October 25, 2001

Dividend reduced to align with growth strategy; dividend reinvestment discount reduced

Vancouver, British Columbia - The Board of Directors of TELUS Corporation has declared a quarterly dividend of fifteen cents ($0.15) Canadian per share on the outstanding Common Shares and outstanding Non-Voting Shares of TELUS Corporation. This dividend is payable on January 1, 2002 to holders of record at the close of business on December 11, 2001. This represents a reduction from the thirty-five cents ($0.35) declared last quarter.

"We believe the reduction in the dividend is in the best interests of TELUS shareholders," stated Darren Entwistle, president and chief executive officer. "This decision is consistent with our focused growth strategy. The resiliency of our established operations provides a solid foundation for this strategy. It is important to note that we continue to expect that TELUS will meet or exceed its financial targets for 2001, which we established at the start of the year. This dividend decision will enable us to invest a greater proportion of internally generated funds into our national data, IP and wireless growth initiatives while maintaining a strong balance sheet. Today's decision by our Board provides clarity on this issue for the benefit of existing and prospective shareholders in TELUS."

Robert McFarlane, executive vice president and chief financial officer noted "this dividend decision was made from a position of financial strength. TELUS is in an enviable position of having an investment grade credit rating and a strong liquidity position following the notable success of our landmark $9.2 billion in financings earlier this year. The successful execution of our divestiture program of non-strategic assets, which exceeded expectations by raising about $1.2 billion in 2001 further strengthened the company's financial position. Today's decision reflects our view that the most efficient and optimum allocation of capital for TELUS in the future is to increase the proportion of funds re-invested into our growth initiatives and to reduce the dividend. Even after implementing this decision, the dividend yield of TELUS shares, based on yesterdays closing share price will provide an attractive yield which is comparable to industry norms."

TELUS is also changing the dividend reinvestment plan ("DRIP") terms to reduce the discount from the average market share price from 5% to 3%. Robert McFarlane commented, "this change reflects the view that while an incentive for participation in the DRIP continues to make long term sense, a reduced discount was appropriate given that we have exceeded our expectations for the participation rate, today's decision to reduce the dividend payout, and our belief that TELUS shares are considerably undervalued." The DRIP participation rate was 44% for the October 1, 2001 dividend (41% in July and 4% in April).

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

John Wheeler
Investor relations
(780) 493-7310
ir@telus.com