May 31, 2001

TELUS to acquire Ontario IT infrastructure company Arqana Technologies Inc.

Burnaby, B.C. - TELUS has signed an agreement to acquire Mississauga-based information technology infrastructure solutions provider, Arqana Technologies.

Established in 1988, Arqana's 85 employees are located in offices in Mississauga, Waterloo and London. The company provides consultation and deployment of local and wide-area networks, enterprise servers, storage devices and information security and management tools.

Arqana has a number of blue chip clients in the financial, manufacturing and utilities sectors including, ATI Technologies, Bank of Montreal, Bank of Nova Scotia, Charles Schwab, Dofasco, Hydro One, Manulife Financial, Research in Motion and Royal Bank. Arqana generated revenues in fiscal 2001 of $53 million. In 1998 and 1999, Arqana was recognized as one of Canada's 50 Best Managed Private Companies by Arthur Andersen, CIBC and the National Post.

"Arqana is an excellent strategic fit with TELUS' data and Internet Protocol strategy," said Darren Entwistle, TELUS president and CEO. "The company advances TELUS' data networking integration capabilities in Central Canada and provides us key clients and employees."

"Our highly-skilled and experienced people, combined with TELUS' resources and vision create a tremendous growth opportunity for our employees and our customers," said Paul Goldman, founder and CEO of Arqana. "We have been impressed with the quality and focus of the TELUS organization and look forward to expanding the breadth of solutions and capabilities we currently offer our customers."

The purchase price is up to $21 million, with $12 million payable in cash on closing and the remainder payable in cash or TELUS non-voting shares subject to Arqana meeting certain targets. The deal is expected to close next month subject to regulatory approval.

About Arqana
Arqana is one of Canada's premier providers of IT infrastructure solutions for optimizing business critical applications. Arqana enables its customers to deal effectively with change by aligning their IT infrastructure with the business goals and application demands of the organization. Arqana has strategic supplier relationships with leading technology vendors including Cisco Systems, EMC, Hewlett Packard, Oracle and Sun Microsystems. For more information about Arqana visit www.arqana.com.

About TELUS
TELUS Corporation (TSE: T, T.A; NYSE: TU) is one of Canada's leading telecommunications companies providing a full range of telecommunications products and services that connect Canadians to the world. The company is the leading service provider in Western Canada and provides voice, data, Internet and wireless services to Central and Eastern Canada.

For more information, please contact:
Doug Strachan
Director, external relations
(604) 432-2663 (office)
doug.strachan@telus.com