Frequently Asked Questions

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Why has the trading volume of TELUS non-voting shares, and the average share price spread between the voting and non-voting shares increased during the latter part of 2000 and into 2001?

> The average daily trading volume of TELUS' non-voting shares increased significantly due in large part to the issuance of 49.7 million TELUS non-voting shares as part of the acquisition of Clearnet, which closed on October 20. Daily average trading volume of TELUS non-voting shares for the remainder of the year was approximately 357,000, compared to approximately 133,000 before the August announcement of the Clearnet transaction. In addition, this coincided with the listing of TELUS' non-voting shares on the New York Stock Exchange (NYSE) for the first time, enhancing the visibility of TELUS shares in the U.S.

The average spread between the voting and non-voting shares for the first nine months of 2000 was $0.73 or 2%. In the last quarter of 2000 through January 2001, the average spread increased to $2.14, or 6%.

Three main factors contributed to this increase:

1. Increased supply of non-voting shares. With the close of the Clearnet acquisition, the total non-voting shares almost doubled with the issuance of 49.7 million new shares.



2. Temporary selling pressure from former Clearnet shareholders. Due to the proration factor between shares and cash, Clearnet shareholders who elected late in October for 100% cash, received 69% cash and 31% in TELUS non-voting shares. These shareholders had to sell shares to obtain their desired amount of cash proceeds.



3. Change in Toronto Stock Exchange (TSE) stock market indexes to include only one class of shares per company. Effective March 16, 2001, certain TSE indexes are being modified to include only TELUS voting shares rather than additionally including TELUS non-voting shares. In what is expected to be a temporary phenomenon, it is believed that index fund managers may be selling in advance non-voting shares and purchasing voting shares to align their stock portfolios with the composition of the new indexes.

Please note that both classes of TELUS common shares have the same dividends, rights, and privileges. If Canada's Telecommunications Act were amended to remove the limitation on foreign ownership, the non-voting shares would automatically convert to voting shares.