Telus Sets 2004 GuidanceTelus Sets 2004 Guidance

VANCOUVER -- TELUS Corporation (TSX: T and T.A / NYSE: TU) today reaffirmed guidance for 2003, which was last updated on October 31, and announced 2004 financial and operating targets that reflect continued execution of the Company's strategy focusing on wireless, data and IP growth.

Robert McFarlane, executive vice president and CFO said, "TELUS remains on track to achieve previous guidance for its 2003 financial and operating targets, which reflect significantly improved profitability and cash flow, and material debt deleveraging. In fact, it appears TELUS will report 2003 results that represent some of the best growth rates in the global telecom industry."

"The 2004 financial targets announced today reflect a continuation in the trend for material improvements in profitability, cash flow growth and lower debt levels," said Robert McFarlane. "We are targeting to achieve a 28% increase in earnings per share based on consolidated revenue growth of five per cent and EBITDA growth of seven per cent driven by strong wireless growth. Combining this with slightly lower capital expenditures is expected to allow TELUS to generate between $950 million to $1.05 billion of free cash flow and continue to materially reduce debt levels consistent with new long-term leverage policy objectives."

The 2004 outlook for free cash flow represents a 56% increase over similarly defined free cash flow for 2003. This is expected to provide $750 to $850 million available for the reduction of debt and significant reduction in the accounts receivable securitization program. TELUS has set new debt leverage targets, including further reducing its net debt to EBITDA ratio to 2.5 times or less by December 2004 and in the longer term, reducing net debt to EBITDA ratio to 2.2 times or less and net debt to capital to 45 to 50% (previously 50%).

Telus Corp.