November 16, 2004

TELUS to acquire Canada's largest videoconferencing provider ADCOM

TORONTO, ON – TELUS today announced it has signed a definitive agreement to acquire ADCOM, Inc., the largest videoconferencing company in Canada. The transaction value is less than $15 million.

Through the acquisition, TELUS gains 84 ADCOM employees, a new customer base, as well as the company's multi-site operations and state-of-the-art equipment. ADCOM recorded $24.7 million revenue in 2004. Headquartered in Toronto, ADCOM has offices in Calgary, Edmonton, Ottawa, Montreal and Halifax.

“Acquiring ADCOM is another step in the ongoing advancement of TELUS' national data and IP growth strategy,” said Joe Natale, president, TELUS Business Solutions. “ADCOM's reputation as Canada's videoconferencing leader provides TELUS with overnight strength in an important market. We plan to leverage ADCOM's expertise, relationships and customer base to strengthen our existing videoconferencing capabilities and enhance the data and IP solutions we offer our customers.”

Many organizations are seeking greater productivity and reduced costs through the use of Internet Protocol (IP) technology and transforming enterprise communications to a real time environment. The enhanced offering enabled by uniting TELUS and ADCOM will transform video, web, audio and streaming technologies into an easy to use essential business communication tool. The combined companies will deliver solutions including collaboration infrastructure devices, software, network, and managed services.

TELUS was the first North American company to transform its circuit-based network to an IP-based network, and has been a leader in introducing and applying IP technologies and applications for business. Building on the advantages of its IP-based Next Generation Network, the addition of leading edge videoconferencing capabilities expands the potential of IP products and services available to business customers looking to gain a competitive advantage.

“TELUS and ADCOM have a shared vision of significant opportunity in the broadband enabled communication and collaboration world,” Peter McDonnell, CEO of ADCOM said. “I believe that Canadians will benefit from the resources and capabilities of our combined companies, which will enable us to offer a very broad spectrum of collaboration solutions.”

The transaction is structured as a share purchase, consideration being on an all cash basis. Ernst & Young Orenda Corporate Finance Inc. acted as the exclusive financial advisor to ADCOM.

About ADCOM
ADCOM is a privately held company headquartered in Toronto, Canada, with offices in Calgary, Edmonton, Ottawa, Montreal and Halifax, along with valued partners and agents servicing the United States, United Kingdom, Europe, Asia, and South America. ADCOM offers a complete range of professional videoconferencing products, peripherals and "tailored services". From a basic configuration to complex integrated boardrooms or theatres, ADCOM offers design, engineering, custom installation, project management and training services to help customers get the most out of today's conferencing technology.

About TELUS
TELUS (TSX: T, T.NV; NYSE: TU) is the largest telecommunications company in Western Canada and the second largest in the country, with $7.5 billion of annual revenue, 4.8 million network access lines and 3.8 million wireless customers. The company provides customers with a full range of telecommunications products and services including data, voice and wireless services across Canada, utilizing next generation Internet-based technologies. TELUS was a premier founding supporter of the successful bid to bring the 2010 Olympic and Paralympic Winter Games to Canada.

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For more information, please contact:
Nick Culo
TELUS media relations
(780) 493-7236
nick.culo@telus.com