October 12, 2001

TELUS completes purchase of PSINet Canada

Vancouver, B.C. - TELUS today successfully completed the purchase of PSINet's Canadian operations and facilities.

"This transaction is a major step toward achieving our goal of becoming the leading e-solutions provider in Canada and supports our national data and Internet Protocol growth strategy," said Darren Entwistle, president and CEO of TELUS. "This acquisition underscores TELUS' commitment to be the leading Internet access and hosting provider in the Canadian market."

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. PSINet Inc. announced on September 26 that both the U.S. Bankruptcy Court and the Ontario Superior Court approved the transaction.

Through this acquisition, TELUS gains approximately 250 highly skilled employees, a state-of-the-art Internet data centre in Toronto, national fibre infrastructure including approximately 6,400 fibre kilometres and over 50 points of presence, and over 8,000 corporate accounts across the country. TELUS also assumes ownership of Calgary-based Internet Service Provider CADVision. Last year PSINet Canada generated most of its 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:
Nick Culo
(780)493-7236
nick.culo@telus.com

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