August 16, 2001

TELUS purchase of PSINet Canada to proceed to court approval

Vancouver, B.C. - TELUS today announced that its bid to purchase PSINet's Canadian facilities and operations has been accepted as the winning bid.

TELUS announced on June 20 that it had signed an agreement with certain subsidiaries of Virginia-based PSINet Inc. to purchase PSINet's Canadian operations and facilities for approximately US$77 (C$120) million, subject to a number of conditions. As part of its bankruptcy proceedings in Canada and the U.S., PSINet was permitted to consider other qualified bids.

PSINet will now seek court approval to complete the purchase by the end of September. The purchase price is subject to final adjustments and will be satisfied by a cash payment and assumption of certain liabilities. Regulatory approvals and employee retention conditions to closing have been satisfied.

"This is a significant step toward completing TELUS' purchase of PSINet Canada," said Jim Peters, executive vice-president, TELUS Corporate Development. "We are delighted with the positive response from PSINet Canada's talented employees to the proposed acquisition, and we look forward to welcoming them to the TELUS team. TELUS is committed to maintaining and building strong customer relationships as well as strengthening our position as a leading Internet access and hosting provider in Canada."

Through this acquisition, TELUS expects to gain approximately 250 employees, a state-of-the-art Internet data centre in Toronto and approximately 8,600 corporate accounts across the country. Last year PSINet Canada generated most of its C$75 million in revenue in Ontario.

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:
Media Relations
Nick Culo
(780) 493-7236
nick.culo@telus.com

Investor Relations
Robert Mitchell
(416) 279-3219
robert.mitchell2@telus.com