TELUS is committed to economic growth for today and tomorrow, for the benefit of our shareholders, customers, team members and suppliers, and the communities where we live, work and serve. Our innovative communications products and services have the potential to enhance the lives of Canadians, enable the success of our customers and contribute to the development of sustainable communities – all while delivering long-term, positive results for our investors. We also strengthen the economy through our purchasing decisions, by creating jobs and paying taxes, by driving innovation and investing in technological research and development.

In 2007, the Canadian telecom industry generated estimated revenues of approximately $40 billion. As a leading national telecommunications provider in Canada, TELUS generated almost $9.1 billion in revenues in 2007, or approximately 23 per cent of the total.

The telecom landscape is expected to remain competitive in 2008. In wireline, traditional services remain under pressure, impacted by migration from wireline to wireless, voice over Internet protocol (VoIP) telephony, e-mail and other data services. Technological advancements are blurring the boundaries between telecom, video, broadcast and entertainment, and supporting growth in data services such as higher-speed Internet services, Internet telephony and digital-TV services.

TELUS’ 2007 financial highlights

In 2007, TELUS’ operating revenues increased 4.5 per cent to $9.1 billion, driven by growth in wireless and data. Combined, wireline data and wireless revenues represented 67 per cent of total operating revenues in 2007, up from 63 per cent in 2006 and 28 per cent in 2000. This is consistent with our continued strategic focus on national growth markets of data and wireless.

EBITDA (earnings before interest, taxes, depreciation and amortization), as adjusted to exclude a charge related to the introduction of a net-cash settlement feature for share option awards granted prior to 2005, increased four per cent led by wireless growth.

Net income (as adjusted) grew by $218 million to $1.36 billion or 19 per cent as a result of growth in wireless, lower financing costs and the impact of tax adjustments and related interest for prior periods. Earnings per share (as adjusted) increased by 23 per cent as a result of these impacts, in addition to the lower average number of shares outstanding resulting from our ongoing share repurchase program. Strong cash flow, defined as EBITDA less capital expenditures, remained stable at $2.0 billion as higher earnings were offset by increased capital expenditures.

The following chart shows how TELUS allocates its resources, relative to revenue. The largest percentage (49 per cent) goes to paying our suppliers, 91 per cent of whom are Canadian companies or multi-national companies with locations in Canada.

more information can be found in the TELUS 2007 annual report at telus.com/annualreport

To learn more about TELUS’ financial performance and targets for 2008, please refer to TELUS 2007 annual report at telus.com/annualreport.