July 10, 2001

Arqana Technologies acquisition completes with former CEO leading new TELUS business unit TELUS also assumes full ownership of TELUS Québec

Burnaby, B.C. - After receiving regulatory approval, TELUS has successfully concluded its agreement to acquire Mississauga-based information technology infrastructure services provider, Arqana Technologies Inc.

The purchase price is up to $21 million, with $12 million in cash paid on closing and the remainder payable in cash or TELUS non-voting shares subject to Arqana meeting certain targets. Arqana generated revenues in fiscal 2001 of $53 million.

Arqana will become part of TELUS National Systems, a new business unit under TELUS Client Solutions. Former Arqana CEO Paul Goldman will lead the new division as vice-president, TELUS Client Solutions and general manager, TELUS National Systems. TELUS National Systems includes the operations of the former Williams Communications Canada and provides voice, data and information technology (IT) infrastructure products and services to business customers across Canada. Mr. Goldman has more than 16 years of experience in the IT industry and founded Arqana in 1988.

"Paul brings to TELUS proven IT skills, a very successful track record in growing a company and a reputation for recruiting top talent and inspiring performance," says Darren Entwistle, TELUS president and CEO. "He is the ideal candidate to lead and rapidly grow a new business unit focused on data, IT and voice services."

In a separate transaction, TELUS Corporation has acquired the remaining 30 per cent of TELUS Québec (formerly QuébecTel Group) that it did not own, from Verizon Communications Inc. for $284.6 million.

"I'm pleased to be able to say TELUS Québec is now completely a TELUS company," says Entwistle. "While TELUS and Verizon have worked very successfully together in guiding TELUS Québec's growth over the last year, governance and structure is simplified by having 100 per cent ownership and it gives TELUS even more flexibility to pursue our company's strategic growth plans in data, IP and wireless."

"TELUS Québec was transformed last year with our acquisition of a 70 per cent stake that enabled TELUS Québec to expand in the lucrative Québec market," Entwistle adds. "TELUS can now fully participate in the growth of TELUS Québec."

The consideration paid on closing was $71.2 million in cash and 3.49 million TELUS non-voting shares valued at $106.7 million. The balance of $106.7 million will be paid on or before August 3, 2001 in cash or non-voting shares at TELUS' election.

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 data, Internet Protocol, voice and wireless services to Central and Eastern Canada.

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

John Wheeler
Investors
(780)493-7310
john.wheeler@telus.com

Forward looking statements This news release contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. TELUS' actual results could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures. Factors that could cause actual results to differ materially include but are not limited to: general business and economic conditions in Canada and in TELUS service territories; competition in wireline and wireless services, including voice, data and Internet services, and within the Canadian telecommunications industry generally; corporate restructurings and successful integration of wireless operations; adverse regulatory action; taxation; collective agreement negotiations; technological advances; the effect of health and safety concerns and other risk factors described in TELUS' comprehensive public disclosure documents, including the Annual Information Form for 2000, and in other filings with securities commissions in Canada and the United States. TELUS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.