Companies news

ALBUQUERQUE, N.M., Feb. 15 /PRNewswire-FirstCall/ -- EMCORE Corporation announced today that due to increased demand, it had agreed to issue an additional $6 million in the private placement which increased the total amount of the capital raised to $100 million. The increase of $6 million was agreed to on identical terms of the previously announced private placement.

In total, the Company has agreed to issue and sell, in a private placement $100 million of securities consisting, in the aggregate, of approximately 8 million shares of its common stock and warrants to purchase up to approximately 1.4 million additional shares. The purchase price was $12.50 per share, priced at the 20 day volume-weighted average price. The warrants have a five-year term and an exercise price of $15.06 per share. Jefferies & Company, Inc. acted as the Lead Placement Agent and Canaccord Adams Inc., Lazard Freres & Co. LLC and Merriman Curhan & Ford Co. acted as co-placement agents for the private placement. The private placement is expected to close on or before Wednesday, February 20, 2008.

EMCORE issued and sold the securities to selected institutional investors. EMCORE intends to use the net proceeds to acquire the telecom assets of Intel's Optical Platform Division and for working capital requirements.

The securities sold in this private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the absence of an effective registration statement under the Securities Act and applicable state securities laws or exemption from these registration requirements. EMCORE has agreed to file a registration statement covering the resale of the shares of common stock acquired by investors and the resale of shares of common stock issuable upon exercise of the warrants.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful.

About EMCORE

EMCORE Corporation is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets. EMCORE's Fiber Optics segment offers optical components, subsystems and systems that enable the transmission of video, voice and data over high-capacity fiber optic cables for high-speed data and telecommunications, cable television (CATV) and fiber-to-the-premises (FTTP) networks. EMCORE's Solar Power segment provides solar products for satellite and terrestrial applications. For satellite applications, EMCORE offers high- efficiency compound semiconductor-based gallium arsenide (GaAs) solar cells, covered interconnect cells and fully integrated solar panels. For terrestrial applications, EMCORE offers concentrating photovoltaic (CPV) systems for utility scale solar applications as well as offering its high-efficiency GaAs solar cells and CPV components for use in solar power concentrator systems. For specific information about our company, our products or the markets we serve, please visit our website at http://www.emcore.com/.

Safe Harbor:

Statements in this press release that are not historical facts, and the assumptions underlying such statements, constitute "forward- looking statements" and assumptions underlying "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and involve a number of risks and uncertainties. The actual results of the future events described in such statements could differ materially from those stated in such statements. Forward-looking statements in this press release include, but are not limited to, statements regarding the closing of the private placement transaction and its timing and the use of the proceeds of the transaction. The transaction is subject to customary conditions and would not be completed if any of these conditions were not satisfied or waived. In addition, the ability of EMCORE and the investors to complete the transaction in a timely manner could also be affected by logistical and market factors. EMCORE's use of the proceeds may change depending on future events. Readers should also review the risk factors set forth in EMCORE's Annual Report on Form 10-K for the fiscal year ended September 30, 2007. These forward-looking statements are made as of the date hereof, and EMCORE does not assume any obligation to update these statements.

CONTACT: EMCORE Corporation Adam Gushard - Interim Chief Financial Officer (505) 332-5000 info@emcore.com TTC Group Vic Allgeier (646) 290-6400 vic@ttcominc.com

EMCORE Corporation

CONTACT: Adam Gushard, Interim Chief Financial Officer of EMCORE
Corporation, +1-505-332-5000, info@emcore.com; or Vic Allgeier, TTC Group,
+1-646-290-6400, vic@ttcominc.com, for EMCORE

Web site: http://www.emcore.com/

Optelecom-NKF Announces Fourth Quarter and Full Year 2007 Earnings Release Date and Conference Call

GERMANTOWN, Md., Feb. 15 /PRNewswire-FirstCall/ -- Optelecom-NKF, Inc. , a leading global provider of advanced IP-video network solutions, today announced it will release fourth quarter and full year 2007 earnings after the market close on Monday, February 25, 2008.

Optelecom-NKF President and CEO Edmund Ludwig will lead a conference call to discuss fourth quarter and full year 2007 results at 10:00 a.m. Eastern Time, Tuesday, February 26, 2008.

Interested parties are welcome to call 866-831-6270 (International Dial In: 617-213-8858) shortly before the designated start time and request the "Optelecom-NKF conference call" or provide the participant number 56438325. The telephone conference call will feature a question and answer segment with management. For those parties unable to participate in the live conference call, a replay will be available from noon following the teleconference until March 4, 2008. Those wishing to listen to the replay should call 888-286-8010 (International Dial In: 617-801-6888) and enter passcode 84908224 when prompted.

The call is being web cast and can be accessed at http://www.earnings.com/. About Optelecom-NKF, Inc.

Optelecom-NKF, Inc. is a global supplier of IP video and fiber transmission equipment, including IP cameras, video servers, network video recorders, video management, and video analytics software. We deliver complete solutions for traffic management and security of airports, seaports, casinos, prisons, utilities, public transport, city centers, hospitals, and corporate campuses.

Founded in 1972, Optelecom-NKF is committed to providing its customers with expert technical advice and support in addition to products that are developed and tested for professional and mission critical applications. Our R&D centers have accumulated extensive knowledge of fiber optic and IP/Ethernet network technologies. This knowledge has enabled Optelecom-NKF to develop a broad range of innovative network products from high-grade fiber optic transmission products to sophisticated IP surveillance solutions. These solutions include powerful software tools to enhance the effectiveness and efficiency of today's video surveillance applications.

Optelecom-NKF has offices in the US, The Netherlands, France, Spain, the UK, Singapore, and Dubai, and expertise centers in the US and Europe.

Investor inquiries should be directed to Mr. Rick Alpert at 301-948-7872.

Optelecom-NKF, Inc.

CONTACT: Rick Alpert of Optelecom-NKF, Inc., +1-301-948-7872

Web site: http://www.optelecom-nkf.com/

Chatsworth Data Corporation Announces Strategic Partnership with Tote-a-Vote

CHATSWORTH, Calif., Feb. 15 /PRNewswire/ -- Chatsworth Data Corporation ("CDC"), a wholly owned subsidiary of Chatsworth Data Solutions, Inc. (BULLETIN BOARD: CHWD) , announced today that it has entered into a collaboration and strategic partnership with privately held Tote-a-Vote, a well known voting booth supplier. Pursuant to its agreement with Tote-a-Vote, CDC will be the exclusive sales agent for Tote-a-Vote worldwide, effective immediately. Tote-a-Vote has manufactured voting booths since 1995 and is located in Coeur d'Alene, Idaho.

In making the announcement, Louis W. Dedier III, CDC's President and CEO, said, "The introduction of this collaboration enhances and complements our product line in the vote tabulation vertical market. The Tote-a-Vote voting booth system offers jurisdictions an ultra-simple, cost-effective design that is light weight, easily portable and storage space efficient. The addition of this product will allow us to sell our other vote tabulation related products to Tote-a-Vote's existing client base. We are extremely excited about this new relationship with Tote-a-Vote and look forward to a long and profitable relationship with them."

Further information about the Tote-a-Vote voting booths can be obtained at info@chatsworthdata.com or by contacting Brittani Donnachie at (818) 233-1911.

About Chatsworth Data Solutions, Inc.

Located in Tulsa, OK, the Company is the parent of Chatsworth Data Corporation ("CDC"), of Chatsworth, CA. CDC has been trusted worldwide for 35 years as a provider of innovative, highly accurate and economically priced intelligent data capture technology. CDC provides the front end optical mark sensing and image scanning systems designed to meet the forms capture and document management needs of value added resellers, system integrators and applications developers who embed CDC technology into solutions tailored for several key markets. Chief among them are gaming, educational testing, elections, surveying, and intelligence gathering. Over a million reader and optical head assemblies have been sold by CDC to date. Shares of Chatsworth Data Solutions, Inc. are traded on OTC:BB under the symbol CHWD. For more information about the Company and CDC, visit http://www.chatsworthdata.com/ .

This release contains or may contain certain statements that may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are based upon beliefs of, and information currently available to, the Company's management as well as estimates and assumptions made by the Company's management. When used in this release, the words "anticipate", "believe", "estimate", "expect", "future", "intend", "plan" or the negative of these terms and similar expressions as they relate to the Company or the Company's management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions and other factors (including the risks contained in the sections of the Company's reports filed or to be filed with the Securities and Exchange Commission entitled "Risk Factors") relating to the Company's industry, the Company's operations and results of operations and any businesses that may be acquired by the Company. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended or planned. Although the Company believes that the expectations reflected in the forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future results, levels of activity, performance or achievements and actual results or developments may differ materially from those in the forward looking statements. The Company does not undertake any obligation to update any of the forward-looking statements to conform these statements to actual results.

Chatsworth Data Corporation

CONTACT: Joe Allen of Allen & Caron Inc., for Chatsworth Data Solutions,
Inc., +1-212-691-8087, joe@allencaron.com; or Sid L. Anderson, President and
CEO of Chatsworth Data Solutions, Inc., +1-918-645-3701, sid@slacollc.com

Web site: http://www.chatsworthdata.com/

Ener1 to Present at February Roth Capital 20th Annual OC Growth Stock Conference

FORT LAUDERDALE, Fla., Feb. 15 /PRNewswire-FirstCall/ -- Ener1, Inc. (BULLETIN BOARD: ENEI) today announced that its Chief Financial Officer, Jerry Herlihy, will deliver an investor presentation at the Roth Capital 20th Annual OC Growth Conference at 10:00 A.M. Pacific Standard Time on Thursday, February 21st. The conference is being held over three days at the Ritz Carlton Laguna Niguel in Dana Point, California. The conference will feature presentations from over 300 small-cap companies in the Media, Technology, Telecommunications, Healthcare, Consumer, Energy, and Industrial sectors, in addition to one-on-one meetings with leading institutional investors. The Conference will also host a special panel on investing in Green Tech on Wednesday, February 20 at 10:00 A.M. Pacific Standard Time. Ener1 is one of thirty companies presenting at the conference that are designated as "Green Track."

(Logo: http://www.newscom.com/cgi-bin/prnh/20040825/FLW010LOGO )

The live webcast can be viewed at http://www.wsw.com/webcast/roth16/enei.ob/ or on the Company's website at http://www.ener1.com/

About Ener1, Inc.

Ener1, Inc. (OTC Bullein Board: ENEI) is leading the North American development and commercialization of advanced, high-performance safe lithium ion (Li-ion) batteries for hybrid electric vehicles (HEVs), Plug-in HEVs (PHEVs) and Electric Vehicles (EVs). Ener1 also is developing commercial fuel cell products through its EnerFuel subsidiary and nanotechnology-based materials and manufacturing processes for batteries and other applications at its NanoEner subsidiary. For more information, visit http://www.ener1.com/ and http://www.enerdel.com/ or call 954-556-4020.

Contact: Michael Mason (investor relations) Allen & Caron Inc 212 691 8087 michaelm@allencaron.com Jerry Herlihy (Ener1) 954 556-4020 x310 Jherlihy@ener1.com

Photo: http://www.newscom.com/cgi-bin/prnh/20040825/FLW010LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Ener1, Inc.

CONTACT: Investor Relations, Michael Mason of Allen & Caron Inc,
+1-212-691-8087, michaelm@allencaron.com, for Ener1, Inc.; or Jerry Herlihy of
Ener1, Inc., +1-954-556-4020 x310, Jherlihy@ener1.com

Web site: http://www.ener1.com/
http://www.enerdel.com/
http://www.wsw.com/webcast/roth16/enei.ob

March Networks to Announce Third Quarter Fiscal Year 2008 Financial Results on February 27

OTTAWA, Feb. 15 /PRNewswire-FirstCall/ -- March Networks(TM) (TSX:MN; AIM:MNW), a leading provider of intelligent IP video and business analysis applications, announced today that it will release its third quarter fiscal year 2008 financial results on February 27, 2008.

The Company will discuss the results on a conference call and webcast on February 28, 2008 at 8:30 a.m. EST (1:30 p.m. GMT). The conference call may be accessed by dialing 1-800-732-6179 (North America) or 00 800 2288 3501 (Europe).

The conference call webcast can be accessed at: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2164360

A replay of the conference call will be available from February 28, 2008 at 10:30 a.m. EST until March 6, 2008 at 11:59 p.m. EST. The replay can be accessed at 1-877-289-8525 or 416-640-1917. The passcode for the replay is 21260468#.

About March Networks

March Networks(TM) (TSX:MN; AIM:MNW) is a leading provider of intelligent IP video and business analysis applications that enable organizations to reduce losses, mitigate risks and improve security and operational efficiency. The Company's advanced software suite includes enterprise-class video management, powerful analytics and comprehensive managed and professional services. Its software and systems are used by leading financial institutions, retailers, transportation authorities and other organizations in more than 50 countries. For more information, please visit http://www.marchnetworks.com/.

Forward-Looking Statements

This release contains certain forward-looking information, including expectations of future business. This information is based on the Company's current expectations and assumptions that are subject to a variety of risks and uncertainties that are difficult to predict and that may be beyond March Networks' control. Actual results could differ materially from those expressed in any forward-looking statements due to factors such as the Company's ability to attract and retain key employees, increased levels of competition, technological changes and the successful development of new products, dependence on third-party manufacturers, and other risks and factors identified in March Networks' public filings with regulatory authorities in Canada. March Networks assumes no obligation to update these forward-looking statements as a result of new information or future events.

(x) MARCH NETWORKS and the MARCH NETWORKS logo are trademarks of March Networks Corporation. All other trademarks are the property of their respective owners.

MARCH NETWORKS CORPORATION

CONTACT: Peter Wilenius, March Networks Corporation, (613) 591-8181,
pwilenius@marchnetworks.com

'Hannah Montana & Miley Cyrus: Best of Both Worlds Concert' in 3-D Enabled by AccessIT Technology and Deployment- Disney Digital 3-D(TM) Blockbuster Adds to Growing Demand for Special Event Programming

MORRISTOWN, N.J., Feb. 15 /PRNewswire-FirstCall/ -- Access Integrated Technologies, Inc. ("AccessIT") said today that Disney's record-breaking "Hannah Montana & Miley Cyrus: Best of Both Worlds Concert," which played in Disney Digital 3-D in movie theatres around the country, was partly enabled by the digital cinema systems the company has deployed to more than 3,700 screens. More than 55 percent of the screens that played the concert were within the AccessIT group of exhibitors. The concert movie played on 387 AccessIT Digital Cinema-equipped screens between February 1st and February 14th.

"Digital cinema is not just about technology. Events like this one are why digital cinema is the future of the motion picture industry. Event programming and alternative content which reach passionate audiences and provide more choice for theatre-goers are what digital cinema is about," said Bud Mayo, chairman and CEO of AccessIT.

Commenting on the smash success of the "Hannah Montana" movie, Chuck Goldwater, President of AccessIT's Media Services Group, said: "The record number of fans who came to see this sold-out concert movie is a testament to the great potential of digital cinema. Only digitally-equipped movie theaters give audiences so much choice of entertainment, whether a concert movie by a popular entertainer like Disney's Hannah Montana, grand opera, a major sporting event, or a myriad of other alternative content offerings. This is, indeed, the future of the motion picture industry."

AccessIT Digital Cinema is the industry-leading deployment program for Digital Cinema that provides technology, funding, operations and administration for the company's studio-supported plan. To date, exhibitors across the United States, including Atlas Theatres, Allen Theatres, Carmike Cinemas, Celebration! Cinema, Cinema West, Cinetopia, Emagine, Galaxy, Marquee Cinemas, MJR Theatres, Neighborhood Cinema Group, Rave, Showplace Cinemas, UltraStar, and AccessIT's own Pavilion Digital Showcase Cinema are using the AccessIT's unique Library Management Server(R) and Theatre Command Center(R) software to bring programming to more than 3,700 screens.

Access Integrated Technologies, Inc. (AccessIT) is the global leader in providing integrated solutions for digital cinema. The Company's ground-breaking digital cinema networked services along with its Library Management Server(TM) and Theatre Command Center(TM) have enabled theatres across the United States to play more than five million digital 2-D and 3-D showings of Hollywood features to date. AccessIT's comprehensive vendor neutral solutions provide pre-show entertainment, feature movies and live and pre-recorded alternative content via satellite to expand box office sales and develop new ways to attract incremental revenues. Through its alternative content distribution division, The Bigger Picture, AccessIT offers channels of programming including Opera, Kidtoons, Faith Based, Music, High Octane Sports and Anime. Access Integrated Technologies(R) and AccessIT(TM) are trademarks of Access Integrated Technologies, Inc. For more information on AccessIT, visit http://www.accessitx.com/.

[AIXD-G]

Contact: Suzanne Moore AccessIT 973.290.0080 smoore@accessitx.com

Access Integrated Technologies, Inc.

CONTACT: Suzanne Moore of AccessIT, +1-973-290-0080,
smoore@accessitx.com

Web site: http://www.accessitx.com/

iFinix Corp. Completes 1,000-to-1 Reverse Stock Split; Reverse Sets Stage to Prepare Company Stock for Listing on OTCBB

GARDEN CITY, N.Y., Feb. 15 /PRNewswire-FirstCall/ -- iFinix Corp. (Pink Sheets: INIX, formerly INXR.PK) announced today the completion of a 1000-to-1 reverse stock split.

Doug Spadaro, CEO of iFinix, said, "With the completion of the reverse stock split, iFinix has set the stage for our next step towards listing our stock on the OTCBB. We are proceeding with the completion of our audited financials from our auditors and the subsequent filing with the Securities and Exchange Commission, which we anticipate to be completed in the upcoming months."

About iFinix Corp.

iFinix is a diversified information technology services and solutions company with expertise in systems integration, outsourcing, infrastructure and server technology. iFinix has established a product line that delivers financial and business information with streaming, real-time market data, news and analytics to professionals and active individual investors. The company's suite of products includes iFinix RealTime, iFinix Trader and eFinix. Visit http://www.ifinix.com/.

Legal Notice Regarding Forward-Looking Statements:

Safe Harbor: This press release contains forward-looking information within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934 and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of iFinix Corporation to be materially different from the statements made herein.

Contact: iFinix Corporation Investor Relations 516-504-3981 x301

iFinix Corp.

CONTACT: Investor Relations of iFinix Corporation, +1-516-504-3981, ext.
301

Web site: http://www.ifinix.com/

China Housing & Land Development, Inc. Appoints Mr. William Xin as Chief Financial Officer

XI'AN, China, Feb. 15 /Xinhua-PRNewswire-FirstCall/ -- China Housing & Land Development, Inc. "China Housing" (BULLETIN BOARD: CHLN) , a leading developer of residential and commercial properties in northwest China, today announced the appointment of Mr. William Xin to the position of Chief Financial Officer.

Mr. Xin replaces Yulong Wan, who resigned the position of Chief Financial Officer to pursue other endeavors.

Mr. Xin has over ten years of experience in finance and international executive management operating in a broad range of industries. Most recently he was managing partner of Golden Leaf Investment Group, where he provided financial consulting, strategic planning, market research and venture capital services for multiple Chinese companies. Since 2005, Mr. Xin has served as Managing Partner at Golden Leaf Investment Group in New York City where he has provided financial consulting, strategic planning, market research and venture capital services on a number of projects including a hydropower company, a nanotechnology company and two emerging telecommunications companies. From 2000 through 2005, Mr. Xin was co-founder, chairman and CEO of BChinaB, Inc., a vertically-integrated US-based outsourcing company, where he helped companies such as Henry Schein, Libbey Inc., Ametek, Inc. Champion Enterprises and Rheem Air Conditioners increase profitability by outsourcing their supply chains to China. Mr. Xin has been featured in the Wall Street Journal and Crain's magazine as a China business expert and has spoken on many panels regarding China. Mr. Xin earned his Bachelor's degree and Master of Business Administration degree from Yale University in New Haven, Connecticut.

Mr. Pingji Lu, Chairman & CEO of China Housing, said, "We are very pleased to have Mr. Xin join as our new CFO. He is a proven leader with extensive finance experience and expertise, in addition to being a competent strategic planner. Mr. Xin will spend adequate time in the United States as he becomes the primary investor relations contact for the Company. We are confident that he will be a valuable addition to our senior executive team and look forward to leveraging his skill set as we continue to execute our growth plans."

Mr. Lu continued, "We wish to thank Yulong Wan for his substantial contributions to China Housing. During Mr. Wan's tenure, he was instrumental in building the Company's strong financial and corporate structure, and also helped facilitate our integration into the US public markets during 2006. We wish him the best in his future endeavors."

About China Housing & Land Development, Inc.

Based in Xi'an, the capital city of Shaanxi province in China, China Housing & Land Development, Inc. is the largest private developer of residential and commercial properties. China Housing has been an independent business since 1992 and became a U.S. public company in 2006.

Cautionary Statement Regarding Forward-Looking Information

This Press Release may contain forward-looking information about China Housing & Land Development, which are covered under the safe harbor for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts. These statements can be identified by the use of forward- looking terminology such as "believe," "expect," "may," "will," "should," "project," "plan," "seek," "intend," or "anticipate" or the negative thereof or comparable terminology, and include discussions of strategy, and statements about industry trends and China Housing & Land Development's future performance, operations and products. Actual performance results may vary significantly from expectations and projections. This and other "Risk Factors" are contained in China Housing & Land Development, Inc.'s public filings with the SEC.

For more information, please contact: China Housing & Land Development, Inc. Jing Lu Tel: +86-29-82582632 Email: jinglu@chldinc.com Investors: Matthew Hayden HC International, Inc. Tel: +1-561-245-5155 Email: matt.hayden@hcinternational.net

China Housing & Land Development, Inc.

CONTACT: Jing Lu of China Housing & Land Development, Inc.,
+86-29-8258-2632, or jinglu@chldinc.com; or Investors: Matt Hayden of HC
International, Inc., +1-561-245-5155, or matt.hayden@hcinternational.net, for
China Housing & Land Development, Inc.

Comcast Adds More HD Choices in Seattle and SpokaneMore than 250 Choices Now Available in HD

LYNNWOOD, Wash., Feb. 15 /PRNewswire/ -- Comcast, the country's leading provider of cable, entertainment and communications products and services, is launching six new high-definition (HD) channels in Washington state on March 4, the company announced today. The new channels will include: Animal Planet HD, Discovery Channel HD, The Learning Channel (TLC) HD, Home and Garden TV (HGTV) HD, Food Network HD and Sci Fi HD. The addition of the six channels is part of the commitment Comcast has made to offer more choice in high-definition content available to Comcast HD customers, along with more than 250 HD choices instantly available through Comcast ON DEMAND.

"With Comcast HD service, it's a matter of choice. We offer more HD programming than any other provider including 75 movies in HD and popular network shows available at any time," said Tom Pierce, vice president of sales and marketing for Comcast in Washington State.

"We're providing 31 HD channels, Seattle Sonics and Mariners games in HD, and more than 250 HD ON DEMAND choices, and are quickly moving to our goal of having up to 1,000 HD choices available to our customers at any time. With HD channels, movies, sports and network programs available in HD ON DEMAND and the ability of our Comcast digital video recorders to record programs in super clear high-definition format, there is always something to watch in HD. The future of television is HD content available on the customer's schedule, and we're committed to delivering that to Western Washington," added Pierce.

For more information about Comcast's HDTV service, customers can call 1-800-COMCAST or visit http://www.comcast.com/.

About Comcast Corporation: Comcast Corporation (http://www.comcast.com/) is the nation's leading provider of cable, entertainment and communications products and services. With 24.2 million cable customers, 12.9 million high-speed Internet customers, and 4.1 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable systems and in the delivery of programming content.

Comcast's content networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS, G4, AZN Television, PBS KIDS Sprout, TV One, Comcast SportsNet and Comcast Interactive Media, which develops and operates Comcast's Internet business. Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia.

Comcast, which employs more than 3,200 people in Washington, was recently named by Washington CEO Magazine as one of the top three places to work among large companies.

Press Release Media Contact: Shauna Causey 425.471.1964 Shauna_Causey@cable.comcast.com

Comcast

CONTACT: Shauna Causey of Comcast, +1-425-471-1964,
Shauna_Causey@cable.comcast.com

Web site: http://www.comcast.com/

Synthesis Energy Systems, Inc. to Present at the Roth Capital Partners 20th Annual OC Growth Stock Conference

HOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- Synthesis Energy Systems, Inc. ("SES") announced today that Tim Vail, president and chief executive officer, will present at the Roth Capital Partners 20th Annual OC Growth Stock Conference in Dana Point, California on Thursday, February 21, 2008 at 8:00 a.m. Pacific Time.

A live audio webcast of the presentation and the accompanying slideshow may be accessed at http://www.wsw.com/webcast/roth16/symx/, or alternatively, through the company's website at http://www.synthesisenergy.com/ within the Investor Relations section. Viewers are encouraged to log on approximately 15 minutes prior to the presentation to register and download any necessary software. A replay of the webcast will be available shortly after the live presentation and will be archived for 90 days.

About Synthesis Energy Systems, Inc.

The Company is an energy and technology company that deploys proprietary systems and technology to gasify low value fuels to replace high cost energy and chemical products sold to major global markets. The U-GAS(R) technology, which the Company licenses from the Gas Technology Institute, is designed to turn high-ash coals and waste coal products into high value synthesis gas for use in chemical applications or as a feedstock for producing transportation fuels. The technology gasifies coal without many of the harmful emissions normally associated with coal combustion plants. The Company currently has offices in Houston, Texas, Shanghai and Beijing, China. For more information on the Company, visit http://www.synthesisenergy.com/ or call (713) 579-0600.

Synthesis Energy Systems, Inc.

CONTACT: Investor Relations, Molly Whitaker of Synthesis Energy Systems,
Inc., +1-713-579-0607, molly.whitaker@synthesisenergy.com

Web site: http://www.synthesisenergy.com/

JDSU to Present at Investor Conference

MILPITAS, Calif., Feb. 15 /PRNewswire-FirstCall/ -- JDSU today announced that it will participate in the following investor conference, which will be webcast. To access the live webcast, please visit JDSU's Investor Relations website at http://www.jdsu.com/investors, and look for the links under "Event Calendar."

Goldman Sachs Technology Investment Symposium 2008 Las Vegas, Nevada Wednesday, February 27, 2008 5:20 p.m. PT Dave Vellequette, Chief Financial Officer About JDSU

JDSU (Nasdaq: JDSU; and TSX: JDU) enables broadband and optical innovation in the communications, commercial and consumer markets. JDSU is a leading provider of communications test and measurement solutions and optical products for telecommunications service providers, cable operators, and network equipment manufacturers. JDSU is a leading provider of innovative optical solutions for medical/environmental instrumentation, semiconductor processing, display, brand authentication, aerospace and defense, and decorative applications. More information is available at http://www.jdsu.com/.

Investors: Michelle Levine, 408-546-4421 or michelle.levine@jdsu.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20050913/SFTU125LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com JDSU

CONTACT: Investors, Michelle Levine, +1-408-546-4421,
michelle.levine@jdsu.com, or Press, Kathleen Greene, +1-408-546-5852,
kathleen.greene@jdsu.com, both of JDSU

Web site: http://www.jdsu.com/

Vista International Inc. to Acquire Maui Energy Company

ENGLEWOOD, Colo., Feb. 15 /PRNewswire-FirstCall/ -- Vista International Technologies, Inc. (BULLETIN BOARD: VVIT) , is pleased to announce an addition to Vista International Inc.'s family of companies. Vista International Inc., the parent of Vista International Technologies (VVIT) has signed a term sheet to acquire 100% of the stock of Maui Energy Company, an alternative energy company based on the Hawaiian Islands. The all stock transaction will allow Vista to capitalize on the relationships that Maui Energy has developed for its renewable energy technologies with local governments, businesses, and other institutions. The current president of the company, Leo K Caires, has been working with Vista International as a consultant in recent months, and will continue after the purchase in his current capacity.

Barry Kemble, CEO of Vista International Technologies, Inc. commented, "We are particularly excited about the deal, as the Hawaiian Islands have been a main point of focus for VVIT's global development strategy. Disposal of municipal solid waste on the islands has been a growing problem and management feels that VVIT's Thermal Gasifier technology presents an optimal solution in dealing with the limited landfill space."

Leo Caires commented, "Vista International Technologies has demonstrated their commitment to provide clean renewable energy solutions to the Hawaiian Islands while addressing Hawaii's growing energy challenges. This transaction will allow Vista and Maui Energy Company to maintain a lead in Hawaii's development for innovative technological solutions in waste to energy. We can now further maximize Maui Energy's established operations of embedded generation and enhance returns for our shareholders. Mr. Caires continued, "In addition, recent initiatives by state government to move a majority of their energy production to renewable sources should present excellent opportunities for the technologies of both Vista International and VVIT."

ABOUT VISTA INTERNATIONAL TECHNOLOGIES

Vista International Technologies, Inc. is presently comprised of two divisions devoted to providing environmentally friendly technology solutions for businesses and communities. Our divisions are focused in the areas of Waste-to-Energy. For more information on our solutions, please visit us at http://www.viti.us.com/

"Reducing the carbon footprint, one step at a time."

Statements in this press release other than historical facts are 'forward-looking' statements within the meaning of section 27A of the Securities Act of 1933, section 21E of the Securities Exchange Act of 1934. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Future operating results of the Company are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements. Readers are advised to review the 'forward- looking statements' included in our reports which are filed with the Securities and Exchange Commission.

Vista International Technologies, Inc.

CONTACT: Howard Gostfrand or David Sasso, +1-305-918-7000,
info@amcapventures.com, both for Vista International Technologies, Inc.

Web site: http://www.viti.us.com/

Westport, Massachusetts Residents to Benefit from Verizon Wireless Network ExpansionInvesting to Stay Ahead of Growing Demand for Wireless Voice, Multimedia and Internet Access

WESTPORT, Mass., Feb. 15 /PRNewswire/ -- In a continuing effort to provide the best wireless service for local residents in Bristol County, Verizon Wireless has activated a new cell site. The new site increases wireless voice and data coverage and capacity along Routes 177 and 88 in northern Westport, Massachusetts, as well as the surrounding area.

Verizon Wireless has invested nearly $44 billion since it was formed to increase the coverage and capacity of its national network and to add new services like BroadbandAccess and V CAST. Regionally the company has invested nearly $2.2 billion into its New England network, including over $292 million in 2007 alone.

BroadbandAccess offers computer users the nation's most reliable high- speed wireless mobile broadband network, operating at average upload speeds between 500 and 800 kbps, and download speeds between 600 kbps and 1.4 mbps over Verizon Wireless' BroadbandAccess with EV-DO Revision A network. V CAST brings video clips of TV shows, music on demand and other multimedia services to wireless phones.

Strong demand for Verizon Wireless services continued during the fourth quarter of 2007 as the company added two million net new customers and, for the thirteenth consecutive quarter, reported the lowest customer turnover (highest customer loyalty) rate in the wireless industry.

The company's 'nation's most reliable wireless network' reputation is based on network studies performed by real-life test men and test women throughout the country who inspired the "can you hear me now" national advertising campaign. Nationally, these test men and women drive nearly 100 specially equipped vehicles almost 1,000,000 miles annually on Interstate, U.S. and state highways as well as major roads and surface streets in high- population areas, based upon U.S. Census counts, to confirm that voice calls and data connections are successful on the first attempt and stay connected. Vehicles are equipped with computers that automatically make more than three million voice call attempts and more than 16 million data tests annually on Verizon Wireless' network and the networks of other carriers.

About Verizon Wireless

Verizon Wireless operates the nation's most reliable wireless voice and data network, serving 65.7 million customers. Headquartered in Basking Ridge, N.J., with 69,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). For more information, go to: http://www.verizonwireless.com/. To preview and request broadcast- quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.

BroadbandAccess speed claim is based on stationary tests with 5 MB FTP data files w/o compression and requires compatible EV-DO Rev. A device. Actual throughput speed varies. BroadbandAccess is available to more than 240 million people in 248 major metros in the U.S. V CAST Music phone & per song charges required; airtime may apply for music downloads. Additional charges required for other V CAST services. Offers & coverage, varying by service, not available everywhere. Network details and coverage maps at vzw.com.

Verizon Wireless

CONTACT: Michael Murphy of Verizon Wireless, +1-781-932-1213,
Michael.Murphy@verizonwireless.com; or Anne Elise O'Connor of Thomson
Communications, +1-617-548-2765, Aeoc@thomsoncommunications.com, for Verizon
Wireless

Web site: http://www.verizonwireless.com/

Next Inning Technology Updates Outlooks for Xilinx, QuickLogic, Intersil, and Power-One

PRINCETON, N.J., Feb. 15 /PRNewswire/ -- Next Inning Technology Research (http://www.nextinning.com/), a subscription service focused on semiconductor and technology stocks, announced it has updated outlooks for Xilinx , QuickLogic , Intersil , and Power-One .

Earnings season is when Editor Paul McWilliams is at his best. In his weekly earnings previews, McWilliams advised subscribers to buy Flextronics, Harmonic, and NetLogic, all of which moved higher after announcing stellar quarters. His preview for the week of February 18th will be available by signing up for a free trial:

https://www.nextinning.com/subscribe/index.php?refer=prn631

In response to subscriber inquiries, Editor Paul McWilliams wrote: "With Bell now in charge I'm much more apt to look seriously at Intersil again. However, I'm most likely going to wait and see what we hear from Bell at the end of Q1 before I commit any capital. In addition to getting this fresh and hopefully less varnished view of Intersil, I'll also be interested to see if Bell trims back Intersil's stock compensation program to be more in line with its peers..."

McWilliams also looks at these topics: -- What industry trends does McWilliams think will come into play for programmable logic this year? Does he believe they will benefit Xilinx? -- What is McWilliams' revenue growth forecast for QuickLogic in 2008? -- Does McWilliams view the leadership change at Intersil as a positive development for the company? -- After increasing gross profit margins and lowering operating costs in Q4, is Power-One poised for a turnaround?

Founded in September 2002, Next Inning's model portfolio has returned 231% since its inception versus 80% for the Nasdaq.

About Next Inning:

Next Inning is a subscription financial newsletter focused on technology stocks. Editor Paul McWilliams is a 20+-year industry veteran.

NOTE: This release was published by Indie Research Advisors, LLC, a registered investment advisor with CRD #131926. Interested parties may visit adviserinfo.sec.gov for additional information. Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

CONTACT: Marcie Martin, Next Inning Technology Research, +1-888-278-5515

Indie Research Advisors, LLC

CONTACT: Marcie Martin of Next Inning Technology Research,
+1-888-278-5515

Web site: http://www.nextinning.com/

IDG's Computerworld Names Verizon Wireless as One of the Top Green-IT CompaniesOnly Wireless Company Honored for Excellence in "Green" IT Practices

BASKING RIDGE, N.J., Feb. 15 /PRNewswire/ -- What does it mean when a company "goes green"? For Verizon Wireless, it means lower energy usage, power consumption and emissions, as well as environmentally-friendly options that improve the customer experience.

In recognition of the company's "green" IT practices, Verizon Wireless was the only wireless carrier named to IDG Computerworld's first-ever list of top Green-IT Companies for 2008. The honor is part of Computerworld's inaugural Green-IT Companies feature in its Feb. 18 issue and online at Computerworld.com.

"At Verizon Wireless, we view going 'green' as important not only for the environment and our business, but also for our customers," said Ajay Waghray, chief information officer at Verizon Wireless. "Energy-saving initiatives make us more efficient and enable us to provide improved products and services for our customers. One example is Verizon Wireless' 'green bill,' available in our online customer account system, My Account, which puts detailed usage and billing information at our customers' fingertips in real-time. In addition to eliminating monthly mailings, saving paper and reducing the carbon footprint that results from the mailing process, they will find more useful ways to organize and analyze their account information than with any paper bill."

In recognizing the company, Computerworld noted Verizon Wireless deployed more than 7,000 thin clients in 12 call centers nationwide, reducing energy consumption and cooling costs. Power consumption tests at the company's Chandler, Ariz., call center showed a 62.5 percent overall decrease in energy usage after deployment. Verizon Wireless also rolled out power management software on 61,000 managed desktops companywide that enables automatic shutdown and sleep schedules. The initiative accounted for a 24 percent reduction in both PC power consumption and CO2 emissions. In addition to pursuing energy-saving technology in call centers, Verizon Wireless has also implemented virtualization technology in its data centers. This approach, coupled with the higher energy efficiency of the new servers, significantly decreases electricity and cooling costs.

"Being 'green' is not just saying you're conscious about the environment and its challenges. In today's business world, it's about efficiency, power consumption and applying those green principles to smart business decision making," said Don Tennant, editorial director, Computerworld. "The companies recognized in our first Top Green-IT Computing issue have taken a serious look at how they impact the environment and how they can address those challenges with good business sense."

The Top Green-IT Companies have been selected by Computerworld for implementing smart, efficient strategies to achieve "green IT." Companies were measured against a set of criteria developed by Computerworld and green IT experts that identified how organizations are working to reduce energy consumption in IT equipment and are using technology to conserve energy and lower carbon emissions.

About Verizon Wireless

Verizon Wireless

CONTACT: Tom Pica of Verizon Wireless, +1-908-559-7516,
Thomas.Pica@verizonwireless.com

Web site: http://www.verizonwireless.com/
http://www.computerworld.com/

CTG Announces 2007 Fourth Quarter Conference Call and Webcast Information

BUFFALO, N.Y., Feb. 15 /PRNewswire-FirstCall/ -- CTG , an international information technology (IT) staffing and solutions company, today announced that it would release its 2007 fourth quarter and full year financial results on February 20, 2008 after the market closes. The company will hold a conference call to discuss its financial results and business strategy on Thursday, February 21, 2008 at 10:00 a.m. Eastern Standard Time. CTG Chairman and Chief Executive Officer James R. Boldt will lead the call. Interested parties can dial in to 1-888-276-0010 between 9:45 a.m. and 9:50 a.m., ask for the CTG conference call, and identify James Boldt as the conference chairperson. A replay of the call will be available between 12:00 p.m. Eastern Standard Time February 21, 2008 and 11:00 p.m. Eastern Standard Time February 24, 2008 by dialing 1-800-475-6701 and entering the conference ID number 899687.

A webcast of the call will also be available on CTG's web site: http://www.ctg.com/. It will also be broadcast by Shareholder.com at: http://investor.ctg.com/eventdetail.cfm?EventID=29711. You must have Windows Media Player or RealPlayer's audio software on your computer to listen to the webcast. Both are available for downloading at no charge when accessing the webcast. The webcast will also be archived on CTG's web site at http://investor.ctg.com/events.cfm for 90 days following completion of the conference call.

Backed by over 40 years' experience, CTG provides IT staffing, application management outsourcing, consulting, and software development and integration solutions to help Global 2000 clients focus on their core businesses and use IT as a competitive advantage to excel in their markets. CTG combines in-depth understanding of our clients' businesses with a full range of integrated services and proprietary ISO 9001:2000-certified service methodologies. Our IT professionals based in an international network of offices in North America and Europe have a proven track record of delivering solutions that work. More information about CTG is available on the Web at http://www.ctg.com/.

Today's news release, along with CTG news releases for the past year, is available on the Web at http://www.ctg.com/.

CONTACT: Jo Ann Rice (716) 887-7244 joann.rice@ctg.com

CTG

CONTACT: Jo Ann Rice of CTG, +1-716-887-7244, joann.rice@ctg.com

Web site: http://www.ctg.com/

ATK Advanced Hypersonic Test Combustor Completes Acceptance Tests at U.S. Air Force Arnold Engineering Development Center in TennesseeTest Facility Will Be Used By The U.S. Air Force To Pioneer Next-Generation Hypersonic Flight Programs

MINNEAPOLIS, Feb. 15 /PRNewswire-FirstCall/ -- Alliant Techsystems announced today that the U.S. Air Force Arnold Engineering Development Center (AEDC) has completed acceptance testing of a state-of-the-art Combustion Air Heater (CAH). Designed and built at ATK facilities in Ronkonkoma, N.Y. and West Palm Beach, Fla. under contract with AEDC, the CAH features a rocket engine-like injector array and combustor and will be used to heat test gas to conditions that simulate air flow at speeds up to Mach 8 for hypersonic engine development.

The CAH is installed in AEDC's Aerodynamics and Propulsion Test Unit (APTU) where it can be connected to a suite of supersonic and hypersonic nozzles that produce the desired test conditions. Test articles are positioned at the exit of these flow nozzles in order to collect the data. The CAH provides the unique capability of operating at pressure levels up to 2,800 psi and temperatures reaching 4,200 F. These conditions are necessary to conduct experiments that simulate the hypersonic speeds future systems will attain.

The United States Department of Defense and industry partners like ATK are making significant investments in hypersonic flight vehicles for atmospheric flight, as well as access to space. Developing advanced ground test equipment such as ATK's CAH allows for efficient, lower-cost test programs in preparation for actual flight tests.

"We enjoy a great working relationship with the AEDC team and have worked hard to provide a unique test facility to rapidly advance hypersonic flight technologies," said Bart Olson, vice president, ATK Tactical Propulsion and Controls division. "We designed and built the CAH for the U.S. Air Force and we look forward to testing some of our own hypersonic engines in their test facility."

"We're really excited about taking ownership of the CAH. This new air heater greatly increases our ability to support test and evaluation programs critically important the nation," said Chris Smith, Hypersonic Propulsion Capability Manager at AEDC.

ATK is an advanced weapon and space systems company with annual revenues in excess of $4.1 billion that employs more than 17,000 people in 21 states. News and information can be found on the Internet at http://www.atk.com/.

Certain information discussed in this press release constitutes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Although ATK believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those factors are: changes in governmental spending, budgetary policies and product sourcing strategies; the company's competitive environment; the terms and timing of awards and contracts; and economic conditions. ATK undertakes no obligation to update any forward-looking statements. For further information on factors that could impact ATK, and statements contained herein, please refer to ATK's most recent Annual Report on Form 10-K and any subsequent quarterly reports on Form 10-Q and current reports on Form 8-K filed with the U.S. Securities and Exchange Commission.

Media Contact: Investor Contact: Tracy Imm Steve Wold Phone: 410-864-4824 Phone: 952-351-3056 E-mail: tracy.imm@atk.com E-mail: steve.wold@atk.com

ATK

CONTACT: Media, Tracy Imm, +1-410-864-4824, tracy.imm@atk.com, or
Investors, Steve Wold, +1-952-351-3056, steve.wold@atk.com, both of ATK

Web site: http://www.atk.com/

Seven Summits Research Releases Alerts on MS, ORCL, RIO, UAUA, and AEO

CHICAGO, Feb. 15 /PRNewswire/ -- Seven Summits Research issues PriceWatch Alerts for key stocks.

Seven Summits Strategic Investments' PriceWatch Alerts are available at

http://www.iotogo.com/s/021508A (Note: You may have to copy this link into your browser then press the [ENTER] key.)

Today's PriceWatch Alerts cover the following stocks: Morgan Stanley , Oracle Corp. , Companhia Vale do Rio Doce , UAL Corporation , and American Eagle Outfitters Inc. .

Along with our PriceWatch Alerts, these brief reports contain a concise market overview, economic calendar and Dynamic Market Opportunities. PriceWatch Alerts include hedged trade ideas designed to potentially protect investors from unexpected market shifts. While other market reports only provide stock news, we offer strategies that hedge investments against uncertainty. Hedged trades increase your chances of making a profit, even if a stock goes down.

"Our PriceWatch Alerts go beyond other market reports. Along with a brief concise market overview, each PriceWatch Alert provides useful strategies, which ensure potential investments are protected with basic hedging techniques," says Reid Stratton, Seven Summits Senior Analyst. "This brief report contains information that can benefit expert and novice investors who want to stay ahead of the market."

For essential information on stocks poised to move go to:

http://www.iotogo.com/s/021508A for Seven Summits Strategic Investments' PriceWatch Alerts.

Seven Summits Investment Research is an independent investment research group, which focuses on the U.S. equities and options markets. Our analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best possible investment decisions. For more information go to

http://www.sevensummitsinvestmentresearch.com/. CRD# 137114

Hulbert Financial Digest's No. 1 Rated Stock Picker Offers His 2008 Investing Almanac FREE. Before you invest one more dime in the Dow, find out how rising oil prices, the falling dollar and a new U.S. export Boom are about to divide Wall Street in half! This year's almanac contains our most significant economic forecast in years. Along with highlighting the upcoming divide in Wall Street, my 2008 Investing Almanac also contains the 3 powerful new trend-riding profit strategies for 2008 along with a sneak preview of the top 20 stocks for 2008. Click here to receive this FREE Almanac

http://investorplace.com/order/?pc=9LH100

All stocks and options shown are examples only -- not recommendations to buy or sell. Our picks do not represent a positive or negative outlook on any security. Potential returns do not take into account your trade size, brokerage commissions or taxes -- expenses that will affect actual investment returns. Stocks and options involve risk, thus they are not suitable for all investors. Prior to buying or selling options, a person should request a copy of Characteristics and Risks of Standardized Options available from Catherine at 800-698-9101 or at

http://www.cboe.com/Resources/Intro.aspx. Privacy policy available upon request.

Seven Summits Investment Research

CONTACT: Steve Blackbourniski of Seven Summits Investment Research,
+1-434-293-9100

Electronic Control Security, Inc. Announces Quarterly Results

CLIFTON, N.J., Feb. 15 /PRNewswire-FirstCall/ -- Electronic Control Security, Inc. (BULLETIN BOARD: EKCS) (ECSI), a leading provider of a broad line of electronic security system technologies to the government and private sectors, today announced financial results for the six months ended December 31, 2007 ("2007 period") compared to six months ended December 31, 2006 ("2006 period") and three-months ended December 31, 2007 compared to three months ended December 31, 2006.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080215/NYF006A )

Arthur Barchenko, President and CEO, stated, "We had net revenues of $1,454,375 for the 2007 Period as compared to $3,770,944 for the 2006 Period, representing a decrease of approximately 61%. Net revenues for the three- months ended December 31, 2007 were $326,804 as compared to $1,051,266 for the corresponding three-month period in 2006. The decrease in net revenues during the 2007 Period as compared to the 2006 Period is primarily attributable to task orders awarded on contracts now in-house for the U.S. Air Force IBDSS and ATFP-NAVFAC programs whose releases have been delayed due to the governmental approval process and/or lack of funding.

Further, "Gross margins for the 2007 Period were 27.85% as compared to 23.30% of revenue for the 2006 Period. Gross margins were 40.96% of revenue for the three-months ended December 31, 2007 compared to 50.92% for the corresponding three-month period in 2006. The decrease in gross margins for the three-months ended December 31, 2007 period compared to the corresponding period in 2006 is primarily attributable to an increase in the order mix of lower gross margin products and an increase in material costs along with lower design and engineering support service billings."

"The Company's selling, general and administrative expenses for the 2007 Period and for the three-months ended December 31, 2007 were $737,265 and $380,098, respectively, as compared to $837,995 and $418,269 for each of the corresponding periods in 2006. The decrease is primarily attributable to a concerted effort by management to reduce SG&A including a reduction in personnel commensurate with the reduction in sales."

Net loss before deemed dividends related to preferred stock for the 2007 and 2006 Periods was $(837,292) and $(229,370), respectively and $(407,239) and $(24,814) for the three-months ended December 31, 2007 and 2006, respectively. The increase in net loss for the 2007 period is partially attributable to a one-time charge of $220,000 that the company absorbed in respect to a legal settlement with a subcontractor on a government project.

Mr. Barchenko stated that, "During the quarter ended December 31, 2007, the Company submitted proposals on major projects in the Kingdom of Saudi Arabia, Korea, Ethiopia and Department of Defense facilities in the United States valued at approximately $109,750,000. These proposals are pending and awaiting approval, funding and award. We anticipate decisions relating to these proposals within the third quarter of fiscal 2008.

Between October and December 2007, the Company was awarded purchase orders for over $675,000 to develop security system solutions for various projects in North Africa and the United States. In January 2008, the Company received a contract for a United Nations facility in North Africa for over $1.5 million to be delivered over a ten (10) month period. The Company received notice that a task order would be released against Lockheed Martin's $7.0 million order for over $650,000 on the ATFP-NAVFAC contract for delivery in October of 2008. The Company will supply three of its premier product lines integrated with other technologies and support services to prevent unauthorized entry or access."

Further, "The Company was an integral part of the Raytheon Services team responsible for sustainment on the ATFP-NAVFAC proposals for the southwest and northwest naval facilities. Raytheon Services has been awarded the contract for these facilities and the sustainment portion of the contract is valued at over $2 million. The contract for sustainment of these facilities is scheduled to be implemented in the October 2008-2011 time frame."

ABOUT ECSI

ECSI is recognized as a global leader in perimeter security and an effective quality provider for both the Department of Defense and Homeland Security programs. The Company designs, manufactures and markets physical electronic security systems for high profile, high threat environments. The employment of risk assessment and analysis allows ECSI to determine and address the security needs of government and commercial-industrial installations. The Company has teaming agreements with major system integrators in both the United States and overseas to support the installation and aftermarket. ECSI is located at 790 Bloomfield Avenue, Bldg. C-1, Clifton, NJ 07012. Tel: 973-574-8555; Fax: 973-574-8562. For more information on ECSI and its customers, please visit http://www.anti-terrorism.com/.

ECSI INTERNATIONAL, INC. SAFE HARBOR STATEMENT:

This press release contains forward-looking statements that involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry and reflect our beliefs and assumptions based upon information available to us at the date of this release. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to changes in economic conditions generally and in our industry specifically, changes in security technology, legislative or regulatory changes that affect us, the availability of working capital, changes in costs and the availability of goods and services, the introduction of competing products, changes in our operating strategy or development plans, our ability to attract and retain qualified personnel, changes in our acquisition and capital expenditure plans, and the risks and uncertainties discussed under the heading "RISK FACTORS" in Item 1 of our Annual Report on Form 10-KSB for the fiscal year ended June 30, 2007 and in our other filings with the Securities and Exchange Commission. We undertake no obligation to revise or update any forward-looking statement for any reason.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080215/NYF006A
PRN Photo Desk, photodesk@prnewswire.com Electronic Control Security, Inc.

CONTACT: Ronald Thomas, Vice President, Electronic Control Security,
Inc., +1-973-574-8555

Web site: http://www.anti-terrorism.com/

EMCORE Corporation Announces Private Placement

ALBUQUERQUE, N.M., Feb. 15 /PRNewswire-FirstCall/ -- EMCORE Corporation announced today that it has agreed to issue and sell, in a private placement $94 million of securities consisting, in the aggregate, of approximately 7.5 million units of its common stock and warrants to purchase up to approximately 1.3 million additional shares. The purchase price was $12.50 per unit. The warrants have a five-year term and an exercise price of $15.06 per share. Jefferies & Company, Inc. acted as the Lead Placement Agent and Canaccord Adams, Lazard Capital Markets and Merriman Curhan & Ford acted as co-placement agents for the private placement. The private placement is expected to close on or before Wednesday, February 20, 2008.

About EMCORE

Safe Harbor:

CONTACT: EMCORE Corporation Adam Gushard - Interim Chief Financial Officer (505) 332-5000 info@emcore.com TTC Group Vic Allgeier (646) 290-6400 vic@ttcominc.com

EMCORE Corporation

CONTACT: Adam Gushard, Interim Chief Financial Officer of EMCORE
Corporation, +1-505-332-5000, info@emcore.com; or Vic Allgeier of TTC Group,
+1-646-290-6400, vic@ttcominc.com

Web site: http://www.emcore.com/

IntercontinentalExchange Sets Date for 2008 Annual Stockholders' Meeting

ATLANTA, Feb. 15 /PRNewswire-FirstCall/ -- IntercontinentalExchange, Inc. , a leading operator of global exchanges and over-the-counter (OTC) markets, will hold its annual meeting of stockholders at 8:30 a.m. ET on Thursday, May 15, 2008, at the Ritz-Carlton (Buckhead), located at 3434 Peachtree Road, NE, Atlanta, GA 30326.

About IntercontinentalExchange

IntercontinentalExchange(R) is a leading operator of global exchanges and over-the-counter (OTC) markets. Its unique offering of futures and OTC markets on a single trading platform includes a diverse set of products based on crude oil and refined products, natural gas, power and emissions, as well as agricultural commodities such as canola, cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, in addition to foreign currency and equity index futures and options. ICE(R) conducts its energy futures markets, including the world's leading oil benchmark contracts, through its London-based exchange, ICE Futures Europe(TM). ICE conducts its global agricultural commodity, foreign exchange and equity index futures markets through its U.S. and Canadian exchanges, ICE Futures U.S.(TM) and ICE Futures Canada(TM), and offers clearing services through ICE Clear U.S.(TM) and ICE Clear Canada(TM). ICE's state-of-the-art electronic trading platform serves market participants in more than 55 countries. ICE was added to the Russell 1000(R) Index in June 2006 and the S&P 500 Index in September 2007. Headquartered in Atlanta, ICE has offices in Calgary, Chicago, Dublin, Houston, London, New York, Singapore and Winnipeg. For more information, please visit http://www.theice.com/.

IntercontinentalExchange

CONTACT: Investors, Kelly Loeffler, VP, Investor Relations & Corp.
Communications, +1-770-857-4726, kelly.loeffler@theice.com, or Sarah Stashak,
Director, Investor & Public Relations, +1-770-857-0340,
sarah.stashak@theice.com, both of IntercontinentalExchange; or Media, Ellen
Resnick of Crystal Clear Communications, +1-773-929-9292 (o), or
+1-312-399-9295 (c), eresnick@crystalclearPR.com, for
IntercontinentalExchange

Web site: http://www.theice.com/

Cimatron Names Bill Gibbs President North AmericaAssumes Full Responsibility for Both GibbsCAM and CimatronE Business Lines in North America

GIVAT SHMUEL, Israel, February 15 /PRNewswire-FirstCall/ -- Cimatron Limited , a leading provider of integrated CAD/CAM solutions for the toolmaking and manufacturing industries, today announced the nomination of Mr. Bill Gibbs as President North America, replacing Mr. Sam Golan. Bill Gibbs has also been nominated Director at Cimatron Technologies, Inc. (CTI). Under the new leadership of Bill Gibbs, CTI will continue to focus on developing the CimatronE business in North America, offering the best in class integrated CAD/CAM solution for Mold and Die makers.

Following the recently announced merger of Gibbs and Associates into Cimatron, Cimatron intends to capitalize on the strong presence of Gibbs and Associates in North America in order to enhance the sales efforts for CimatronE in this territory. Bill Gibbs, who will continue to maintain his position as President and CEO of Gibbs and Associates will now be responsible for promoting both CimatronE and GibbsCAM product lines in North America.

About Cimatron

With more than 25 years of experience and over 20,000 installations worldwide, Cimatron is a leading provider of integrated, CAD/CAM solutions for mold, tool and die makers as well as manufacturers of discrete parts. Cimatron is committed to providing comprehensive, cost-effective solutions that streamline manufacturing cycles, enable collaboration with outside vendors, and ultimately shorten product delivery time. Cimatron's cutting-edge CAD/CAM solutions are widely used in the automotive, medical, consumer plastics, electronics, and other industries.

Founded in 1982, Cimatron is publicly traded on the NASDAQ exchange under the symbol CIMT. Cimatron's subsidiaries and extensive distributor network are located in over 35 countries to serve customers worldwide with complete pre- and post-sales support. For more information, please visit http://www.cimatron.com/.

About Gibbs and GibbsCAM

For over 20 years, Gibbs and Associates has been a leader in providing cutting edge CAD/CAM technology, while maintaining its signature ease-of-use and productivity. Powerfully Simple, Simply Powerful is the guiding philosophy at Gibbs. Gibbs believes in empowering the NC programmer, machinist, and manufacturing engineer, not eliminating them. Gibbs' goal is to introduce manufacturers to new technologies and new ways of working that makes their machining easier and their businesses more profitable. To achieve this goal, Gibbs creates tools that are naturally intuitive, graphically interactive, extremely visual, associative, and just plain enjoyable to use. Gibbs provides a total quality solution with the service and support successful customers require.

GibbsCAM is certified under the Autodesk Inventor Certified Application Program, is a Solid Edge Certified Select application, and is a SolidWorks Certified CAM Application. GibbsCAM is either offered or endorsed by a number of leading worldwide control and machine tool manufacturers, including GE Fanuc, Infimatic, Siemens, Doosan Infracore, Haas, Index, Mag Fadal, Matsuura, Mazak, Mitsubishi, Mori Seiki and Nakamura Tome. Gibbs and Associates distributes its products worldwide through a network of international Resellers.

In January 2008, Gibbs and Associates merged with Cimatron Ltd, (Givat Shmuel, Israel, NASDAQ: CIMT) and is now operating as a Cimatron company. For more information about Gibbs and Associates and its CAM software packages, call +1-800-654-9399, or visit the company on-line at http://www.gibbscam.com/.

Safe Harbor Statement

This press release includes forward looking statements, within the meaning of the Private Securities Litigation Reform Act Of 1995, which are subject to risk and uncertainties that could cause actual results to differ materially from those anticipated. Such statements may relate to the company's plans, objectives and expected financial and operating results. The words "may," "could," "would," "will," "believe," "anticipate," "estimate," "expect," "intend," "plan," and similar expressions or variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of the future performance and involve risks and uncertainties, many of which are beyond the company's ability to control. The risks and uncertainties that may affect forward looking statements include, but are not limited to: currency fluctuations, global economic and political conditions, marketing demand for Cimatron products and services, long sales cycle, new product development, assimilating future acquisitions, maintaining relationships with customers and partners, and increased competition. For more details about the risks and uncertainties of the business, refer to the Company's filings with the Securities and Exchanges Commission. The company cannot assess the impact of or the extent to which any single factor or risk, or combination of them, may cause. Cimatron undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events or otherwise.

Contacts: Ilan Erez, Chief Financial Officer Cimatron Ltd. Tel.: +972-3-531-2121 E-mail: ilane@cimatron.com Yael Nevat, Commitment-IR.com Tel: +972-9-714 8866, +972-50-762-6215 E-mail: yael@commitment-IR.com

Cimatron Ltd

CONTACT: Contacts: Ilan Erez, Chief Financial Officer, Cimatron Ltd.,
Tel.: +972-3-531-2121, E-mail: ilane@cimatron.com; Yael Nevat,
Commitment-IR.com, Tel: +972-9-714 8866, +972-50-762-6215, E-mail:
yael@commitment-IR.com

drugstore.com, inc. to Present at the Upcoming Jefferies 4th Annual Internet Conference and the Morgan Stanley Technology Conference

BELLEVUE, Wash., Feb. 15 /PRNewswire-FirstCall/ -- drugstore.com, inc. , a leading online provider of health, beauty, vision, and pharmacy products, today announced that Dawn Lepore, chief executive officer and chairman of the board and There du Pont, chief financial officer, will be presenting at the upcoming Jefferies 4th Annual Internet Conference on February 27, 2008 and the Morgan Stanley Technology Conference on March 3, 2008.

(Logo: http://www.newscom.com/cgi-bin/prnh/20070813/AQM043LOGO)

Jefferies 4th Annual Internet Conference -- The drugstore.com(TM) presentation will take place on Wednesday, February 27th at 2:30 p.m. ET (11:30 a.m. PT) in New York City, NY.

Morgan Stanley Technology Conference -- The drugstore.com(TM) presentation will take place on Monday, March 3rd at 7:30 p.m. ET (4:30 p.m. PT) at the St. Regis Resort, Monarch Beach in Dana Point, CA.

Investors may also listen to the webcast of both presentations live at http://investor.drugstore.com/, by clicking on the "audio" hyperlink.

About drugstore.com, inc.

drugstore.com, inc. is a leading online provider of health, beauty, vision, and pharmacy products. Our portfolio of brands includes: drugstore.com(TM), Beauty.com(TM) and VisionDirect.com(TM). All are accessible from http://www.drugstore.com/ and provide a convenient, private, and informative shopping experience while offering a wide assortment of more than 30,000 products at competitive prices.

The drugstore.com pharmacy is certified by the National Association of Boards of Pharmacy (NABP) as a Verified Internet Pharmacy Practice Site (VIPPS) in compliance with federal and state laws and regulations in the United States.

Contact: Investor Relations: Brinlea Johnson or Chris Danne 415-489-2189 or 415-217-5865 brinlea@blueshirtgroup.com or chris@blueshirtgroup.com

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20070813/AQM043LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com drugstore.com, inc.

CONTACT: Investor Relations, Brinlea Johnson, +1-415-489-2189,
brinlea@blueshirtgroup.com, or Chris Danne, +1-415-217-5865,
chris@blueshirtgroup.com, both for drugstore.com, inc.

Web site: http://www.drugstore.com/

Play Ball! Verizon Wireless Network Revs Up Connection for Baseball Fans at Spring TrainingEV-DO Rev. A Wireless Broadband Network Serves Up Fast Access to Wireless Internet, E-mail, Mobile Music, Videos, and More

PHOENIX, Ariz., and TAMPA, Fla., Feb. 15 /PRNewswire/ -- Professional baseball players are reporting to spring training this week in Arizona and Florida, and Verizon Wireless is ready to hit one out of the park for baseball fans looking for an early glimpse of their favorite teams.

Fans are now covered by Verizon Wireless' Evolution-Data Optimized (EV-DO) Revision A (Rev. A) wireless network. With the wireless broadband network now available at all spring training locations in Arizona and in Florida, Verizon Wireless customers watching the on-field action can enjoy both BroadbandAccess and V CAST services. BroadbandAccess is the enhanced high-speed wireless service that equips Verizon Wireless' business customers with a truly untethered mobile office experience, enabling them to wirelessly access their calendars, the Internet, e-mail, and critical business information residing behind their companies' firewalls. V CAST is the consumer-oriented multimedia service that gives customers access to a comprehensive selection of downloadable music, high-quality videos and the coolest 3D games found anywhere.

Along with a game-ready network, Verizon Wireless offers wireless services that cover a lot of bases for baseball fans on-the-go:

-- VZ Navigator(SM) -- Customers can navigate spring training locations with VZ Navigator, an assisted GPS application for Get It Now(R)- enabled phones and certain BlackBerry devices that transforms a customer's wireless handset into a powerful navigation device. VZ Navigator gives customers audible directions, helps locate nearby places, like hotels and restaurants, and provides maps of locations. -- ESPN MVP -- With ESPN MVP, baseball fans can follow what is happening throughout the league all season with SportsCenter video highlights, alerts for scoring updates and breaking news, news on players, teams and leagues, select ESPN Insider content, and ESPN Bottomline -- right on their V CAST phones. -- Mobile Web 2.0(SM) -- Mobile Web 2.0 gives Verizon Wireless customers access to news, tools and information from the nation's top content providers. The simple, intuitive format makes it easy to access content from many categories, including News, Sports, Weather, Entertainment, Business, Email, and more, allowing them to stay on top of e-mail and news while cheering for their favorite team.

Verizon Wireless' ongoing investments and enhancements of its network ensure that fans can stay connected and enjoy a grand slam of popular products and services.

In Arizona, Verizon Wireless invested $135 million in its network in 2007, including its enhancement of its data services to Rev. A in the spring training cities of Mesa, Peoria, Phoenix, Scottsdale, Surprise, Tempe, and Tucson.

In Florida, Verizon Wireless invested $178 million in its network in 2007, including its enhancement of its data services to Rev. A in the spring training cities of Bradenton, Buena Vista, Clearwater, Dunedin, Fort Lauderdale, Fort Meyers, Jupiter, Kissimmee, Lakeland, Sarasota, St. Lucie, Tampa, Vero Beach, Viera, and Winter Haven.

Nationwide, Verizon Wireless has invested nearly $44 billion since it was formed -- $5.5 billion on average every year -- to increase the coverage and capacity of its national network and to add new services. For more information about Verizon Wireless products and services, visit a Verizon Wireless Communications Store, call 1-800-2 JOIN IN or go to http://www.verizonwireless.com/.

About Verizon Wireless

Verizon Wireless operates the nation's most reliable wireless voice and data network, serving 65.7 million customers. Headquartered in Basking Ridge, N.J., with 69,000 employees nationwide, Verizon Wireless is a joint venture of Verizon Communications and Vodafone (NYSE and LSE: VOD). For more information, go to: http://www.verizonwireless.com/. To preview and request broadcast-quality video footage and high-resolution stills of Verizon Wireless operations, log on to the Verizon Wireless Multimedia Library at http://www.verizonwireless.com/multimedia.

Verizon Wireless

CONTACT: In Florida, Chuck Hamby, +1-813-615-4803,
Chuck.Hamby@verizonwireless.com, or In Arizona, Jenny Weaver, +1-480-763-6321,
Jenny.Weaver@verizonwireless.com, or Other Media, Tom Pica, +1-908-559-7516,
Thomas.Pica@verizonwireless.com, all of Verizon Wireless

Web site: http://www.verizonwireless.com/
http://www.verizonwireless.com/multimedia

TELUS Corporation - Notice of cash dividend

VANCOUVER, Feb. 15 /PRNewswire-FirstCall/ -- NOTICE IS HEREBY GIVEN that the Board of Directors has declared a quarterly dividend of forty-five cents ($0.45) Canadian per share on the issued and outstanding Common shares and forty-five cents ($0.45) Canadian per share on the issued and outstanding Non-Voting shares of the Company payable on April 1, 2008 to holders of record at the close of business on March 11, 2008.

By order of the Board Audrey Ho Senior Vice President General Counsel and Corporate Secretary Vancouver, British Columbia February 13, 2008

TELUS Corporation

CONTACT: Investor Relations, (604) 643-4113, ir@telus.com

/FIRST ADD - TO220 - TELUS Corporation/

------------------------------------------------------------------------- Key assumption for 2007 targets Actual result ------------------------------------------------------------------------- Canadian real GDP growth of 2.7% In its autumn and winter outlooks, the (revised down during the year) Conference Board of Canada issued estimates for Canadian real GDP growth of 2.6% for 2007 and 2.8% for 2008 with above average growth in Alberta and B.C. Increased wireline competition Evidence of healthy competition within in both business and consumer TELUS' incumbent business and consumer markets, particularly from markets are forbearance decisions from cable-TV and VoIP companies the CRTC. Cable-TV companies began to market basic telephony services to home office and small businesses, and increased promotions of lower price "light" services to households Forbearance for local retail Confirmed for residential markets wireline services in major covering approximately 75% of TELUS' urban markets by the second residential lines, in non-high-cost half of 2007 serving areas, and about two-thirds of TELUS' business lines No further price cap mandated The CRTC decision on parameters for the consumer price reductions next price cap period, announced April 30, 2007, confirmed this assumption Canadian wireless industry Based on Company estimates and reported market penetration gain Canadian industry net additions estimate: 4.5 to five (excluding any impacts of competitors' percentage points subscriber writeoffs), the industry penetration gain for 2007 is estimated to be at the upper end of this assumption range Restructuring expenses of Lower than expected at $20.4 million in approximately $50 million 2007 A blended statutory income Confirmed at 33.6% in 2007, however, tax rate of 33 to 34% the effective tax rate was 15.6% in 2007 as a result of favourable tax settlements and reassessments for prior years, and recent changes in prospective Federal tax rates that resulted in significant revaluations of future income tax liabilities A discount rate of 5.0% and Confirmed for 2007 expected long-term average return of 7.25% for pension accounting Average TELUS shares outstanding The average shares outstanding during of 330 to 335 million for 2007 were 331.7 million the full year ------------------------------------------------------------------------- 1.5 Financial and operating targets for 2008

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of this report. TELUS' 2008 targets shown in the table in the previous section were originally announced on December 13, 2007.

The expected earnings per share in 2008 reflects anticipated overall higher operating profitability, anticipated reduction in tax rates and an expected decrease in total outstanding shares due to continued share repurchases. The 2008 EPS growth rate is expected to be offset by increased depreciation and amortization expenses, and slightly higher financing costs related to the $743 million acquisition of Emergis, partially mitigated by lower interest rates as a result of debt refinanced in 2007 at lower rates of interest.

Capital expenditures in 2008 are expected to be approximately $1.9 billion, an increase of $130 million. The higher level of capital expenditures reflects anticipated significant investments in network infrastructure to improve broadband capabilities, development of new applications, and high-speed wireless coverage and capacity. In addition, this spending supports continued housing growth in Alberta and British Columbia above the national average, and success-based capital for new large contract wins in Central Canada. The 2008 capital expenditures include continued phased investments to implement the new converged order entry and billing system in B.C.

------------------------------------------------------------------------- Assumptions for 2008 targets ------------------------------------------------------------------------- Canadian real GDP growth estimate of 2.8% Canadian dollar at or near parity with the U.S. dollar Increased wireline competition in both business and consumer markets, particularly from cable-TV and VoIP companies The impact from the acquisition of Emergis was assumed to begin in March 2008; the transaction closed in mid-January 2008 and is expected to have a minor impact on the 2008 targets Canadian wireless industry market penetration gain estimate is 4.5 to five percentage points for the year The potential participation in AWS spectrum auction is not reflected in capital expenditures No new wireless competitive entrant assumed for 2008 Restructuring expenses of approximately $50 million including approximately $10 million related to the integration of Emergis A blended statutory income tax rate of 31 to 32% A discount rate of 5.5% (50 basis points higher than in 2007) and expected long-term average return of 7.25% for pension accounting (unchanged from 2007) Average TELUS shares outstanding of approximately 320 million for the full year. -------------------------------------------------------------------------

TELUS has maintained its long-term financial policy guidelines including net debt to EBITDA of 1.5 to 2.0 times, and a dividend payout ratio guideline of 45 to 55 per cent of sustainable net earnings. The 2008 targets are in compliance with these policy guidelines. Based on an updated review of the company's tax position, TELUS expects minimal cash tax payments in 2008, and significant cash tax payments commencing in 2009.

Earnings per share, net debt and common equity may be affected by purchases of up to 20 million TELUS shares over a 12-month period under the normal course issuer bid that commenced December 20, 2007.

While anticipated cash flow is expected to be more than sufficient to meet current operating requirements in 2008, TELUS may seek additional financing for the Emergis acquisition and potential spectrum purchases. TELUS has accepted a committed term sheet from a small group of Canadian banks to provide a new $700 million 364-day revolving credit facility. The provision of this new facility provides incremental liquidity to TELUS and allows TELUS to continue meeting one of its financial objectives, which is to maintain $1 billion in liquidity. See Section 4.5 Credit facilities.

2. Results from operations 2.1 General

The Company has two reportable segments: wireline and wireless. Segmentation is based on similarities in technology, the technical expertise required to deliver the products and services, the distribution channels used and regulatory treatment. Intersegment sales are recorded at the exchange value. Segmented information is regularly reported to the Company's Chief Executive Officer (the chief operating decision-maker).

2.2 Quarterly results summary

Certain comparative information for 2006 was restated, as described in Section 1.3.

------------------------------------------------------------------------- ($ in millions, except per share amounts) 2007 Q4 2007 Q3 2007 Q2 2007 Q1 ------------------------------------------------------------------------- Segmented revenue (external) Wireline segment 1,220.3 1,204.6 1,180.1 1,205.6 Wireless segment 1,110.5 1,105.3 1,048.0 1,000.0 ------------------------------------------------------------------------- Operating revenues (consolidated) 2,330.8 2,309.9 2,228.1 2,205.6 Operations expense 1,371.3 1,316.5 1,340.3 1,436.6 Restructuring and workforce reduction costs 6.1 6.4 3.2 4.7 ------------------------------------------------------------------------- EBITDA(1) 953.4 987.0 884.6 764.3 Depreciation 386.2 332.5 318.3 317.7 Amortization of intangible assets 68.1 70.1 72.5 49.6 ------------------------------------------------------------------------- Operating income 499.1 584.4 493.8 397.0 Other expense (income) 5.8 8.0 18.5 3.8 Financing costs 109.1 86.2 127.2 117.6 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 384.2 490.2 348.1 275.6 Income taxes (18.0) 78.6 93.7 79.3 Non-controlling interests 2.1 1.7 1.3 1.5 ------------------------------------------------------------------------- Net income 400.1 409.9 253.1 194.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per Common Share and Non-Voting Share - basic 1.23 1.24 0.76 0.58 - diluted 1.22 1.23 0.75 0.57 Dividends declared per Common Share and Non-Voting Share 0.45 0.375 0.375 0.375 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ($ in millions, except per share amounts) 2006 Q4 2006 Q3 2006 Q2 2006 Q1 ------------------------------------------------------------------------- Segmented revenue (external) Wireline segment 1,234.3 1,200.3 1,189.9 1,198.6 Wireless segment 1,020.3 1,010.4 945.3 881.9 ------------------------------------------------------------------------- Operating revenues (consolidated) 2,254.6 2,210.7 2,135.2 2,080.5 Operations expense 1,362.4 1,239.7 1,201.2 1,194.9 Restructuring and workforce reduction costs 7.9 12.5 30.7 16.7 ------------------------------------------------------------------------- EBITDA(1) 884.3 958.5 903.3 868.9 Depreciation 353.2 325.8 335.2 339.2 Amortization of intangible assets 53.9 57.5 46.9 63.9 ------------------------------------------------------------------------- Operating income 477.2 575.2 521.2 465.8 Other expense (income) 10.1 4.0 9.6 4.3 Financing costs 133.6 116.6 127.5 127.0 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 333.5 454.6 384.1 334.5 Income taxes 91.6 128.3 15.1 118.2 Non-controlling interests 1.4 2.4 2.6 2.1 ------------------------------------------------------------------------- Net income 240.5 323.9 366.4 214.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per Common Share and Non-Voting Share - basic 0.71 0.95 1.06 0.61 - diluted 0.70 0.94 1.05 0.61 Dividends declared per Common Share and Non-Voting Share 0.375 0.275 0.275 0.275 ------------------------------------------------------------------------- (1) EBITDA is a non-GAAP measure. See Section 6.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). ------------------------------------------------------------------------- Trends

The consolidated revenue trend continues to reflect strong growth in wireless network revenues generated from an increasing subscriber base. Wireless ARPU (average revenue per subscriber unit per month) declined by $0.87 and $0.80, respectively, in the third and fourth quarters of 2007 when compared to the same periods in 2006. This decline in ARPU in the second half of the year followed 18 successive quarters of year-over-year increases, however, ARPU for the full year of 2007 increased by $0.10. The recent quarterly year-over-year ARPU decreases result from strong data growth being offset by declining voice ARPU, due to shifting product mix, pricing competition and declining per-minute prices.

The consolidated revenue trend also reflected good growth in wireline segment data revenue. However, this is fully offset by declining wireline voice local and long distance revenues due to substitution for wireless and Internet services, as well as competition from VoIP service providers, resellers and facilities-based competitors.

Historically, there is significant fourth quarter seasonality with higher wireless subscriber additions and related acquisition costs and equipment sales, resulting in lower wireless EBITDA. The seasonality affects, to a lesser extent, the wireline high-speed Internet subscriber additions and related costs.

As described in Section 1.3, quarterly Operations expenses in 2007 include an expense for introducing a net-cash settlement feature for share option awards. The net-cash settlement feature expense (recovery) for the first, second, third and fourth quarters of 2007 were $173.5 million, $1.8 million, $(7.2) million and $0.6 million, respectively. The third quarter credit was an adjustment to the initial estimate recorded. Restructuring costs varied by quarter, depending on the progress of ongoing initiatives underway.

The downward trend in depreciation expense ended in the second half of 2007 with a reduction in estimated useful service lives for certain circuit switching and network management assets resulting in write-downs of approximately $20 million and $47 million, respectively, in the third and fourth quarters of 2007. The previous downward trend was interrupted by a provision of approximately $17 million in the fourth quarter of 2006 to align estimated useful lives for TELUS Quebec assets, resulting from integration of financial systems. Depreciation is expected to increase slightly for the full year of 2008 due to a planned increase in capital assets. See Caution regarding forward-looking statements.

With a major new wireline billing and client care system put into service in March 2007, $18 million of additional amortization was recorded in each of the second, third and fourth quarters of 2007, reversing the downward trend in Amortization of intangible assets. In addition, Amortization expenses in the second and fourth quarters of 2006 and the first quarter of 2007 were reduced by approximately $12 million, $5 million and $5 million, respectively, for investment tax credits relating to assets capitalized in prior years that are now fully amortized, following a determination of eligibility by a government tax authority.

Within Financing costs shown in the table above, interest expenses trended lower except for interest expense in respect of a court decision in a lawsuit related to a 1997 BC TEL bond redemption matter (including $7.8 million in the fourth quarter of 2006). The sequential decline in financing costs in the third quarter 2007 was due to lower effective interest rates and debt balances plus increased interest income from tax refunds. Financing costs in the eight periods shown are net of varying amounts of interest income.

The generally upward trend in Net income and earnings per share reflect the items noted above as well as adjustments arising from legislated income tax changes, settlements and tax reassessments for prior years, including any related interest on reassessments.

------------------------------------------------------------------------- Tax-related adjustments ($ in millions, except EPS amounts) 2007 Q4 2007 Q3 2007 Q2 2007 Q1 ------------------------------------------------------------------------- Approximate Net income impact 143 93 10 4 Approximate EPS impact 0.44 0.28 0.03 0.01 Approximate basic EPS excluding tax-related impacts 0.79 0.96 0.73 0.57 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Tax-related adjustments ($ in millions, except EPS amounts) 2006 Q4 2006 Q3 2006 Q2 2006 Q1 ------------------------------------------------------------------------- Approximate Net income impact 20 30 124 (3) Approximate EPS impact 0.06 0.09 0.36 (0.01) Approximate basic EPS excluding tax-related impacts 0.65 0.86 0.70 0.62 ------------------------------------------------------------------------- 2.3 Consolidated results from operations ------------------------------------------------------------------------- ($ in millions except EBITDA Quarters ended Years ended margin in % December 31 December 31 and Employees) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Operating revenues 2,330.8 2,254.6 3.4 % 9,074.4 8,681.0 4.5 % Operations expense 1,371.3 1,362.4 0.7 % 5,464.7 4,998.2 9.3 % Restructuring costs 6.1 7.9 (22.8)% 20.4 67.8 (69.9)% ------------------------------------------------------------------------- EBITDA(1) 953.4 884.3 7.8 % 3,589.3 3,615.0 (0.7)% Depreciation 386.2 353.2 9.3 % 1,354.7 1,353.4 0.1 % Amortization of intangible assets 68.1 53.9 26.3 % 260.3 222.2 17.1 % ------------------------------------------------------------------------- Operating income 499.1 477.2 4.6 % 1,974.3 2,039.4 (3.2)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(2) 1,370.7 1,362.4 0.6 % 5,296.0 4,998.2 6.0 % EBITDA (as adjusted)(2) 954.0 884.3 7.9 % 3,758.0 3,615.0 4.0 % Operating income (as adjusted)(2) 499.7 477.2 4.7 % 2,143.0 2,039.4 5.1 % EBITDA margin(3) 40.9 39.2 1.7 pts 39.6 41.6 (2.0)pts EBITDA margin (as adjusted)(3) 40.9 39.2 1.7 pts 41.4 41.6 (0.2)pts Full-time equivalent employees at end of period 33,374 31,094 7.3 % ------------------------------------------------------------------------- (1) EBITDA is a non-GAAP measure. See Section 6.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). (2) Excludes an incremental charge of $0.6 million and $168.7 million, respectively, in the fourth quarter and full year of 2007 for introducing a net-cash settlement feature for share option awards granted prior to 2005. Operations expense (as adjusted) and EBITDA (as adjusted) are regularly reported to the chief operating decision- maker. EBITDA (as adjusted) corresponds to the definition used in setting TELUS' 2007 EBITDA target and revised guidance. (3) EBITDA or EBITDA (as adjusted) divided by Operating revenues. -------------------------------------------------------------------------

The following discussion is for the consolidated results of TELUS. Segmented discussion is provided in Section 2.4 Wireline segment results, Section 2.5 Wireless segment results and Section 4.2 Cash used by investing activities - capital expenditures.

Operating revenues

Consolidated Operating revenues increased by $76.2 million and $393.4 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006. Growth in wireless network revenue and wireline data revenue continue to exceed erosion in wireline voice local and long distance revenues. Consolidated operating revenues for the full year of 2007 include a one-time reduction of about $13 million in long distance revenues, recorded in the second quarter. This adjustment resulted from billing system enhancements, which provided better data for estimating earned, but unbilled revenue.

Operations expense

Consolidated Operations expense increased by $8.9 million and $466.5 million in the fourth quarter and full year of 2007, respectively, when compared to the same periods in 2006. The increases include incremental charges for introducing a net-cash settlement feature for share option awards granted before 2005. Operations expense adjusted to exclude the incremental charges increased by $8.3 million and $297.8 million, respectively, primarily to support the 10% year-over-year growth in the wireless subscriber base and growth in wireless network revenue. In addition, expenses in the wireline segment increased for the full year primarily due to billing system conversion costs and external labour costs to improve service levels, as well as from increased staffing. TELUS' net defined benefit pension plan expense decreased by approximately $63 million for the full year, due primarily to favourable returns on plan assets in 2006.

The number of employees increased to support the wireline segment's provision of outsourcing services to TELUS' customers, including human resources outsourcing services and international call centre services, and to support the growing wireless customer base. The number of full-time equivalent employees providing outsourcing services to the Company's customers increased by about 1,080 at December 31, 2007 when compared to one year earlier, while elsewhere in the wireline segment the increase was 767 or four per cent. In the wireless segment, the number of full-time equivalent employees increased by 433 or six per cent to support double digit growth in subscriber base, revenue and EBITDA.

Restructuring costs

Restructuring costs decreased by $1.8 million and $47.4 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006. Restructuring expenses in 2007 were in respect of several smaller efficiency initiatives. An expense of approximately $50 million is expected for efficiency initiatives in 2008.

EBITDA

Consolidated EBITDA increased by $69.1 million in the fourth quarter of 2007 and decreased by $25.7 million for the full year of 2007, when compared to the same periods in 2006. EBITDA adjusted to exclude the net-cash settlement feature increased by $69.7 million and $143.0 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006. Wireline EBITDA (as adjusted) decreased mainly due to implementation impacts of a new wireline billing and client care system (described in Section 5.3 Process risks). Wireless segment EBITDA (as adjusted) increased as growth in the subscriber base increased network revenues, partially offset by higher operations costs to support subscriber growth and higher retention spending.

Depreciation

Depreciation increased by $33.0 million and $1.3 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006. The reduction in estimated useful service lives for certain circuit switching and network management assets resulted in write-downs of approximately $47 million and $67 million, respectively, in the fourth quarter and full year of 2007. These increases were partly offset by a provision of $17 million in the fourth quarter of 2006 to align TELUS Quebec assets upon integration of financial systems as well as writeoffs of certain network assets earlier in 2006.

Amortization of intangible assets

Amortization increased by $14.2 million and $38.1 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006. A new wireline billing and client care system was put into service in March 2007, increasing amortization by $18.0 million and $54.0 million, respectively. Accelerated amortization of $5.0 million was recorded in the second quarter of 2007 for assets related to the discontinuation of AMP'D Mobile Canada services. These increases were partly offset by lower amortization for other fully amortized software assets. In addition, amortization expenses were reduced by approximately $5 million for the full year of 2007 and reduced by approximately $5 million and $17 million, respectively, in the fourth quarter and full year of 2006 to recognize investment tax credits, now determined eligible by the tax authority, relating to assets capitalized in prior years that are now fully amortized.

Operating income

Operating income increased by $21.9 million in the fourth quarter of 2007 and decreased by $65.1 million in the full year of 2007, when compared to the same periods in 2006. Operating income (as adjusted) increased by $22.5 million and $103.6 million, respectively, in the fourth quarter and full year, as growth in EBITDA (as adjusted) was partly offset by increased depreciation and amortization expenses.

Other income statement items ------------------------------------------------------------------------- Quarters ended Years ended Other expense, net December 31 December 31 ($ millions) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- 5.8 10.1 (42.6)% 36.1 28.0 28.9 % -------------------------------------------------------------------------

Other expense decreased by $4.3 million in the fourth quarter of 2007 and increased by $8.1 million in the full year of 2007, when compared to the same periods in 2006. Accounts receivable securitization expenses were $5.3 million and $20.7 million in the fourth quarter and full year of 2007, which decreased by $0.3 million and increased by $2.7 million, respectively, from the same periods in 2006 (see Section 4.6 Accounts receivable sale). For the full year of 2007, increased expenses included an $11.8 million second quarter writeoff of the Company's equity investment of in AMP'D Mobile Inc. and approximately $4 million for various costs of assessing whether to acquire BCE, which ultimately led to the decision in August to not bid for BCE. The net gains on the sale of real estate and other investments, including valuation adjustments on investments held for trading, exceeded net gains recorded in 2006.

------------------------------------------------------------------------- Quarters ended Years ended Financing costs December 31 December 31 ($ millions) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Interest on long-term debt, short-term obligations and other(1) 109.6 132.5 (17.3)% 464.5 510.6 (9.0)% Foreign exchange losses (gains) 1.9 1.9 - 13.0 6.4 103.1 % Interest income (2.4) (0.8) n.m. (37.4) (12.3) n.m. ------------------------------------------------------------------------- 109.1 133.6 (18.3)% 440.1 504.7 (12.8)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- n.m. - not meaningful (1) Included estimates in 2006 for settlement of a lawsuit. -------------------------------------------------------------------------

Interest expenses decreased by $22.9 million and $46.1 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006. The decreases were primarily due to financing activities in the first half of 2007 (see Section 4.3 Cash used by financing activities), which resulted in a lower effective interest rate for the fourth quarter and full year of 2007 as well as a lower average debt balance in the second half of 2007, when compared to the same periods in 2006. Partly offsetting the lower effective interest rate was a higher average debt balance for the full year of 2007, as debt issues were completed in March 2007 and commercial paper was issued in May ahead of the June 1 maturity of $1,483.3 million (US$1,166.5 million) Notes. The Company's closing net debt (calculated in Section 6.4), was $6,142 million at December 31, 2007, down 2% from $6,278 million one year earlier.

The decrease in interest expenses for the full year of 2007 also included an adjustment for application of the effective rate method for issue costs as required under CICA Handbook Section 3855 (recognition and measurement of financial instruments). In March 2007, forward starting interest rate swaps were terminated resulting in prepaid interest of approximately $10 million being deferred and amortized over 10 years, which is the term of the new debt.

Interest income increased by $1.6 million and $25.1 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006, due primarily to recognition of increased interest on tax refunds, and for the full year, increased interest from investments.

------------------------------------------------------------------------- Quarters ended Years ended Income taxes December 31 December 31 ($ millions) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Blended federal and provincial statutory income tax based on net income before tax 129.2 111.4 16.0 % 503.0 505.6 (0.5)% Revaluation of future income tax liability (140.8) (0.2) - (177.3) (113.1) - Tax rate differential on, and consequential adjustments from, reassessments for prior years (2.9) (16.4) - (79.2) (40.3) - Share option award compensation 1.8 1.5 - (3.6) 6.4 - Other (5.3) (4.7) - (9.3) (5.4) - ------------------------------------------------------------------------- (18.0) 91.6 n.m. 233.6 353.2 (33.9)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Blended federal and provincial statutory tax rates (%) 33.6 33.4 0.2 pts 33.6 33.6 - pts Effective tax rates (%) (4.7) 27.5 n.m. 15.6 23.4 (7.8)pts -------------------------------------------------------------------------

The blended federal and provincial statutory income tax expense increased in the fourth quarter of 2007 and decreased in full year of 2007, when compared with the same periods in 2006, due primarily to the comparable changes in income before taxes of 15.2% and (0.6)%, respectively. The effective tax rates were lower than the statutory tax rates due to favourable reassessments and settlements of prior years' tax matters as well as revaluation of future income tax liabilities. Revaluations of future tax liabilities resulted from enacted reductions to future federal income tax rates as well as future tax rates being applied to temporary differences. Changes to future federal income tax rates were enacted in December 2007, and previously during the second quarters of 2007 and 2006.

Based on the assumption of the continuation of the rate of TELUS earnings, the existing legal entity structure, and no substantive changes to tax regulations, the Company currently expects cash income tax payments to be relatively low in 2008 with expected cash collections exceeding expected payments. In 2009, income tax payments are expected to increase substantially. The blended statutory income tax rate is expected to be 31 to 32% in 2008.

------------------------------------------------------------------------- Non-controlling Quarters ended Years ended interests December 31 December 31 ($ millions) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- 2.1 1.4 50.0 % 6.6 8.5 (22.4)% -------------------------------------------------------------------------

Non-controlling interests represents minority shareholders' interests in several small subsidiaries.

Comprehensive income

Commencing with the 2007 fiscal year, the Company adopted the recommendations of the Canadian Institute of Chartered Accountants (CICA) for accounting for comprehensive income (CICA Handbook Section 1530). Currently, the concept of comprehensive income for purposes of Canadian GAAP, in the Company's specific instance, is primarily to include changes in shareholders' equity arising from unrealized changes in the fair values of financial instruments. The calculation of earnings per share is based on Net income and Common Share and Non-Voting Share income, as required by GAAP.

2.4 Wireline segment results ------------------------------------------------------------------------- Operating revenues - Quarters ended Years ended wireline segment December 31 December 31 ($ millions) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Voice local(1) 505.4 527.5 (4.2)% 2,064.4 2,119.8 (2.6)% Voice long distance(2) 178.7 197.7 (9.6)% 715.3 810.3 (11.7)% Data(3) 466.2 435.0 7.2 % 1,771.9 1,642.5 7.9 % Other 70.0 74.1 (5.5)% 259.0 250.5 3.4 % ------------------------------------------------------------------------- External operating revenue 1,220.3 1,234.3 (1.1)% 4,810.6 4,823.1 (0.3)% Intersegment revenue 30.7 26.5 15.8 % 114.2 98.3 16.2 % ------------------------------------------------------------------------- Total operating revenues 1,251.0 1,260.8 (0.8)% 4,924.8 4,921.4 0.1 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Voice local revenue decreased by approximately $70 million or 3.3% for the full year of 2007, excluding the impact of regulatory adjustments in the first-quarter of 2007. (2) Voice long distance revenue decreased by approximately $82 million or 10.1% for the full year of 2007, excluding the impact from billing system conversion in the second quarter of 2007. (3) Data revenue grew by approximately $140 million or 8.5% for the full year of 2007, excluding the impact of two mandated retroactive competitor price reductions in the first quarter of 2007. -------------------------------------------------------------------------

Wireline segment revenues decreased by $9.8 million in the fourth quarter of 2007 when compared with the same period in 2006. For the full year of 2007, revenues were essentially unchanged from 2006, increasing by $3.4 million.

- Voice local revenue decreased by $22.1 million and $55.4 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006. The decreases were due primarily to lower revenues from basic access and optional enhanced service revenues arising from increased competition for residential subscribers offset in part by growth in business local services and certain price increases. Declining local revenues for the full year of 2007 were partly offset by first quarter recoveries of approximately $14.5 million from the price cap deferral account. The recovery from the deferral account offset unfavourable mandated retroactive rate adjustments for basic data revenue pursuant to two recent CRTC (Canadian Radio-television and Telecommunications Commission) decisions and included recovery of previously incurred amounts associated with mandated local number portability and start- up costs. ------------------------------------------------------------------------- Network access lines As at December 31 (000s) 2007 2006 Change ------------------------------------------------------------------------- Residential network access lines 2,596 2,775 (6.5)% Business network access lines 1,808 1,773 2.0 % -------- -------- -------- Total network access lines 4,404 4,548 (3.2)% Quarters ended Years ended December 31 December 31 (000s) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Change in residential network access lines (47) (34) (38.2)% (179) (153) (17.0)% Change in business network access lines 8 3 n.m. 35 10 n.m. -------- -------- -------- -------- -------- -------- Change in total network access lines (39) (31) (25.8)% (144) (143) (0.7)% ------------------------------------------------------------------------- Residential line losses include the effect of increased competition from resellers and VoIP competitors (including cable-TV companies, which have expanded their geographic coverage and introduced lower- priced telephony services), as well as technological substitution as customers utilize wireless services. To a lesser degree, residential second lines decreased from migration of dial-up Internet subscribers to high-speed Internet service. The number of residential lines lost in each quarter of 2007 exceeded the comparable losses in the same quarters of 2006. In contrast, the number of business lines gained each quarter in 2007 equalled or exceeded the comparable net business line gains in 2006. The increase in business lines was experienced in Ontario and Quebec urban non-incumbent areas. - Voice long distance revenues decreased by $19.0 million and $95.0 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006, due primarily to lower average per-minute rates, from industry-wide price competition, and lower business minute volumes, partly offset by increased consumer minute volumes. In addition, a one-time reduction of about $13 million was recorded in the second quarter of 2007 as a result of billing system enhancements, which provided better data for estimating earned, but unbilled revenue. - Wireline segment data revenues increased by $31.2 million and $129.4 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006. This growth was primarily due to increased Internet, enhanced data and hosting service revenues from growth in business services and high-speed Internet subscribers. Managed data revenues increased from the provision of business process outsourcing services to customers as well as digital entertainment services to consumers in larger urban incumbent markets. Pursuant to CRTC Decision 2007-6 (relating to digital network access link charges) and CRTC Decision 2007-10 (relating to basic service extension feature charges), retroactive rate reductions totalling approximately $11 million in basic data services revenues were recorded in the first quarter of 2007. ------------------------------------------------------------------------- Internet subscribers As at December 31 (000s) 2007 2006 Change ------------------------------------------------------------------------- High-speed Internet subscribers 1,020.2 916.7 11.3 % Dial-up Internet subscribers 155.3 194.1 (20.0)% -------- -------- -------- Total Internet subscribers 1,175.5 1,110.8 5.8 % Quarters ended Years ended December 31 December 31 (000s) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- High-speed Internet net additions 26.2 44.4 (41.0)% 103.5 153.7 (32.7)% Dial-up Internet net reductions (9.3) (11.4) 18.4 % (38.8) (42.1) 7.8 % -------- -------- -------- -------- -------- -------- Total Internet subscriber net additions 16.9 33.0 (48.8)% 64.7 111.6 (42.0)% ------------------------------------------------------------------------- High-speed Internet subscriber net additions were lower than one year earlier, reflecting competitive markets and the impact of the new billing and client care system, which temporarily reduced the Company's order processing capability in the second quarter and, to a lesser degree, in the third quarter. Monthly rates for high-speed Internet services were raised by $1 per month in the second quarter of 2006 for those customers not on rate protection plans, which contributed to an overall increase in average revenue per subscriber in 2007. - Other revenue decreased by $4.1 million in the fourth quarter of 2007 and increased by $8.5 million in the full year of 2007, when compared with the same periods in 2006. The full year increase was due mainly to a reduction in the provision for quality-of-service rate rebates, which resulted from improved service delivery, as measured by CRTC- defined quality-of-service indicators, and favourable decisions by the CRTC on exclusion applications for severe weather and other extraordinary events. Voice equipment sales decreased in the fourth quarter and full year. - Intersegment revenue represents services provided by the wireline segment to the wireless segment. These revenues are eliminated upon consolidation together with the associated expense in the wireless segment. ------------------------------------------------------------------------- Operating expenses - wireline segment(1) Quarters ended Years ended ($ millions, December 31 December 31 except employees) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Salaries, benefits and other employee- related costs, before net-cash settlement feature 447.0 436.0 2.5 % 1,729.1 1,665.9 3.8 % Net-cash settlement feature expense 1.5 - - 145.1 - - Other operations expenses 334.2 367.3 (9.0)% 1,347.6 1,331.8 1.2 % ------------------------------------------------------------------------- Operations expense 782.7 803.3 (2.6)% 3,221.8 2,997.7 7.5 % Restructuring costs 5.9 5.2 13.5 % 19.5 61.6 (68.3)% ------------------------------------------------------------------------- Total operating expenses 788.6 808.5 (2.5)% 3,241.3 3,059.3 5.9 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(2) 781.2 803.3 (2.8)% 3,076.7 2,997.7 2.6 % Total operating expenses (as adjusted)(2) 787.1 808.5 (2.6)% 3,096.2 3,059.3 1.2 % Full-time equivalent employees, end of period(3) 25,731 23,884 7.7 % ------------------------------------------------------------------------- (1) Salaries and benefits, Operations expense and total operating expense for fourth quarter and full year of 2006 were reduced by 5.7 million and $22.8 million, respectively, from previously reported amounts, as a result of the correction described in Section 1.3. (2) Excludes incremental charges for introducing a net-cash settlement feature for share option awards granted prior to 2005. Operations expense (as adjusted) and total operating expenses (as adjusted) are regularly reported to the chief operating decision-maker. (3) The number of full-time equivalent employees providing outsourcing services to the Company's customers was approximately 5,747 on December 31, 2007 and approximately 4,667 on December 31, 2006. Full- time equivalent staff elsewhere increased by 767 or 4%. -------------------------------------------------------------------------

Total Wireline operating expenses decreased by $19.9 million in the fourth quarter of 2007 and increased by $182.0 million in the full year of 2007, when compared with the same periods in 2006, primarily due to the charges for introducing a net-cash settlement feature for share option awards granted prior to 2005. Total operating expenses adjusted to exclude these charges increased by $18.4 million and $36.9 million, respectively. Expenses for the full year of 2007 included approximately $24 million related to the Alberta consumer billing and client care system conversion (approximately $8 million in salaries and benefits for customer contact centres and approximately $16 million in other operations expenses primarily for external labour costs). External labour for the full year of 2007 also included about $4 million to deal with backlogs caused by severe weather events in late 2006 and early 2007, as well as preparation costs for expected flooding in British Columbia in the second quarter of 2007.

- Salaries, benefits and employee-related expenses increased by $11.0 million and $63.2 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006. The increase was mainly due to increased staffing, scheduled compensation increases and customer contact centre costs for the billing system conversion, partly offset by a lower defined benefit pension plan expense. - Other operations expenses decreased by $33.1 million in the fourth quarter of 2007 and increased by $15.8 million for the full year of 2007, when compared with the same periods in 2006. The decrease in the fourth quarter was due mainly to lower costs of sales associated with voice and data equipment sales, including lower loadings of high-speed Internet subscribers, as well as increased capitalization of labour related to the higher capital expenditure activity in 2007. The increase in the full year included higher external labour costs for billing/client care system support and installation/repair activity to improve and maintain service levels, and higher external labour costs for weather-related events, partly offset by: (i) lower transit and termination charges due to lower per-minute rates partly offset by higher outbound minute volumes; (ii) lower expenses arising from CRTC decisions on basic service extension features and network access link charges; and (iii) increased capitalization of labour related to the higher capital expenditure activity in 2007. - Restructuring costs in 2007 were for several small efficiency initiatives. Restructuring costs increased by $0.7 million in the fourth quarter of 2007 and decreased by $42.1 million for the full year of 2007, when compared with the same periods in 2006. ------------------------------------------------------------------------- EBITDA ($ millions) Quarters ended Years ended and EBITDA margin (%) December 31 December 31 wireline segment 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- EBITDA 462.4 452.3 2.2 % 1,683.5 1,862.1 (9.6)% EBITDA (as adjusted)(1) 463.9 452.3 2.6 % 1,828.6 1,862.1 (1.8)% EBITDA margin 37.0 35.9 1.1 pts 34.2 37.8 (3.6)pts EBITDA margin (as adjusted) 37.1 35.9 1.2 pts 37.1 37.8 (0.7)pts ------------------------------------------------------------------------- (1) Excludes incremental charges of $1.5 million and $145.1 million, respectively, in the fourth quarter and full year of 2007 for introducing a net-cash settlement feature for share option awards granted prior to 2005. EBITDA (as adjusted) is regularly reported to the chief operating decision-maker and corresponds to the definition used in setting TELUS' 2007 EBITDA targets and revised guidance. -------------------------------------------------------------------------

Wireline EBITDA increased by $10.1 million in the fourth quarter of 2007 and decreased by $178.6 million in the full year of 2007, when compared with the same periods in 2006. Wireline EBITDA (as adjusted) increased by $11.6 million in the fourth quarter of 2007 and decreased by $33.5 million in the full year of 2007, when compared with the same periods in 2006. The increase for the fourth quarter was mainly due to increased capitalization of labour related to the higher capital expenditure activity in 2007. The decrease for the full year was mainly due to billing system conversion impacts of about $37 million (including a one-time long distance revenue adjustment of $13 million) and increased external labour costs of about $4 million to deal with weather-related backlogs and emergency preparations.

2.5 Wireless segment results ------------------------------------------------------------------------- Operating revenues - Quarters ended Years ended wireless segment December 31 December 31 ($ millions) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Network revenue 1,039.4 952.3 9.1 % 4,008.5 3,605.5 11.2 % Equipment revenue 71.1 68.0 4.6 % 255.3 252.4 1.1 % ------------------------------------------------------------------------- External operating revenue 1,110.5 1,020.3 8.8 % 4,263.8 3,857.9 10.5 % Intersegment revenue 6.9 6.3 9.5 % 26.9 23.4 15.0 % ------------------------------------------------------------------------- Total operating revenues 1,117.4 1,026.6 8.8 % 4,290.7 3,881.3 10.5 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Key operating indicators - wireless segment As at December 31 (000s) 2007 2006 Change ------------------------------------------------------------------------- Subscribers - postpaid(1) 4,440.5 4,078.6 8.9 % Subscribers - prepaid 1,127.4 977.3 15.4 % -------- -------- -------- Subscribers - total 5,567.9 5,055.9 10.1 % Digital POPs(2) covered including roaming/resale (millions)(3) 31.6 31.0 1.9 % Quarters ended Years ended December 31 December 31 (000s) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Subscriber gross additions - postpaid 240.4 236.3 1.7 % 850.0 837.5 1.5 % Subscriber gross additions - prepaid 180.7 142.8 26.5 % 584.0 455.5 28.2 % -------- -------- -------- -------- -------- -------- Subscriber gross additions - total 421.1 379.1 11.1 % 1,434.0 1,293.0 10.9 % Subscriber net additions - postpaid 106.4 129.5 (17.8)% 364.6 411.8 (11.5)% Subscriber net additions - prepaid(4) 55.0 52.1 5.6 % 150.0 123.4 21.6 % -------- -------- -------- -------- -------- -------- Subscriber net additions - total 161.4 181.6 (11.1)% 514.6 535.2 (3.8)% ARPU ($)(5) 63.70 64.50 (1.2)% 63.56 63.46 0.2 % Churn, per month (%)(4)(5) 1.59 1.33 0.26 pts 1.45 1.33 0.12 pts Lifetime revenue per subscriber ($)(5) 4,015 4,850 (17.2)% 4,373 4,771 (8.3)% COA (6) per gross subscriber addition ($)(5) 352 436 (19.3)% 395 412 (4.1)% COA per gross subscriber addition to lifetime revenue (%)(5) 8.8 9.0 (0.2)pts 9.0 8.6 0.4 pts Average minutes of use per subscriber per month (MOU) 411 404 1.7 % 404 403 0.2 % EBITDA ($ millions) 491.0 432.0 13.7 % 1,905.8 1,752.9 8.7 % EBITDA (as adjusted) (7) ($ millions) 490.1 432.0 13.4 % 1,929.4 1,752.9 10.1 % EBITDA to network revenue (%) 47.2 45.4 1.8 pts 47.5 48.6 (1.1)pts EBITDA (as adjusted) to network revenue (%) 47.2 45.4 1.8 pts 48.1 48.6 (0.5)pts Retention spend to network revenue(5) (%) 8.6 7.7 0.9 pts 7.6 6.7 0.9 pts EBITDA excluding COA ($ millions)(5) 639.4 597.2 7.1 % 2,471.6 2,285.5 8.1 % EBITDA (as adjusted) excluding COA ($ millions) 638.5 597.2 6.9 % 2,495.1 2,285.5 9.2 % ------------------------------------------------------------------------- pts - percentage points (1) A one-time adjustment was made to the postpaid subscriber base. Cumulative subscribers were reduced by approximately 2,600 to reflect the discontinuation of network service to its cellular digital packet data (CDPD) subscribers effective January 31, 2007. (2) POPs is an abbreviation for population. A POP refers to one person living in a population area, which in whole or substantial part is included in the coverage areas. (3) At December 31, 2007, TELUS' wireless PCS digital population coverage included expanded coverage of approximately 7.5 million PCS POPs due to roaming/resale agreements principally with Bell Mobility (Bell Canada). (4) Prepaid net subscriber additions in the fourth quarter of 2007 include a one-time reduction in the subscriber base of 5,124, which increased the fourth quarter blended churn rate by 0.03 percentage points. The adjustment was for a clean-up of deactivation records. (5) See Section 6.3 Definition of key wireless operating indicators. These are industry measures useful in assessing operating performance of a wireless company, but are not defined under accounting principles generally accepted in Canada and the U.S. (6) Cost of acquisition. (7) Excludes an incremental (recovery) charge of $(0.9) million and $23.6 million, respectively, in the fourth quarter and full year of 2007 for introducing a net-cash settlement feature for share option awards granted prior to 2005. EBITDA (as adjusted) is regularly reported to the chief operating decision-maker and corresponds to the definition used in setting TELUS' 2007 EBITDA targets and revised guidance. -------------------------------------------------------------------------

Wireless segment revenues increased by $90.8 million and $409.4 million, respectively, in the fourth quarter and full year of 2007 when compared with the same periods in 2006, due to the following:

- Network revenue increased by $87.1 million and $403.0 million in the fourth quarter and full year of 2007, respectively, when compared with the same periods in 2006. The increase was the result of a 10% expansion in the subscriber base during 2007. Data revenues increased to 12.5% of Network revenue, or $130.8 million, in the fourth quarter of 2007 as compared with 9.6% of Network revenues, or $91.7 million, in the fourth quarter of 2006 - reflecting a growth rate of 42.6%. Similarly, data revenues for the full year of 2007 increased to 11.1% of Network revenue, or $446.1 million, as compared with 7.7% of Network revenue, or $279.9 million, in 2006 - reflecting a growth rate of 59.4%. This growth, driven by continued migration of existing subscribers to full function smartphones and EVDO-capable handsets as well as increased EVDO coverage, was principally related to text messaging, mobile computing activities and RIM/BlackBerry service revenues. Data ARPU increased by 29% to $7.95 and 44% to $7.02, respectively, in the fourth quarter and year as compared to the same periods in 2006. Increased Data ARPU largely offset the decline from traditional voice service, as total ARPU decreased by $0.80 in the fourth quarter when compared to the same period in 2006 and showed a slight improvement from the $0.87 year-over-year decrease in the third quarter. The change in total ARPU reflects the shifting product mix driven by higher net prepaid loading and a slight impact from Mike service, combined with declining Voice ARPU. Voice ARPU was $55.75 in the fourth quarter of 2007, a decrease of $2.59 or 4.4% from the same period in 2006, caused mainly by lower per-minute rates, increased price competition in the business and discount segments of the market and a decrease in roaming. Overall, ARPU increased by $0.10 to $63.56 for the full year 2007 when compared to 2006, as the $2.13 increase in Data ARPU exceeded the $2.03 Voice ARPU decline. At December 31, 2007, the mix of postpaid subscribers declined slightly to 79.8% of the total cumulative subscriber base, as compared to 80.7% from one year earlier. The 106,400 postpaid subscriber net additions for the fourth quarter of 2007 represented 65.9% of all net additions as compared with 129,500 or 71.3% of all net additions for the same period in 2006. Moreover, the 364,600 postpaid subscriber net additions for the full year of 2007 represented 70.9% of all net additions as compared with 411,800 or 76.9% of all net additions for the same period in 2006. Total net subscriber additions were down slightly in the fourth quarter and full year of 2007 as compared with the same periods in 2006, mostly attributable to increased churn rates, partly offset by higher prepaid loading. The blended churn rate increased in the fourth quarter and full year of 2007 when compared with the respective periods in 2006. Total deactivations were 259,700 for the fourth quarter and 919,400 for the full year of 2007 as compared with 197,500 and 757,800, respectively, for the same periods in 2006. Deactivations in the fourth quarter of 2007 included 5,124 for a clean-up of prepaid subscriber deactivation records. Monthly blended churn rates of 1.59% and 1.45%, respectively, in the fourth quarter and full year of 2007, increased from the same periods in 2006 due to the product mix shifting towards prepaid, combined with increased deactivations. WNP porting was a minor source of net positive subscriber loading for TELUS, but contributed to the higher churn level. - Equipment sales, rental and service revenue increased by $3.1 million and $2.9 million, respectively, in the fourth quarter and full year of 2007 when compared with the same periods in 2006 due largely to the 11% increase in gross subscriber additions. - Intersegment revenues represent services provided by the wireless segment to the wireline segment and are eliminated upon consolidation along with the associated expense in the wireline segment. ------------------------------------------------------------------------- Operating expenses - wireless segment(1) Quarters ended Years ended ($ millions, December 31 December 31 except employees) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Equipment sales expenses 180.3 163.6 10.2 % 655.5 574.9 14.0 % Network operating expenses 140.7 118.8 18.4 % 513.7 451.2 13.9 % Marketing expenses 119.7 134.7 (11.1)% 439.5 422.5 4.0 % General and administration expenses 185.5 174.8 6.1 % 775.3 673.6 15.1 % ------------------------------------------------------------------------- Operations expense 626.2 591.9 5.8 % 2,384.0 2,122.2 12.3 % Restructuring costs 0.2 2.7 (92.6)% 0.9 6.2 (85.5)% ------------------------------------------------------------------------- Total operating expenses 626.4 594.6 5.3 % 2,384.9 2,128.4 12.1 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(2) 627.1 591.9 5.9 % 2,360.4 2,122.2 11.2 % Total operating expenses (as adjusted)(2) 627.3 594.6 5.5 % 2,361.3 2,128.4 10.9 % Full-time equivalent employees at end of period 7,643 7,210 6.0 % ------------------------------------------------------------------------- (1) General and administration expenses, Operations expense and total operating expenses for fourth quarter and full year of 2006 were reduced by $0.5 million and $1.9 million, respectively, from previously reported amounts, as a result of the correction described in Section 1.3. (2) Excludes an incremental (recovery) charge of $(0.9) million and $23.6 million, respectively, in the fourth quarter and full year of 2007 for introducing a net-cash settlement feature for share option awards granted prior to 2005. Operations expense (as adjusted) and total operating expenses (as adjusted) are regularly reported to the chief operating decision-maker. -------------------------------------------------------------------------

Wireless segment total operating expenses increased by $31.8 million and $256.5 million, respectively, in the fourth quarter and full year of 2007 when compared with the same periods in 2006. Total operating expenses as adjusted to exclude the 2007 net-cash settlement feature increased by $32.7 million and $232.9 million, respectively, to promote, acquire, retain and support the 10.1% annual growth in the subscriber base and the 11.2% growth in Network revenue during 2007.

- Equipment sales expenses increased by $16.7 million and $80.6 million, respectively, in the fourth quarter and full year of 2007 when compared with the same periods in 2006, due primarily to an increase in the costs to support current and future data revenue growth in upgrading subscribers to full function smartphones combined with an increase in gross subscriber additions. - Network operating expenses increased by $21.9 million and $62.5 million in the fourth quarter and full year of 2007, respectively, when compared with the same periods in 2006. The increases were principally due to higher revenue share with third party data content providers, licensing costs on data services, higher Canadian and U.S. roaming costs due to in-bucket usage plans and site-related expenses to support cell sites. Expenses for the full year of 2007 were net of a reduction arising from CRTC Decision 2007-6 related to retail network access link charges. - Marketing expenses decreased by $15.0 million or 11.1% in the fourth quarter of 2007, when compared to the same period in 2006, due to lower advertising and promotions spending and lower commissions on sales of handsets, as increased loading volume was offset by a higher mix of prepaid subscriber additions. For the full year of 2007, marketing expenses increased by $17.0 million or 4.0% when compared to 2006, due primarily to higher advertising and promotions costs, increased dealer compensation costs related to the 10.9% increase in gross subscriber additions and increased retention activity. COA per gross subscriber addition decreased by $84 or 19% in the fourth quarter and decreased by $17 or 4% for the full year of 2007, as compared the same periods in 2006 due primarily to a greater weighting of prepaid gross subscriber additions. COA was $148.4 million and $565.7 million, respectively, for the fourth quarter and full year of 2007 as compared to $165.2 million and $532.6 million, respectively, in the same periods in 2006. Retention costs as a percentage of network revenue increased to 8.6% and 7.6%, respectively, in the fourth quarter and full year of 2007, up from 7.7% and 6.7% for the same periods in 2006, to support current and future period data revenue growth, including the migration of voice-centric Mike subscribers to PCS, and to a lesser extent, retain customers with the advent of wireless number portability. Upgrades to fully functional smart phones increased by 210% in the fourth quarter and more than doubled for the full year, as compared to the same periods in 2006, providing enhanced functionality for potential future revenue growth. - General and administration expense increased by $10.7 million and $101.7 million in the fourth quarter and full year of 2007, respectively, when compared with the same periods in 2006. Excluding non-cash charges for share option awards granted before 2005, general and administration expenses grew by $11.6 million and $78.1 million for the fourth quarter and full year of 2007, respectively. The increases were primarily due to a 6% increase in full-time equivalent employees to support the growth in Network revenue, subscribers, and expansion of the client care and company-owned retail stores teams to manage customer service levels. - Restructuring costs for the first nine months of 2007 were in respect of the Company's operational efficiency program. ------------------------------------------------------------------------- Wireless segment EBITDA ($ millions) Quarters ended Years ended and EBITDA December 31 December 31 margin (%) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- EBITDA 491.0 432.0 13.7 % 1,905.8 1,752.9 8.7 % EBITDA (as adjusted)(1) 490.1 432.0 13.4 % 1,929.4 1,752.9 10.1 % EBITDA margin 43.9 42.1 1.8 pts 44.4 45.2 (0.8)pts EBITDA margin (as adjusted) 43.9 42.1 1.8 pts 45.0 45.2 (0.2)pts ------------------------------------------------------------------------- (1) Excludes an incremental (recovery) charge of $(0.9) million and $23.6 million, respectively, in the fourth quarter and full year of 2007 for introducing a net-cash settlement feature for share option awards granted prior to 2005. EBITDA (as adjusted) is regularly reported to the chief operating decision-maker and corresponds to the definition used in setting TELUS' 2007 EBITDA targets and revised guidance. -------------------------------------------------------------------------

Wireless segment EBITDA increased by $59.0 million and $152.9 million, respectively, in the fourth quarter and full year of 2007 when compared with the same periods in 2006. EBITDA (as adjusted) increased by $58.1 million and $176.5 million, respectively, due to Network revenue growth and a lower fourth quarter COA expense, partially offset by higher retention spend due to increased voice to data migrations, increased network costs related to revenue share with third party data content providers, and higher general and administration costs to support growth in subscriber base.

3. Financial condition

The following are changes in the Consolidated balance sheets for the year ended December 31, 2007.

------------------------------------------------------------------------- At December 31, Changes Explanation of the ---------------- change in balance 2007 2006 ($ millions) (restated) ------------------------------------------------------------------------- Current Assets Cash and 19.9 (11.5) 31.4 n.m. See Section 4: temporary Liquidity and investments, capital resources net Short-term 42.4 110.2 (67.8) (61.5)% Liquidation of some investments investments of surplus cash Accounts 710.9 707.2 3.7 0.5 % Primarily increased receivable wireless receivables related to growth in network revenue, net of the receipt of lease inducements for renegotiated leases Income and 120.9 95.4 25.5 26.7 % Increased recovery other taxes and interest receivable receivable for favourable tax reassessments of prior years, net of refunds and interest received Inventories 243.3 196.4 46.9 23.9 % Includes inventories for customer services expected to be implemented in 2008 Prepaid 199.5 195.3 4.2 2.2 % - expenses and other Current 3.8 40.4 (36.6) (90.6)% Primarily new net- portion cash settled equity derivative swaps offset by the assets maturity of cross currency swaps related to the notes that matured June 1, 2007 ------------------------------------------------------------------------- Current Liabilities Accounts 1,476.6 1,363.6 113.0 8.3 % Primarily an increase payable in the liability for and accrued net-cash settled liabilities share options net of payments and an increased payroll liability accrual for one additional day, net of reductions in quality-of-service rate rebate accruals Income and 7.3 10.3 (3.0) (29.1)% Periodic instalment other taxes payments made payable Restruct- 34.9 53.1 (18.2) (34.3)% Payments under uring previous programs accounts exceeded new payable and obligations accrued liabilities Advance 631.6 606.3 25.3 4.2 % Primarily increased billings and customer deposits and customer wireless billings, deposits net of draw-downs from price cap deferred revenue Current 5.4 1,433.5 (1,428.1) (99.6)% Repayment of U.S. maturities dollar Notes that of long- matured June 1 and term debt medium-term TCI Notes that matured in February Current 26.6 165.8 (139.2) (84.0)% Maturity of cross portion of currency swaps derivative related to the Note liabilities maturing June 1, partly offset by fair value adjustments for share option hedges Current 503.6 137.2 366.4 n.m. An increase in portion of temporary differences future for current assets income and liabilities as taxes well as partnership taxable income that will be allocated in the next 12 months ------------------------------------------------------------------------- Working (1,345.3) (2,436.4) 1,091.1 44.8 % Mainly the repayment capital(1) of long-term debt that matured June 1 with proceeds from new long-term debt. See Section 4.3 Cash used by financing activities ------------------------------------------------------------------------- Capital 11,122.0 10,982.1 139.9 1.3 % See Section 2.3 Assets, Consolidated results Net from operations - Depreciation, Amortization as well as Section 4.2 Cash used by investing activities ------------------------------------------------------------------------- Other Assets Deferred 1,318.0 1,129.7 188.3 16.7 % Primarily pension charges plan contributions and pension recoveries resulting from favourable returns on plan assets Investments 38.9 35.2 3.7 10.5 % Includes new investments and fair value adjustments, net of an $11.8 million writeoff of an equity investment in AMP'D Mobile, Inc. Goodwill 3,168.0 3,169.5 (1.5) 0.0 % - ------------------------------------------------------------------------- Long-Term 4,583.5 3,474.7 1,108.8 31.9 % Includes $1 billion Debt of Notes issued in March and commercial paper issued under a program established in May, partly offset by a decrease in utilized bank facilities and reduction in the Canadian dollar value of 2011 U.S. dollar Notes ------------------------------------------------------------------------- Other Long- 1,717.9 1,257.3 460.6 36.6 % Primarily changes in Term U.S. dollar exchange Liabilities rates and a fair value adjustment of the derivative liabilities associated with 2011 U.S. dollar Notes ------------------------------------------------------------------------- Future 1,048.1 1,076.5 (28.4) (2.6)% Revaluation resulting Income from enacted Taxes reductions in future federal income tax rates, partly offset by an increase in temporary differences for long-term assets and liabilities ------------------------------------------------------------------------- Non- 25.9 23.6 2.3 9.7 % - Controlling Interests ------------------------------------------------------------------------- Shareholders' Equity Common 6,926.2 7,048.0 (121.8) (1.7)% Decreased primarily equity due to NCIB expenditures of $749.9 million, dividends of $520.8 million and transitional amounts for accumulated other comprehensive income of $176.2 million; partly offset by Net income of $1,257.9 million and Other comprehensive income of $74.2 million ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Current assets subtracting Current liabilities - an indicator of the ability to finance current operations and meet obligations as they fall due. ------------------------------------------------------------------------- 4. Liquidity and capital resources 4.1 Cash provided by operating activities ------------------------------------------------------------------------- ($ millions) Quarters ended Years ended December 31 December 31 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- 817.4 747.2 9.4 % 3,171.7 2,803.7 13.1 % -------------------------------------------------------------------------

Cash provided by operating activities increased by $70.2 million and $368.0 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006. Changes in cash provided by operating activities included:

- EBITDA increased by $69.1 million in the fourth quarter of 2007 and decreased by $25.7 million in the full year of 2007, when compared to the same periods in 2006 (as described in Section 2: Results from operations); - Share-based compensation payments in excess of the expense included in EBITDA increased by $20.4 million in the fourth quarter of 2007 when compared with the same period in 2006 for a comparative reduction in cash flow. Share-based compensation expense in excess of payments in the full year of 2007 increased by $70.7 million when compared with 2006, for a comparative increase in cash flow; - Employer contributions to employee defined benefit plans decreased by $30.5 million for the full year of 2007, when compared to the same period in 2006, mainly due to updated actuarial valuations; - Payments under restructuring plans decreased by $10.8 million and $33.2 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006; - Interest paid decreased by $47.3 million and $61.7 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006. The decrease in the fourth quarter was primarily due to new debt issues in March 2007, which have semi-annual interest payments in September as well as the maturity in June of notes that had semi-annual interest payments in December. The decrease for the full year was due to lower effective interest rates in 2007, while 2006 payments included $31.2 million for terminating cross currency interest rate swaps and partial payment of interest in respect of a court decision in a lawsuit regarding a 1997 BC TEL bond redemption matter, partly offset by repayment of forward starting interest rate swaps in the first quarter of 2007; - Interest received increased by $32.4 million and $17.4 million, respectively, in the fourth quarter and full year of 2007 when compared to the same period in 2006 due mainly to the receipt of interest on tax refunds in the fourth quarter of 2007; - Income taxes received net of instalment payments increased by $117.9 million and $24.4 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006, due mainly to collection of income taxes receivable in the fourth quarter of 2007, partly offset by collections during first quarter of 2006; - Proceeds from securitized accounts receivable decreased by a net $50 million during the fourth quarter of 2007 as compared to an increase of $150 million in proceeds during the fourth quarter of 2006. Consequently, operating cash flow in the fourth quarter of 2007 decreased by $200 million when compared to the same period in 2006. The balance of proceeds from securitized accounts receivable at December 31, 2007 was $500.0 million, unchanged from the balances at December 31, 2006 and 2005. See Section 4.6 Accounts receivable sale; - Cash provided by a decrease in Short-term investments was $67.8 million in 2007 as compared to an increase of $110.2 million in 2006, for a comparative increase in cash flow of $178.0 million; and - Other changes in non-cash working capital for the respective periods. 4.2 Cash used by investing activities ------------------------------------------------------------------------- ($ millions) Quarters ended Years ended December 31 December 31 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- 471.5 422.0 11.7 % 1,771.6 1,675.2 5.8 % -------------------------------------------------------------------------

Cash used by investing activities increased by $49.5 million and $96.4 million, respectively, in the fourth quarter and full year of 2007 when compared with the same periods in 2006, due to increased capital expenditures and lower proceeds from the sale of property and other assets, partly offset by acquisitions in 2006 and changes in other investing activities.

Assets under construction were $559.0 million at December 31, 2007, a decrease of $166.4 million from one year earlier. The decrease primarily reflects a transfer of $342.1 million to intangible assets subject to amortization in the first quarter of 2007 for activation of certain phases of the new consolidated wireline billing and client care system, net of increases in other assets under construction during 2007, including new phases of the consolidated wireline billing and client care system.

------------------------------------------------------------------------- Capital expenditures Quarters ended Years ended ($ in millions, December 31 December 31 ratios in %) 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- Wireline segment 337.0 309.2 9.0 % 1,219.0 1,191.0 2.4 % Wireless segment 135.5 106.0 27.8 % 551.3 427.4 29.0 % ------------------------------------------------------------------------- TELUS consolidated capital expenditures 472.5 415.2 13.8 % 1,770.3 1,618.4 9.4 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Capital expenditure intensity ratio(1) 20.3 18.4 1.9 pts 19.5 18.6 0.9 pts EBITDA less capital expenditures(2) 480.9 469.1 2.5 % 1,819.0 1,996.6 (8.9)% EBITDA (as adjusted) less capital expenditures(2) 481.5 469.1 2.6 % 1,987.7 1,996.6 (0.4)% ------------------------------------------------------------------------- (1) Capital expenditure intensity is measured by dividing capital expenditures by operating revenues. This measure provides a method of comparing the level of capital expenditures to other companies of varying size within the same industry. (2) See Section 6.1 EBITDA for the calculation and description. -------------------------------------------------------------------------

Capital expenditures for the full year of 2007 were in line with TELUS target expenditures of approximately $1.75 billion, reflecting an increase of $151.9 million when compared to 2006. For the fourth quarter of 2007, capital expenditures increased by $57.3 million. Capital intensity in 2007 increased from 2006 due to the planned increase in capital spending. TELUS' EBITDA (as adjusted) less capital expenditures increased by $12.4 million in the fourth quarter of 2007, when compared to the same period in 2006, as growth in wireless and wireline EBITDA (as adjusted) exceeded the increase in total capital expenditures. For the full year of 2007, TELUS' EBITDA (as adjusted) less capital expenditures decreased by $8.9 million as a lower wireline EBITDA (as adjusted) and increased total capital expenditures more than offset growth in wireless EBITDA (as adjusted).

- Wireline segment capital expenditures increased by $27.8 million and $28.0 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006, due primarily to upfront capital investment to support new enterprise customers, partly offset by lower expenditures for billing and client care system development. Wireline capital expenditure intensity levels were 26.9% and 24.8%, respectively, in the fourth quarter and full year of 2007, as compared to 24.5% and 24.2%, respectively, for the same periods in 2006. Wireline cash flow (EBITDA less capital expenditures) was $125.4 million and $464.5 million, respectively, for the fourth quarter and full year of 2007, or decreases of 12.4% and 30.8%, respectively, when compared to 2006. Wireline cash flow based on EBITDA (as adjusted) for the full year of 2007 was $609.6 million, a decrease of 9.2% from 2006. - Wireless segment capital expenditures increased by $29.5 million and $123.9 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006. The increases were principally related to continued enhancement of digital wireless capacity and coverage. Wireless capital expenditure intensity levels in 2007 were 12.1% for the fourth quarter and 12.8% for the full year of 2007 as compared to 10.3% and 11.0%, respectively, for the same periods in 2006. Wireless cash flows (EBITDA less capital expenditures) were $355.5 million in the fourth quarter and $1,354.5 million for the full year of 2007, representing an increase of 9.0% for the quarter and 2.2% for the full year. Wireless cash flow based on EBITDA (as adjusted) was $1,378.1 million for the full year of 2007, an increase of 4.0% from 2006. 4.3 Cash used by financing activities ------------------------------------------------------------------------- ($ millions) Quarters ended Years ended December 31 December 31 2007 2006 Change 2007 2006 Change ------------------------------------------------------------------------- 327.0 311.3 5.0 % 1,368.7 1,148.6 19.2 % -------------------------------------------------------------------------

Cash used by financing activities increased by $15.7 million and 220.1 million, respectively, in the fourth quarter and full year of 2007, when compared with the same periods in 2006.

- Proceeds from Common Shares and Non-Voting Shares issued were $0.2 million in the fourth quarter of 2007 and $0.9 million for the full year of 2007, as compared to $21.6 million and $104.5 million, respectively, in the same periods in 2006. The decreases were due to implementation of the net-cash settlement feature for share option awards granted prior to 2005 and the introduction of the net equity settlement feature in May 2006. - Cash dividends paid to shareholders increased by $142.7 million and $109.1 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006. Cash dividends paid during the fourth quarter of 2007 were for the dividend payable on October 1, 2007 as well as remittance on December 31, 2007 for dividends payable on January 1, 2008. The increase in dividends paid for the full year of 2007 was due to the increased dividend rate in 2007 partly offset by fewer shares outstanding. - The Company repurchased 57% of the maximum 24 million shares allowed under its third NCIB program in effect from December 20, 2006 to December 19, 2007. Consistent with its intent to return surplus cash to shareholders, the Company renewed its NCIB program, which has been in place since December 2004. The renewed program (Program 4) came into effect on December 20, 2007 and is set to expire on December 19, 2008. The maximum number of shares that may be purchased under Program 4 is eight million Common Shares and 12 million Non-Voting Shares. The shares are to be purchased on the Toronto Stock Exchange (TSX) and all repurchased shares will be cancelled. Investors may obtain a copy of the notice filed with the TSX without charge by contacting TELUS Investor Relations. During the fourth quarter of 2007, the Company repurchased 250,000 Common shares and 2.8 million Non-voting shares under the NCIB programs for a purchase cost of $147.5 million.

TELUS Corporation

CONTACT: PRNewswire - - 02/15/2008

TELUS Reports Fourth Quarter ResultsOperating earnings up 8% while underlying EPS increases 22%

VANCOUVER, Feb. 15 /PRNewswire-FirstCall/ -- TELUS Corporation today reported fourth quarter 2007 revenue of $2.33 billion, an increase of 3.4 per cent from a year ago. The performance was driven by nine per cent growth in wireless revenue and seven per cent growth in wireline data revenue, partially offset by declines in local and long distance wireline revenues. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased eight per cent to $953 million due to a 14 per cent increase in the wireless segment and two per cent increase in the wireline segment.

Net income in the quarter was $400 million and earnings per share (EPS) was $1.23, up 66 per cent and 73 per cent respectively. Net income and EPS included favourable tax related adjustments of approximately $143 million or 44 cents per share, compared to $20 million or six cents a year ago. Also contributing to the increase in EPS were lower financing charges and a reduction in shares outstanding from continued share repurchases. Excluding tax related adjustments in both periods and the charge for the net-cash settlement feature for share options this period, net income was $258 million and EPS was $0.79, up 17 per cent and 22 per cent, respectively. Free cash flow was up 85% despite higher capital expenditures, due to the same positive factors that boosted EPS.

For the full year, TELUS reported revenue growth of 4.5 per cent to $9.1 billion and four per cent growth in EBITDA (adjusted for comparability). TELUS invested $1.77 billion in capital expenditures and generated healthy free cash flow of $1.57 billion, which funded shareholder dividends of $521 million and the repurchase of $750 million of TELUS shares during the year. TELUS met or exceeded three of four initial consolidated financial 2007 targets set more than a year ago, including both profitability targets.

FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------- C$ in millions, except per share amounts 3 months ended December 31 (unaudited) 2007 2006 % Change ------------------------------------------------------------------------- Operating revenues 2,330.8 2,254.6 3.4% EBITDA(1)(2) 953.4 884.3 7.8% Income before income taxes and non-controlling interest 384.2 333.5 15.2% Net income(2)(3) 400.1 240.5 66.4% Earnings per share (EPS), basic(2)(3) 1.23 0.71 73.2% Cash provided by operating activities 817.4 747.2 9.4% Capital expenditures 472.5 415.2 13.8% Free cash flow(4) 427.8 231.1 85.1% (1) Earnings before interest, taxes, depreciation and amortization (EBITDA) is defined as Operating revenues less Operations expense less Restructuring costs. See Section 6.1 of Management's review of operations. (2) Comparative results for 2006 have been corrected for a change in employee future benefits transitional pension asset accounting, resulting in a positive impact on EBITDA, net income, and basic earnings per share for the fourth quarter in 2006 of $6.2 million, $4.3 million, and 1 cent, respectively. In 2007, TELUS revisited estimates and determinations used for employee future benefits transitional pension asset accounting and decreased the pension expense by $24.7 million in each year from 2000 to 2006. (3) Net income and EPS for the three month period in 2007 includes favourable tax related adjustments of $143 million or 44 cents per share, compared to $20 million or 6 cents for the same period in 2006. (4) See Section 6.2 of Management's review of operations.

"Despite a turbulent year in the telecom industry and capital markets, TELUS' performance was solid as we focused on delivering against our long-standing national growth strategy," said Darren Entwistle, TELUS president and CEO. "Disciplined performance in the fourth quarter allowed TELUS to end the year on a positive note, which bodes well for 2008."

"TELUS continues to generate strong cash flow that we are deploying three ways," stated Mr. Entwistle. "We invested almost $1.8 billion in capital expenditures, much of it directed to new service initiatives and to generate long-term growth, and we returned to shareholders almost $1.3 billion in the form of value creating share buybacks and increased dividends."

Robert McFarlane, TELUS executive vice-president and CFO, said, "I am pleased to see a higher operating margin generated in the fourth quarter, countering unexpected costs earlier in 2007. As a result, the organization achieved its full year 2007 consolidated profitability targets."

"TELUS enters 2008 in a position of considerable financial strength and balance sheet flexibility that allows TELUS to advance our strategy regardless of very unsettled capital markets," said Mr. McFarlane. "Demonstrating this was the ease with which we funded the $743 million Emergis acquisition in mid-January and today's announcement of a $700 million 364-day revolving bank facility with a select group of Canadian banks, which ensures we continue to have ample unutilized funding sources."

------------------------------------------------------------------------- This news release contains statements about expected future events and financial and operating results of TELUS that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that the forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward- looking statements as a number of factors could cause actual future results and events to differ materially from that expressed in the forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In the case of annual guidance, it is the current practice of the Company to evaluate and, where it deems appropriate, provide updates. Subject to legal requirements, this practice may be changed at any time at the Company's sole discretion. Accordingly this news release is subject to the disclaimer and qualified by the assumptions (including assumptions for 2008 guidance and share purchases), qualifications and risk factors referred to in the Management's review of operations- February 13, 2008 ------------------------------------------------------------------------- OPERATING HIGHLIGHTS TELUS wireless - Revenues increased by $90 million or 8.8% to $1.1 billion in the fourth quarter of 2007, when compared with the same period in 2006 - Wireless data revenue increased $39 million or 43% due to adoption of full function personal data devices and increased text messaging - Net subscriber additions were 161,400, an 11% decrease from the same quarter in 2006. Postpaid additions were 106,400, down 18%, while prepaid loading increased by 5.6% to 55,000, which included a one- time reduction of 5,100, for a clean-up of deactivated accounts. - ARPU (average revenue per subscriber unit per month) decreased by 1.2% to $63.70 continuing the trend experienced in the third quarter due to the competitive impacts on the voice component. The fast growing data component at $7.95 represents 12.5% of ARPU - EBITDA increased by $59 million over the fourth quarter of 2006, representing 14% growth, due to network revenue growth and lower COA expense - Cost of acquisition per gross addition decreased 19% year-over-year to $352 - Blended monthly subscriber churn increased to 1.59% from 1.33% a year ago due to product mix shifting to prepaid combined with higher deactivations associated with introduction of WNP in 2007 Postpaid churn increased slightly to 1.14% - Cash flow (EBITDA less capital expenditures) increased $29 million or 9% to $355 million in the quarter due to an increase in EBITDA. Capital expenditures also increased with continued investments in capacity and coverage. TELUS wireline - Revenues decreased by $14 million or 1.1% to $1.2 billion in the fourth quarter of 2007, when compared with the same period in 2006. Data growth was offset by declines in local and long distance revenues - Data revenues increased by $31 million or 7.2% due to increased high-speed Internet subscribers and enhanced data and hosting services - TELUS added 26,200 net high-speed Internet subscribers, pushing TELUS' high-speed base to more than one million, an 11% increase from a year ago. High-speed net adds were much lower than a year ago reflecting a mix of competitive and market factors - EBITDA increased by $10 million or 2.2%, due to lower cost of sales associated with voice and data equipment and increased capitalization of labour - Network access lines (NALs) declined by 39,000 in the quarter, down 3.2% from a year ago. This reflects continued residential line losses from ongoing competitive activity and wireless substitution partially mitigated by an increase in business access lines - Cash flow (EBITDA less capital expenditures) declined 12% to $125 million, due to an increase in capex for new phases of the billing and client care system development in B.C. as well as upfront capital investments to support new contract wins. Corporate Developments TELUS successfully acquires Emergis

On January 17, TELUS successfully completed its $743 million bid to acquire Emergis under its offer to acquire all of their common shares. This acquisition advances TELUS' business strategy based on its fit with two of our four key industry verticals.

Emergis is a business process outsourcer that specializes in the healthcare and financial services sectors and is a leader in the automation of electronic health records and claims processing and pharmacy solutions. In addition, Emergis' suite of financial service solutions complements TELUS' focus in this sector.

TELUS is taking a leadership role in the transformation of healthcare in Canada. It has invested in strengthening its healthcare service capabilities in the last several years, building teams with deep expertise and delivering innovative solutions. Emergis' complementary expertise, applications and customer base are expected to strengthen TELUS' existing industry solutions and allow it to better compete in the growing and transforming healthcare industry.

Government issues wireless spectrum decision

On November 28, Industry Canada announced the framework for the upcoming Advanced Wireless Spectrum auction planned for May 2008. The Government decided to set aside 40 MHz of 105 MHz of available spectrum for potential new entrants and to require existing providers including TELUS to share their infrastructure. This includes mandated roaming and tower sharing. TELUS is participating in a round of public comments and the Government is expected to announce final rules at the end of March 2008.

TELUS was disappointed the Government failed to abide by its policy mandate to rely on market forces to the greatest extent possible to deliver benefits for Canadian consumers and instead made a decision that will favour a select group of industry players at the expense of companies that have invested more than $20 billion building wireless infrastructure.

While TELUS remains in a good position to compete and generate ongoing growth, this announcement creates uncertainty regarding the future competitive structure, which has negatively impacted share values of TELUS and other wireless carriers.

TELUS continues share repurchases

During the fourth quarter, TELUS continued to purchase shares under its Normal Course Issuer Bids (NCIBs). Repurchases were 3.1 million shares for a total outlay of $147.5 million. For the full year, TELUS repurchased 13.6 million shares for $750 million thereby reducing shares outstanding by four per cent.

TELUS renewed its NCIB program on December 20, 2007 with the intention, if considered advisable, to purchase and cancel, over a 12-month period, up to 8 million of its outstanding common shares and 12 million of its outstanding non-voting shares on the Toronto Stock Exchange. This represents approximately 4.6% of the common and 8.1% of the non-voting outstanding public float of each class of shares.

Since December 2004, TELUS has repurchased a total of 53 million shares for an outlay of $2.5 billion under four share repurchase programs. TELUS believes that such purchases are in the best interest of the Company and constitute an attractive investment opportunity and desirable use of company funds that should enhance the value of the remaining shares.

TELUS is Canada's best in corporate reporting, including governance and sustainability

The Canadian Institute of Chartered Accountants (CICA) handed TELUS five awards, including the Overall Award of Excellence for Corporate Reporting, at the 2007 award ceremony in December. The CICA awards reflect TELUS' commitment to continuous improvement and to clear and thorough reporting to all its stakeholders. TELUS was also awarded best Corporate Governance disclosure for the third year running and was handed first-time awards for best Corporate Social Responsibility reporting and an honourable mention for Financial Reporting. Finally, TELUS received the award of excellence in corporate reporting in the Communications and Media category for the thirteenth consecutive year.

Ville de Montreal selects TELUS as primary telecom partner in $87 million deal

In early February, a new partnership with Ville de Montreal was announced in which TELUS will provide and manage Internet Protocol (IP) based voice and data services for the city's more than 300 administrative offices. The contract is valued at $87 million over ten years.

The advanced telecommunications framework is to support the city's goals of accessing a cost-effective infrastructure while providing a secure IP backbone for new services and solutions. Migration from the city's previous technology to TELUS' centralized IP-based communications platform is expected to begin in the fall of 2008.

Yellow Pages Group selects TELUS in $90 million deal

In October, TELUS announced that Yellow Pages Group (YPG) has selected TELUS to provide support services and management of the information technology infrastructure for their Western Canada-based operations. This long-term contract with Canada's largest directory publisher is valued at approximately $90 million.

Under the agreement, TELUS will provide a wide range of services including IT infrastructure operations, IP applications development, wireless services, document services and managed network services ranging from help desk to desktop to computing operations. TELUS will also provide facilities and managed services for YPG's online directory system in TELUS Internet Data Centres.

TELUS acquires Toronto-based Fastvibe

TELUS has acquired privately held Fastvibe Corporation, a small but leading provider of innovative and superior quality Web streaming solutions for business. Launched in 2000, Fastvibe, based in Toronto, serves approximately 130 corporate customers including the Bank of Montreal, Bank of Nova Scotia, Barrick Gold, Trans Canada Pipelines, Ministry of Education of Ontario, Torstar and Investors Group. Web streaming is a rapidly growing market.

The Fastvibe team brings unique technical, event and production Web streaming management expertise to TELUS. The acquisition strengthens TELUS' technology solutions portfolio by offering Canadian businesses an environmentally responsible and cost effective way to deliver information like training, employee communications and investor information to staff and stakeholders who are geographically dispersed.

TELUS House opens its doors in the Nation's Capital

In October, TELUS House in Ottawa was opened. The building is a Leadership in Energy and Environmental Design (LEED) "silver" designed facility, making it one of the most environmentally friendly buildings in the city. The 160,000 square-foot, nine floor facility is a sustainable building, designed and built to embrace healthy living, conserve energy and support the environment. For example, TELUS House is designed to reduce energy consumption by almost 40 per cent compared to model national energy code buildings, and its high-efficiency plumbing system is designed to reduce water usage by more than 40 per cent.

Upopolis keeps kids in hospitals connected

As part of TELUS' commitment to making the future friendly for Canadian youth, it partnered with Kids' Health Links Foundation (KHLF) and McMaster Children's Hospital (MCH) to launch of Upopolis.com, Canada's first secure online social network for kids in hospital care. This site, powered by TELUS, allows young patients to connect with their peers and teachers, much like they do on Facebook. Upopolis provides a personal profile, secure mail, instant chat, discussion boards, personal blogs and links to games. The site also provides unique features to kids in hospital like a homework site to stay up-to-date with school, links to kid-friendly health and wellness information, and connections to other children with the same condition.

Through a partnership with Kids' Health Links Foundation, TELUS is providing a gift of technology services to develop Upopolis. TELUS helped build the site and will continue to provide site expansion, ongoing access to Upopolis.com, managed Web hosting, and application support and maintenance services.

TELUS becomes first Canadian telco to deploy and support Cisco TelePresence

TELUS is the first Canadian telecommunications provider to achieve both the Cisco TelePresence Connection Certification and the Cisco TelePresence Authorized Technology Provider Certification. These designations recognize TELUS' capability to sell, deploy and support Cisco TelePresence and for having the network sophistication to deliver an optimal customer experience.

The Cisco TelePresence system allows TELUS to bring customers unique, 'in-person' experiences between people, places and events in a secure environment. This system delivers life-size images via ultra-high-definition video and spatial audio within a specially designed environment to create the experience of being in the same room with remote participants, whether they are down the street or around the world.

TELUS has also implemented Cisco TelePresence internally in its Vancouver and Toronto offices, and is using the solution to help improve team member efficiency and customer communication, reduce travel, and assist in meeting environmental goals.

TELUS first to bring Canadians the next generation RAZR

TELUS became the first Canadian wireless carrier to offer the CDMA RAZR2 V9m in the quarter. The next generation of the revolutionary MOTORAZR brings together brains and beauty with a full SPARK entertainment service line-up along with the elegant styling synonymous with the RAZR. For ultimate enjoyment of TELUS multimedia SPARK, the phones come packaged with a stereo headset, data cable, mini-to-micro USB adapter, Motorola Mobile Phone Tools software, and 1GB microSD memory card.

TELUS also introduced the Samsung R500 wireless phone, which lets consumers reflect their own style with a choice of red and blue exchangeable faceplates and access to the company's SPARK suite of services.

TELUS introduces four new Mike handsets

In December, TELUS launched four new handsets to its Mike Push To Talk (PTT) line-up. With more than 12 Mike handsets, TELUS has the largest selection of Push To Talk devices in Canada.

The new Motorola i876 and Motorola i876w Push To Talk phones offer unmatched levels of processing speed, multimedia, and convenience. Such innovative new features as 3D Audio, 3D Animation and stereo Bluetooth allow users to get more effective at work and better enjoy their downtime with music, games, and Web access.

TELUS also launched the i876 and i876w, both boasting a combined alarm clock/stopwatch/timer and a camera with a built-in photo editor. The difference between the two models is simply styling - while the i876 comes in sleek dark brown, the i876w's casing is a lustrous pearl with a titanium ivy design. The emergence of this option represents the increasing popularity of Mike outside its industrial roots, as well as the growing diversity of industries that have relied on Mike over its 11 years in the market.

TELUS training program tops in the world

TELUS was recognized by the American Society for Training and Development for having the world's third best enterprise learning program in the world. TELUS was one of only two Canadian corporations honoured with a BEST award by the society. In 2007, TELUS' 34,000 employees took 361,000 online courses and 64,000 classroom courses. TELUS previously won BEST awards in 2003, 2004, and 2005.

Karen Radford named Best Canadian Woman Executive

Karen Radford, TELUS executive vice-president and president of TELUS Quebec and Partner Solutions, was named Best Canadian Executive at the 4th annual Stevie Awards for Women in Business. This international award recognizes the outstanding performance in the workplace and honours the efforts, accomplishments, and positive contributions of companies and businesspeople worldwide. Ms. Radford was selected as Best Canadian Executive by a panel of judges and advisors featuring many leading figures in the business world. More than 800 entries from companies of all sizes across virtually every industry were submitted for consideration in categories such as Best Entrepreneur, Best Executive, Lifetime Achievement, and Women Helping Women.

Four TELUS executives named Top 100 women by the Women's Executive Network

The Women's Executive Network (WXN) recognized four of TELUS' senior leaders for their career successes and dedication to the communities where they live and work. The society's 2007 list of Canada's 100 most powerful women included Audrey Ho, TELUS senior vice-president, General Counsel and Corporate Secretary; and Judy Shuttleworth, TELUS vice-chair of Human Resources. Ms. Ho received the award in the Professionals category and Ms. Shuttleworth was recognized in the Corporate Executives category. This was the first Top 100 award for Ho and the third time Shuttleworth had been honoured with the award. Karen Radford, TELUS executive vice-president and president of TELUS Quebec and Partner Solutions; and Janet Yale, TELUS executive vice-president of Corporate Affairs, were also honoured at the luncheon and included in the prestigious list. Both members of the top 100 list for the previous three years, Ms. Radford and Ms. Yale were inducted into the new WXN Hall of Fame.

TELUS and its team members donate $5.5 million to Canadian charities

TELUS, its team members and alumni give where they live. They have donated and pledged $5.5 million for 2008 to more than 2,800 charities across Canada as part of the Team TELUS Cares charitable giving program. TELUS team members and alumni have chosen to make donations through payroll and pension deduction to more than 45,000 eligible registered Canadian charities such as the Canadian Cancer Society, B.C. Children's Hospital Foundation and the Canadian Breast Cancer Foundation. TELUS then matches these donations dollar for dollar to provide financial support for those charities. TELUS and its team members have contributed $113 million to charitable and not-for-profit organizations and volunteered more than 2.1 million hours of service to local communities since 2000.

TELUS International team members build homes in Manila

The TELUS International office in Manila, Philippines took part in a TELUS Day of Service in November. More than 300 TELUS team members, family and friends partnered with Gawad Kalinga, an organization similar to Habitat for Humanity, to build homes in a newly-created village. The village, known as the TELUS GK Village, will help provide a brighter future to families in the Philippines. TELUS' dedication to the community doesn't stop with this one day - TELUS has committed to building 71 homes over the next year to house 107 families in TELUS GK Village.

TELUS partners with SOVERDI and City of Montreal to plant 22,000 trees and shrubs

In January 2008, the Societe de verdissement du Montreal metropolitain (SOVERDI), the City of Montreal, and TELUS announced the results of their 2007 greening campaign. In total, 12,000 trees and 10,000 shrubs were planted in alleyways, schoolyards and riverbanks in over 20 public spaces in the greater Montreal area, thanks to this innovative partnership.

Dividend declaration

The Board of Directors has declared a quarterly dividend of forty-five cents ($0.45) Canadian per share on the issued and outstanding Common shares and forty-five cents ($0.45) Canadian per share on the issued and outstanding Non-Voting shares of the Company payable on April 1, 2008 to holders of record at the close of business on March 11, 2008.

This quarterly dividend represents a 20 per cent increase from the $0.375 quarterly dividend paid in 2007.

About TELUS

TELUS (TSX: T, T.A; NYSE: TU) is a leading national telecommunications company in Canada, with $9.1 billion of annual revenue and 11.1 million customer connections including 5.6 million wireless subscribers, 4.4 million wireline network access lines and 1.2 million Internet subscribers. TELUS provides a wide range of communications products and services including data, Internet protocol (IP), voice, entertainment and video. Committed to being Canada's premier corporate citizen, we give where we live. Since 2000, TELUS and our team members have contributed $113 million to charitable and not-for-profit organizations and volunteered more than 2.1 million hours of service to local communities. Eight TELUS Community Boards across Canada lead our local philanthropic initiatives. For more information about TELUS, please visit telus.com.

TELUS Corporation consolidated statements of income (unaudited) Periods ended December 31 Three months Twelve months (millions except per share amounts) 2007 2006 2007 2006 ------------------------------------------------------------------------- (restated) (restated) OPERATING REVENUES $2,330.8 $2,254.6 $9,074.4 $8,681.0 ------------------------------------------------------------------------- OPERATING EXPENSES Operations 1,371.3 1,362.4 5,464.7 4,998.2 Restructuring costs 6.1 7.9 20.4 67.8 Depreciation 386.2 353.2 1,354.7 1,353.4 Amortization of intangible assets 68.1 53.9 260.3 222.2 ------------------------------------------------------------------------- 1,831.7 1,777.4 7,100.1 6,641.6 ------------------------------------------------------------------------- OPERATING INCOME 499.1 477.2 1,974.3 2,039.4 Other expense, net 5.8 10.1 36.1 28.0 Financing costs 109.1 133.6 440.1 504.7 ------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST 384.2 333.5 1,498.1 1,506.7 Income taxes (18.0) 91.6 233.6 353.2 Non-controlling interests 2.1 1.4 6.6 8.5 ------------------------------------------------------------------------- NET INCOME AND COMMON SHARE AND NON-VOTING SHARE INCOME 400.1 240.5 1,257.9 1,145.0 OTHER COMPREHENSIVE INCOME Change in unrealized fair value of derivatives designated as cash flow hedges 17.7 - 82.0 - Foreign currency translation adjustment arising from translating financial statements of self-sustaining foreign operations (2.3) 4.6 (7.2) 5.8 Change in unrealized fair value of available-for-sale financial assets (0.3) - (0.6) - ------------------------------------------------------------------------- 15.1 4.6 74.2 5.8 ------------------------------------------------------------------------- COMPREHENSIVE INCOME $ 415.2 $ 245.1 $1,332.1 $1,150.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- NET INCOME PER COMMON SHARE AND NON-VOTING SHARE - Basic $ 1.23 $ 0.71 $ 3.79 $ 3.33 - Diluted $ 1.22 $ 0.70 $ 3.76 $ 3.30 DIVIDENDS DECLARED PER COMMON SHARE AND NON-VOTING SHARE $ 0.45 $ 0.375 $ 1.575 $ 1.20 TOTAL WEIGHTED AVERAGE COMMON SHARES AND NON-VOTING SHARES OUTSTANDING - Basic 326.2 339.5 331.7 343.8 - Diluted 328.1 343.8 334.2 347.4 TELUS Corporation consolidated balance sheets (unaudited) December 31, December 31, As at (millions) 2007 2006 ------------------------------------------------------------------------- (restated) ASSETS Current Assets Cash and temporary investments, net $ 19.9 $ - Short-term investments 42.4 110.2 Accounts receivable 710.9 707.2 Income and other taxes receivable 120.9 95.4 Inventories 243.3 196.4 Prepaid expenses and other 199.5 195.3 Derivative assets 3.8 40.4 ------------------------------------------------------------------------- 1,340.7 1,344.9 ------------------------------------------------------------------------- Capital Assets, Net Property, plant, equipment and other 7,177.3 7,117.7 Intangible assets subject to amortization 978.2 898.0 Intangible assets with indefinite lives 2,966.5 2,966.4 ------------------------------------------------------------------------- 11,122.0 10,982.1 ------------------------------------------------------------------------- Other Assets Deferred charges 1,318.0 1,129.7 Investments 38.9 35.2 Goodwill 3,168.0 3,169.5 ------------------------------------------------------------------------- 4,524.9 4,334.4 ------------------------------------------------------------------------- $ 16,987.6 $ 16,661.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Cash and temporary investments, net $ - $ 11.5 Accounts payable and accrued liabilities 1,476.6 1,363.6 Income and other taxes payable 7.3 10.3 Restructuring accounts payable and accrued liabilities 34.9 53.1 Advance billings and customer deposits 631.6 606.3 Current maturities of long-term debt 5.4 1,433.5 Current portion of derivative liabilities 26.6 165.8 Current portion of future income taxes 503.6 137.2 ------------------------------------------------------------------------- 2,686.0 3,781.3 ------------------------------------------------------------------------- Long-Term Debt 4,583.5 3,474.7 ------------------------------------------------------------------------- Other Long-Term Liabilities 1,717.9 1,257.3 ------------------------------------------------------------------------- Future Income Taxes 1,048.1 1,076.5 ------------------------------------------------------------------------- Non-Controlling Interests 25.9 23.6 ------------------------------------------------------------------------- Shareholders' Equity 6,926.2 7,048.0 ------------------------------------------------------------------------- $ 16,987.6 $ 16,661.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation consolidated statements of cash flows (unaudited) Three months Twelve months Periods ended December 31 (millions) 2007 2006 2007 2006 ------------------------------------------------------------------------- (restated) (restated) OPERATING ACTIVITIES Net income $ 400.1 $ 240.5 $1,257.9 $1,145.0 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 454.3 407.1 1,615.0 1,575.6 Future income taxes (16.5) 126.3 376.9 411.4 Share-based compensation (30.6) (10.2) 95.8 25.1 Net employee defined benefit plans expense (23.1) (7.2) (92.1) (30.1) Employer contributions to employee defined benefit plans (25.3) (19.0) (92.8) (123.3) Restructuring costs, net of cash payments 2.8 (6.2) (18.2) (4.0) Amortization of deferred gains on sale-leaseback of buildings, amortization of deferred charges and other, net 3.0 39.2 4.1 51.7 Net change in non-cash working capital 52.7 (23.3) 25.1 (247.7) ------------------------------------------------------------------------- Cash provided by operating activities 817.4 747.2 3,171.7 2,803.7 ------------------------------------------------------------------------- INVESTING ACTIVITIES Capital expenditures (472.5) (415.2) (1,770.3) (1,618.4) Acquisitions - (4.5) - (49.0) Proceeds from the sale of property and other assets 2.1 - 7.5 14.9 Change in non-current materials and supplies, purchase of investments and other (1.1) (2.3) (8.8) (22.7) ------------------------------------------------------------------------- Cash used by investing activities (471.5) (422.0) (1,771.6) (1,675.2) ------------------------------------------------------------------------- FINANCING ACTIVITIES Common Shares and Non-Voting Shares issued 0.2 21.6 0.9 104.5 Dividends to shareholders (269.9) (127.2) (520.8) (411.7) Purchase of Common Shares and Non-Voting Shares for cancellation (147.5) (199.5) (749.9) (800.2) Long-term debt issued 2,991.8 244.1 7,763.3 1,585.9 Redemptions and repayment of long-term debt (2,901.6) (250.3) (7,857.0) (1,314.7) Partial repayment of deferred hedging liability - - - (309.4) Dividends paid by a subsidiary to non-controlling interests - - (4.3) (3.0) Other - - (0.9) - ------------------------------------------------------------------------- Cash used by financing activities (327.0) (311.3) (1,368.7) (1,148.6) ------------------------------------------------------------------------- CASH POSITION Increase (decrease) in cash and temporary investments, net 18.9 13.9 31.4 (20.1) Cash and temporary investments, net, beginning of period 1.0 (25.4) (11.5) 8.6 ------------------------------------------------------------------------- Cash and temporary investments, net, end of period $ 19.9 $ (11.5) $ 19.9 $ (11.5) ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOWS Interest (paid) $ (171.2) $ (218.5) $ (454.4) $ (516.1) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interest received $ 32.7 $ 0.3 $ 41.6 $ 24.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income taxes (inclusive of Investment Tax Credits) received, net $ 122.7 $ 3.9 $ 122.7 $ 98.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation segmented information (unaudited) Three-month periods ended December 31 Wireline Wireless (millions) 2007 2006 2007 2006 (restated) (restated) ------------------------------------------------------------------------- Operating revenues External revenue $1,220.3 $1,234.3 $1,110.5 $1,020.3 Intersegment revenue 30.7 26.5 6.9 6.3 ------------------------------------------------------------------------- 1,251.0 1,260.8 1,117.4 1,026.6 ------------------------------------------------------------------------- Operating expenses Operations expense 782.7 803.3 626.2 591.9 Restructuring costs 5.9 5.2 0.2 2.7 ------------------------------------------------------------------------- 788.6 808.5 626.4 594.6 ------------------------------------------------------------------------- EBITDA(1) $ 462.4 $ 452.3 $ 491.0 $ 432.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 337.0 $ 309.2 $ 135.5 $ 106.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ 125.4 $ 143.1 $ 355.5 $ 326.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) 781.2 803.3 627.1 591.9 Restructuring costs 5.9 5.2 0.2 2.7 ------------------------------------------------------------------------- 787.1 808.5 627.3 594.6 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ 463.9 $ 452.3 $ 490.1 $ 432.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 337.0 $ 309.2 $ 135.5 $ 106.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ 126.9 $ 143.1 $ 354.6 $ 326.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three-month periods ended December 31 Eliminations Consolidated (millions) 2007 2006 2007 2006 (restated) ------------------------------------------------------------------------- Operating revenues External revenue $ - $ - $2,330.8 $2,254.6 Intersegment revenue (37.6) (32.8) - - ------------------------------------------------------------------------- (37.6) (32.8) 2,330.8 2,254.6 ------------------------------------------------------------------------- Operating expenses Operations expense (37.6) (32.8) 1,371.3 1,362.4 Restructuring costs - - 6.1 7.9 ------------------------------------------------------------------------- (37.6) (32.8) 1,377.4 1,370.3 ------------------------------------------------------------------------- EBITDA(1) $ - $ - $ 953.4 $ 884.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 472.5 $ 415.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ - $ - $ 480.9 $ 469.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) (37.6) (32.8) 1,370.7 1,362.4 Restructuring costs - - 6.1 7.9 ------------------------------------------------------------------------- (37.6) (32.8) 1,376.8 1,370.3 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ - $ - $ 954.0 $ 884.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 472.5 $ 415.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ - $ - $ 481.5 $ 469.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) (from above) $ 954.0 $ 884.3 Incremental charge (recovery)(3) 0.6 - -------------------------------------------------- EBITDA (from above) 953.4 884.3 Depreciation 386.2 353.2 Amortization 68.1 53.9 -------------------------------------------------- Operating income 499.1 477.2 Other expense, net 5.8 10.1 Financing costs 109.1 133.6 -------------------------------------------------- Income before income taxes and non-controlling interests 384.2 333.5 Income taxes (18.0) 91.6 Non-controlling interests 2.1 1.4 -------------------------------------------------- Net income $ 400.1 $ 240.5 -------------------------------------------------- -------------------------------------------------- (1) Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is a measure that does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers; EBITDA is defined by the Company as operating revenues less operations expense and restructuring costs. The Company has issued guidance on, and reports, EBITDA because it is a key measure used by management to evaluate performance of its business segments and is utilized in measuring compliance with certain debt covenants. (2) Total capital expenditures ("CAPEX"). (3) Substantially all of the Company's share option awards that were granted prior to January 1, 2005, and which were outstanding on January 1, 2007, were amended by adding a net-cash settlement feature; such amendment resulted in an incremental charge to (recovery from) operations of $0.6 and did not result in an immediate cash outflow (inflow). In respect of 2007 results provided to the Company's chief operating decision maker, operations expense and EBITDA are being presented both with, and without, the impact of such amendment. TELUS Corporation segmented information (unaudited) Years ended December 31 Wireline Wireless (millions) 2007 2006 2007 2006 (restated) (restated) ------------------------------------------------------------------------- Operating revenues External revenue $4,810.6 $4,823.1 $4,263.8 $3,857.9 Intersegment revenue 114.2 98.3 26.9 23.4 ------------------------------------------------------------------------- 4,924.8 4,921.4 4,290.7 3,881.3 ------------------------------------------------------------------------- Operating expenses Operations expense 3,221.8 2,997.7 2,384.0 2,122.2 Restructuring costs 19.5 61.6 0.9 6.2 ------------------------------------------------------------------------- 3,241.3 3,059.3 2,384.9 2,128.4 ------------------------------------------------------------------------- EBITDA(1) $1,683.5 $1,862.1 $1,905.8 $1,752.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $1,219.0 $1,191.0 $ 551.3 $ 427.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ 464.5 $ 671.1 $1,354.5 $1,325.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) 3,076.7 2,997.7 2,360.4 2,122.2 Restructuring costs 19.5 61.6 0.9 6.2 ------------------------------------------------------------------------- 3,096.2 3,059.3 2,361.3 2,128.4 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $1,828.6 $1,862.1 $1,929.4 $1,752.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $1,219.0 $1,191.0 $ 551.3 $ 427.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ 609.6 $ 671.1 $1,378.1 $1,325.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Years ended December 31 Eliminations Consolidated (millions) 2007 2006 2007 2006 (restated) ------------------------------------------------------------------------- Operating revenues External revenue $ - $ - $9,074.4 $8,681.0 Intersegment revenue (141.1) (121.7) - - ------------------------------------------------------------------------- (141.1) (121.7) 9,074.4 8,681.0 ------------------------------------------------------------------------- Operating expenses Operations expense (141.1) (121.7) 5,464.7 4,998.2 Restructuring costs - - 20.4 67.8 ------------------------------------------------------------------------- (141.1) (121.7) 5,485.1 5,066.0 ------------------------------------------------------------------------- EBITDA(1) $ - $ - $3,589.3 $3,615.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $1,770.3 $1,618.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ - $ - $1,819.0 $1,996.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) (141.1) (121.7) 5,296.0 4,998.2 Restructuring costs - - 20.4 67.8 ------------------------------------------------------------------------- (141.1) (121.7) 5,316.4 5,066.0 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ - $ - $3,758.0 $3,615.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $1,770.3 $1,618.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ - $ - $1,987.7 $1,996.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) (from above) $3,758.0 $3,615.0 Incremental charge(3) 168.7 - -------------------------------------------------- EBITDA (from above) 3,589.3 3,615.0 Depreciation 1,354.7 1,353.4 Amortization 260.3 222.2 -------------------------------------------------- Operating income 1,974.3 2,039.4 Other expense, net 36.1 28.0 Financing costs 440.1 504.7 -------------------------------------------------- Income before income taxes and non-controlling interests 1,498.1 1,506.7 Income taxes 233.6 353.2 Non-controlling interests 6.6 8.5 -------------------------------------------------- Net income $1,257.9 $1,145.0 -------------------------------------------------- -------------------------------------------------- (1) Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") is a measure that does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other issuers; EBITDA is defined by the Company as operating revenues less operations expense and restructuring costs. The Company has issued guidance on, and reports, EBITDA because it is a key measure used by management to evaluate performance of its business segments and is utilized in measuring compliance with certain debt covenants. (2) Total capital expenditures ("CAPEX"). (3) Substantially all of the Company's share option awards that were granted prior to January 1, 2005, and which were outstanding on January 1, 2007, were amended by adding a net-cash settlement feature; such amendment resulted in an incremental charge to operations of $168.7 and did not result in an immediate cash outflow. In respect of 2007 results provided to the Company's chief operating decision maker, operations expense and EBITDA are being presented both with, and without, the impact of such amendment. Caution regarding forward-looking statements ------------------------------------------------------------------------- This report contains statements about expected future events and financial and operating results of TELUS Corporation (TELUS or the Company) that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that assumptions (see below), predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In the case of annual guidance, it is the current practice of the Company to evaluate and, where it deems appropriate, provide updates. Subject to legal requirements, this practice may be changed at any time at the Company's sole discretion. Assumptions for 2008 targets include: economic growth consistent with recent provincial and national estimates by the Conference Board of Canada, including gross domestic product (GDP) growth of 2.8% in Canada and above average growth in the provinces of Alberta and British Columbia; forecast exchange rate between the Canadian dollar and U.S. dollar at or near parity; increased wireline competition in both business and consumer markets, particularly from cable-TV and VoIP (voice over Internet protocol) companies; impact from the acquisition of Emergis in mid-January; Canadian wireless industry market penetration gain of 4.5 to 5%; potential participation in advanced wireless services (AWS) spectrum auction is not reflected in capital expenditures; no new wireless competitive entrant assumed for 2008; approximately $50 million restructuring expenses (up from $20.4 million in 2007); a blended statutory tax rate of approximately 31 to 32%; a discount rate of 5.5% (50 basis points higher than 2007) and expected long-term return of 7.25% for pension accounting (unchanged from 2007); and average shares outstanding of approximately 320 million (down from 331.7 million in 2007). Earnings per share (EPS), cash balances, net debt and common equity may be affected by purchases of up to 20 million TELUS shares over a 12 month period under the normal course issuer bid that commenced December 20, 2007. Factors that could cause actual results to differ materially include, but are not limited to: competition (including more active price competition and the possibility of new wireless competition after the 2008 spectrum auction); economic growth and fluctuations (including pension performance, funding and expenses); capital expenditure levels (including possible wireless spectrum asset purchases); financing and debt requirements (including funding acquisition purchases, share repurchases and debt financings); tax matters (including acceleration or deferral of required payments of significant amounts of cash taxes); human resource developments; business integrations and internal reorganizations (including post-acquisition integration of Emergis); technology (including reliance on systems and information technology, evolving wireline broadband and wireless next generation technology options and the possible need for prospective wireless sharing arrangements to achieve cost efficiencies and reduce deployment risks); regulatory approvals and developments (including the essential services proceeding, spectrum auction, tower sharing and roaming rules, the new media proceeding and possible changes to foreign ownership restrictions); process risks (including conversion of legacy systems and billing system integrations); health, safety and environmental developments; litigation and legal matters; business continuity events (including manmade and natural threats); any prospective acquisitions or divestitures; and other risk factors discussed herein and listed from time to time in TELUS' reports and public disclosure documents including its annual report, annual information form, and other filings with securities commissions in Canada (on http://www.sedar.com/) and filings in the United States including Form 40-F (on EDGAR at http://www.sec.gov/). For further information, see Risks and risk management in Section 10 of TELUS' 2006 annual and 2007 first, second and third quarter Management's discussion and analyses, as well as updates reported in Section 5 of this document. ------------------------------------------------------------------------- Management's review of operations February 13, 2008

The following is a discussion of the consolidated financial condition and results of operations of TELUS Corporation for the three-month periods and years ended December 31, 2007 and 2006. This discussion contains forward-looking information that is qualified by reference to, and should be read together with, the Caution regarding forward-looking statements above.

TELUS has issued guidance on and reports on certain non-GAAP measures that are used by management to evaluate performance of business units, segments and the Company. In addition, non-GAAP measures are used in measuring compliance with debt covenants and are used to manage the capital structure. Because non-GAAP measures do not have a standardized meaning, securities regulations require that non-GAAP measures be clearly defined and qualified, and reconciled with their nearest GAAP measure. For the readers' reference, the definition, calculation and reconciliation of consolidated non-GAAP measures is provided in Section 6: Reconciliation of non-GAAP measures and definition of key operating indicators.

Management's review of operations ------------------------------------------------------------------------- Section Description ------------------------------------------------------------------------- 1. Introduction, performance A summary of TELUS' consolidated summary and targets results for 2007, performance against 2007 targets, and presentation of targets for 2008 ------------------------------------------------------------------------- 2. Results from operations A detailed discussion of operating results for the fourth quarter and year ended December 31, 2007 ------------------------------------------------------------------------- 3. Financial condition A discussion of significant changes in the balance sheets for the year ending December 31, 2007 ------------------------------------------------------------------------- 4. Liquidity and capital A discussion of cash flow, liquidity, resources credit facilities and other disclosures ------------------------------------------------------------------------- 5. Risks and risk management An update of risks and uncertainties facing TELUS and how it manages these risks ------------------------------------------------------------------------- 6. Reconciliation of non-GAAP A description, calculation and measures and definition of reconciliation of certain measures used key operating indicators by management ------------------------------------------------------------------------- 1. Introduction, performance summary and targets 1.1 Materiality for disclosures

Management determines whether or not information is material based on whether it believes a reasonable investor's decision to buy, sell or hold securities in the Company would likely be influenced or changed if the information were omitted or misstated.

1.2 Canadian telecommunications industry and Company developments Economic and telecom industry growth

The Conference Board of Canada recently estimated Canadian real GDP growth for 2007 and 2008 to be 2.6% and 2.8%, respectively. TELUS estimates that revenues for the Canadian telecom industry grew by approximately 5.5% to $40 billion in 2007 due to its continued robust wireless growth, which more than offset the declines of a mature wireline segment. In this context, TELUS' revenues grew by 4.5% to $9.07 billion during 2007. Bell Canada (BCE) and its affiliates represented about 45% of the total industry revenue.

Key industry development

In April 2007, Canada's largest telecommunications service provider BCE Inc. entered into a strategic review process. Three consortia signed non-disclosure and standstill agreements to enable them to potentially prepare an offer to BCE shareholders under a competitive auction process. On June 21, 2007, TELUS announced that it had entered into a mutual non-disclosure and standstill agreement and was pursuing non-exclusive discussions to acquire BCE. On June 26, the three consortia submitted bids to acquire BCE, while TELUS announced that inadequacies in BCE's bid process did not make it possible for TELUS to submit an offer. On June 30, BCE announced that it had entered into a definitive agreement to be acquired by a consortium led by Teachers Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, and the U.S.-based Providence Equity Partners and Madison Dearborn Partners, LLC. In early August, TELUS concluded its assessment of whether it should potentially make a competing offer for BCE, and announced that it did not intend to submit a competing offer. The BCE Board recommended that their common shareholders accept the consortium's offer at an all-cash price of $42.75 per common share or approximately $34 billion. On September 21, 2007, BCE shareholders overwhelmingly approved the acquisition. The closing of the transaction is subject to receipt of regulatory approvals including by the CRTC, which is commencing a public hearing on February 25 to review the change in control of BCE's broadcasting licences. BCE recently indicated that it expected the transaction to close in the second quarter of 2008.

Wireless developments

TELUS estimates that the Canadian wireless revenue growth rate was in the double digits in 2007, as market penetration for the industry increased by an estimated 4.9 percentage points to approximately 61% of the population. TELUS' wireless segment achieved 10.5% revenue growth and 10.1% subscriber growth in 2007.

A key driver of wireless growth continues to be the increased adoption and usage of data services such as text messaging, mobile computing and PDA usage. Canadian wireless providers continue the roll-out of faster next generation high-speed wireless networks to capture this growth opportunity. Competition remains intense due to a number of factors including a presence of mobile virtual network operators (MVNOs) such as Virgin Mobile and Videotron; discount brand offerings by Bell and Rogers; and the March 2007 introduction of wireless number portability, which allows customers to move to a different provider while retaining their existing phone number.

On November 28, 2007, The Federal Industry Minister announced his policy and spectrum auction framework surrounding the introduction of advanced wireless services in Canada. A spectrum auction for 105 MHz is expected in May 2008 that is expected to follow the same simultaneous, multiple round, highest bidder model as in the 2001 PCS spectrum auction. The Minister has chosen to introduce measures intended to make it easier for new entrants to bid on and acquire spectrum. The principal policy tools adopted are (i) the set-aside of 40MHz of spectrum for new entrants, including regional and metropolitan blocks; and (ii) mandatory roaming and tower sharing (at commercial rates). TELUS is participating in a round of public comments and the government is expected to announce the final rules at the end of March 2008. See Risks and risk management - Section 5.1 Regulatory.

Wireline developments

TELUS estimates that industry wireline revenues were flat in 2007. The industry is continuing to focus its attention on broadband services to moderate the losses in network access lines and as penetration in this area approaches a saturation point, telecom and cable-TV companies have started to compete on speed, applications and price to differentiate their product offerings. Internet telephony is emerging to be a lucrative revenue stream for cable-TV companies. Telecom companies are strategically positioning themselves to encroach into the TV market with new IPTV offerings. Consumers continue to substitute wireless and VoIP services for traditional wired telephony services. Competitive losses and substitution have resulted in certain North American telecom companies having residential access line losses around 10%.

TELUS' wireline segment external revenues decreased by 0.3% in 2007, similar to 2006, as growth in data services nearly offset losses in voice services. TELUS' residential access lines decreased 6.5% in 2007, compared with a 5.2% loss in 2006. TELUS continues to launch TELUS TV(R) services to select neighbourhoods in its incumbent territories.

In 2007, the CRTC granted residential local exchange forbearance in markets where incumbents are facing increasing competitive pressure. TELUS received approval for deregulation of wireline residential phone service in 63 communities (about 75% of residential lines in non-high cost serving areas) and business service in 35 communities across B.C., Alberta and Quebec (about two-thirds of business lines). This positively impacts TELUS' competitiveness by providing improved pricing, marketing and bundling flexibility.

TELUS approach to the business market is through a focus on non-incumbent growth in Central Canada as well as, nationally, a focus on key vertical markets of healthcare, financial services, energy and the public sector. For example, in January 2008, TELUS completed its acquisition of Emergis Inc., described below.

Emergis Inc.

On November 29, 2007, TELUS and Emergis Inc. announced that TELUS had agreed to make an offer to acquire all the outstanding common shares of Emergis for $8.25 cash per common share by way of a takeover bid (the Offer). The Offer represented a 17% premium to Emergis' average closing price on the Toronto Stock Exchange over the previous 30-day period.

Emergis is a business process outsourcer that specializes in the healthcare and financial services sectors and is a leader in the automation of electronic health records. TELUS has targeted and invested in serving the healthcare and financial business sectors. Emergis' complementary expertise, applications and customer base are expected to strengthen TELUS' existing industry solutions and allow it to better compete in the growing and transforming healthcare industry. This acquisition is consistent with three of TELUS' strategic imperatives: building national capabilities; focusing relentlessly on the growth markets of data, IP and wireless; and partnering, acquiring and divesting.

As at December 31, 2007, TELUS had made market purchases of 1,017,000 Emergis Inc. common shares for $8.3 million. On January 8, 2008, TELUS announced that the Commissioner of Competition had advised that she did not intend to challenge the transaction under the merger provisions of the Competition Act (Canada). On January 17, TELUS announced that it was successful in its bid, with approximately 94% of the outstanding common shares of Emergis, on a fully diluted basis, having been tendered to the Offer. The remaining shares were obtained through a compulsory acquisition process completed the next day.

On January 17, TELUS financed and paid $743.4 million for all of the then issued and outstanding Emergis common shares by drawing down its syndicated credit facility and utilizing available cash resources, primarily proceeds of commercial paper issuance. Emergis was de-listed from the Toronto Stock Exchange on January 21.

With respect to TELUS' 2008 targets, the Company had assumed 10 months of expected Emergis operating results, incremental financing costs and an estimated $10 million of restructuring costs. With the transaction closing in mid-January, TELUS' 2008 target results may be slightly affected by an additional 1.5 months of Emergis' operations. With the acquisition of Emergis, the pro forma Net debt to EBITDA ratio measured for December 31, 2007, is 1.9. See the Caution regarding forward-looking statements.

1.3 Consolidated highlights

Comparative results for 2006 have been corrected for a change in employee future benefits transitional pension asset accounting. In the adoption and implementation of new accounting recommendations for employee future benefits in the 2000 fiscal year, various estimates, assumptions and determinations were made. The Company revisited the various determinations made in 2000. This resulted in changes to previously reported Operations expense and Income taxes on the Consolidated statements of Income, and changes to Deferred charges, Future income tax liabilities and Retained earnings on the Consolidated balance sheets. The Company has determined that the correction was not material to its previously filed financial statements.

The effects of the adjustments to reflect the amortization of the entire transitional asset of a defined benefit pension plan on the Company's results of operations, including the associated effects of income tax changes, for 2006 were:

------------------------------------------------------------------------- Changes to the Consolidated statements of income As As Year ended December 31, 2006 previously currently ($ millions except per share amounts) reported Adjustment reported ------------------------------------------------------------------------- Operations expenses 5,022.9 (24.7) 4,998.2 Operating income 2,014.7 24.7 2,039.4 Income before income taxes and non-controlling interest 1,482.0 24.7 1,506.7 Income taxes 351.0 2.2 353.2 Net income and Common Share and Non Voting Share income 1,122.5 22.5 1,145.0 Income per Common Share and Non-Voting Share - Basic 3.27 0.06 3.33 - Diluted 3.23 0.07 3.30 -------------------------------------------------------------------------

The effects of the adjustments to reflect the amortization of the entire transitional asset of a defined benefit pension plan on the Company's financial position, including the associated effects of income tax rate changes, as at December 31, 2006, are as set out in the following table:

------------------------------------------------------------------------- Changes to the Consolidated balance sheet As As As at December 31, 2006 previously currently ($ millions) reported(1) Adjustment reported ------------------------------------------------------------------------- Assets Other assets Deferred charges 956.6 173.1 1,129.7 Total Assets 16,488.3 173.1 16,661.4 Liabilities and Shareholders' Equity Current liabilities 3,781.3 - 3,781.3 Future income taxes 1,023.3 53.2 1,076.5 Shareholders' equity(2) 6,928.1 119.9 7,048.0 Total Liabilities and Shareholders' Equity 16,488.3 173.1 16,661.4 ------------------------------------------------------------------------- (1) The December 31, 2006, amounts reflected as previously reported have been adjusted for a $44.0 reclassification of future income taxes between current and non-current and a $19.9 reclassification of debt issue costs. (2) Shareholders' equity changes are restricted to changes in retained earnings. Retained earnings as at December 31, 2005, would increase from $849.7 to $947.1. -------------------------------------------------------------------------

TELUS' annual targets for 2007, as published in the annual 2006 Management's discussion and analysis, excluded an estimated $150 to $200 million incremental pre-tax charge, or 30 to 40 cents per share, for introducing a net-cash settlement feature for share option awards granted prior to 2005. The actual incremental amount recorded in 2007, which did not result in an immediate cash outflow, was a pre-tax charge of $168.7 million, or 0.32 cents per share. The Chief Executive Officer, who is the chief operating decision-maker, regularly received 2007 reports on two bases: including and excluding the charge for the net-cash settlement feature. The highlights table below presents both views.

------------------------------------------------------------------------- Consolidated highlights ($ millions, except shares, per Quarters ended Years ended share amounts, December 31 December 31 subscribers and 2007 2006 Change 2007 2006 Change ratios) (restated) (restated) ------------------------------------------------------------------------- Consolidated statements of income ------------------------------------------------------------------------- Operating revenues 2,330.8 2,254.6 3.4 % 9,074.4 8,681.0 4.5 % Operating income 499.1 477.2 4.6 % 1,974.3 2,039.4 (3.2)% Net-cash settlement feature expense 0.6 - - 168.7 - - -------- -------- -------- -------- -------- -------- Operating income (as adjusted) 499.7 477.2 4.7 % 2,143.0 2,039.4 5.1 % Income before income taxes 384.2 333.5 15.2 % 1,498.1 1,506.7 (0.6)% Net-cash settlement feature expense 0.6 - - 168.7 - - -------- -------- -------- -------- -------- -------- Income before income taxes (as adjusted) 384.8 333.5 15.4 % 1,666.8 1,506.7 10.6 % Net income 400.1 240.5 66.4 % 1,257.9 1,145.0 9.9 % Net-cash settlement feature expense, after tax 0.9 - - 105.0 - - -------- -------- -------- -------- -------- -------- Net income (as adjusted) 401.0 240.5 66.7 % 1,362.9 1,145.0 19.0 % Earnings per share, basic ($) 1.23 0.71 73.2 % 3.79 3.33 13.8 % Net-cash settlement feature per share - - - 0.32 - - -------- -------- -------- -------- -------- -------- Earnings per share, basic (as adjusted) (1) ($) 1.23 0.71 73.2 % 4.11 3.33 23.4 % Earnings per share, diluted ($) 1.22 0.70 74.3 % 3.76 3.30 13.9 % Cash dividends declared per share ($) 0.45 0.375 20.0 % 1.575 1.20 31.3 % ------------------------------------------------------------------------- Consolidated statements of cash flows ------------------------------------------------------------------------- Cash provided by operating activities 817.4 747.2 9.4 % 3,171.7 2,803.7 13.1 % Cash used by investing activities 471.5 422.0 11.7 % 1,771.6 1,675.2 5.8 % Capital expenditures 472.5 415.2 13.8 % 1,770.3 1,618.4 9.4 % Cash used by financing activities 327.0 311.3 5.0 % 1,368.7 1,148.6 19.2 % ------------------------------------------------------------------------- Subscribers and other measures ------------------------------------------------------------------------- Subscriber connections(2) (thousands) at December 31 11,147 10,715 4.0 % EBITDA(3) 953.4 884.3 7.8 % 3,589.3 3,615.0 (0.7)% Net-cash settlement feature expense 0.6 - - 168.7 - - -------- -------- -------- -------- -------- -------- EBITDA (as adjusted)(1)(3) 954.0 884.3 7.9 % 3,758.0 3,615.0 4.0 % Free cash flow(4) 427.8 231.1 85.1 % 1,573.2 1,596.0 (1.4)% ------------------------------------------------------------------------- Debt and payout ratios(5) ------------------------------------------------------------------------- Net debt to EBITDA - excluding restructuring costs 1.7 1.7 - Dividend payout ratio (%) 47 45 2 pts ------------------------------------------------------------------------- pts - percentage points (1) EPS - basic (as adjusted) and EBITDA (as adjusted) correspond to the definitions used in TELUS' 2007 annual targets and revised guidance. (2) The sum of wireless subscribers, network access lines and Internet access subscribers measured at the end of the respective periods based on information in billing and other systems. (3) EBITDA is a non-GAAP measure. See Section 6.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). EBITDA (as adjusted) is regularly reported to the chief operating decision-maker and corresponds to the definition used in setting TELUS' 2007 EBITDA targets and revised guidance. (4) Free cash flow is a non-GAAP measure. See Section 6.2 Free cash flow. (5) See Section 6.4 Definition of liquidity and capital resource measures. -------------------------------------------------------------------------

Highlights for the fourth quarter and full year of 2007, as discussed in Section 2: Results from operations, include the following:

- Subscriber connections increased by 432,000, including 139,000 in the fourth quarter of 2007. During the year wireless subscribers grew by 10% to 5.57 million, the number of Internet subscribers grew by 6% to 1.18 million and the number of network access lines decreased by 3% to 4.40 million. Notably, during the fourth quarter of 2007, high- speed Internet subscribers surpassed the one million mark for the first time, closing at 1,020,200. Wireless net additions were 161,400 in the fourth quarter. - Operating revenues increased by $76.2 million and $393.4 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006, due primarily to growth in wireless network revenues and wireline data revenues, which more than offset revenue declines in wireline voice local and long distance. - Operating income increased by $21.9 million in the fourth quarter of 2007 and decreased by $65.1 million for the full year of 2007, when compared to the same periods in 2006. Excluding the net-cash settlement feature expense recorded in 2007, operating income (as adjusted) increased by $22.5 million and $103.6 million, respectively, in the fourth quarter and full year, primarily due to growth in wireless EBITDA partly offset by higher depreciation and amortization expenses. - Income before income taxes increased by $50.7 million in the fourth quarter of 2007 and decreased by $8.6 million for the full year of 2007, when compared to the same periods in 2006. Excluding the effect of the net-cash settlement feature, Income before income taxes increased by $51.3 million and $160.1 million, respectively, in the fourth quarter and full year, due to lower financing costs and growth in operating income (as adjusted). - Net income and EPS - basic for the fourth quarter of 2007 increased by $159.6 million and 52 cents, respectively, when compared to the same period in 2006. Net income and EPS - basic for the full year of 2007 increased by $112.9 million and 46 cents, respectively, when compared to the same period in 2006. ------------------------------------------------------------------------- Net income continuity Three-month periods ended Years ended December 31 December 31 ------------------------------------------------------------------------- 2006 (restated) 240.5 1,145.0 Deduct favourable 2006 tax-related adjustments (20) (171) Add favourable 2007 tax-related adjustments 143 250 Changes in: EBITDA (as adjusted) 46 95 Interest expenses 15 31 Depreciation and other (23.5) 12.9 ------------------------------------------------------------------------- 2007 (as adjusted) 401.0 1,362.9 Net-cash settlement feature in 2007 (0.9) (105.0) ------------------------------------------------------------------------- 2007 (reported) 400.1 1,257.9 ------------------------------------------------------------------------- - The average number of shares outstanding in 2007 was 3.5% lower for the full year of 2007 when compared to 2006. The decrease in shares was due to $750 million of repurchases under the normal course issuer bid (NCIB) programs as well as far fewer shares being issued from treasury following the introduction of the net-cash settlement feature for options. - The Company renewed its NCIB program for another year. Under Program 4, which will expire on December 19, 2008, the maximum number of shares that may be purchased is eight million Common Shares and 12 million Non-Voting Shares. See Section 4.3 Cash used by financing activities.

Highlights for the fourth quarter and full year of 2007, as discussed in Section 4: Liquidity and capital resources, include the following:

- Cash provided by operating activities increased by $70.2 million and $368.0 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006. The increases were mainly due to liquidation of certain short-term investments, lower interest paid and higher recoveries of taxes and related interest. - Cash used by investing activities increased by $49.5 million and $96.4 million, respectively, in the fourth quarter and full year of 2007, when compared to the same periods in 2006. The increases were mainly due to upfront capital investment to support new enterprise customers as well as expenditures for digital wireless capacity and coverage. - Cash used by financing activities increased by $15.7 million and $220.1 million, respectively, in the fourth quarter and full year of 2007 when compared to the same periods in 2006, due primarily to increased dividend payments. The dividend declared in the fourth quarter of 2007 increased by 20% to 45 cents per share, up from 37.5 cents per share in each of the four preceding quarters. - Free cash flow increased by $196.7 million in the fourth quarter of 2007 and decreased by $22.8 million for the full year of 2007, when compared with the same periods in 2006. Free cash flow increased 85% for the quarter due primarily to higher recoveries on taxes and related interest as well as different timing of interest payments in 2007 as a result of financing activities in the first half of the year. Free cash flow decreased 1.4% for the full year as increased capital expenditures and cash payments as a result of introducing the net-cash settlement feature were nearly offset by lower interest paid and higher recoveries of taxes and related interest. - Net debt to EBITDA of 1.7 continued to be in the long-term target policy range of 1.5 to 2.0 times. - The dividend payout ratio based on the annualized fourth quarter dividend and actual earnings for 2007 was 47% and the dividend payout ratio calculated to exclude the impacts of tax-related adjustments and the charge for introducing the net-cash settlement feature was 54% - both within the target guideline of 45 to 55% of net sustainable earnings. 1.4 Performance scorecard for 2007 results

Half of the 12 original consolidated and segmented targets for 2007 were met or exceeded, while six were not achieved.

- Three of the four consolidated targets were met or exceeded (EBITDA, capital expenditures and EPS), while the revenue target was not achieved; - Wireless revenues were below target by 2% largely due to year-over- year growth in the average revenue per subscriber unit per month (ARPU) levelling off and declining slightly in the second half of the year, and net subscriber additions being 6% below the annual target. The wireline revenue fell short of its original target by about 1% due to a one-time negative adjustment to long distance revenues as well as lower equipment sales and lower than expected additions of high-speed Internet subscribers; - The consolidated EBITDA (as adjusted) target was achieved and the wireline EBITDA (as adjusted) target was exceeded largely because total restructuring charges of $20.4 million were lower than the original expectation of $50 million. The wireless EBITDA target was not achieved as a result of pricing pressures, and increased subscriber acquisition and retention costs; - EPS (as adjusted) exceeded its target by 23% due to favourable tax- related adjustments of approximately 75 cents per share. Excluding the tax-related adjustments, EPS (as adjusted) was $3.36, or in the middle of the target range; and - The consolidated, wireline and wireless capital expenditure levels were within 2% of the respective targets.

During the year, management also provided revised annual guidance for 2007 with the announcement of results for the second and third quarters of 2007 and with the 2008 targets news release and investor call on December 13, 2007. The December guidance for 2007 met or exceeded on 10 indicators, but was short on the two subscriber amounts.

TELUS' results for 2007 are compared to original 2007 targets in the scorecard below. In addition, 2008 targets (published in the news release on December 13, 2007) are presented and compared to results for 2007. See Caution regarding forward-looking statements at the beginning of this report.

------------------------------------------------------------------------- Scorecards Performance for 2007 2008 targets ------------------------------------------------------------------------- Legend ++ Exceeded target range Original Change + Met target Actual Change 2007 Target from 2007 x Missed target results from 2006 targets result Targets actual ------------------------------------------------------------------------- Consolidated Revenues $9.074 4.5% $9.175 to x $9.6 to 6 to 8% billion $9.275 $9.8 billion billion EBITDA(1) (2007 as adjusted)(2) $3.758 4.0% $3.725 to + $3.8 to 1 to 5% billion $3.825 $3.95 billion billion EPS - basic (2007 as adjusted)(3) $4.11 23.4% $3.25 to ++ $3.50 to (8) to $3.45 $3.80 (15)% EPS - basic (2007 as adjusted), excluding favourable tax-related impacts $3.36 18.7% $3.25 to + $3.50 to 4 to $3.45 $3.80 13% Capital expenditures $1.770 9.4% Approx. + Approx. 7% billion $1.75 $1.9 billion billion ------------------------------------------------------------------------- Wireline segment Revenue (external) $4.811 (0.3)% $4.85 to x $4.975 to 3 to 5% billion $4.9 $5.075 billion billion EBITDA (2007 as adjusted)(2) $1.829 (1.8)% $1.775 to ++ $1.725 to (6) to billion $1.825 $1.8 (2)% billion billion Capital expenditures $1.219 2.4% Approx. + No target - billion $1.2 billion High-speed Internet subscriber net additions 103,500 (32.7)% More than x No target - 135,000 ------------------------------------------------------------------------- Wireless segment Revenue (external) $4.263 10.5% $4.325 to x $4.625 to 8 to billion $4.375 $4.725 11% billion billion EBITDA (2007 as adjusted)(2) $1.929 10.1% $1.95 to x $2.075 to 8 to billion $2.0 $2.15 11% billion billion Capital expenditures $551 29.0% Approx. + No target - million $550 million Wireless subscriber net additions 514,600 (3.9)% More than x No target - 550,000 ------------------------------------------------------------------------- (1) See Section 6.1 Earnings before interest taxes depreciation and amortization (EBITDA) for the definition. (2) The actual result for 2007 EBITDA (as adjusted) excludes an incremental charge of $168.7 million relating to the introduction of a net-cash settlement feature for share option awards granted prior to 2005, of which, $145.1 million is in wireline and $23.6 million is in wireless. The target for 2007 EBITDA (as adjusted) excluded an estimated $150 to $200 million expense for introducing this feature, of which, $120 to $150 million was expected in wireline and $30 to $50 million was expected in wireless. (3) The actual result for 2007 EPS - basic (as adjusted) excludes an after-tax charge per share of $0.32 relating to the introduction of a net-cash settlement feature, while the 2007 target excluded an estimated $0.30 to $0.40 for introducing this feature. -------------------------------------------------------------------------

The following key assumptions were made at the time the original targets for 2007 were announced in December 2006.

TELUS Corporation

CONTACT: Media relations: Allison Vale, (416) 629-6425,
allison.vale@telus.com; Investor relations: Robert Mitchell, (416) 279-3219,
ir@telus.com

/SECOND AND FINAL ADD - TO220 - TELUS Corporation/

Normal course issuer bid programs ------------------------------------------------------------------------- By fiscal year and program Shares repurchased ------------------------------------ Common Non-Voting Shares Shares Total ------------------------------------------------------------------------- 2004 and 2005, Programs 1 and 2 10,893,480 12,107,700 23,001,180 ------------------------------------------------------------------------- 2006 Program 2 ended Dec. 19 5,490,600 10,701,400 16,192,000 Program 3 beginning Dec. 20 - 186,723 186,723 ------------------------------------------------------------------------- 5,490,600 10,888,123 16,378,723 ------------------------------------------------------------------------- 2007 Program 3 ended Dec. 19 2,904,900 10,571,800 13,476,700 Program 4 beginning Dec. 20 - 134,200 134,200 ------------------------------------------------------------------------- 2,904,900 10,706,000 13,610,900 ------------------------------------------------------------------------- Cumulative total 19,288,980 33,701,823 52,990,803 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- By fiscal year and program Purchase cost ($ millions) ------------------------------------ Charged to Charged to Share Retained capital(1) earnings(2) Paid ------------------------------ ------------------------------------ 2004 and 2005, Programs 1 and 2 390.4 579.7 970.1 ------------------------------ ------------------------------------ 2006 Program 2 ended Dec. 19 297.6 492.8 790.4 Program 3 beginning Dec. 20 4.0 5.8 9.8 ------------------------------ ------------------------------------ 301.6 498.6 800.2 ------------------------------ ------------------------------------ 2007 Program 3 ended Dec. 19 263.7 480.0 743.7 Program 4 beginning Dec. 20 2.9 3.3 6.2 ------------------------------ ------------------------------------ 266.6 483.3 749.9 ------------------------------ ------------------------------------ Cumulative total 958.6 1,561.6 2,520.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Represents the book value of shares repurchased. (2) Represents the cost in excess of the book value of shares repurchased. ------------------------------------------------------------------------- - A major debt issue was completed in March 2007 with five-year and 10- year maturities: 2012 Canadian dollar Notes: the Company publicly issued $300 million 4.50%, Series CC, Notes at a price of $999.91 per $1,000.00 of principal; 2017 Canadian dollar Notes: the Company publicly issued $700 million 4.95%, Series CD, Notes at a price of $999.53 per $1,000.00 of principal; The notes are redeemable at the option of the Company, in whole at any time, or in part from time to time, on not fewer than 30 and not more than 60 days' prior notice, at a redemption price equal to the greater of (i) the present value of the notes discounted at the Government of Canada yield plus 15 basis points for the 2012 notes and 24 basis points for the 2017 notes, or (ii) 100% of the principal amount thereof. In addition, accrued and unpaid interest, if any, will be paid to the date fixed for redemption. - On May 15, 2007, TELUS entered into an unsecured commercial paper program, which is backstopped by a portion of its credit facility, enabling it to issue commercial paper up to a maximum aggregate of $800 million (or U.S. dollar equivalent), to be used for general corporate purposes. Commercial paper of $584.9 million was outstanding at December 31, 2007, an increase of $292.4 million from September 30, 2007. - Bank facilities were undrawn at December 31, 2007, as compared to $200 million at September 30, 2007 and $120 million at December 31, 2006. - Debt repayments in 2007 included the $1,483.3 million to repay US$1,166.5 million 7.50% Notes that matured on June 1, and $70 million to repay TCI 7.10% Medium-Term Notes that matured in February. 4.4 Liquidity and capital resource measures ------------------------------------------------------------------------- Liquidity and capital resource measures 2007 2006 Change As at, or years ended, December 31 ------------------------------------------------------------------------- Components of debt and coverage ratios(1) ($ millions) ------------------------------------------------------------------------- Net debt 6,141.6 6,278.1 (136.5) Total capitalization - book value 13,197.2 13,349.7 (152.5) EBITDA - excluding restructuring costs 3,609.7 3,682.8 (73.1) Net interest cost 440.1 504.7 (64.6) ------------------------------------------------------------------------- Debt ratios ------------------------------------------------------------------------- Fixed-rate debt as a proportion of total indebtedness (%) 82.4 90.6 (8.2) pts Average term to maturity of debt (years) 5.3 4.5 0.8 Net debt to total capitalization (%)(1) 46.5 47.0 (0.5) pts Net debt to EBITDA - excluding restructuring costs(1) 1.7 1.7 - ------------------------------------------------------------------------- Coverage ratios(1) ------------------------------------------------------------------------- Interest coverage on long-term debt 4.2 3.9 0.3 EBITDA - excluding restructuring costs interest coverage 8.2 7.3 0.9 ------------------------------------------------------------------------- Other measures ------------------------------------------------------------------------- Free cash flow ($ millions)(2) 1,573.2 1,596.0 (22.8) Dividend payout ratio (%)(1) 47 45 2 pts ------------------------------------------------------------------------- (1) See Section 6.4 Definition of liquidity and capital resource measures. (2) See Section 6.2 Free cash flow for the definition. -------------------------------------------------------------------------

Total capitalization decreased because of lower share capital and lower net debt, partly offset by higher retained earnings. Changes in Net debt and 12-month trailing EBITDA did not have a significant impact on the net debt to EBITDA ratio at December 31, 2007 when compared to one year earlier. The average term to maturity of debt of 5.3 years at December 31, 2007 represents an increase from 4.5 years at December 31, 2006 due to repayment of maturing notes on June 1 and the March debt issue, net of commercial paper issues in beginning in May. The proportion of debt on a fixed-rate basis decreased from one year earlier with the issue of commercial paper.

Interest coverage on long-term debt improved by 0.3 because of lower interest expenses. The EBITDA interest coverage ratio improved by 1.0 due to lower net interest costs and decreased by 0.1 due to lower EBITDA excluding restructuring costs. The decrease in free cash flow resulted from higher capital expenditures and cash payments as a result of introducing the net-cash settlement feature, net of higher recoveries of income tax and related interest and lower interest paid. The dividend payout ratio based on actual earnings at December 31, 2007 was 47% and the ratio calculated to exclude the impacts of tax-related adjustments and the charge for introducing the net-cash settlement feature was 54%.

The Company's strategy is to maintain the financial policies and guidelines set out below. The Company believes that these measures are currently at the optimal level and provide access to capital at a reasonable cost by maintaining credit ratings in the range of BBB+ to A-, or the equivalent.

TELUS' long-term financial policies and guidelines are: - Net debt to EBITDA - excluding restructuring costs of 1.5 to 2.0 times; and - Dividend payout ratio of 45 to 55% of sustainable net earnings.

Management expects to maintain its policy guidelines following the acquisition of Emergis in mid-January 2008. The pro forma Net debt to EBITDA - excluding restructuring costs for December 31, 2007 was 1.9 times.

The Company no longer considers the ratio Net debt to total capitalization to be a long-term policy measure. The measure is based on book values of net debt and equity, however, the book value of equity has been reduced significantly by the cumulative effect of normal course issuer bids, which include the market value of equity in excess of book value.

4.5 Credit facilities

On March 2, 2007, TELUS closed a new five-year $2 billion credit facility with a syndicate of 18 financial institutions. The new facility replaced $1.6 billion of existing credit facilities, of which $800 million would have expired in 2008 and $800 million would have expired in 2010. The new facility may be used for general corporate purposes including the backstop of commercial paper. The new facility has no substantial changes in terms and conditions other than reduced pricing and extended term, which reflects favourable market conditions and TELUS' financial position. Notably, the May 2012 maturity date of the new credit facility extends beyond the maturity date of TELUS' June 2011 Notes.

At December 31, 2007, TELUS had available liquidity exceeding $1.3 billion from unutilized credit facilities, consistent with the Company's objective of maintaining at least $1 billion of unutilized liquidity.

TELUS Credit Facilities at December 31, 2007 ------------------------------------------------------------------------- Out- Backstop standing for undrawn commer- letters cial Avai- of paper lable ($ in millions) Expiry Size Drawn credit program liquidity ------------------------------------------------------------------------- Five-year revolving facility(1) May 1, 2012 2,000.0 - (103.7) (587.2) 1,309.1 Other bank facilities - 77.3 - (2.9) - 74.4 ------------------------------------------------------------------------- Total - 2,077.3 - (106.6) (587.2) 1,383.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Canadian dollars or U.S. dollar equivalent. -------------------------------------------------------------------------

TELUS' revolving credit facility contains customary covenants including a requirement that TELUS not permit its consolidated Leverage Ratio (debt to trailing 12-month EBITDA) to exceed 4.0:1 (approximately 1.7:1 at December 31, 2007) and not permit its consolidated Coverage Ratio (EBITDA to Interest Expense on a trailing 12-month basis) to be less than 2.0:1 (approximately 8.4:1 at December 31, 2007) at the end of any financial quarter. There are certain minor differences in the calculation of the Leverage Ratio and Coverage Ratio under the credit agreement as compared with the calculation of Net debt to EBITDA and EBITDA interest coverage. Historically, the calculations have not been materially different. The covenants are not impacted by revaluation of capital assets, intangible assets and goodwill for accounting purposes. Continued access to TELUS' credit facility is not contingent on the maintenance by TELUS of a specific credit rating.

On February 12, 2008, TELUS Corporation accepted a committed term sheet from a small group of Canadian banks to provide a new $700 million 364-day revolving credit facility. The provision of this new facility provides incremental liquidity to TELUS and allows TELUS to continue to meet one of its financial objectives, which is to maintain $1 billion in liquidity at all times. TELUS expects to fully document the new facility by the end of the first quarter of 2008. Availability of the new facility is conditional on entering into the final definitive documentation, including customary representations and warranties and no existing default or events of default.

The new credit facility is unsecured and bears interest at Canadian prime and Canadian bankers' acceptances rates, plus applicable margins. The financial ratio tests in the new facility will be substantially the same as those in the existing $2 billion syndicated facility, which states that the borrower will not permit its net debt to operating cash flow ratio to exceed 4.0:1 and may not permit its operating cash flow to interest expense ratio to be less than 2.0:1, each as defined.

4.6 Accounts receivable sale

On July 26, 2002, TCI, a wholly owned subsidiary of TELUS, entered into an agreement, which was amended September 30, 2002, and March 1, 2006, and November 30, 2006, with an arm's-length securitization trust associated with a major Schedule I bank, under which TCI is able to sell an interest in certain of its trade receivables up to a maximum of $650 million. As a result of selling the interest in certain of the trade receivables on a fully serviced basis, a servicing liability is recognized on the date of sale and is, in turn, amortized to earnings over the expected life of the trade receivables. This revolving-period securitization agreement had an initial term ending July 18, 2007; the November 30, 2006 amendment resulted in the term being extended to July 18, 2008.

TCI is required to maintain at least a BBB (low) credit rating by Dominion Bond Rating Service (DBRS) or the securitization trust may require the sale program to be wound down. The necessary credit rating was exceeded by three levels at A (low) as of February 13, 2008.

------------------------------------------------------------------------- Balance of proceeds from securitized 2007 2007 2007 2007 2006 2006 2006 2006 receivables Dec. Sept. June Mar. Dec. Sept. June Mar. ($ millions) 31 30 30 31 31 30 30 31 ------------------------------------------------------------------------- 500.0 550.0 500.0 150.0 500.0 350.0 535.0 400.0 ------------------------------------------------------------------------- 4.7 Credit ratings

On February 26, 2007, Moody's Investors Service upgraded its rating for TELUS by one level to Baa1 (equivalent to BBB+) and assigned an outlook of stable. On March 5, 2007, DBRS upgraded the rating of TELUS Notes to A (low) from BBB (high) and confirmed its A (low) ratings for TCI, all with a stable trend. In addition, DBRS confirmed its preliminary rating of R-1 (low) for TELUS' commercial paper program.

On June 21, 2007, TELUS announced that it was in non-exclusive discussions to acquire BCE. This was followed by a second announcement by TELUS on June 26 that inadequacies in BCE's bid process did not make it possible for TELUS to submit an offer as part of the strategic review process announced by BCE. Following the June 21 announcement, DBRS placed the credit ratings for TELUS Corporation and TCI "under review with developing implications." Similarly, Moody's affirmed its Baa1 rating for TELUS and changed its outlook to "developing" and Standard and Poors (S&P) placed the credit ratings of TELUS Corporation and TCI on "credit watch with negative implications."

Following TELUS' earnings announcement on August 3, 2007, in which management indicated that TELUS did not intend to make a competing offer for BCE, DBRS affirmed its ratings and restored its trend to stable. On August 7, Moody's affirmed its ratings and restored the outlook to stable. On September 26, S&P removed TELUS and TCI from credit watch, affirmed the ratings for TELUS and TCI and changed the outlook to stable.

In late November, after TELUS' announced offer for Emergis Inc. and the Federal Industry Minister's announcement of AWS spectrum auction framework, DBRS, FitchRatings and S&P confirmed their respective ratings for TELUS and TCI, with stable outlooks or trends.

------------------------------------------------------------------------- Credit rating summary DBRS S&P Moody's Fitch ------------------------------------------------------------------------- Trend or outlook Stable Stable Stable Stable ------------------------------------------------------------------------- TELUS Corporation Senior bank debt - - - BBB+ Notes A (low) BBB+ Baa1 BBB+ Commercial paper R-1 (low) - - - TELUS Communications Inc. (TCI) Debentures A (low) BBB+ - BBB+ Medium-term notes A (low) BBB+ - BBB+ First mortgage bonds A (low) A- - - ------------------------------------------------------------------------- 5. Risks and risk management

The following are significant updates to the risks described in Section 10 of TELUS' 2006 annual and 2007 interim first, second and third quarter Management's discussions and analyses.

5.1 Regulatory

The outcome of any existing or future regulatory reviews, proceedings, court appeals, Federal Cabinet appeals or other regulatory developments could have a material impact on TELUS' operating procedures, costs and revenues.

Future availability of wireless spectrum

Between 2008 and 2011, Industry Canada has signaled intentions to auction spectrum for mobile wireless services at 1.7/2.1 GHz (AWS), 2.5/2.6 GHz and at 700 MHz. The recent 2007 Policy Framework for the Auction for Spectrum Licences for Advanced Wireless Services suggests an AWS auction of 105 MHz in May 2008 and conditions favourable to entrants, such as spectrum set asides (40 MHz) and mandated roaming and mandated tower and site sharing under terms and conditions that could be unfavourable to TELUS. While this is expected to increase competitive intensity, the number and viability of new entrants in the market remains uncertain because of build-out costs, capital market conditions and restrictions on foreign investment. The presence of new regional or national entrants in the marketplace may negatively affect the future market share of wireless incumbents. TELUS is participating in a round of public comments and the government is expected to announce the final rules for the spectrum auction at the end of March 2008.

Wireless Interconnection

The CRTC has listed Wireless Interconnection/Bill and Keep on its agenda of possible regulatory activities for 2008. Wireless carriers currently interconnect under a wireless service provider (WSP) tariff and pay the telephone company for origination and termination of traffic. The CRTC may implement a bill and keep alternative similar to the interconnection regime for competitive local exchange carriers (CLECs), which could reduce future revenue. CLEC bill and keep status also entails obligations under the Commission's rules for local exchange carriers. While there is no guarantee that the CRTC will initiate this proceeding in 2008, or implement a bill and keep regime for WSPs, there is a risk that this will occur.

Local forbearance

On November 23, the CRTC issued decisions granting forbearance from regulation of incumbent residential local services provided by TELUS in 40 additional exchanges in B.C., Alberta and Eastern Quebec. Also on November 23, 2007, the CRTC eliminated bundling rules, which previously required TELUS to obtain tariff approval to offer bundles that contained both regulated and forborne services. The rule no longer applies to bundles of services where the retail price at least equals the sum of the rates of its tariffed elements.

Overall, TELUS has obtained forbearance for local residential service in 63 exchanges in B.C., Alberta and Quebec (about 75% of residential lines in non-high-cost serving areas). TELUS has also obtained forbearance for local business service in 35 exchanges in B.C., Alberta and Quebec (about two-thirds of business lines).

As a result of the forbearance granted for local residential and business services, TELUS believes it has significantly enhanced flexibility in pricing, promotions and bundling to compete with other providers of these services. However, TELUS has no assurance that it will be able to prevent further market share loss in these markets or that it will be able to obtain forbearance in other exchanges where it is facing competition for residential and business customers.

Wireless number portability

Phase one of WNP (sometimes referred to as local number portability, or LNP) was implemented successfully on March 14, 2007 in the majority of populated centres in Canada by the wireless carriers, including TELUS. Implementation of WNP in most remaining areas was achieved in September 2007. In 2007, WNP porting was a minor source of net positive subscriber loading for TELUS, but contributed to a higher churn level and greater wireless customer retention costs. Subscriber churn and retention costs may be permanently higher in the future.

WNP could also lead to an increase in the migration of network access lines to wireless services, as well as present opportunities for TELUS to market more effectively in the business/enterprise market in Central Canada where TELUS has a lower market share than its competitors. There can be no assurance that this will be the case.

Review of certain Phase II costing issues

In November 2007, the CRTC completed the proceeding to review cost calculation methods, referred to as Phase II costs, for regulated telecommunications services provided by ILECs and cable companies (under Public Notice 2007 4). The decision is expected in the first quarter of 2008. TELUS has proposed that Phase II costs continue to follow general principles of causality, that all forward-looking costs need to be categorized appropriately, and that costs should be based on individual company measurements. Unless the CRTC determines otherwise on all these proposals, the outcome of this proceeding would not be expected to have a material adverse impact on TELUS in the near term.

Essential services

In December 2007, the CRTC completed an extensive review of the regulatory framework for essential services (wholesale services) initiated by Public Notice 2006-14. In this proceeding, the CRTC reviewed the current definition of an essential service and the classifications and pricing principles for these services and non-essential services made available by the ILECs to their competitors. A CRTC decision in this proceeding is expected by May 2008. TELUS has no assurance that the regulatory regime for the provision of essential and non-essential services to competitors will not be more onerous than the current regime.

5.2 Technology risks

The technology standards for broadband access over copper loops to customer premises are evolving rapidly. This evolution enables higher broadband access speeds and is fuelled by user appetite for faster connectivity, the threat of increasing competitor capabilities and offerings, and the desire of service providers like TELUS to offer new services, such as IP TV, that require greater bandwidth. The introduction of technologies and the pace of adoption could result in increased requirements for capital funding not currently planned.

With Canada's large geographic area and relatively small population of 33 million, the deployment of emerging wireless technologies may require two or more Canadian wireless carriers to deploy the same future technology choices and sign new network sharing agreements to reduce costs and speed up deployment.

5.3 Process risks TELUS systems and processes could negatively impact financial results and customer service - Billing/revenue assurance and efficiency programs

TELUS converted all of its wireline consumer customers in Alberta to a new integrated billing and client care system in late-March 2007. The new system includes re-engineered processes for order entry, pre-qualification, service fulfillment and assurance, customer care, collections/credit, customer contract and information management. During the second quarter, and to a lesser degree, in the third quarter of 2007, initial system difficulties were experienced that reduced order processing capability, causing increased installation backlogs and higher costs for extra call centre resources in order to maintain service levels. Additional post-conversion expenses were approximately $16 million and $8 million, respectively, in the second and third quarters. The critical billing function performed as expected and order processing returned to business-as-usual levels by year-end. There can be no assurance that this undertaking will not negatively impact, on an extended basis, TELUS' customer service levels, competitive position and financial results.

Additional phases of development and conversion are planned over the next several years including a similar system conversion for B.C. consumers planned for the first half of 2008. Although the Company expects to benefit from lessons learned in the Alberta conversion, the legacy systems in B.C. are sufficiently different, such that there is no assurance that the B.C. conversion will be successful. For the B.C. billing system conversion, TELUS plans to conduct a larger pilot than the one used in Alberta, with larger number of customers for a longer duration and a wider range customer profiles, prior to completing the full conversion.

This customer-focused project required extensive system development and, in itself, presents future implementation risks due to the complexity of the implementation task and resource constraints, as well as reliance on newly developed third party software code. Significant time delays in implementing new phases of this system, or system instability, could negatively impact TELUS' competitive ability to quickly and effectively launch new products, services and promotions; achieve and maintain a competitive cost structure; and deliver better information and analytics to management.

Integration of acquisitions

Post-merger and post-acquisition activities, including reviewing and aligning accounting policies, employee transfers/moves, information systems integration, optimizing service offerings and establishing control over new operations may not be handled efficiently and effectively. This could negatively impact service levels, competitive position and financial results. There can be no assurance that the expected revenue, operating expenses, restructuring charges, savings, capital expenditure levels and income taxes from the January 2008 acquisition of Emergis will be as anticipated by management and as reflected in the Company's 2008 financial targets.

Risk mitigation: TELUS has a team that performs a post-merger integration (PMI) function. The PMI team applies an integration model, based on learnings from numerous previous post-acquisition integrations, which enhances TELUS' ability to accelerate the standardization of business processes and preserve the unique qualities of acquired operations. It begins with rigorous strategic, pre-close analysis and planning, and continues after closing with a focused, simultaneous execution of this plan against competing critical imperatives. Initial plans are re-evaluated and assessed regularly based on direct and timely feedback received from the integration teams. For example, an integration team and governance structure has been established with senior team members from both TELUS and Emergis Inc. to oversee and execute the integration plan with a view to minimizing negative impacts on their operations. Functional integration teams have been established with members from both companies to deliver interlocking charters and objectives.

5.4 Litigation and legal matters Emergis Inc.

In April 2005, MultiPlan, Inc. filed in federal court in New York a complaint seeking, among other relief, compensation in excess of US$64 million for damages allegedly incurred in connection with its purchase of the U.S. health subsidiary of Emergis Inc. The complaint alleges a variety of claims relating to the sales agreement. Part of the complaint related to an indemnification for alleged claims by hospitals amounting to US$14 million. MultiPlan, Inc. has advised Emergis Inc. that it has settled these hospital claims for an amount of US$750,000.

In July 2005, Emergis filed a motion to dismiss certain claims in the complaint. This motion was substantially granted by the court on June 11, 2007, and a number of claims were dismissed. However, the court granted Multiplan, Inc. the right to file an amended complaint to correct, if possible, the deficiencies highlighted in the court judgment regarding these claims. An amended complaint was filed on July 20, 2007. No new facts have been alleged. On August 20, 2007, Emergis Inc. filed a motion to dismiss these claims that were modified in the amended complaint. In October 2007, this motion was fully briefed. It is uncertain as to when the court will rule on this motion.

Although the outcome cannot be reasonably determined at this time, Emergis Inc. management remains of the view that the allegations are without merits. Should the ultimate resolution of this action differ from Emergis Inc. management's assessments and assumptions, a material adjustment to the Company's financial position and the results of its operations could result; management's assessments and assumptions include that a reliable estimate of the exposure cannot be made at this stage of the lawsuit.

Intellectual property and proprietary rights

Technology evolution also brings additional legal risks and uncertainties. The intellectual property and proprietary rights of owners and developers of hardware, software, business processes, and other technologies may be protected under statute, such as patent, copyright and industrial design legislation, or under common law, such as trade secrets. With the growth and development of technology-based industries, the value of these intellectual property and proprietary rights has increased. Significant damages may be awarded in intellectual property infringement claims advanced by rights holders. In addition, defendants may incur significant costs to defend such claims and that possibility may prompt defendants to settle claims more readily in part to mitigate those costs. Both of these factors may incent intellectual property rights holders to more aggressively pursue infringement claims.

Given the vast array of technologies and systems used by TELUS or its affiliates to deliver their products and services, and with the rapid change and complexity of such technologies, disputes over intellectual property and proprietary rights can reasonably be expected to increase. As a user of technology, TELUS and its affiliates receive from time to time communications, ranging from solicitations to demands and legal actions, from third parties claiming ownership rights over intellectual property used by TELUS and its affiliates and asking them to pay a settlement or licensing fees for the continued use of such intellectual property. There can be no assurance that TELUS and its affiliates will not be faced with significant claims based on the alleged infringement of intellectual property rights, whether such claims are based on a legitimate dispute over the validity of the intellectual property rights or their infringement, or whether such claims are advanced against TELUS or its affiliates for the primary purpose of extracting a settlement. TELUS and its affiliates may incur significant costs in defending infringement claims, and may suffer significant damages and lose the right to use technologies that are essential to their operations should any infringement claim prove successful.

6. Reconciliation of non-GAAP measures and definition of key operating indicators 6.1 Earnings before interest taxes depreciation and amortization (EBITDA)

TELUS has issued guidance on and reports EBITDA because it is a key measure used by management to evaluate performance of business units, segments and the Company. EBITDA is also utilized in measuring compliance with debt covenants - see Section 6.4 EBITDA excluding restructuring costs. EBITDA is a measure commonly reported and widely used by investors as an indicator of a company's operating performance and ability to incur and service debt, and as a valuation metric. The Company believes EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization, which are non-cash in nature and can vary significantly depending upon accounting methods or non-operating factors such as historical cost.

EBITDA is not a calculation based on Canadian or U.S. GAAP and should not be considered an alternative to Operating income or Net income in measuring the Company's performance, nor should it be used as an exclusive measure of cash flow, because it does not consider the impact of working capital growth, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed in the Consolidated statements of cash flows. Investors should carefully consider the specific items included in TELUS' computation of EBITDA. While EBITDA has been disclosed herein to permit a more complete comparative analysis of the Company's operating performance and debt servicing ability relative to other companies, investors should be cautioned that EBITDA as reported by TELUS may not be comparable in all instances to EBITDA as reported by other companies.

The following is a reconciliation of EBITDA with Net income and Operating income. EBITDA (as adjusted) excludes a charge for introducing a net-cash settlement feature for share option awards granted prior to 2005. EBITDA (as adjusted) is regularly reported to the chief operating decision-maker and corresponds to the definition used in setting TELUS' 2007 EBITDA targets and revised guidance.

------------------------------------------------------------------------- Quarters ended Years ended December 31 December 31 ------------------- 2007 2006 2007 2006 ($ millions) (restated) (restated) ------------------------------------------------------------------------- Net income 400.1 240.5 1,257.9 1,145.0 Other expense (income) 5.8 10.1 36.1 28.0 Financing costs 109.1 133.6 440.1 504.7 Income taxes (18.0) 91.6 233.6 353.2 Non-controlling interest 2.1 1.4 6.6 8.5 ------------------------------------------------------------------------- Operating income 499.1 477.2 1,974.3 2,039.4 Depreciation 386.2 353.2 1,354.7 1,353.4 Amortization of intangible assets 68.1 53.9 260.3 222.2 ------------------------------------------------------------------------- EBITDA 953.4 884.3 3,589.3 3,615.0 Charge in 2007 for introducing a net-cash settlement feature for share option awards granted prior to 2005 0.6 - 168.7 - ------------------------------------------------------------------------- EBITDA (as adjusted) 954.0 884.3 3,758.0 3,615.0 ------------------------------------------------------------------------- -------------------------------------------------------------------------

In addition to EBITDA, TELUS calculates EBITDA less capital expenditures as a simple proxy for cash flow at a consolidated level and in its two reportable segments. EBITDA less capital expenditures may be used for comparison to the reported results for other telecommunications companies over time and is subject to the potential comparability issues of EBITDA described above.

The Company reports free cash flow because it is a key measure used by management to evaluate its performance. Free cash flow excludes certain working capital changes and other sources and uses of cash, which are disclosed in the Consolidated statements of cash flows. Free cash flow is not a calculation based on Canadian or U.S. GAAP and should not be considered an alternative to the Consolidated statements of cash flows. Free cash flow is a measure that can be used to gauge TELUS' performance over time. Investors should be cautioned that free cash flow as reported by TELUS may not be comparable in all instances to free cash flow as reported by other companies. While the closest GAAP measure is Cash provided by operating activities less Cash used by investing activities, free cash flow is considered relevant because it provides an indication of how much cash generated by operations is available after capital expenditures, but before proceeds from divested assets, and changes in certain working capital items (such as trade receivables, which can be significantly distorted by securitization changes that do not reflect operating results, and trade payables).

The following reconciles free cash flow with Cash provided by operating activities less Cash used by investing activities:

------------------------------------------------------------------------- Quarters ended Years ended December 31 December 31 -------------------------------------- 2007 2006 2007 2006 ($ millions) (restated) (restated) ------------------------------------------------------------------------- Cash provided by operating activities 817.4 747.2 3,171.7 2,803.7 Cash (used) by investing activities (471.5) (422.0) (1,771.6) (1,675.2) ------------------------------------------------------------------------- 345.9 325.2 1,400.1 1,128.5 Net employee defined benefit plans expense 23.1 7.2 92.1 30.1 Employer contributions to employee defined benefit plans 25.3 19.0 92.8 123.3 Amortization of deferred gains on sale-leaseback of buildings, amortization of deferred charges and other, net (3.1) (39.2) (4.2) (51.7) Reduction (increase) in securitized accounts receivable 50.0 (150.0) - - Non-cash working capital changes except changes from income tax payments (receipts), interest payments (receipts) and securitized accounts receivable, and other (12.4) 62.1 (8.9) 309.0 Acquisitions - 4.5 - 49.0 Proceeds from the sale of property and other assets (2.1) - (7.5) (14.9) Other investing activities 1.1 2.3 8.8 22.7 ------------------------------------------------------------------------- Free cash flow 427.8 231.1 1,573.2 1,596.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The following shows management's calculation of free cash flow. ------------------------------------------------------------------------- Quarters ended Years ended December 31 December 31 -------------------------------------- 2007 2006 2007 2006 ($ millions) (restated) (restated) ------------------------------------------------------------------------- EBITDA 953.4 884.3 3,589.3 3,615.0 Restructuring costs net of cash payments 2.8 (6.2) (18.2) (4.0) Share-based compensation (30.6) (10.2) 95.8 25.1 Donations and securitization fees included in Other expense (9.1) (8.5) (36.7) (29.1) Cash interest paid (171.2) (218.5) (454.4) (516.1) Cash interest received 32.7 0.3 41.6 24.2 Income taxes received (paid), less investment tax credits received that were previously recognized in either EBITDA or capital expenditures, and other 122.3 5.1 126.1 99.3 Capital expenditures (472.5) (415.2) (1,770.3) (1,618.4) ------------------------------------------------------------------------- Free cash flow 427.8 231.1 1,573.2 1,596.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 6.3 Definition of key wireless operating indicators

These measures are industry metrics and are useful in assessing the operating performance of a wireless company.

Average revenue per subscriber unit per month (ARPU) is calculated as Network revenue divided by the average number of subscriber units on the network during the period and expressed as a rate per month. Data ARPU is a component of ARPU, calculated on the same basis for revenues derived from services such as text messaging, mobile computing, personal digital assistance devices, Internet browser activity and pay-per-use downloads.

Churn per month is calculated as the number of subscriber units disconnected during a given period divided by the average number of subscriber units on the network during the period, and expressed as a rate per month. A prepaid subscriber is disconnected when the subscriber has no usage for 90 days following expiry of the prepaid card.

Cost of acquisition (COA) consists of the total of handset subsidies, commissions, and advertising and promotion expenses related to the initial subscriber acquisition during a given period. As defined, COA excludes costs to retain existing subscribers (retention spend).

COA per gross subscriber addition is calculated as cost of acquisition divided by gross subscriber activations during the period.

COA per gross subscriber addition to lifetime revenue is calculated as cost of acquisition for new subscribers divided by expected lifetime revenue of the subscriber base, expressed as a percentage.

EBITDA excluding COA is a measure of operational profitability normalized for the period costs of adding new customers.

Lifetime revenue per subscriber is calculated as ARPU divided by the churn per month. The metric provides a means of estimating the average total revenue expected from existing subscribers.

Retention spend to Network revenue represents direct costs associated with marketing and promotional efforts aimed at the retention of the existing subscriber base divided by Network revenue.

6.4 Definition of liquidity and capital resource measures

Dividend payout ratio is defined as the most recent quarterly dividend declared per share multiplied by four and divided by basic earnings per share for the 12-month trailing period. The target guideline for the annual dividend payout ratio is on a prospective basis, rather than on a trailing basis, and is 45 to 55% of sustainable net earnings.

EBITDA - excluding restructuring costs is used in the calculation of Net debt to EBITDA and EBITDA interest coverage, consistent with the calculation of the Leverage Ratio and the Coverage Ratio in credit facility covenants. Restructuring costs were $20.4 million and $67.8 million, respectively, for the years ended December 31, 2007 and 2006.

EBITDA - excluding restructuring costs interest coverage is defined as EBITDA excluding restructuring costs divided by Net interest cost. Historically, this measure is substantially the same as the Coverage Ratio covenant in TELUS' credit facilities.

Interest coverage on long-term debt is calculated on a 12-month trailing basis as Net income before interest expense on long-term debt and income tax expense, divided by interest expense on long-term debt. The 12-month period ended December 31, 2006 includes an accrual for estimated costs to settle a lawsuit.

Net debt is a non-GAAP measure whose nearest GAAP measure is Long-term debt, including Current maturities of long-term debt, as reconciled below. Net debt is one component of a ratio used to determine compliance with debt covenants (refer to the description of Net debt to EBITDA below).

------------------------------------------------------------------------- As at December 31 -------------------- 2007 2006 ($ millions) (restated) ------------------------------------------------------------------------- Long-term debt including current portion 4,588.9 4,908.2 Debt issuance costs netted against long-term debt 30.4 19.9 Derivative liability 1,179.5 838.5 Accumulated other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar denominated debt (137.3) - Cash and temporary investments (19.9) 11.5 Proceeds from securitized accounts receivable 500.0 500.0 ------------------------------------------------------------------------- Net debt 6,141.6 6,278.1 ------------------------------------------------------------------------- -------------------------------------------------------------------------

The derivative liability in the table above relates to cross currency interest rate swaps that effectively convert principal repayments and interest obligations to Canadian dollar obligations, which at December 31, 2007, is in respect of the US$1,925.0 million debenture maturing June 1, 2011. At December 31, 2006, the derivative liability was in respect of the 2011 debenture and the US$1,166.5 million debenture that matured June 1, 2007. Management believes that Net debt is a useful measure because it incorporates the exchange rate impact of cross currency swaps put into place that fix the value of U.S. dollar denominated debt, and because it represents the amount of long-term debt obligations that are not covered by available cash and temporary investments.

Net debt to EBITDA - excluding restructuring costs is defined as Net debt as at the end of the period divided by the 12-month trailing EBITDA excluding restructuring costs. TELUS' guideline range for Net debt to EBITDA is from 1.5 to 2.0 times. Historically, Net debt to EBITDA - excluding restructuring costs is substantially the same as the Leverage Ratio covenant in TELUS' credit facilities.

Net debt to total capitalization provides a measure of the proportion of debt used in the Company's capital structure.

Net interest cost is defined as Financing costs before gains on redemption and repayment of debt, calculated on a 12-month trailing basis. No gains on redemption and repayment of debt were recorded in the respective periods. Losses recorded on the redemption of long-term debt are included in net interest cost. Net interest costs for the years ended December 31, 2007 and 2006 are equivalent to reported quarterly financing costs over those periods.

Total capitalization - book value excludes accumulated other comprehensive income or loss and is calculated as follows.

------------------------------------------------------------------------- As at December 31 -------------------- 2007 2006 ($ millions) (restated) ------------------------------------------------------------------------- Net debt 6,141.6 6,278.1 Non-controlling interests 25.9 23.6 Shareholders equity 6,926.2 7,048.0 Accumulated other comprehensive loss 103.5 - ------------------------------------------------------------------------- Total capitalization - book value 13,197.2 13,349.7 ------------------------------------------------------------------------- -------------------------------------------------------------------------

TELUS Corporation

CONTACT: PRNewswire - - 02/15/2008

Webzen Inc. 2007 4Q Earnings Results

SEOUL, South Korea, Feb. 15 /Xinhua-PRNewswire-FirstCall/ -- 2007 4Q Results Summary (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY Revenue 6,964 7,556 -7.8% 5,348 30.2% Operating Expenses 10,617 11,146 -4.7% 11,181 -5.0% Operating Profit Loss Loss -3,653 -3,590 increase -5,834 decrease Ordinary Profit 2,500 -2,585 Turn over -3,804 Turn over Ordinary Profit Margin 35.9% -- -- -- -- Net Income 2,073 -3,265 Turn over -10,876 Turn over Revenue

During 4th quarter, we recorded a 6.9 billion KRW revenue and 3.6 billion KRW operating loss.

Total operating expenses decreased 4.7% to 10.6 billion KRW due to the reduction of marketing costs, however, operating loss increased 1.8% compared to previous quarter because of the revenue decrease.

Ordinary Profit increased 196.7% due to the partial disposal of GameOn shares and tangible asset, and Net Income was 2.0 billion KRW.

2007 Q4 Revenue Breakdown (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY Revenue 6,964 7,556 -7.8% 5,348 30.2% Domestic 4,523 4,933 -8.3% 4,692 -3.6% Overseas 2,430 2,614 -7.0% 648 275.0% Other 11 9 22.2% 8 37.5%

Domestic revenue decreased 8.3% to 4.5 billion KRW. With regular updates, MU and SUN have been showing signs of stabilization in Korea, and we will try to keep the revenue at the current level.

Overseas royalty decreased 7% to 2.4 billion KRW from previous quarter and revenue.

Domestic Revenue Breakdown (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY MU 3,838 4,057 -5.40% 4,340 -11.57% Individual 3,107 3,235 -3.96% 3,335 -6.84% Internet Cafe 731 822 -11.07% 1,005 -27.26% SUN 685 876 -21.92% 352 94.32% Individual 428 522 -18.20% 254 68.11% Internet Cafe 257 353 -27.20% 98 162.24% Total 4,523 4,933 -8.31% 4,692 -3.60%

MU individual revenue decreased 3.96% to 3.1 billion KRW and internet cafe revenue decreased 11.7% to 7million KRW. SUN's revenue, including internet cafe revenue, was 685 million KRW.

SUN internet cafe revenue was slow due to the partial subscription model (micro transaction model) and high competitive market of MMORPG.

Overseas Royalty Revenue Breakdown (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY MU 870 817 6.5% 648 34.3% China 141 123 14.6% 67 110.4% Taiwan 107 100 7.0% 105 1.9% Japan 498 482 3.3% 390 27.7% Philippines 42 41 2.4% 58 -27.6% Vietnam 11 14 -21.4% 8 37.5% U.S 68 54 25.9% 17 300.0% Singapore 3 3 0.0% 3 0.0% SUN 1,560 1,797 -13.2% 0 -- Taiwan 178 171 4.1% 0 -- China 1,072 1,626 -34.1% 0 -- Japan 310 -- -- 0 -- Total 2,430 2,614 -7.0% 648 275.0% MU's overseas royalty revenue increased 6.5% to 870 million won.

MU China revenue has increased since the microtransaction model change. SUN's overseas royalty revenue during fourth quarter was 1.5 billion won.

Total Operating Costs (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY Total Operating 10,617 11,146 -4.7% 11,181 -5.0% Costs Labor Costs 5,224 5,645 -7.5% 5,489 -4.8% Depreciation 470 450 4.4% 773 -39.2% Commission Paid 1,693 1,770 -4.4% 1,485 14.0% Marketing Expenses 620 855 -27.5% 881 -29.6% Sales Commission 133 154 -13.6% 254 -47.6% Other 2,477 2,272 9.0% 2,299 7.7% Total Operating Expenses

Labor costs, which constitute about 49% of our total operating costs, decreased 7.5% to 5.2 billion KRW.

As of end of 4th quarter, our total headcount decreased to 477, from 536 end of third quarter. YoY, headcount decreased by 172 people. Depreciation increased 4.4% to 470 million KRW, due to the increase in equipment for SUN's service. Sales Commission decreased 13.6% to 133 million KRW. Commission paid decreased 4.4% to 1.6 billion KRW. As a result of minimizing unnecessary marketing expenses, marketing expenses decreased 27.5% to 620 billion KRW. Other costs were 2.4 billion KRW, which was similar to 3rd quarter.

Non-operating Items (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY Non-operating Income 6,153 1,005 512.2% 2,030 203.1% Interest Income 886 894 -0.9% 975 -9.1% Profit (Loss) on Foreign Exchange 109 -22 595.5% -108 -200.9% Gain on Equity Method -1,342 -829 61.9% -1,192 12.6% Gain on disposal of Marketable Securities 2,540 859 195.7% 2,321 9.4% Other 3,960 103 3744.7% 34 11547.1%

Although interest income decreased due to the decrease in our cash balance, with the increase of loss in equity method of 1.3 billion won and the increase in gain on disposal of marketable securities, we recognized a 6.1 billion non- operating profit during fourth quarter.

As of end of fourth quarter, cash, cash equivalents, and marketable securities were 74.5 billion won.

This was due to the improvement of our cash flow related to the sale of our treasury stock trust fund to Woori Investment Securities and the disposal of tangible assets.

Equity Method (Unit: KRW mm) 07.Q4 07.Q3 QoQ 06.Q4 YoY 9Webzen -322 -59 -- -396 -- Webzen Taiwan -665 -1 -- -19 -- Webzen China 0 -212 -- -16 -- Webzen America -355 -557 -- -761 -- Total -1,342 -829 -- -1,192 --

We recognized a 1.3 billion KRW loss on equity method from our overseas subsidiaries.

FY 2007 Earnings Summary (Unit: KRW mm) 2007 2006 YoY Revenue 28,215 21,950 28.5% Operating Profit -13,999 -30,115 Loss decrease OP Margin -- -- -- Ordinary Profit -6,957 -30,115 Loss decrease Net Income -9,536 -31,519 Loss decrease

Year 2007 revenue increased 28.5% YoY to 28.2 billion KRW, and operating loss was 13.9 billion KRW.

FY 2007 Revenue Summary (Unit: KRW mm) 2007 2006 YoY Revenue 28,215 21,950 28.5% Domestic 19,598 17,946 9.2% Individual 14,774 13,480 9.6% Internet Cafe 4,824 4,395 9.8% Other 55 71 -22.5% Overseas 8,562 4,004 113.8%

Domestic revenue increased 9.2% YoY to 19.5 billion KRW, and overseas royalty revenue increased 113.8% to8.54 billion KRW.

FY 2007 Expense Summary (Unit: KRW mm) 2007 2006 YoY Labor cost 21,610 24,186 -10.7% (R&D cost) 6,431 9,027 -28.8% Marketing cost 1,948 8,431 -76.9% Commission paid 6,404 5,988 6.9% Depreciation 1,973 2,609 -24.4%

Year 2007 Labor costs decreased 10.7% to 21.6 billion KRW. Marketing costs decreased 76% to 1.9 billion KRW, associated with the decrease in MU and SUN marketing and continue to minimize marketing costs through effective marketing activities. Commission paid and depreciation during 2007 was 6.4 billion KRW, and 1.9 billion KRW respectively.

2008 Guide Line (Unit: KRW mm) FY2007 2008(E) YoY Revenue 28,214 41,004 45% Operation Profit -13,999 4,000 Turn over

Year 2007 revenue was 28.2 billion won and expected to increase 45% to 41.0 billion won in 2008. And Operation Profit will be turn over to Black ink. During the 2008, three titles will be commercialized including Huxley and operation cost will be decreased due to the efficient management system and budget controlling.

Forward-Looking Statements:

Certain statements in this document may include, in addition to historical information, "forward-looking statements" within the meaning of the "safe- harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of "estimate," "anticipate," "believe" "project," or "continue" or the negative thereof or other similar words, although not all forward-looking statements will contain these words. These forward-looking statements are based on our current assumptions, expectations and projections about future events. All actual performance, financial condition or results of operations to be materially different from those suggested by the forward-looking statements, to collect, and in a timely manner, license fees and royalty payments from or operate commercially successful online games; our ability to compete access technological developments in our industry; our ability to recruit and strategies; and economic and political conditions globally. Investors should consider the information contained in our submissions and filings with the registration statement on Form F-1, as amended, and our annual report on Form 20-F, together with such other documents and we may submit to or file with the SEC from time to time, including on Form 6-K. The forward-looking statements reflect new, changing or unanticipated events or circumstances.

Contacts: Webzen Inc. Donghoon Lee Investor Relations Tel: +82-2-3498-6818 Email: mpower@webzen.com

Webzen Inc.

CONTACT: Donghoon Lee of Webzen Inc., +82-2-3498-6818,
mpower@webzen.com

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