president and CEO, said "Third quarter results showed continued wireless and data growth consistent with our national strategy, which drove strong consolidated revenue and earnings. Notably, for the first time, TELUS generated more than 50% of consolidated EBITDA from its fast growing wireless operations. We were also pleased to experience resiliency in our wireline segment as a result of strong data revenues, which offset increased competitive pressures affecting local and long distance revenues. Data revenues increased 9% supported by a 41,500 increase in our high-speed Internet base and continued growth in enhanced data and business services. TELUS remains committed to returning capital to our shareholders as evidenced by our announcement today to raise the quarterly dividend by 36%, as well as our track record and intentions for significant ongoing share repurchases."

Robert McFarlane, executive vice president and CFO, said "Strong EPS growth of 77% resulted from wireless and wireline EBITDA growth aided by the absence of labour disruption costs combined with lower depreciation and financing costs, positive tax related adjustments and the impact of ongoing share repurchases. We have updated 2006 guidance including tighter ranges, increased high speed net additions and set a higher EPS range of $3.15 to $3.25. We plan to announce 2007 annual guidance by mid-December."

"Given TELUS' strong financial results to date, positive prospects for future growth in operational cash flows and consistent with our dividend growth model approach, today we announced a significant 36% increase in our dividend. Furthermore, we also intend to renew in December our significant NCIB share repurchase program for 2007. In the event TELUS does not pursue an income trust conversion, then the combination of the higher dividend and share repurchases at our year to date run-rate, would result in a total return of capital to shareholders that approaches the level of cash distributions per unit previously announced in relation to the proposed income trust conversion."

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 guidance), qualifications and risk factors referred to in the Management's discussion and analysis – November 1, 2006.

OPERATING HIGHLIGHTS

TELUS wireless
Profitable subscriber growth continues

Revenues increased by $146 million or 17% to $1.0 billion in the third quarter of 2006, when compared with the same period in 2005

ARPU (average revenue per subscriber unit per month) improved by $2 to $66. The data component increased by 79% to over $5

EBITDA increased by $69 million over the third quarter of 2005 representing 17% growth. Notably, for the first time, more than 50% of TELUS' EBITDA came from wireless operations

Cost of acquisition per gross addition of $386 was down for the third straight quarter, but increased 4% year over year due to higher handset subsidies and promotional spending

Net subscriber additions were 137,200, stable quarter over quarter with 4% growth in postpaid additions to 108,600 and slightly lower prepaid loading

Blended monthly churn was slightly higher at 1.36% compared to 1.33% a year ago, while postpaid churn remained low at 1.01%

Cash flow (EBITDA less capital expenditures) increased by $43 million or 13% to $370 million in the third quarter due to higher EBITDA offset by increased capital expenditures

TELUS wireline
Strong data growth supports stable revenues

Revenues were flat at $1.2 billion when compared to the third quarter of 2005 due to continued data revenue growth offsetting ongoing declines in local and long distance revenues

Data revenues increased 9.2% driven by strong high speed Internet and enhanced data service growth

Long-distance revenue declined 10% to $199 million, reflecting industry trends of lower volumes, strong price competition and technological substitution

EBITDA increased by $44 million or 10%, due primarily to higher net expenses incurred in the third quarter last year from the labour disruption

Non-incumbent revenue in Central Canada increased 5.5% with EBITDA up to $9.7 million

High-speed Internet net adds were 41,500, up significantly from a year ago bringing TELUS’ total Internet subscriber base to 1.1 million

Network access lines declined by 40,000 in the quarter, down 2.8% from a year ago reflecting residential line losses from ongoing competitive activity and wireless substitution

Cash flow (EBITDA less capital expenditures) was down 37% to $158 million, due to increased capital expenditures reflecting increased spending on the broadband network and strong housing growth in Western Canada

CORPORATE DEVELOPMENTS

TELUS reassessing income trust conversion plans
TELUS is assessing the impact of the unexpected announcement, by Canada's Finance Minister that income trusts will be taxed in a manner similar to corporations, on the company's proposal it reorganize into an income trust. As a result of the October 31 announcement, there can be no assurance at this time that TELUS will proceed with the proposed income trust conversion it announced September 11.

TELUS is disappointed at the lack of consistency in the taxation legislation environment and that the government would make such a fundamental shift in policy without giving investors and Canadian companies the benefit of consultation or notice they were considering changing the rules. The lack of consistency makes it difficult for any company to make major long-term strategic decisions. As proposed, the new trust tax policy discriminates against TELUS investors and as such TELUS considers it unfair. If TELUS completes its trust conversion as previously planned, then TELUS would not receive an equitable tax treatment compared to existing publicly traded trusts for the four years ending 2010.

Should the conversion proceed it would be accomplished by way of a plan of arrangement under the Business Corporations Act (British Columbia) that would be subject to the approval of at least 66 2/3% of the votes cast by the security holders of TELUS at a special meeting. An information circular describing the reorganization and detailing the proposed plan of arrangement would be mailed to security holders before the meeting. The reorganization would also be contingent upon receipt of all necessary regulatory and court approvals. There can be no assurance at this time that all approvals and consents required or desirable to effect the conversion will be obtained within the proposed time frame, or at all, and, accordingly, there can be no assurance that the conversion will be completed.

TELUS continues share repurchases
During the third quarter, TELUS continued to purchase shares under its Normal Course Issuer Bid. Repurchases totaled 2.1 million shares (0.74 million common and 1.33 million non-voting), for a total outlay of $120 million.

TELUS commenced its second share purchase program on December 20, 2005 with the intention, if considered advisable, to purchase and cancel, over a 12-month period, up to 12 million of its common shares and 12 million of its non-voting shares on the Toronto Stock Exchange, which represented approximately 7% of the outstanding shares. Since this program commenced, 14.0 million shares have been repurchased, for an outlay of $658 million, representing 58% of the 24 million shares authorized.

Since December 2004, TELUS has repurchased a total of 35.7 million shares for an outlay of $1.57 billion under two share repurchase programs. TELUS believes that such purchases are in the best interest of TELUS and constitute an attractive investment opportunity and desirable use of company funds that should enhance the value of the remaining shares. TELUS intends to renew the current NCIB program that expires in December 2006, for an additional 12 month period. In the absence of an income trust conversion, this would allow continued significant share purchases in 2007.

TELUS calls for regulatory change
In October, in a speech to the Canadian Chamber of Commerce in Ottawa, TELUS President and CEO Darren Entwistle called on the federal government to implement regulatory change in Canada. Current regulatory frameworks were created 15 years ago, when wireless penetration was only three per cent, and do not reflect the current industry realities. Mr. Entwistle pointed out that the new communications world is in the midst of a digital revolution where wireless and IP are collapsing distance, reducing cost and eradicating borders. He argued that the current telecommunications and broadcasting regulatory regime stifles innovation and investment and is ill equipped for the pace of the IP world. In today’s environment, a free market approach and deregulation would benefit the very consumers regulations were once created to protect.

Mr. Entwistle’s call for a regulatory change followed TELUS' September call to the CRTC to reform broadcasting regulation in order to harness opportunities created by emerging technologies.

TELUS continues connecting B.C. communities
TELUS is partnering with the Gwaii Trust Society to connect seven Queen Charlotte Islands communities to broadband Internet by the end of the year. In September, TELUS announced it had signed a contract with the Gwaii Trust Society to bring high-speed Internet service to island residents this year by way of the world’s longest over-water radio Internet transmission. The islands communities are among 119 TELUS is investing $110 million to connect by via the Connecting Communities agreement with the provincial government by the end of 2006, making the province the most connected jurisdiction in North America. TELUS and the province partner with local Internet service providers to offer TELUS’ wholesale broadband service to individual homes and businesses.

TELUS connecting Quebec communities
TELUS is connecting 48 Quebec communities to broadband by the end of 2006. The company is partnering with Industry Canada and area municipalities to bring broadband capabilities to more than 80 per cent of households in the Lower St-Lawrence region. The project cost is $6.8 million, of which TELUS is investing $2.9 million.

TELUS, CUPE-FTQ reach labour accord for Quebec employees
TELUS and the Syndicat québécois des employées de TELUS (SQET), Local 5044 of the Canadian Union of Public Employees (CUPE-FTQ) reached a four-year labour contract ratified by the 1,000-member union local in late August. These employees will now be eligible to receive variable pay based on company performance, lump-sum payments in 2006 and 2007, and a new defined contribution pension plan. A new job evaluation program has also been implemented.

CONSUMER SOLUTIONS

TELUS invests in broadband network
In September TELUS announced it is investing $600 million to enhance broadband infrastructure in the top 38 communities across British Columbia, Alberta and eastern Quebec by the end of 2009. TELUS is installing advanced equipment in more than 7,000 sites and running fibre optic cable closer to customer homes to drive faster Internet access speeds in support of new offerings, including TELUS TV.

This broadband build complements a rural capital investment program to bring high speed Internet services to more than 450 additional remote communities in British Columbia, Alberta, and eastern Quebec by 2010.

TELUS begins offering digital TV to Vancouver Lower Mainland
In the quarter, TELUS began the commercial launch of TELUS TV in select Vancouver neighbourhoods. The neighbourhood-by-neighbourhood rollout follows similar successful launches of digital TV service in Calgary and Edmonton in 2005.

Three promises – TELUS commits to wireless client satisfaction
TELUS introduced its Future Friendly Promises to reinforce its commitment to delivering the wireless industry's best experience to clients. Building upon TELUS' history of excellent client service, the Future Friendly Promises are made up of three pledges – a dependable network, fast client service and cool new phones. Together with potential customer account credits, these promises are raising the bar for client service in the wireless industry.

TELUS SPARKs with new wireless data services
TELUS continued to expand its SPARKTM portfolio of mobile entertainment, information and messaging services with the introduction of five new offerings.

TELUS Kid Find and TELUS Navigator are new location based services making finding family members and destinations simpler. Operating on TELUS’ 1x wireless data network in British Columbia, Alberta and Ontario’s Golden Horseshoe, the services combine the accuracy of traditional GPS technology with TELUS’ network based location technology to provide reliable location fixes. With TELUS Kid Find, clients can use mapping technology on their mobile phones and computers to locate GPS-enabled phones. TELUS Navigator is a mobile phone-based tool that offers audible and visual turn-by-turn directions.

TELUS partnered with India’s Reliance Communications to bring South Asia to the palm of our clients’ hands with Apna Des. This one-stop shop for South Asian mobile content brings TELUS clients North America's largest catalogue of Bollywood content along with news, cricket updates, entertainment and cultural information direct from South Asia.

With My Email, clients with the LG 490 handset enjoy enhanced MSN Hotmail. They can read, reply, write and forward emails and even receive notification of new messages.

TELUS Mobile Search is a new mobile search tool making it easier than ever to find made-for-mobile information on-the-go. With less searching and better results, clients access downloadable information including music, ringtones, images and games, flight information, news, sports scores, lottery results, stock quotes, weather, and product rating and price points.

Cool new wireless phones
TELUS continued to expand its suite of cool products with the introduction of eight new wireless handsets and devices including the LG 490, TELUS' second phone equipped with the Fastap keypad. Fastap is the only mobile phone keypad in the world to integrate raised letter keys around the numeric keypad.

BUSINESS & PARTNER SOLUTIONS

TELUS signs significant business contracts in Ontario and Alberta
In September, TELUS announced it had won a major five-year, $140 million contract to provide and manage the Government of Ontario's province-wide telecommunications network, including IT security. This contract is another significant step forward in the national growth strategy TELUS initiated in 2000.

In October, a second contract between TELUS and the Government of Ontario was announced when the Ministry of Transportation unveiled its Greater Toronto Area (GTA) Fare Card. In support of the program, TELUS secured a $14 million, 10-year contract to provide a Wide Area Network and Wireless Local Area Network solution, which will be hosted and managed out of our Toronto Data Centre.

The announcements capped a quarter that saw several other business contracts including an $8.3 million contract in Alberta with ATB Financial for call centre, voice and data IP services and a contract to provide emergency communications infrastructure to Edmonton's Capital Health service organization.

TELUS to open contact centre in Montreal
TELUS and the Government of Quebec announced the opening of a new contact centre this year in the heart of Montreal. The $3.5 million high-tech contact centre is expected to create at least 150 jobs by mid-2007, and will be responsible for supporting TELUS' small and medium-sized business clients.

Two new Ontario buildings will house TELUS team
To accommodate TELUS' growth in Central Canada, TELUS and Menkes Developments broke ground in September on a new TELUS tower in downtown Toronto at 25 York Street beside Union Station. The $250 million building will set a new standard for environmental responsibility and energy efficiency. Scheduled for occupancy in early 2009, it will bring together more than 2,000 team members located across the greater Toronto area.

In Ottawa, TELUS broke ground in June at 215 Slater Street, bringing its “Future Friendly” brand to downtown. The state-of-the-art ‘green' building will bring together 300 TELUS employees who are currently located in various locations across the city in a location that is good for the environment, celebrates innovation and inspires business growth in the Ottawa community.

OTHER DEVELOPMENTS

TELUS National Day of Service
On September 30, more than 5,000 TELUS team members, alumni, and their families rolled up their sleeves to make a significant difference in dozens of communities across Canada as part of the first annual TELUS National Day of Service. TELUS team members volunteered a truly scarce resource, their time and energy, to hundreds of volunteer activities in more than 30 cities and towns across Canada. This included stocking shelves at Toronto’s Daily Bread Food Bank, preparing food at the Mission Bon Accueil, a non-profit community service organization in Montreal, building Habitat for Humanity homes in Edmonton, and cleaning and maintaining Victoria’s Mustard Seed Street Church.

TELUS recognized for best annual report in world
The 2005 TELUS annual report was ranked best in the world by the Annual Report on Annual Reports, the only international ranking of corporate annual reports. Now in its tenth year of surveying reports from around the world, Belgium-based enterprise.com evaluated 25 aspects of corporate reporting including executive statements, strategic direction, outlook and targets, review of operations, social responsibility, risk factors and corporate governance.

TELUS scored exceptionally well for overall financial reporting, profile and business at a glance, strategy, outlook and prospects, financial highlights, the CEO’s message, management's discussion and analysis (MD&A), and risk factors

TELUS named to Dow Jones Sustainability Index for sixth straight year
In September 2006, for the sixth consecutive year, the Dow Jones Sustainability Index (DJSI), a worldwide corporate sustainability ranking, recognized TELUS as an economic, environmental and social leader. Once again, TELUS is the only North American telecommunications company included in the global index. This year, TELUS received a perfect score for its environmental reporting. Other areas for which the judges gave TELUS high marks included: environmental management, risk and crisis management, human capital development, talent attraction and retention, stakeholder engagement and social reporting.

TELUS security chief receives top recognition
TELUS’ Chief Security Officer Gene McLean was named Security Director of the Year by Canadian Security Magazine. Mr McLean leads a team of 90 security specialists providing security for team members and facilities, IP networks operated by TELUS and its customers, data, and intellectual property. The team also ensures regulatory compliance and the protection of privacy of customer information.

TELUS Community Board launched in Calgary
The launch of TELUS’ seventh community board, in Calgary, completed the roll out of the boards across Canada. Comprised of community leaders and local TELUS executives, each board seeks out grassroots charitable projects in each community for $500,000 in annual donations.

TELUS Skins Game aids Alberta Children’s Hospital Foundation
The TELUS Skins Game visited Alberta for the first time in August. The annual Canadian summer golf classic featured five of the biggest names in the game including the legendary Jack Nicklaus and Greg Norman. More than $200,000 raised at the Banff event benefited the Alberta Children's Hospital Foundation, the designated charity this year.

Dividend declaration
The Board of Directors declared a quarterly dividend of thirty-seven and a half cents ($0.375) per share on outstanding Common and Non-Voting Shares payable on January 1, 2007 to shareholders of record on the close of business on December 11, 2006. This represents a 36.4% increase from the previous twenty-seven and a half cent quarterly dividend.

For more information, please contact:
Media relations:
Julie Smithers
(416) 684-6817
julie.smithers@telus.com

Investor Relations:
Robert Mitchell
(416) 279-3219
ir@telus.com

Certain products and services named in this release are trade-marks. The symbols ™ and indicate those owned by TELUS Corporation or its subsidiaries. All other trade-marks are the property of their respective owners.

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