Falling Components Costs to Drive Wider 40-Gbit/s Adoption, Report FindsWith 40/100-Gbit/s interfaces on the horizon, vendors must commit to significant investment and innovation, says Light Reading's Components Insider

NEW YORK, Aug. 8 /PRNewswire/ -- Prices for 40-Gbit/s components continue to fall, a development that will drive more telecom equipment manufacturers to bring 40-Gbit/s products to market soon rather than wait for maturation of 100-Gbit/s technologies, according to the latest edition of Light Reading's Components Insider (http://www.lightreading.com/commchip), a paid research service of TechWeb's Light Reading (http://www.lightreading.com/).

40-Gbit/s Technologies: Lower Costs Will Drive New Demand details and analyzes 40/100-Gbit/s technologies, identifying the key advantages they hold for equipment manufacturers. It also surveys component availability, and profiles and analyzes products from 17 different suppliers in these product sectors:

-- Data center components (including Infiniband) -- "40G in a box" systems -- Long-haul components

For a complete list of companies covered in this report, http://img.lightreading.com/cci/pdf/cci0808companies.pdf

"The cost of 40-Gbit/s interfaces is falling, with semiconductor and optical component vendors introducing new products that deliver better performance and greater integration," notes Simon Stanley, research analyst for Light Reading's Components Insider and author of the report. "There is now a clear market need for higher capacity links. There is a limited deployment of 40 Gbit/s today, but this will change as the cost of 40-Gbit/s components including optical/physical layer devices and packet processing falls."

The window of opportunity for 40-Gbit/s could still be limited by the expected development of 100-Gbit/s technologies, Stanley says. "Vendors must position themselves and agree on common form factors and electrical specifications because 100-Gbit/s interfaces are on the horizon," he explains. "This is a demanding market with high development costs, and few vendors can offer complete solutions across the varied technologies."

Other key findings of 40-Gbit/s Technologies: Lower Costs Will Drive New Demand include the following:

-- 40/100-Gbit/s Ethernet systems are in development, with first products expected within 12 months

-- High development costs are likely to lead to some vendor consolidation in the 40/100G sector

-- Some telecom equipment vendors will continue to wait for 100-Gbit/s Ethernet before committing to new product development

-- High-speed backplane interconnect is on the horizon with the inclusion of the 40GBase-KR4 standard

40-Gbit/s Technologies: Lower Costs Will Drive New Demand provides critical data and analysis for a range of industry participants, including:

-- Suppliers of 40-Gbit/s Ethernet solutions who need independent analysis of expected market demand for their products as well as deeper insight into buyer plans for product deployments

-- Telecom equipment vendors looking for quantitative assessments of how their competitors will be using 40-Gbit/s and 100-Gbit/s Ethernet in the coming months and years

-- Investors needing a better understanding of the 40/100-GE sector, and which suppliers are best positioned for success

40-Gbit/s Technologies: Lower Costs Will Drive New Demand is available as part of an annual subscription to Light Reading's Components Insider, priced at $1,295. Individual reports are available for $900.

To subscribe, or for more information, please visit: http://www.lightreading.com/commchip. For more information about other Light Reading Insider services, please visit: http://www.lightreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

Jeff Claudino Director of Sales Insider Research Services 619-229-9940 claudino@lightreading.com Press/analyst contact: Dennis Mendyk Managing Director Insider Research Services 201-587-2154 mendyk@heavyreading.com About Light Reading

Founded in 2000, Light Reading (http://www.lightreading.com/) is the ultimate source for technology and financial analysis of the communications industry, leading the media sector in terms of traffic, content, and reputation. It reaches an extensive audience of executives and technologists within the telecom and enterprise networking communities, as well as the financial/industry analysts and investors who track these sectors. Light Reading was acquired by United Business Media in August 2005, and operates as a unit of UBM.

About TechWeb

TechWeb (techweb.com/aboutus), the global leader in business technology media, is an innovative business focused on serving the needs of technology decision-makers and marketers worldwide. TechWeb produces the most respected and consumed media brands in the business technology market. Today, more than 13.3 million* business technology professionals actively engage in our communities created around our global face-to-face events Interop, Web 2.0, Black Hat and VoiceCon; online resources such as the TechWeb Network, Light Reading, Intelligent Enterprise, InformationWeek.com, bMighty.com, and The Financial Technology Network; and the market leading, award-winning InformationWeek, TechNet Magazine, MSDN Magazine, Wall Street & Technology magazines. TechWeb also provides end-to-end services ranging from next-generation performance marketing, integrated media, research, and analyst services. TechWeb is a division of United Business Media, a global provider of news distribution and specialist information services with a market capitalization of more than $2.5 billion.

* 13.3 million business decision-makers: based on # of monthly connections

Light Reading's Components Insider

CONTACT: To request a free executive summary of the report, or for
details on multi-user licensing options, contact Jeff Claudino, Director of
Sales of Insider Research Services, +1-619-229-9940, claudino@lightreading.com;
or press-analyst contact, Dennis Mendyk, Managing Director of Insider Research
Services, +1-201-587-2154, mendyk@heavyreading.com

Web site: http://www.lightreading.com/
http://www.lightreading.com/commchip
http://www.lightreading.com/research
http://img.lightreading.com/cci/pdf/cci0808companies.pdf
http://www.techweb.com/aboutus

BeaconEquity.com Issues Trade Alerts on Semiconductor Stocks: TXN, INTC, SNDK, STM, NSM, ADI

DALLAS, Aug. 8 /PRNewswire/ -- BeaconEquity.com announces the availability of Trade Alerts on stocks making news today.

Investors can view all of the daily trading notes for free by visiting: http://www.beaconequity.com/m

Today's Trade Alerts include: Texas Instruments Inc. , Intel Corp. , SanDisk Corp. , STMicroelectronics NV , National Semiconductor Corp. and Analog Devices Inc. .

Join the fastest growing investment community at: http://www.stocknetworkonline.com/

See what Cramer has to say about these stocks at: http://maddmoney.net/

BeaconEquity.com's Trade Alerts are brief analyses on the active stocks each day that are affecting the markets. These include breaking news, insider activity, recent 52-week highs/lows, technical breakouts, and other market driving information. Beacon is the authority on research in the small cap sector, and our analysts strive each day to find the stocks that are poised to be the biggest movers before the rest of the market is aware of them.

We encourage investors to subscribe to our FREE newsletter filled with daily trading ideas by visiting: http://www.beaconequity.com/m

BeaconEquity.com is one of the industry's largest small cap research providers. Beacon strives to provide a balanced view of many promising small cap companies that would otherwise fall under the radar of the typical Wall Street investor. We provide investors with an excellent first step in their research and due diligence by providing daily trading ideas, and consolidating the publicly available information available on them. For more information on Beacon Research, please visit: http://www.beaconequity.com/m CRD# 1755680

BeaconEquity.com Disclosure

The companies that are discussed have not always approved the statements made in this opinion. These reports are for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities mentioned. We are not a licensed or registered broker dealer, investment advisor, analyst or underwriter. Please consult a registered broker before purchasing or selling any securities viewed or mentioned here.

Reuben Sushman of Beacon Equity Research is a member of the National Association of Securities Dealers, CRD number 1755680.

Beacon Equity Research Jeff Bishop, (469)-252-3505 press@beaconequity.com

Available Topic Expert(s): For information on the listed expert(s), click appropriate link. JEFF BISHOP https://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=70781

BeaconEquity.com

CONTACT: Jeff Bishop of Beacon Equity Research, +1-469-252-3505,
press@beaconequity.com

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

/C O R R E C T I O N -- MedQuist Inc./In the news release, MedQuist Announces Changes to Board of Directors issued Wednesday over PR Newswire, we are advised by the company that the first paragraph, first sentence, should read "MedQuist Inc. (Nasdaq: MEDQ) announces that the following members of MedQuist's board of directors have resigned immediately prior to the closing of the stock purchase agreement between Koninklijke Philips Electronics N.V. and CBaySystems Holdings, in which Philips has sold its approximate 69.5% ownership interest in MedQuist to CBaySystems Holdings: Clement Revetti Jr., Edward Siegel, Gregory M. Sebasky and Scott M. Weisenhoff." Also, the second and third sentences should read: "They were replaced on the board of directors by Robert Aquilina, Frank Baker, Peter Berger and Michael Seedman. Additionally, Aquilina has been appointed chairman of the board of directors." Complete, corrected release follows:MedQuist Announces Changes to Board of Directors

MOUNT LAUREL, N.J., Aug. 6 /PRNewswire-FirstCall/ -- MedQuist Inc. announces that the following members of MedQuist's board of directors have resigned immediately prior to the closing of the stock purchase agreement between Koninklijke Philips Electronics N.V. and CBaySystems Holdings, in which Philips has sold its approximate 69.5% ownership interest in MedQuist to CBaySystems Holdings: Clement Revetti Jr., Edward Siegel, Gregory M. Sebasky and Scott M. Weisenhoff. They were replaced on the board of directors by Robert Aquilina, Frank Baker, Peter Berger and Michael Seedman. Additionally, Aquilina has been appointed chairman of the board of directors.

According to MedQuist interim president and CEO Mark Ivie, "We sincerely thank the outgoing board members for their service, and welcome the opportunity to work with CBaySystems Holdings' board designees to chart the future of our Company."

Robert M. Aquilina, 52, has served as an executive partner, a senior operating consultant role, to S.A.C. Private Capital Group, LLC (SAC PCG) since 2007. Previously, he served as an industrial partner at Ripplewood Holdings LLC (Ripplewood), held the role of co-chairman of Flag Telecom Group Ltd., and was a board member of Japan Telecom Inc. Prior to these positions, he was a senior operating executive of AT&T Inc., with a 21-year career.

Frank Baker, 35, is a managing director and co-founder of SAC PCG. Prior to establishing SAC PCG in 2007, he was a managing director at Ripplewood and RHJ International, where he was responsible for making various private equity investments and taking RHJ International public on the Brussels Stock Exchange. He joined Ripplewood's New York office in 1999. Previously, he spent more than three years in investment banking at J.P. Morgan Securities Inc. and Goldman Sachs & Co.

Peter Berger, 57, is a managing director and co-founder of SAC PCG. From 1995-1998 and 2000-2006, he was a founding member of Ripplewood and served as both a managing director of Ripplewood and a special senior advisor to the board of directors of RHJ International. Prior to joining Ripplewood, he was a senior partner and global head of the Corporate Finance Group at Arthur Andersen & Co.

Michael Seedman, 51, is the founder of Seedman and Associates, a private equity firm. He has served as an executive partner, a senior operating consultant role, to SAC PCG since 2007. He has more than 30 years of senior executive management, leadership and technological innovation expertise and experience. He was previously an industrial partner with Ripplewood, where he served on the D&M Holdings Inc. board of directors.

About MedQuist:

MedQuist is the largest Medical Transcription Service Organization (MTSO) in the world, and a leader in technology-enabled clinical documentation workflow. MedQuist's enterprise solutions -- including mobile voice capture devices, speech recognition, Web-based workflow platforms, and global network of medical editors -- help healthcare facilities improve patient care, increase physician satisfaction, and lower operational costs. For more information, please visit http://www.medquist.com/.

"Safe Harbor" Statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements in this press release regarding MedQuist's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. Actual outcomes and results may differ materially from what is expressed or forecasted in forward-looking statements. As a result, forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MedQuist Inc.

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

Verizon Wireless BlackBerry Smartphones are Pretty in Pink

BASKING RIDGE, N.J., Aug. 8 /PRNewswire/ -- College students can make a statement and be more productive in the classroom when they head back to campus this fall with two of Verizon Wireless' hottest BlackBerry(R) smartphones available in pink -- the BlackBerry(R) Curve(TM) 8330 and the BlackBerry(R) Pearl(TM) 8130 smartphones. Both handsets capture all of the features and functionality of their silver counterparts, but the hip, pink colors give students added flair when they are at school or interviewing for an internship or job. Customers can order the pink BlackBerry Curve online at http://www.verizonwireless.com/ or in Verizon Wireless Communications Stores beginning today, and it will be in stores on August 15. The pink BlackBerry Pearl 8130 is currently available in stores and online.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080808/NYF010-a ) (Photo: http://www.newscom.com/cgi-bin/prnh/20080808/NYF010-b )

The BlackBerry Curve 8330 is the smallest and lightest full-QWERTY BlackBerry smartphone, which makes the handset a natural fit for fashion-savvy students who need to manage their responsibilities at school, while staying connected to their family and friends. Additionally, students traveling off campus can take advantage of Verizon Wireless' VZ Navigator(SM) service on their BlackBerry Curve to access maps, audible turn-by-turn navigation and information on more than 14 million points of interest. The BlackBerry Pearl 8130 smartphone in pink comes in a compact form factor, and college students can view e-mail and attachments from their professors, stay on-track with assignments using the organizer, and even surf the Internet to quickly look up information when they are studying. Because both the BlackBerry Curve and BlackBerry Pearl smartphones run on the nation's most reliable wireless network, students can rest-assured that they will be able to perform essential tasks quickly and reliably.

The BlackBerry Curve 8330 smartphone in pink is available for $99.99 after a $70 mail-in rebate with a new two-year customer agreement. The BlackBerry Pearl 8130 smartphone in pink is available for $79.99 after a $70 mail-in rebate with a new two-year customer agreement. Customers who purchase a Verizon Wireless Nationwide voice plan to use with their BlackBerry smartphone can also subscribe to the E-Mail and Web for BlackBerry plan for an additional $29.99 per month.

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 68.7 million customers. Headquartered in Basking Ridge, N.J., with 70,000 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.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080808/NYF010-a
http://www.newscom.com/cgi-bin/prnh/20080808/NYF010-b
AP Archive: http://photoarchive.ap.org/
AP PhotoExpress Network: PRN1-PRN2
PRN Photo Desk, photodesk@prnewswire.com Verizon Wireless

CONTACT: Brenda Boyd Raney, Verizon Wireless, +1-908-559-7518,
Brenda.Raney@verizonwireless.com

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

MGT Capital Investments Reports Second Quarter 2008 Financial Results and Provides Update on Recent Developments

NEW YORK, Aug. 8 /PRNewswire-FirstCall/ -- MGT Capital Investments, Inc. , a technology holding company focused on the Healthcare Information Technology ("HCIT") sector, today reported financial results for the second quarter ended June 30, 2008, and provided an update on strategic milestones.

Tim Paterson-Brown, MGT Chairman and CEO, stated, "Our results through the first half of 2008 reflect continued progress in the development of our ColonCAD technology, as we work towards gaining regulatory approval in several large markets later this year, including the U.S. and Japan. During the second quarter we successfully added China to the list of markets where we have received regulatory approval, other areas where our ColonCAD technology has been approved include the European Union, Canada and Brazil. While we are currently selling in each of these markets, we anticipate measurable revenues to start for our ColonCAD software once we obtain approval in either the U.S. or Japan. As we get closer to obtaining regulatory approval in these key markets we have built up our international sales force, which has resulted in higher selling, general and administrative costs compared to last year."

Mr. Paterson-Brown concluded, "I am pleased to report that the company completed the repurchase of nearly all of the 6,350,000 shares of common stock authorized by the Board of Directors in the first quarter of 2008. We believe our current market capitalization does not reflect the true value of our revolutionary technology and have continued raising awareness of our Company to the investment community through a proactive investor relations campaign. The next six months should prove to be a very exciting time for our Company."

Recent Developments

-- As of August 8, 2008, MGT Capital repurchased approximately 6.3 million shares of common stock;

-- In June 2008, data presented at the European Society of Gastrointestinal and Abdominal Radiology (ESGAR) 2008 Conference found that Medicsight ColonCAD technology assisted radiographers in identifying 100 percent of the cancers within the study group;

-- In May 2008, Medicsight PLC ("Medicsight") signed an exclusive CAD clinical research agreement with leading American CT colonography (CTC) radiologists Dr. Perry Pickhardt and Dr. David Kim from the University of Wisconsin Medical School, USA. In 2004, Dr. Pickhardt's group was the first to establish a third-party reimbursed CT colonography colorectal cancer screening programme. Since then Drs. Pickhardt and Kim have both played an instrumental role in building the clinical evidence base that has proven the comparable effectiveness of CTC for the detection of colorectal neoplasia within an asymptomatic population in relation to optical colonoscopy. Their specialist advice and experience of CTC practice will enhance the clinical validation of Medicsight's Colon CAD products set in the context of the world's largest healthcare market;

-- In April 2008, Medicsight signed a Partnership Agreement with INFINITT Company Limited ("Infinitt"). Infinitt has agreed to integrate Medicsight ColonCAD into its Colon solution for global distribution. As well as being South Korea's leading PACS supplier, Infinitt also has a growing presence in both the USA and Japan with a global network of offices, partners and sales channel representatives in 26 countries; and

-- In the six months ended June 30, 2008, Medicsight was granted regulatory approval for MedicRead Colon from the Chinese State Food and Drug Administration (SFDA) and the Brazilian National Health Surveillance Agency (ANVISA). More recently, Medicsight received Brazilian ANVISA regulatory approval for its ColonCAD product.

Financial Results for the quarter ended June 30, 2008

For the three months ended June 30, 2008 our revenues from operations were $85,000, compared to $nil for June 30, 2007. Total operating expenses for the quarter ended June 30, 2008 were $8.6 million, compared to total operating expenses of $5.1 million in the comparable period for 2007.

For the six months ended June 30, 2008 our revenues from operations were $137,000, compared to $nil for June 30, 2007. Total operating expenses for the six months ended June 30, 2008 were $14.7 million, compared to total operating expenses of $9.1 million in the comparable period for 2007.

For the quarter ended June 30, 2008, net loss was $5.1 million, or $0.14 per share, compared to a net loss of $4.1 million, or $0.11 per share, for the same period in 2007. Net loss per share for the quarter ended June 30, 2008 was based on weighted average of 35.5 million shares outstanding, compared to a weighted average of 38.9 million shares outstanding for the comparable period in 2007.

For the six months ended June 30, 2008, net loss was $8.9 million, or $0.23 per share, compared to a net loss of $7.3 million, or $0.19 per share, for the same period in 2007. Net loss per share for the six months ended June 30, 2008 was based on weighted average of 38.0 million shares outstanding, compared to a weighted average of 38.9 million shares outstanding for the comparable period in 2007.

As of June 30, 2008, cash, cash equivalents and marketable securities were $60.6 million compared to $94.6 million at June 30, 2007. The decrease in cash balance is primarily attributable to the Company's repurchase of its common stock and the purchase of shares in Medicsight.

About MGT Capital Investments, Inc.

MGT Capital Investments, Inc is a technology holding company that focuses on investments in the global healthcare information technology market. The Company has two subsidiaries, Medicsight and Medicexchange PLC ("Medicexchange").

Medicsight PLC (AIM: MDST) is a leading developer of computer-aided detection (CAD) and image analysis software for the medical imaging market. The CAD software automatically highlights suspicious areas on computerised tomography (CT) scans of the colon and lung, helping radiologists to identify, measure and analyze potential disease and early indicators of disease. Medicsight's computer-aided detection (CAD) software has been validated using one of the world's largest and most population diverse databases of verified patient CT scan data. Medicsight's ColonCAD(TM) and LungCAD(TM) software products are seamlessly integrated with the advanced 3D visualisation workstations of several industry-leading imaging equipment partners.

Medicexchange provides medical imaging professionals with a global web portal containing an online sales, jobs and information channel for diagnostic, treatment and surgery planning solutions. This combined with a variety of relevant clinical papers, training materials and content gives these professionals access to information and products that they otherwise would have difficulty accessing.

Additional information can be found at http://www.mgtci.com/.

All forward-looking statements are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to, the risks described in company filings with the Securities and Exchange Commission.

Investor & Media enquiries: KCSA Strategic Communications Todd Fromer / Garth Russell Tel: +1 212-896-1215 / 212-896-1250 tfromer@kcsa.com / grussell@kcsa.com

MGT Capital Investments, Inc.

CONTACT: Investors & Media, Todd Fromer, +1-212-896-1215,
tfromer@kcsa.com, or Garth Russell, +1-212-896-1250, grussell@kcsa.com, both
of KCSA Strategic Communications, for MGT Capital Investments, Inc.

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

Wesley Sine Receives a Grant from the Cisco Entrepreneur Institute to Explore Entrepreneurship in Latin America

ITHACA, N.Y., Aug. 8 /PRNewswire/ -- The Johnson School at Cornell University today announced that Wesley Sine, assistant professor of management and organizations, received a grant from the Cisco Entrepreneur Institute, an initiative of Cisco Systems, Inc. focused on fostering entrepreneurship. The grant is currently funding entrepreneurship research in Latin America, including Brazil, Chile, Colombia, Costa Rica, and Mexico, and will be conducted with local organizations in each country.

(Logo: http://www.newscom.com/cgi-bin/prnh/20080212/NYTU116LOGO )

Research is already underway in Chile with the El Instituto Profesional (AIEP), an institution of higher education that seeks to become the leading institution of technical and vocational education in the country, with plans to expand to the three remaining countries this summer and fall.

In Chile, Sine is currently tracking more than 300 participants who have indicated they are interested in entrepreneurship and starting a business. A survey developed by Sine asks respondents for their new business ideas, as well as specifics on their socio-economic background, education, experience, networks, personality traits, and career aspirations. Sine plans to track the progress of turning those ideas into viable businesses with six-month follow up surveys. In addition to tracking the students at each of the universities, researchers will randomly survey business people from the general population and a local university that does not offer entrepreneurship courses.

Sine comments, "Through this research, we're looking to get a better idea of the causal factors that determine the extent to which the population engages in entrepreneurial activities and the degree of their success. By tracking individual entrepreneurs and their ideas over time, we hope to learn more about the challenges they face and their motivations as they develop their new business ventures."

Sine has also been conducting entrepreneurship research in Colombia. The study, called "Declining Insurgencies," investigates the welfare of almost 1,000 entrepreneurs in Colombia and reports that the survival rate for small businesses in Colombia have doubled since 2001, due largely to a sharp decrease in violence and the ensuing rapid economic growth. Sine was also awarded a $12,000 grant from Cornell's Mario Einaudi Center for International Studies for "The Failure of Political Institutions and New Venture Survival" and received one of 12 fellowships for fall 2008 from Cornell's Institute of Social Sciences.

The Cisco Entrepreneur Institute and its local partners, including academic institutions, non-governmental organizations and economic development agencies will offer participants in all five countries, entrepreneurship sessions and workshops. The Institute is focused on fostering entrepreneurship markets by working with local government and business organizations to foster the creation and success of small- and medium-sized businesses. The Institute provides practical business insights for entrepreneurs, facilitates knowledge-sharing with local business leaders and shows participants how to leverage technology to speed business growth.

Cisco believes this initiative will create significant long-term benefits and help transform the economic landscape for customers and partners, while enabling Cisco to further expand its business and social impact. More information is available on the Institute at http://www.ciscoinstitute.net/.

About the Johnson School

Founded in 1946, the Johnson School is Cornell University's graduate school of management. Consistently ranked as one of the top graduate schools of business, the Johnson School builds upon Cornell's depth and breadth of distinguished research and teaching, and its vast, worldwide network of alumni, faculty, and colleagues. The school's "performance learning" approach offers students defined frameworks and analytical tools, combined with expert feedback to solve real problems in real organizations. Deliberately small and extremely selective, the Johnson School maintains an intense, collaborative community, where students develop teamwork and networking skills that foster innovation and deliver results. Programs include one- and two-year MBA degrees, an Executive MBA and the Cornell-Queen's Executive MBA, which offers interactive videoconferencing sessions across the U.S. and Canada. For more about the Johnson School please visit: http://www.johnson.cornell.edu/.

Available Topic Expert(s): For information on the listed expert(s), click appropriate link. Wesley Sine http://profnet.prnewswire.com/Subscriber/ExpertProfile.aspx?ei=80046

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20080212/NYTU116LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com The Johnson School at Cornell University

CONTACT: Deirdre Snyder, The Johnson School at Cornell University,
dgs37@cornell.edu, +1-607-255-3494

Web site: http://www.johnson.cornell.edu/
http://www.ciscoinstitute.net/

China Security & Surveillance Technology to Host NYC Investor Events

SHENZHEN, China, Aug. 8 /Xinhua-PRNewswire/ -- China Security & Surveillance Technology, Inc. ('The Company' & 'CSST'), a leading provider of digital surveillance technology in China, today announced that it will host two investor events at the Grand Hyatt Hotel in New York City, located at 109 East 42nd Street at Grand Central Terminal, on Monday, August 18th, 2008.

Members of the Company's management team will present an overview of the Company, describe their vision for the future and provide a financial outlook for the remainder of the fiscal year 2008. A question and answer session will immediately follow the corporate presentation. Members of CSST management that will be in attendance include Mr. Guoshen Tu, Chairman & CEO; Mr. Terence Yap, Vice Chairman & CFO, Mr. Alex Kuo, Senior Vice President & General Manager of Global Innovation Alliance and Ms. Jessica Cheung, Financial Controller.

The first event, scheduled from 11:45-1:45 pm EST, is an exclusive event for financial analysts, institutional investors and industry analysts only. Due to limited seating, registration for this event is mandatory by the close of business on Thursday, August 14th.

The second event, scheduled from 2:30-4:30pm EST, is an open event for retail investors and other interested parties. The format for the second event will be identical to the earlier event. In order to attend this event, registration is required. Those interested in attending should email/fax their name, company name, and contact phone number to ir@csst.com or #212-984-0689 by the close of business on Thursday, August 14th.

Both meetings at the Grand Hyatt will take place at the Regency Room on the Mezzanine level. To register for either event or for further inquiries, please contact Kewa Luo at CSST at ir@csst.com, or via phone at #1-212-984-0688.

About China Security & Surveillance Technology, Inc.

Based in Shenzhen, China, China Security manufactures, distributes, installs and maintains security and surveillance systems throughout the PRC. China Security has manufacturing facilities located in China and an R&D facility which maintains an exclusive collaboration agreement with Beijing University and Wuhan University. China Security has built a diversified customer base through its extensive sales and service network that includes numerous points of presence throughout the PRC. To learn more about the Company visit http://www.csst.com/ .

Safe Harbor Statement

This press release includes certain statements that are not descriptions of historical facts, but are forward-looking statements. Such statements include, among others, those concerning our expected financial performance and strategic and operational plans, our future operating results, our expectations regarding the market for security and surveillance products, our expectations regarding the continued growth of the security and surveillance market, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause our actual results to differ materially from those anticipated, expressed or implied in the forward-looking statements. These risks and uncertainties include, but not limited to, the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended December 31, 2007, and other risks mentioned in our other reports filed with the Securities Exchange Commission, or SEC. Copies of filings made with the SEC are available through the SEC's electronic data gathering analysis retrieval system (EDGAR) at http://www.sec.gov/ . The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.

China Security & Surveillance Technology, Inc.

CONTACT: China Security & Surveillance - Kewa Luo, +1-212-984-0688, or
ir@csst.com; Investor Contact - Bill Zima & Ashley Ammon MacFarlane,
+1-203-682-8200; Media Contact - Fleishman-Hillard Hong Kong, Patrick Yu,
+852-2540-2577, or Patrick.yu@fleishman.com

Web Site: http://www.csst.com/

Zilog Announces Agreement With Riley Investment Management LLC

SAN JOSE, Calif., Aug. 8 /PRNewswire-FirstCall/ -- Zilog, Inc. today announced that it has entered into a settlement agreement and release with the entities and persons affiliated with Riley Investment Management LLC, resolving all proxy matters and other issues relating to Zilog. The agreement provides, among other things, for the following:

-- Zilog will promptly increase the total number of directors on its Board of Directors from five to six, divided evenly among its three Classes.

-- Zilog's Board of Directors will promptly appoint Eric Singer to join the Board as a director in Class III and appoint him to its Compensation Committee.

-- Zilog will include Mr. Singer in its proxy materials as a nominee for election to the Board of Directors as a director in Class III and use its reasonable best efforts to cause Mr. Singer's election to the Board at its 2008 annual meeting, which is expected to be held on October 6, 2008.

-- The Riley entities will vote their shares in favor of Zilog's slate of nominees for election to the Board of Directors at the company's 2008 and 2009 annual meetings, and will not solicit proxies in connection with those meetings, including with respect to the proposed bylaw amendments.

-- The Riley entities will abide by certain confidentiality and standstill obligations through the completion of Zilog's 2009 annual meeting, including an agreement not to acquire an aggregate beneficial ownership position of more than 13% of Zilog's outstanding common stock. The Riley entities and their clients currently own approximately 1,433,055 shares of Zilog common stock, representing approximately 8.5 percent of Zilog's outstanding shares.

"We are pleased to have achieved this agreement with the Riley Group and believe that it best serves the interests of Zilog and its shareholders," said Darin Billerbeck, president and CEO of Zilog. "Through this agreement, Zilog and RIM will avoid a costly and disruptive proxy contest at a time when the company is exploring a full range of strategic alternatives to enhance shareholder value. We look forward to working with Mr. Singer."

Mr. Singer's principal occupation or employment is Senior Investment Analyst at Riley Investment Management LLC since July 2007. Riley Investment Management LLC is an investment adviser, which provides investment management services and is the general partner of Riley Investment Partners Master Fund, L.P. Mr. Singer began his career at WisdomTree Capital Management in New York from 1995 to 2000 and was affiliated with Singer Capital Management from 2001 to 2003. Most recently, from 2003 to June 2007 Mr. Singer managed private portfolios for Alpine Resources LLC and its related entities. Mr. Singer is a 1995 graduate of Brandeis University.

"We look forward to working with the Zilog Board to enhance shareholder value," said Bryant Riley, Managing Member of Riley Investment Management LLC.

About Zilog, Inc.

Zilog is a global supplier of application specific, embedded system-on- chip (SoC) solutions for secured transactions, consumer electronics and industrial application and an industry leader in remote control and universal IR database solutions. From its roots as an award-winning architect in the microprocessor and microcontroller industry, Zilog has evolved to become a leader in production-ready and custom-built SoC solution sets. Zilog is headquartered in San Jose, California, and employs approximately 500 people around the world, with sales offices in Asia, Europe, and North America. For more information about Zilog and its products, visit http://www.zilog.com/.

Cautionary Statements

This release contains forward-looking statements relating to expectations, plans or prospects for Zilog, Inc. that are based upon the current expectations and beliefs of Zilog's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These statements include those relating to the Zilog's evaluation of a course of action that will increase value for Zilog stockholders. The risks related to any action to increase shareholder value are detailed in the company's filings with the U.S. Securities and Exchange Commission ("SEC"). Zilog does not expect to, and disclaims any obligation to update such statements until release of its next quarterly earnings announcement or in any other manner. Zilog, however, reserves the right to update such statement, or any portion thereof, at any time for any reason.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the SEC, including but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2008, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at http://www.sec.gov/ or from the Company's website at http://www.zilog.com/.

Contacts: Investors: Stewart Chalmers Kristine Mozes Positio Public Relations Mozes Communications LLC (818) 681-3588 (781) 652-8875

Zilog, Inc.

CONTACT: Stewart Chalmers of Positio Public Relations, +1-818-681-3588,
or Investors, Kristine Mozes of Mozes Communications LLC, +1-781-652-8875, for
Zilog, Inc.

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

Universal Weather and Aviation, Inc. Contracts for PASSUR(R) Suite of Services

GREENWICH, Conn., Aug. 8 /PRNewswire-FirstCall/ -- PASSUR Aerospace, Inc. (BULLETIN BOARD: PSSR) announced today that Universal Weather and Aviation, Inc. has contracted for the PASSUR suite of corporate solutions, to include PASSUR Fuel Portal(TM). These services are important for both marketing and customer support.

"Accurate, reliable customer information and the ability to best serve our customers is critical to our organization. We're very pleased with the PASSUR suite of solutions and the impact they've had for our operation and in support of our clients," said Greg Cox, Vice President of UVair(R). "PASSUR Fuel Portal software provides a level of information and analytics that is completely unique to the industry, allowing us to target our most profitable opportunities while in turn providing the superior level of personalized support our clients have come to rely on each and every trip."

"With the price of fuel at historic levels, PASSUR Fuel Portal has become a critical differentiator for our corporate customers; we're pleased we can be an important part of Universal's growth," said Jim Barry, president and CEO of PASSUR Aerospace.

PASSUR Fuel Portal provides the latest advances in pricing fuel and maximizing volume for any organization selling fuel in the corporate market. Organizations can now instantly access relevant customer information to determine the right price based on live and historical customer behavior, and the maximum potential volume sale based on a sophisticated uplift algorithm. As with other PASSUR products, this new module combines the most accurate information with innovative decision support technology to improve the financial performance of our customers.

About Universal Weather and Aviation, Inc.

At Universal Weather and Aviation, Inc., our goal is to become a vital extension of our clients' flight operations teams. Universal(R) offers a wide range of services designed to provide business aviation operators seamless service from start to finish. Universal's wide range of services includes flight planning, weather briefings, online tools, the UVair(R) Fueling Card, Universal Aviation(sm) worldwide ground support, UVdatalink(R) air-to-ground communication, and more. Universal has been facilitating successful trips for business aviation operators since 1959.

About PASSUR Aerospace, Inc.

PASSUR Aerospace is changing how aviation and aerospace information is collected, analyzed, and delivered. PASSUR Aerospace owns and operates a unique database of flight information with proprietary decision-making software, primarily powered by a growing international network of passive radars (PASSURs) located at more than 85 airports world-wide, including 34 of the top 35 U.S. airports - from which it provides PASSUR information, analytics, and decision support tools to improve the financial condition and operational efficiency of organizations. PASSUR Aerospace offers unique user-friendly information, as well as decision support algorithms, which provide innovative commercial air traffic solutions to more than 50 airports, including 8 of the top 10 U.S. airports; to dozens of airlines, including 7 of the top 10 U.S. airlines; and to more than 180 corporate aviation customers, as well as to the U.S. Government. In addition, the company has created and implemented collaborative web-based software that allows the company's customers to instantly share information to improve individual and joint decision-making, creating additional value for those customers.

Visit PASSUR Aerospace's web site at http://www.passur.com/ for updated products, solutions, and news.

Universal(R), UVair(R), Universal Aviation(sm), and UVdatalink(R) are service marks or registered service marks of Universal Weather and Aviation, Inc.

The forward-looking statements in this news release relating to management's expectations and beliefs are based on preliminary information and management assumptions. Such forward-looking statements are subject to a wide range of risks and uncertainties that could cause results to differ in material respects, including those related to customer needs, budgetary constraints, competitive pressures, the success of airline trials, the profitable use of the Company's owned PASSURs located at major airports, the Company's maintenance of above average quality of its product and services, as well as potential regulatory changes. Further information regarding factors that could affect the Company's results is contained in the Company's SEC filings, including the October 31, 2007 Form 10K, and the April 30, 2008 10Q.

Contact: Ron Dunsky (203) 622-4086 rondunsky@passur.com

PASSUR Aerospace, Inc.

CONTACT: Ron Dunsky of PASSUR Aerospace, Inc., +1-203-622-4086,
rondunsky@passur.com

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

China Sky One Medical, Inc. Announces Conference Call to Discuss Second Quarter 2008 Results

HARBIN, China, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- China Sky One Medical, Inc. ("China Sky One Medical" or "the Company") , a manufacturer, marketer and distributor of pharmaceutical, medicinal and diagnostic products in China, today announced that it will conduct a conference call at 10:00 a.m. Eastern Time on August 12, 2008 to discuss its second quarter 2008 financial results.

Joining Mr. Yan-qing Liu, Chairman, CEO and Director of China Sky One Medical, Inc., will be Yu-bo Hao, Board Secretary. The Company plans to issue an earnings announcement prior to the call.

To participate in the live conference call, please dial the following number five to ten minutes prior to the scheduled conference call time: 866-573-1052. International callers should dial 702-696-4500. The Conference ID for this call is 59672695.

If you are unable to participate in the call at this time, a replay will be available for fourteen days starting on Tuesday, August 12, 2008 at 12 p.m. Eastern Time. To access the replay, dial 800-642-1687, international callers dial 706-645-9291 Conference ID 59672695.

About China Sky One Medical, Inc.

China Sky One Medical, Inc., a Nevada corporation, is a holding company whose principal operations are through its subsidiaries, which are engaged in the manufacturing, marketing and distribution of pharmaceutical, medicinal and diagnostic kit products. Through its wholly-owned subsidiaries, Harbin Tian Di Ren Medical Science and Technology Company ("TDR") and Harbin First Bio-Engineering Company Limited ("First"), the Company manufactures and distributes over-the-counter pharmaceutical products as its primary revenue source. For more information, visit http://www.skyonemedical.com/ .

Safe Harbor Statement

Certain of the statements made in the press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

For more information, please contact: Company Contact: China Sky One Medical, Inc. Mr. Yubo Hao, Board Secretary Tel: +86-451-5399-4069 Email: china_sky_one@yahoo.cn Investor Relations Contact: CCG Investor Relations Mr. Crocker Coulson, President Tel: +1-646-213-1915 Email: crocker.coulson@ccgir.com Mr. Richard Micchelli, Financial Writer Tel: +1-646-454-4516 Email: richard.micchelli@ccgir.com Web: http://www.ccgir.com/

China Sky One Medical, Inc.

CONTACT: Mr. Yubo Hao, Board Secretary of China Sky One Medical, Inc.,
+86-451-5399-4069, or china_sky_one@yahoo.cn; Investor Relations Contact, Mr.
Crocker Coulson, President, +1-646-213-1915, or crocker.coulson@ccgir.com, or
Mr. Richard Micchelli, Financial Writer, +1-646-454-4516, or
richard.micchelli@ccgir.com, both of CCG for CSY

Web Site: http://www.skyonemedical.com/
http://www.ccgir.com/

TELUS Corporation - Notice of Cash Dividend

VANCOUVER, Aug. 8 /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 October 1, 2008 to holders of record at the close of business on September 10, 2008.

By order of the Board Audrey Ho Senior Vice President General Counsel and Corporate Secretary Vancouver, British Columbia August 6, 2008

TELUS Corporation

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

TELUS Reports Second Quarter ResultsStrong data and wireless results with record wireless additions

VANCOUVER, Aug. 8 /PRNewswire-FirstCall/ -- TELUS Corporation today reported its financial results for the second quarter of 2008, including revenue of $2.4 billion, an eight per cent increase from a year ago. The performance was driven by nine per cent growth in wireless revenue and 20 per cent growth in wireline data revenue. Wireless net additions were a second quarter record at 175,600. Earnings before interest, taxes, depreciation and amortization (EBITDA) as adjusted increased by 3.5 per cent when compared to the same period a year ago.

Net income in the quarter was $267 million and earnings per share (EPS) were $0.83, up 5.5 per cent and nine percent, respectively, compared to the same period in 2007. The second quarter of 2007 included favourable tax-related adjustments of $10 million or three cents a share while there were no tax-related adjustments in 2008. Free cash flow of $302 million increased 87 per cent, driven primarily by lower capital expenditures, improved EBITDA and lower interest expense.

FINANCIAL HIGHLIGHTS ------------------------------------------------------------------------- C$ in millions, except per share amounts 3 months ended June 30 (unaudited) 2008 2007 % Change ------------------------------------------------------------------------- Operating revenues 2,398.7 2,228.1 7.7 EBITDA(1) 917.6 884.6 3.7 EBITDA (as adjusted)(2) 917.3 886.4 3.5 Income before income taxes and non-controlling interest 381.4 348.1 9.6 Net income(3) 267.0 253.1 5.5 Earnings per share (EPS), basic(3) 0.83 0.76 9.2 Cash provided by operating activities 461.0 1,061.9 (56.6) Capital expenditures 435.6 481.8 (9.6) Free cash flow(4) 302.3 161.7 87.0 (1) Earnings before interest, taxes, depreciation and amortization (EBITDA) is defined as Operating revenues less Operations expense less Restructuring costs. See Section 11.1 of Management's discussion and analysis. (2) Excludes a charge (recovery) of $(0.3) million and $1.8 million to Operations expense in 2008 and 2007, respectively, for introducing a net-cash settlement feature for share option awards granted prior to 2005. (3) Net income and EPS for the three month period in 2008 included no favourable tax related adjustments compared to $10 million or 3 cents for the same period in 2007. (4) See Section 11.2 of Management's discussion and analysis.

Darren Entwistle, TELUS president and CEO said, "On strategy growth continued in data and wireless this quarter with solid operational execution on multiple fronts. This included strong second quarter wireless customer additions and increased momentum on high-speed Internet additions. We are updating annual guidance to reflect this positive performance, including increased guidance for revenue. We are also pleased with the initial success in converting more than one million residential customers in British Columbia from various legacy systems to our recently developed integrated billing and client care system."

"We continue to urge the federal government to pursue its stated goal of making Canada the most connected country in the world by investing a portion of the $4.25 billion raised in the recently concluded wireless spectrum auction," said Mr. Entwistle. "Canada has an unprecedented opportunity to enhance our global competitiveness by bringing broadband Internet services to hundreds of rural communities."

Robert McFarlane, executive vice president and CFO, noted, "as a result of good operational execution year to date, we have made upward revisions to full year 2008 revenue guidance, as well as narrowing the ranges for EBITDA and EPS guidance, while maintaining existing guidance for non-spectrum capital expenditures."

Mr. McFarlane also stated, "the 50 per cent expansion of our commercial paper program to $1.2 billion announced today enhances our flexibility and access to financing at attractive rates."

------------------------------------------------------------------------- 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. 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 discussion and analysis - August 6, 2008. Except as required by law, TELUS disclaims any intention or obligation to update or revise forward-looking statements, and reserves the right to change, at any time at its sole discretion, its current practice of updating annual guidance. ------------------------------------------------------------------------- OPERATING HIGHLIGHTS TELUS wireless - External revenues increased by $94 million or 9% to $1.14 billion in the second quarter of 2008, compared with the same period in 2007 - Wireless data revenue increased $55 million or 54% due to the continued adoption of full function smartphones and increased adoption of data services such as text messaging, web browsing and downloads - ARPU (average revenue per subscriber unit per month) declined by 1.4% to $62.73 compared to the same quarter a year ago. The fast-growing data component of $9.17, represented 15% of ARPU, while the voice component continued to decline as a result of the increased prepaid subscriber base, lower pricing, including use of included-minute rate plans and lower inbound roaming - Net subscriber additions increased 37% to 175,600 from the same quarter in 2007, a TELUS second quarter record. Postpaid net additions were 157,200, an increase of 59%, while net prepaid loading decreased 37% to 18,400. These results include those from TELUS' postpaid value brand and service which was launched in late March 2008 - EBITDA as adjusted of $486 million is an increase of $34 million over the second quarter of 2007 representing 7% growth, due to increased network revenue and lower cost of acquisition (COA) expense, partially offset by increased customer retention costs and network and other expenses to support the 11% growth in the wireless subscriber base, data revenue and the launch of a value brand - Cost of acquisition per gross addition decreased 22% year-over-year to $332 reflecting slightly higher advertising and promotions costs spread over the 19% increase in gross additions, a higher proportion of new subscribers from lower cost distribution channels and lower equipment subsidies - Blended monthly subscriber churn decreased slightly to 1.43% from 1.45% a year ago due to lower postpaid churn supported by successful retention activities. The second quarter of 2008 and 2007 reflect the first full comparable quarters with wireless number portability (WNP) in place - Cash flow (EBITDA as adjusted less capital expenditures) increased $92 million or 33% to $371 million in the quarter due to an increase in EBITDA and lower capital spending. TELUS wireline - External revenues increased by $76 million or 6.5% to $1.26 billion in the second quarter of 2008, when compared with the same period in 2007, as data growth more than offset the declines in local revenues - Data revenues increased by $87 million or 20% due to revenues from the two January acquisitions (Emergis and Fastvibe), increased enhanced data and hosting services, as well as high-speed Internet subscriber growth. When adjusted for the two acquisitions and a regulatory adjustment in the second quarter of 2007, underlying data growth was approximately 7% - Long distance revenues increased by $7 million due to a one-time negative adjustment of $13 million recorded in the same period a year ago with the implementation of a new converged billing and client care system in Alberta - TELUS added 23,600 net high-speed Internet subscribers, a 70% increase from a year ago. The prior year's additions were temporarily constrained by the implementation of a new billing and client care system in Alberta that temporarily reduced order processing capability - EBITDA as adjusted of $431 million declined by $2.6 million or 0.6% due primarily to increased cost of sales, including TELUS TV, and initial costs for implementing enterprise customer contracts - Network access lines (NALs) declined by 40,000 in the quarter, and 3.4% from a year ago, reflecting a slight sequential improvement. Consistent with experience in recent years, residential NAL losses were due to ongoing competitive activity and wireless substitution, partially mitigated by an increase in business access lines - Cash flow (EBITDA as adjusted less capital expenditures) decreased $15 million or 12% to $110 million in the quarter due to slightly lower EBITDA as adjusted and a small increase in capital expenditures. Corporate Developments B.C. billing and client care system conversion

In mid-July, following a large trial, TELUS successfully converted more than one million wireline residential customers in British Columbia to a new billing and client care system. This converges to the system in Alberta, and for the first time most customers in Alberta and B.C. are now on the same billing and client care system. During the B.C. conversion, TELUS has applied learnings from the Alberta conversion in 2007 and the early experience has been positive. The expected customer service and cost benefits of this project include streamlined and standardized processes and the elimination over time of multiple legacy information systems.

AWS spectrum auction concludes

Industry Canada's Advanced Wireless Services (AWS) spectrum auction concluded on July 21, 2008 raising more than $4.25 billion dollars for the government with 282 licences conditionally assigned to 15 companies. Successful bidders will be eligible to receive licences after making their final payments and showing compliance with Canadian ownership and control requirements.

In line with TELUS' national growth strategy focused on wireless, data and IP, the company bid to acquire additional spectrum across Canada for a cost of approximately $880 million. AWS spectrum increases the depth of TELUS' strong spectrum position, and is expected to provide capacity for the introduction of future 4G (fourth generation) service offerings.

TELUS expects to face new competition in the future as a result of the recent auction. However, the number and long-term viability of all new entrants in various markets remain uncertain because of build-out requirements, spectrum and start-up costs, capital market conditions, and restrictions on foreign investment.

TELUS is encouraging the Government of Canada to invest a portion of the $4.25 billion raised in the wireless spectrum auction to pursue its stated goal of making Canada the most connected country in the world. The auction raised almost three times the anticipated $1.5 billion, giving Canada an unprecedented opportunity to bring broadband Internet services to thousands of rural communities.

TELUS expands commercial paper program by $400 million

On August 7th, DBRS provided credit rating support for a 50 per cent increase in TELUS' commercial paper (CP) program to $1.2 billion. This provides increased flexibility and more attractive short term rates for TELUS, including future funding of commitments related to the AWS wireless spectrum from the recently concluded auction. At the end of the second quarter, there was $800 million outstanding on TELUS' commercial paper program, demonstrating strong demand for TELUS debt in the Canadian market.

TELUS appeals deferral account decision

TELUS filed appeals with the CRTC and the federal cabinet asking them to consider allowing TELUS to connect more remote Canadian communities to broadband Internet services using Deferral Account funds. TELUS believes this is an opportunity to work with governments, rural and First Nations communities to bring the benefits of broadband Internet to Canadians who live and work in remote areas.

TELUS believes all Canadians benefit when our nation's rural communities have access to broadband Internet service and all of the business, economic and educational opportunities it creates. TELUS continues to work with the CRTC to find a way to place new communities on its deferral account list so TELUS' entire $163 million fund is used for the purposes the CRTC determined in 2006. TELUS has also filed a petition to the federal cabinet to ensure we will retain the ability to ask the government to intervene should the CRTC not reopen the process for new applications.

Business Solutions TELUS enhances suite of GPS services for business

TELUS launched three new Global Positioning System (GPS) services for businesses - TELUS Asset Tracker, TELUS Resource Tracker, and TELUS Track and Dispatch. TELUS Asset Tracker enables businesses to keep track of assets large and small. TELUS Resource Tracker allows businesses to increase safety and productivity through real-time location monitoring of workers. TELUS Track and Dispatch gives head-office the ability to determine the closest mobile worker to a new job assignment or to immediately dispatch help if a worker needs assistance. The new solutions are part of TELUS' comprehensive suite of wireless GPS services that also features TELUS Fleet Tracker, a fleet monitoring and tracking solution, and TELUS Navigator, a GPS turn-by-turn navigation solution.

CritiCall Ontario selects TELUS iScheduler and CallCentreAnywhere

CritiCall Ontario selected TELUS' iScheduler and CallCentreAnywhere to provide the foundation of their integrated patient electronic referral services. The five-year contract with Ontario's 24-hour emergency referral service for hospital-based physicians is valued at $2.3 million. It is the first implementation of TELUS iScheduler in Canada.

The contract combines TELUS' CallCentreAnywhere application with the TELUS iScheduler referral and waitlist capabilities. The joint service provides CritiCall agents with a simplified patient referral process that ensures the right information follows the patient wherever they travel to receive medical attention. The solution also provides CritiCall with advanced reporting capabilities to help organizations better understand their operational needs and performance to help with business planning.

TELUS Unified Communications make business easier

TELUS enhanced its suite of Unified Communications solutions by launching a new service enabling clients to use Outlook Voice Access to access email, contacts and calendars over the phone to stay connected to the office anywhere, anytime. The upgrade also provides business-class email and group document sharing tools that can be securely accessed from a PC, web browser, mobile device or a phone. Using Microsoft SharePoint, employees can share documents, find company resources, search for experts and corporate information, manage content and workflow, and make better-informed decisions in a single, integrated location.

Products and Services Smartphones do it all

In May, TELUS launched its "the ultimate do-it-all" smartphone campaign. With the handiest wireless functions available, TELUS' new generation of smartphones are the ultimate communication devices to do-it-all. Whether it's for texting Saturday night's latest hip party location, browsing the web to know where this week's blockbuster movie is running, or using GPS location services, TELUS smartphones are perfect for consumers looking for a phone that gives them the ultimate freedom in the palm of their hand.

One of the new smartphones is the HTC Touch Diamond. TELUS will be the first carrier to bring this new handset to Canadians. The Diamond will allow users to browse the Web, check out videos on YouTube and make plans on Facebook with a simple one-touch interface. In addition, customers will be able to store and listen to thousands of songs with the media player and 4GB internal memory. TELUS also launched the Pink BlackBerry Curve 8330 smartphone and the Sierra Wireless Compass 597 USB modem.

TELUS sponsors Canadian Idol

TELUS is bringing a new approach to product placement to season six of Canadian Idol. As CTV's mobility sponsor, TELUS is introducing viewers to Ron Ronn, a 23-year-old aspiring singer/songwriter character who relies on a lucky dolphin, his best friend Mueller and a TELUS smartphone to manage his burgeoning career. TELUS and TAXI created Ron Ronn specifically for "Canadian Idol" as part of TELUS' sponsorship of the very popular show. Under terms of the sponsorship agreement, each of the 30-second Ron Ronn clips will run at the end of an "Idol" segment and before the regular commercial break. In addition to the Ron Ronn content, TELUS is again running its award-winning nature based campaign during Canadian Idol's scheduled commercial breaks.

Alberta and B.C. embrace 10-digit dialing

To meet growing demand for phone numbers, the telecommunications industry has added new area codes to B.C. and Alberta - 778 in B.C.'s current 250 area code region and 587 across Alberta. A second area code in these regions means that people must add the area code and dial 10 digits for local calls. Just a week into the first phase of the new area code introduction on June 23, a sample of several million calls found that nearly 90 per cent were already being placed using 10 digits.

Existing customers are not required to change their current telephone numbers, nor will the geographic boundaries that govern long-distance calling be affected. All three-digit numbers, including 211, 311, 411, 611, and 911 emergency service (where applicable) remain the same and do not require the inclusion of an area code.

Awards and Community TELUS honoured for innovative learning and development

TELUS received a prestigious Industry Achievement Award for global leadership in supporting team member growth and professional development. SkillSoft, the international leader in eLearning, presented the award to TELUS at its 2008 Global Perspectives Awards gala. The award is presented to organizations that have maintained a long-standing leadership role in training and development. The judging panel reviewed the internal learning programs and resources submitted by more than 100 companies around the world, and selected only five companies as being true innovators. TELUS ranked first, with UPS, Verizon, FedEx and Hitachi also taking home awards as well.

Annual report recognized by international communicators

For the fourth consecutive year, the TELUS annual report was recognized by the International Association of Business Communications (IABC) with its prestigious Gold Quill Award. The Gold Quill Awards are the mark of global distinction and a hallmark of excellence in business communications. The awards are the communication professional's equivalent of the Oscars and recognize programs with clear strategies that demonstrate a full range of planning and management such as research, analysis and evaluation as well as the highest level of technical and creative skill.

TELUS receives IT Hero Award

The Information Technology Association of Canada (ITAC) handed TELUS the Corporate IT Hero Award for its involvement with Upopolis - a secure online social network designed exclusively for hospitalized children. Upopolis empowers kids to learn about their illness and have access to their homework while helping them stay connected with friends, teachers and family during a challenging time in their lives. The website was created by the Kids' Health Links Foundation (KHLF) using development and technology services donated by TELUS. Through Upopolis, not only can children stay connected to friends and family, they can connect with other children with the same condition. Upopolis also provides young patients with a personal profile, secure mail, instant chat, discussion boards, personal blogs and links to child-friendly games, as well as a homework site, and kid-friendly health and wellness information.

BC Children's Hospital Foundation hits the "green" with Skins caddie auction

Five Canadian golf fans had the chance of a lifetime to caddie for the PGA pros at the TELUS World Skins Game in support of BC Children's Hospital Foundation. This year's caddie auction brought in $45,000 for BC Children's Hospital Foundation, adding up to a total of more than $126,000 that has now been raised from TELUS World Skins Game caddie auctions in support of local charities since the fundraiser was created. The annual charity caddie auction allowed golf fans to bid at eBay.ca for the chance to caddie for one of their favourite professional golfers. The five highest bidders were given the opportunity to caddie at Predator Ridge June 16-17 for PGA golf stars Mike Weir who represented Canada, Fred Couples - United States, Greg Norman - Australia, Colin Montgomerie - Scotland, and rising young star Camilo Villegas who represented Colombia. The TELUS Skins Game raised $185,000 for the hospital foundation this year, which was increased to $250,000 by TELUS and its team members.

Thousands come out for TELUS Day of Service

On May 31, more than 8,600 TELUS team members, alumni, family and friends took a day out of their busy schedules to give where they live during the TELUS Day of Service - a nation-wide volunteer drive designed to make a difference in the communities where team members live and work. Team members participated in more than 200 volunteer activities through 137 charitable organizations in 23 regions across the country and the Phillipines. This included Victoria, Vancouver, Prince George, Kamloops, Kelowna, Calgary, Lethbridge, Red Deer, Edmonton, Grande Prairie, Toronto, Barrie, Ottawa, Montreal, Quebec City, Rimouski and Manila. Participants logged more than 27,000 volunteer hours on this one special day to support worthwhile causes. Volunteer efforts included ecological face lifts to city parks, sorting thousands of pounds of food bank donations and planting dozens of trees.

TELUS sponsors Walk to Cure Diabetes

The TELUS Walk to Cure Diabetes took place across Canada between May and June. TELUS' sponsorship of the Juvenile Diabetes Research Foundation's (JDRF) biggest fundraising event underscores the commitment TELUS has made to this partnership and to funding research to help the more than 200,000 Canadians affected by Type 1 diabetes. This was the first year of a three year partnership with JDRF. More than 2,100 TELUS team members took part, raising $460,000 for this worthwhile cause.

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 October 1, 2008 to holders of record at the close of business on September 10, 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 $9.4 billion of annual revenue and 11.4 million customer connections including 5.8 million wireless subscribers, 4.3 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 Management's discussion and analysis 2008 Q2 ------------------------------------------ Caution regarding forward-looking statements -------------------------------------------------------------------------

This document and Management's discussion and analysis contain forward- looking statements about expected future events and financial and operating results of TELUS Corporation (TELUS or the Company, and where the context of the narrative permits or requires, its subsidiaries). 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 (see Section 9). Subject to legal requirements, this practice may be changed at any time at the Company's sole discretion.

Assumptions for 2008 guidance include: --------------------------------------

Economic growth consistent with recent provincial and national estimates by the Conference Board of Canada, including revised Canadian gross domestic product (GDP) growth of 1.7% 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%; the target for consolidated capital expenditures explicitly excluded the purchase of wireless spectrum in the advanced wireless services (AWS) spectrum auction; in addition to capital expenditures, AWS auction expenditures of approximately $880 million are expected to be recognized in the third quarter of 2008; no new wireless competitive entrants are assumed for 2008; approximately $30 million restructuring expenses (up from $20.4 million in 2007); a blended statutory tax rate of approximately 30.5 to 31.5%; 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 likelihood of new wireless competitors beginning to offer services in 2009 following the AWS spectrum auction); economic growth and fluctuations (including pension performance, funding and expenses); capital expenditure levels (increased in 2008 by purchases of wireless spectrum in the AWS auction); financing and debt requirements (including funding 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 interpretation and application of tower sharing and roaming rules, the design and impact of future spectrum auctions, 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 in its filings in the United States, including Form 40-F (on EDGAR at http://www.sec.gov/).

For further information, see Section 10: Risks and risk management of TELUS' 2007 annual and first quarter 2008 Management's discussions and analyses, as well as updates in Section 10 of this document.

------------------------------------------------------------------------- Management's discussion and analysis August 6, 2008

The following is a discussion of the consolidated financial condition and results of operations of TELUS Corporation for the three-month and six-month periods ended June 30, 2008 and 2007, and should be read together with TELUS' interim Consolidated financial statements. 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' interim Consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP), which differ in certain respects from U.S. GAAP. The principal differences between Canadian and U.S. GAAP, as they relate to TELUS, are summarized in Note 20 of the interim Consolidated financial statements. Management's discussion and analysis and the interim Consolidated financial statements were reviewed by TELUS' Audit Committee and approved by TELUS' Board of Directors. All amounts are in Canadian dollars unless otherwise specified.

TELUS has issued guidance on and reports on certain non-GAAP measures used by management to evaluate performance of business units, segments and the Company. Non-GAAP measures are also used to determine compliance with debt covenants and 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 reader's reference, the definition, calculation and reconciliation of consolidated non-GAAP measures are provided in Section 11: Reconciliation of non-GAAP measures and definitions.

Management's discussion and analysis contents ------------------------------------------------------------------------- Section Contents ------------------------------------------------------------------------- 1. Introduction Introduction and summary of TELUS' consolidated results for the second quarter and first six months of 2008 ------------------------------------------------------------------------- 2. Core business, vision A discussion of activities in support of and strategy TELUS' six strategic imperatives ------------------------------------------------------------------------- 3. Key performance drivers A listing of corporate priorities for 2008 ------------------------------------------------------------------------- 4. Capability to deliver A description of the factors that affect results the capability to execute strategies, manage key performance drivers and deliver results ------------------------------------------------------------------------- 5. Results from operations A detailed discussion of operating results for the second quarter and first six months of 2008 ------------------------------------------------------------------------- 6. Financial condition A discussion of significant changes in TELUS' balance sheets for the six-month period ended June 30, 2008 ------------------------------------------------------------------------- 7. Liquidity and capital A discussion of cash flow, liquidity, resources credit facilities and other disclosures ------------------------------------------------------------------------- 8. Critical accounting A description of accounting estimates that estimates and accounting are critical to determining financial policy developments results, and changes to accounting policies ------------------------------------------------------------------------- 9. Annual guidance for 2008 TELUS' revised annual guidance ------------------------------------------------------------------------- 10. Risks and risk management An update on certain risks and uncertainties facing TELUS and how the Company manages these risks ------------------------------------------------------------------------- 11. Reconciliation of A description, calculation and non-GAAP measures and reconciliation of certain measures used by definitions management ------------------------------------------------------------------------- 1. Introduction 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 Key industry development

On June 30, 2007, Canada's largest telecommunications service provider BCE Inc. 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 several co- investors, recently confirmed by BCE to be the U.S.-based Providence Equity Partners, Madison Dearborn Partners, LLC and Merrill Lynch Global Private Equity. 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. In June 2008, the CRTC (Canadian Radio-television and Telecommunications Commission) approved the change in control of BCE's broadcasting licences. Industry Canada also approved the acquisition. A challenge before the Supreme Court of Canada by certain BCE bond holders was also dismissed in June. BCE has indicated that it expects the transaction to close on or before December 11, 2008.

Wireless developments - advanced wireless service (AWS) and other spectrum auction in the 2 GHz range

Industry Canada conducted a wireless spectrum licence auction between May 27 and July 21, 2008 for 90 MHz of AWS spectrum (including 40 MHz set aside for new entrants), 10 MHz for personal communications network (PCS) service extension, and 5 MHz for another small band. The auction concluded after 331 rounds with Industry Canada reporting total proceeds of $4,255 million (average of $1.55/MHz/POP for AWS and PCS spectrum, where POP refers to person of population).

TELUS was advised that it was the provisionally successful bidder on 59 spectrum licences of 20 MHz or 10 MHz in the 1700/2100 MHz ranges, providing additional spectrum depth nationally in markets TELUS already covers. The cost of spectrum licences won was approximately $880 million. TELUS expects to receive the licences after final payment and after demonstrating compliance with Canadian ownership requirements, both expected to occur in the third quarter of 2008. Each of the other AWS spectrum auction provisional winners must also comply with both Canadian ownership and payment requirements. The average spectrum acquired by TELUS was 16.2 MHz at an average cost of $1.82/MHz/POP. See also Building national capabilities in Section 2, as well as Section 4.1 Principal markets addressed and competitors and Section 10.1 Regulatory.

In the third quarter of 2008, in accordance with the terms of the auction, the Company expects that the amount of successful bids will be paid through a combination of drawing on its credit facilities and utilization of cash on hand.

------------------------------------------------------------------------- Licences acquired by TELUS in the May 27 to July 21, 2008 Industry Canada spectrum auction ------------------------------------------------------------------------- Number of licences Bandwidth acquired Geographic areas ------------------------------------------------------------------------- 20 MHz comprised of 10 MHz 32 Quebec, SW Ontario, Ottawa in the 1700 MHz range paired Region, Manitoba, with 10 MHz in the 2100 MHz Saskatchewan, Alberta and range B.C. 10 MHz comprised of 5 MHz in 27 Yukon, Northwest the 1700 MHz range paired with Territories & Nunavut, 5 MHz in the 2100 MHz range Newfoundland & Labrador, Nova Scotia, New Brunswick, P.E.I., N. Ontario, Central Ontario, and Toronto ------------------------------------------------------------------------- 1.3 Consolidated highlights

The chief executive officer, who is the chief operating decision-maker, regularly receives TELUS' consolidated reports on two bases: including and excluding (as shown in the "as adjusted" calculations) an incremental charge for introducing a net-cash settlement feature for share option awards granted prior to 2005. The highlights table below presents both views.

------------------------------------------------------------------------- Consolidated highlights ($ millions, except shares, per-share amounts, Quarters ended June 30 subscribers and ratios) 2008 2007 Change ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated statements of income ------------------------------------------------------------------------- Operating revenues 2,398.7 2,228.1 7.7 % Operating income 498.1 493.8 0.9 % Net-cash settlement feature (recovery) expense (0.3) 1.8 n.m. --------- --------- --------- Operating income (as adjusted) 497.8 495.6 0.4 % Income before income taxes 381.4 348.1 9.6 % Net-cash settlement feature (recovery) expense (0.3) 1.8 n.m. --------- --------- --------- Income before income taxes (as adjusted) 381.1 349.9 8.9 % Net income 267.0 253.1 5.5 % Net-cash settlement feature, after tax (0.2) 1.3 n.m. --------- --------- --------- Net income (as adjusted) 266.8 254.4 4.9 % Earnings per share, basic ($) 0.83 0.76 9.2 % Net-cash settlement feature per share - - - % --------- --------- --------- Earnings per share, basic (as adjusted) ($) 0.83 0.76 9.2 % Earnings per share, diluted ($) 0.83 0.75 10.7 % Cash dividends declared per share ($) 0.45 0.375 20.0 % ------------------------------------------------------------------------- Consolidated statements of cash flows ------------------------------------------------------------------------- Cash provided by operating activities 461.0 1,061.9 (56.6)% Cash used by investing activities 436.7 477.8 (8.6)% Capital expenditures 435.6 481.8 (9.6)% Cash (used) provided by financing activities (27.7) (1,115.9) 97.5 % ------------------------------------------------------------------------- Subscribers and other measures ------------------------------------------------------------------------- Subscriber connections(1) (thousands) 11,363 10,885 4.4 % EBITDA(2) 917.6 884.6 3.7 % Net-cash settlement feature expense (0.3) 1.8 n.m. --------- --------- --------- EBITDA (as adjusted) 917.3 886.4 3.5 % Free cash flow(3) 302.3 161.7 87.0 % ------------------------------------------------------------------------- Debt and payout ratios(4) ------------------------------------------------------------------------- Net debt to EBITDA - excluding restructuring costs 1.7 1.8 (0.1) Dividend payout ratio (%) 52 48 4 pts ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated highlights ($ millions, except shares, per-share amounts, Six-month periods ended June 30 subscribers and ratios) 2008 2007 Change ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated statements of income ------------------------------------------------------------------------- Operating revenues 4,749.3 4,433.7 7.1 % Operating income 1,025.5 890.8 15.1 % Net-cash settlement feature (recovery) expense (0.1) 175.3 n.m. --------- --------- --------- Operating income (as adjusted) 1,025.4 1,066.1 (3.8)% Income before income taxes 782.6 623.7 25.5 % Net-cash settlement feature (recovery) expense (0.1) 175.3 n.m. --------- --------- --------- Income before income taxes (as adjusted) 782.5 799.0 (2.1)% Net income 558.0 447.9 24.6 % Net-cash settlement feature, after tax (0.1) 109.0 n.m. --------- --------- --------- Net income (as adjusted) 557.9 556.9 0.2 % Earnings per share, basic ($) 1.73 1.34 29.1 % Net-cash settlement feature per share - 0.33 (100.0)% --------- --------- --------- Earnings per share, basic (as adjusted) ($) 1.73 1.67 3.6 % Earnings per share, diluted ($) 1.72 1.32 30.3 % Cash dividends declared per share ($) 0.90 0.75 20.0 % ------------------------------------------------------------------------- Consolidated statements of cash flows ------------------------------------------------------------------------- Cash provided by operating activities 1,086.2 1,522.5 (28.7)% Cash used by investing activities 1,437.1 870.1 65.2 % Capital expenditures 755.3 863.7 (12.6)% Cash (used) provided by financing activities 376.7 (638.7) n.m. ------------------------------------------------------------------------- Subscribers and other measures ------------------------------------------------------------------------- Subscriber connections(1) (thousands) EBITDA(2) 1,867.1 1,648.9 13.2 % Net-cash settlement feature expense (0.1) 175.3 n.m. --------- --------- --------- EBITDA (as adjusted) 1,867.0 1,824.2 2.3 % Free cash flow(3) 882.1 642.5 37.3 % ------------------------------------------------------------------------- Debt and payout ratios(4) ------------------------------------------------------------------------- Net debt to EBITDA - excluding restructuring costs Dividend payout ratio (%) ------------------------------------------------------------------------- ------------------------------------------------------------------------- pt; pts - percentage point(s) (1) 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. (2) EBITDA is a non-GAAP measure. See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). (3) Free cash flow is a non-GAAP measure. See Section 11.2 Free cash flow. (4) See Section 7.4 Liquidity and capital resource measures and Section 11.4 Definitions of liquidity and capital resource measures. -------------------------------------------------------------------------

Highlights for the second quarter and first six months of 2008, as discussed in Section 5: Results from operations, include the following:

- Subscriber connections increased by 478,000 in the twelve-month period ended June 30, 2008. The number of wireless subscribers grew by 10.6% to 5.83 million, the number of Internet subscribers grew by 6.3% to 1.21 million and the number of network access lines decreased by 3.4% to 4.33 million. - Wireless gross subscriber additions increased to a TELUS second quarter record of 422,200, or up 19%, when compared to the same period in 2007, and were positively influenced by the introduction of a new brand. Wireless average revenue per subscriber unit per month (ARPU) was $62.73 in the second quarter of 2008, up $0.85 from the first quarter of 2008, but $0.92 lower than the second quarter of 2007. - Operating revenues increased by $170.6 million and $315.6 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. The increases were due primarily to growth in wireless network revenues and wireline data revenues (including revenues from Emergis), which more than offset revenue declines in wireline voice local and long distance. - Operating income adjusted to exclude the net-cash settlement feature increased by $2.2 million in the second quarter of 2008, when compared to the same period in 2007, as the increase in EBITDA (as adjusted) exceeded higher depreciation and amortization expenses. Operating income (as adjusted) decreased by $40.7 million for the first six months of 2008, primarily due to an additional three months amortization for a new billing system and increased depreciation, which partly offset increased EBITDA (as adjusted). - Excluding the effect of the net-cash settlement feature, Income before income taxes (as adjusted) increased by $31.2 million in the second quarter and decreased by $16.5 million in the first six months of 2008, due to changes in operating income (as adjusted) noted above and lower financing and other expenses. - Net income increased by $13.9 million or seven cents per share in the second quarter of 2008 when compared to the same period in 2007. For the first six months of 2008, Net income increased by $110.1 million or 39 cents per share when compared to the same period in 2007. ------------------------------------------------------------------------- Net income changes Quarters ended Six-month periods ($ millions) June 30 ended June 30 ------------------------------------------------------------------------- 2007 Net income 253.1 447.9 Tax-effected changes: Lower net-cash settlement feature 1.5 109.1 Higher EBITDA as adjusted(1) 21.4 29.6 Higher depreciation and amortization(1), excluding investment tax credits in 2007 (19.8) (54.4) Lower interest expenses(1) 10.8 17.1 Tax-related adjustments (see Section 5.2) (10.0) 3.0 Other 10.0 5.7 ------------------------------------------------------------------------- 2008 Net income 267.0 558.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) at 2008 blended statutory tax rates ------------------------------------------------------------------------- - Average shares outstanding during the first six months of 2008 were 4% lower than the same period in 2007, due to repurchases under normal course issuer bid (NCIB) programs. The Company purchased 0.95 million Common Shares and 3.69 million Non-Voting Shares for a total outlay of $199.2 million in the first half of 2008. Highlights for the second quarter and first six months of 2008, as discussed in Section 7: Liquidity and capital resources, include the following: - Cash provided by operating activities decreased by $600.9 million and $436.3 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. For the second quarter period, a $350 million reduction in proceeds from securitized receivables during 2008 compared to a $350 million increase in proceeds in 2007, for a comparative reduction in cash flow of $700 million. For the six-month period, a $350 million reduction in proceeds from securitized receivables in 2008 compared to no change in 2007. - Cash used by investing activities decreased by $41.1 million in the second quarter of 2008 and increased by $567.0 million during the first six months of 2008, when compared to the same periods in 2007. The decrease for the second quarter was mainly from higher wireless capital expenditures in the prior year to extend higher speed EVDO (evolution data optimized) coverage. The increase for the first six months of 2008 was due mainly to the January 2008 acquisition of Emergis, partly offset by lower wireless capital expenditures. - Net cash used by financing activities decreased by $1,088.2 million during the second quarter of 2008, when compared to the same period in 2007, due to a number of factors, including repayment of $1.5 billion maturing Notes in June 2007, net of the April 2008 issue of $500 million Notes (see next paragraph). Net Cash provided by financing activities for the first six months of 2008 increased by $1,015.4 million when compared to the same period in 2007, due mainly to the April 2008 debt issue, increases in net amounts drawn from the 2012 credit facility and commercial paper in 2008, as well as lower share purchases under NCIB programs. On April 9, 2008, TELUS successfully closed an offering of 5.95%, Series CE, Notes due April 15, 2015, for aggregate gross proceeds of approximately $500 million. The net proceeds of the offering were used for general corporate purposes including repayment of amounts under the 2012 credit facility, and to refinance short-term financing sources, which had been utilized in January for purchase of the then issued and outstanding Emergis common shares for $743 million. - Free cash flow increased by $140.6 million and $239.6 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. The increases were mainly due to lower capital expenditures, improved EBITDA (as adjusted), and lower paid interest. Free cash flow was supplemented in the first half of 2008 by financing activities to complete acquisitions totalling $691.3 million, net of acquired cash. - Net debt to EBITDA at June 30, 2008 was 1.7, unchanged from the measure at December 31, 2007, continuing the achievement of the Company's long-term target policy range of 1.5 to 2.0 times. - The dividend payout ratio, based on the annualized second quarter dividend and earnings for the 12-month trailing period ended June 30, 2008 (excluding favourable tax-related adjustments), was 52%, within the Company's guideline. 2. Core business, vision and strategy

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis. It is also qualified by Section 10: Risks and risk management of TELUS' 2007 annual and 2008 first quarter Management's discussion and analyses, as well as updates reported in Section 10 of this document.

TELUS' core business, vision and strategy were detailed in its 2007 Management's discussion and analysis. Activities that supported the Company's six strategic imperatives during the second quarter of 2008 include the following:

Building national capabilities across data, IP, voice and wireless

TELUS successfully bid on 20 MHz and 10 MHz blocks of advanced wireless services (AWS) spectrum in the 1700 MHz/2100 MHz ranges in the Industry Canada auction concluded July 21. The average spectrum won by TELUS was 16.2 MHz nationally, which increases TELUS' strong spectrum position, and is expected to provide capacity for the introduction of future 4G (fourth generation) service offerings.

Focusing relentlessly on the growth markets of data, IP and wireless

The second quarter of 2008 is the first full period including the operations of TELUS' wireless postpaid value brand. In March, TELUS launched this new brand and service to better address segments of the wireless market and complement the fully featured TELUS brand service. The expected benefits include more flexibility in serving various market segments, increasing postpaid customer additions, protecting revenue on the premium TELUS brand, and improving client retention programs.

Building integrated solutions that differentiate TELUS from its competitors

In June, the Company launched three new global positioning system (GPS) solutions for businesses with mobile workers. TELUS Asset Tracker enables businesses to keep track of assets, whether large or small. TELUS Resource Tracker allows businesses to increase safety and productivity through real- time location monitoring of workers. TELUS Track and Dispatch gives businesses the ability to determine the closest mobile worker to a new job assignment or to immediately dispatch help if a worker needs assistance. These new solutions are part of the Company's suite of wireless GPS solutions on the PCS network that also features TELUS Fleet Tracker, a fleet monitoring and tracking solution, and TELUS Navigator, a GPS turn-by-turn navigation solution.

Partnering, acquiring and divesting to accelerate the implementation of TELUS' strategy and focus TELUS' resources on core business

TELUS Ventures received a very positive return from its 2001 minority investment in Hostopia (TSX: H), a provider of private-branded web hosting, email and e-commerce solutions to telecommunications and cable TV companies, Internet service providers, domain registrars, and other Web service providers. This arose from Deluxe Corporation's all cash offer for Hostopia in June, which was recommended for approval by Hostopia's Board of Directors. Shareholder approval was obtained in late July and the deal closed in early August. TELUS Ventures invested in Hostopia to complement TELUS' existing services and to be its key supplier, as part of TELUS' strategy to benefit from emerging technologies that fill the Company's capability gaps.

Going to the market as one team under a common brand, executing a single strategy

Acquired in January 2008 and re-branded "Emergis, a TELUS company," the post-merger integration process continued into the second quarter in order to ensure a seamless transition for team members and customers, while ensuring a focus on achieving strategic business goals. This included the identification of top joint-sales opportunities and working together to close multi-million dollars of new contracts. The teams also initiated an update to the three-year strategic business plans for healthcare and financial services. In addition, during the quarter certain business functions were aligned, including Finance, Human Resources and Marketing.

Investing in internal capabilities to build a high-performance culture and efficient operations

In mid-July, following a large trial, TELUS successfully converted more than one million wireline residential customers in British Columbia to a new billing and client care system. This converges to the system in Alberta, and for the first time most customers in Alberta and B.C. are now on the same billing and client care system. During the B.C. conversion, TELUS has applied learnings from the Alberta conversion in 2007 and early experience has been positive. The expected customer service and cost benefits of this project include streamlined and standardized processes and the elimination over time of multiple legacy information systems. See Section 4.2 for additional information on the July conversion.

3. Key performance drivers

The following is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis. It is also qualified by Section 10: Risks and risk management of TELUS' 2007 annual and 2008 first quarter Management's discussions and analyses, as well as updates reported in Section 10 of this document.

Management sets new corporate priorities each year to advance TELUS' strategy, focus on the near-term opportunities and challenges, and create value for shareholders.

------------------------------------------------------------------------- 2008 corporate priorities ------------------------------------------------------------------------- Drive profit from strategic services with a focus on data ------------------------------------------------------------------------- Build scale in vertical markets and leverage the Emergis acquisition ------------------------------------------------------------------------- Exact productivity gains from efficiency improvement initiatives ------------------------------------------------------------------------- Elevate the client experience and build enhanced loyalty ------------------------------------------------------------------------- Execute technology initiatives, including broadband and IT platforms ------------------------------------------------------------------------- 4. Capability to deliver results

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis. It is also qualified by Section 10: Risks and risk management of TELUS' 2007 annual and 2008 first quarter Management's discussions and analyses, as well as updates reported in Section 10 of this document.

4.1 Principal markets addressed and competitors

At June 30, 2008, the principal markets addressed and competitors have not changed significantly from those described in TELUS' 2007 Management's discussion and analysis. Wireless competition is expected to increase in the future, as several potential entrants have provisionally acquired spectrum regionally in the AWS spectrum auction concluded in July 2008, as summarized below. Under the auction rules, successful bidders are subject to confirmation of eligibility and must complete payments within 30 business days of the auction close. Potential new entrants are expected to begin offering services in 2009 or later, as they establish operations, and build wireless networks in areas where they have won spectrum. Some new entrants may form alliances with one another. See Section 10.1 Regulatory,

------------------------------------------------------------------------- Existing and potential competitors acquiring licences in the May 27 to July 21, 2008 Industry Canada spectrum auction ------------------------------------------------------------------------- Competitor Primary geographic focus ------------------------------------------------------------------------- Incumbent national facilities- based competitors Rogers Communications Inc. Expansion of existing national capacity Bell Mobility Inc. Expansion of existing national capacity TELUS Expansion of existing national capacity ------------------------------------------------------------------------- Incumbent provincial facilities- based competitors MTS Allstream Expansion of existing Manitoba capacity SaskTel Expansion of existing Saskatchewan capacity ------------------------------------------------------------------------- Potential new entrants(1) Globalive Wireless LP Spectrum in most regions, but excluding most of Quebec Data & Audio-Visual Enterprises Spectrum in most major centres, except in Quebec and Atlantic Canada 6934579 Canada Inc. Spectrum in S. and E. Ontario and S. and E. Quebec Quebecor (9193-2962 Quebec Inc.) Regional spectrum in Quebec and parts of Ontario Shaw Communications Inc. Regional spectrum in Western Canada and N. Ontario Bragg Communications Inc. Regional spectrum in Atlantic Canada and SW Ontario; Grande Prairie, Alberta Novus Wireless Inc. Provincial spectrum in B.C. and Alberta Blue Canada Wireless Inc. Provincial spectrum in Nova Scotia and P.E.I. Others 3 local areas in total ------------------------------------------------------------------------- (1) Subject to building a wireless network in the geographic areas where they elect to complete. ------------------------------------------------------------------------- 4.2 Operational capabilities Development of a new billing and client care system in the wireline segment

A pilot implementation for approximately 150,000 residential customers in B.C. began in May 2008 and a subsequent system conversion for more than one million B.C. residential customers was completed in mid-July 2008. The Company applied key learnings from the Alberta conversion in 2007 and initial indications are that the cutover went well. The critical billing function performed as expected, while billing cycles were maintained. The order entry system also performed well, without capacity and stability issues experienced initially with the Alberta conversion in 2007. Service levels have not been materially impacted following the 2008 conversion. See Section 10.2 Process risks.

4.3 Liquidity and capital resources Capital structure financial policies (Note 3 of the Consolidated financial statements)

The Company's objectives when managing capital are: (i) to maintain a flexible capital structure that optimizes the cost of capital at an acceptable risk level; and (ii) to manage capital in a manner which balances the interests of equity and debt holders.

In the management of capital, the Company includes in the definition of capital: shareholders' equity (excluding accumulated Other comprehensive income), long-term debt (including any associated hedging assets or liabilities, net of amounts recognized in accumulated Other comprehensive income), cash and temporary investments and securitized accounts receivable.

The Company manages the capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, purchase shares for cancellation pursuant to normal course issuer bids, issue new shares, issue new debt, issue new debt to replace existing debt with different characteristics and/or increase or decrease the amount of sales of trade receivables to an arm's-length securitization trust.

The Company monitors capital utilizing a number of measures, including: net debt to EBITDA - excluding restructuring costs; and dividend payout ratio of sustainable net earnings. For further discussion, see Section 7.4 Liquidity and capital resource measures.

Liquidity and financing ------------------------------------------------------------------------- TELUS' 2008 financing plan and results to-date ------------------------------------------------------------------------- Repurchase TELUS Common Shares and TELUS Non-Voting Shares under the normal course issuer bid (NCIB) In the first six months of 2008, the Company repurchased for cancellation, 0.95 million Common Shares and 3.69 million Non-Voting Shares for a total outlay of $199.2 million. See Section 7.3 Cash used by financing activities. Pay dividends Dividends declared for the second quarter of 2008 were 45 cents per share, up by 20% from 37.5 cents per share in the same period in 2007. Use proceeds from securitized receivables and bank facilities, as needed, to supplement free cash flow and meet other cash requirements At June 30, 2008, the balance of proceeds from securitized accounts receivable was $150 million, a reduction of $350 million from March 31, 2008 and December 31, 2007. The reduction in securitized accounts receivable in the current quarter was completed following the closing of the public debt issue described below. In January 2008, the Company increased utilization of its existing $2 billion credit facility. The proceeds were used for general corporate purposes, including the purchase of Emergis. At June 30, 2008, $162.0 million was drawn on the 2012 revolving credit facility, down from $320.9 million at March 31, 2008, and up from the nil amount drawn at the beginning of the year. Maintain compliance with financial objectives, policies and guidelines Maintain a minimum $1 billion in unutilized liquidity - On March 3, 2008, the Company closed a new $700 million, 364-day credit facility with a select group of Canadian banks. This new facility provides incremental liquidity to TELUS and allows the Company to continue to meet one of its financial objectives, which is to generally maintain $1 billion in available liquidity. The Company had unutilized credit facilities exceeding $1.5 billion at June 30, 2008, including the 364-day facility. See Section 7.5 Credit facilities. Net debt to EBITDA excluding restructuring costs ratio of 1.5 to 2.0 times - actual result of 1.7 times at June 30, 2008. Dividend payout ratio of 45 to 55% of sustainable net earnings - the ratio was 43%, based on the annualized second quarter dividend rate and actual earnings for the 12-month trailing period ended June 30, 2008. The ratio was 52% when calculated to exclude the impacts of favourable tax- related adjustments from earnings for the 12-month trailing period ended June 30, 2008. Maintain position of fully hedging foreign exchange exposure for indebtedness Maintained for the 8.00% U.S. dollar Notes due 2011, the one remaining foreign currency-denominated debt issue. Give consideration to accessing the public debt markets in 2008 to refinance short-term financing sources with long-term financing On April 9, TELUS successfully closed its offering of 5.95%, Series CE, Notes due April 15, 2015, for aggregate gross proceeds of approximately $500 million. The net proceeds of the offering were used for general corporate purposes including repayment of amounts under the 2012 credit facility, and to refinance short-term financing sources. Preserve access to the capital markets at a reasonable cost by maintaining investment grade credit ratings and targeting improved credit ratings in the range of BBB+ to A-, or the equivalent, in the future At August 6, 2008, investment grade credit ratings from the four rating agencies that cover TELUS were in the desired range. TELUS' April 2008 debt issue was assigned credit ratings of: A (low) by DBRS Ltd., Baa1 by Moody's Investors Service, BBB+ by Fitch Ratings, and BBB+ by Standard and Poor's, all with a stable trend or outlook and all consistent with the agencies' existing ratings for TELUS debt securities. See Section 7.7 Credit ratings. ------------------------------------------------------------------------- 4.4 Disclosure controls and procedures and internal control over financial reporting Changes in internal control over financial reporting

There were no changes in internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

5. Results from operations 5.1 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, customer characteristics, 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, who is the chief operating decision- maker. See Note 5 of the interim Consolidated financial statements.

5.2 Quarterly results summary ------------------------------------------------------------------------- ($ in millions, except per share amounts) 2008 Q2 2008 Q1 2007 Q4 2007 Q3 ------------------------------------------------------------------------- Operating revenues 2,398.7 2,350.6 2,330.8 2,309.9 Operations expense, excluding net-cash settlement feature 1,476.9 1,394.2 1,370.7 1,323.7 Net-cash settlement feature (0.3) 0.2 0.6 (7.2) Restructuring costs 4.5 6.7 6.1 6.4 ------------------------------------------------------------------------- EBITDA(1) 917.6 949.5 953.4 987.0 Depreciation 343.5 345.7 386.2 332.5 Amortization of intangible assets 76.0 76.4 68.1 70.1 ------------------------------------------------------------------------- Operating income 498.1 527.4 499.1 584.4 Other expense (income) 2.4 16.8 5.8 8.0 Financing costs 114.3 109.4 109.1 86.2 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 381.4 401.2 384.2 490.2 Income taxes 113.5 109.4 (18.0) 78.6 Non-controlling interests 0.9 0.8 2.1 1.7 ------------------------------------------------------------------------- Net income 267.0 291.0 400.1 409.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per Common Share and Non-Voting Share - basic 0.83 0.90 1.23 1.24 - diluted 0.83 0.90 1.22 1.23 Dividends declared per Common Share and Non-Voting Share 0.45 0.45 0.45 0.375 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ($ in millions, except per share amounts) 2007 Q2 2007 Q1 2006 Q4 2006 Q3 ------------------------------------------------------------------------- Operating revenues 2,228.1 2,205.6 2,254.6 2,210.7 Operations expense, excluding net-cash settlement feature 1,338.5 1,263.1 1,362.4 1,239.7 Net-cash settlement feature 1.8 173.5 - - Restructuring costs 3.2 4.7 7.9 12.5 ------------------------------------------------------------------------- EBITDA(1) 884.6 764.3 884.3 958.5 Depreciation 318.3 317.7 353.2 325.8 Amortization of intangible assets 72.5 49.6 53.9 57.5 ------------------------------------------------------------------------- Operating income 493.8 397.0 477.2 575.2 Other expense (income) 18.5 3.8 10.1 4.0 Financing costs 127.2 117.6 133.6 116.6 ------------------------------------------------------------------------- Income before income taxes and non-controlling interest 348.1 275.6 333.5 454.6 Income taxes 93.7 79.3 91.6 128.3 Non-controlling interests 1.3 1.5 1.4 2.4 ------------------------------------------------------------------------- Net income 253.1 194.8 240.5 323.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income per Common Share and Non-Voting Share - basic 0.76 0.58 0.71 0.95 - diluted 0.75 0.57 0.70 0.94 Dividends declared per Common Share and Non-Voting Share 0.375 0.375 0.375 0.275 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) EBITDA is a non-GAAP measure. See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). ------------------------------------------------------------------------- Trends

The consolidated revenue trend continues to reflect growth in wireless network revenues generated from an increasing subscriber base. Wireless ARPU (average revenue per subscriber unit per month) for the second quarter of 2008 was up $0.85 from the first quarter of 2008, but declined $0.92 on a year-over- year basis. The decrease is a result of declining voice ARPU more than offsetting strong data growth. The voice ARPU decline reflects a shifting product mix, pricing competition and increased use of in-bucket, or included- minute service plans.

The trend in consolidated revenues also reflects strong growth in wireline data revenue, including new revenues from two January 2008 acquisitions. For the 2007 and 2006 periods shown above, growth in data revenue was 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. Second quarter 2008 residential network access line losses improved when compared to the same period one-year earlier - the first quarterly improvement year-over-year since the fourth quarter of 2004. Partially offsetting the continuing line losses on the residential side were gains in business network access lines.

Historically, there is significant fourth quarter seasonality with higher wireless subscriber additions and related acquisition costs and equipment sales, resulting in lower wireless EBITDA. There is a less pronounced fourth quarter seasonal effect for wireline high-speed Internet subscriber additions and related costs.

The sequential increase in Operations expenses beginning with the first quarter 2008 (excluding the net-cash settlement feature) included expenses from January acquisitions. As described in Section 1.3, beginning with the first quarter of 2007, quarterly Operations expenses include expenses or recoveries for introducing a net-cash settlement feature for share option awards granted prior to 2005.

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 as compared to 2007, due to a planned increase in capital assets and a reduction in the estimated useful lives for certain circuit-switching and other assets. See Caution regarding forward-looking statements.

The sequential increase in amortization of intangible assets in the first quarter of 2008 was due mainly to acquisitions. A major new wireline billing and client care system was put into service for Alberta residential customers in March 2007, resulting in $18 million of additional amortization each period beginning in the second quarter of 2007. In addition, amortization expenses in the fourth quarter of 2006 and the first quarter of 2007 were each reduced by approximately $5 million 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. Amortization is expected to increase significantly for the full year of 2008 as compared to 2007, due to the Emergis acquisition and the July 2008 implementation of new phases of converged client care and billing system. See Caution regarding forward-looking statements.

Within Financing costs shown in the preceding table, interest expenses trended lower as financing activities have lowered the effective interest rate. The sequential decline in financing costs in the third quarter of 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 trends in Net income and earnings per share (EPS) 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. EPS has been positively impacted by decreased shares outstanding from ongoing share re-purchases.

------------------------------------------------------------------------- Tax-related adjustments ($ in millions, except EPS amounts) 2008 Q2 2008 Q1 2007 Q4 2007 Q3 ------------------------------------------------------------------------- Approximate Net income impact - 17 143 93 Approximate EPS impact - 0.05 0.44 0.28 Approximate basic EPS excluding tax-related impacts 0.83 0.85 0.79 0.96 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Tax-related adjustments ($ in millions, except EPS amounts) 2007 Q2 2007 Q1 2006 Q4 2006 Q3 ------------------------------------------------------------------------- Approximate Net income impact 10 4 20 30 Approximate EPS impact 0.03 0.01 0.06 0.09 Approximate basic EPS excluding tax-related impacts 0.73 0.57 0.65 0.86 ------------------------------------------------------------------------- 5.3 Consolidated results from operations ------------------------------------------------------------------------- ($ in millions except EBITDA margin Quarters ended June 30 in % and employees) 2008 2007 Change ------------------------------------------------------------------------- Operating revenues 2,398.7 2,228.1 7.7 % Operations expense 1,476.6 1,340.3 10.2 % Restructuring costs 4.5 3.2 40.6 % ------------------------------------------------------------------------- EBITDA(1) 917.6 884.6 3.7 % Depreciation 343.5 318.3 7.9 % Amortization of intangible assets 76.0 72.5 4.8 % ------------------------------------------------------------------------- Operating income 498.1 493.8 0.9 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(2) 1,476.9 1,338.5 10.3 % EBITDA (as adjusted)(2) 917.3 886.4 3.5 % Operating income (as adjusted)(2) 497.8 495.6 0.4 % EBITDA margin(3) 38.3 39.7 (1.4)pts EBITDA margin (as adjusted)(3) 38.2 39.8 (1.6)pts ------------------------------------------------------------------------- ------------------------------------------------------------------------- ($ in millions except EBITDA margin Six-month periods ended June 30 in % and employees) 2008 2007 Change ------------------------------------------------------------------------- Operating revenues 4,749.3 4,433.7 7.1 % Operations expense 2,871.0 2,776.9 3.4 % Restructuring costs 11.2 7.9 41.8 % ------------------------------------------------------------------------- EBITDA(1) 1,867.1 1,648.9 13.2 % Depreciation 689.2 636.0 8.4 % Amortization of intangible assets 152.4 122.1 24.8 % ------------------------------------------------------------------------- Operating income 1,025.5 890.8 15.1 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(2) 2,871.1 2,601.6 10.4 % EBITDA (as adjusted)(2) 1,866.9 1,824.2 2.3 % Operating income (as adjusted)(2) 1,025.4 1,066.1 (3.8)% EBITDA margin(3) 39.3 37.2 2.1 pts EBITDA margin (as adjusted)(3) 39.3 41.1 (1.8)pts ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) EBITDA is a non-GAAP measure. See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA). (2) Excluding net-cash settlement feature (recoveries) expenses of $(0.3) million and $(0.1) million, respectively, in the second quarter and first six months of 2008 and $1.8 million and $175.3 million, respectively, in the second quarter and first six months of 2007. (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 5.4 Wireline segment results, Section 5.5 Wireless segment results and Section 7.2 Cash used by investing activities - capital expenditures.

Operating revenues

Operating revenues increased by $170.6 million and $315.6 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. Revenue and subscriber growth continued to occur in wireless operations and wireline data services. Wireline data revenue was also positively impacted by two acquisitions completed in January 2008. Voice long distance revenues continued to erode, while voice local revenue showed a year-over-year decrease due to the effects of local competition and technological substitution.

Operations expense

Consolidated Operations expense increased by $136.3 million and $94.1 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. Operations expense adjusted to exclude the net-cash settlement feature expense increased by $138.4 million and $269.5 million, respectively. Wireline expense increases were due to acquisitions, increased cost of sales, and initial implementation costs for new wireline enterprise customers, partly offset by absence of system conversion expenses recorded in the second quarter of 2007 for a new Alberta wireline billing and client care system. Wireless expenses increased to support the 10.6% year-over-year growth in the wireless subscriber base and 9% growth in wireless network revenue, and the continued start up costs associated with the launch of a new brand. TELUS' defined benefit pension plan net amortization did not change significantly.

Restructuring costs

Restructuring costs increased by $1.3 million and $3.3 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. An aggregate annual expense of approximately $30 million is expected for several small efficiency initiatives in 2008.

EBITDA

Consolidated EBITDA increased by $33.0 million and 218.2 million, respectively, in the second quarter and first six months of 2008 when compared to the same periods in 2007. Excluding the net-cash settlement feature, consolidated EBITDA (as adjusted) increased by $30.9 million and $42.8 million, respectively, due mainly to increased wireless EBITDA (as adjusted).

Depreciation

Depreciation increased by $25.2 million and $53.2 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. The increases were due primarily to the reduction in estimated useful service lives for certain digital circuit switching and other assets, as well as growth in capital assets, partly offset by an increase in other fully depreciated assets.

Amortization of intangible assets

Amortization increased by $3.5 million and $30.3 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. The increases included $13 million and $24 million, respectively, for new acquisitions, partly offset by a lower expense due to other software and subscriber base assets becoming fully amortized, as well as accelerated amortization for Amp'd Mobile in the second quarter of 2007 following discontinuation of Amp'd services.

The increase for the first six months also includes: (i) $18 million additional amortization for a new wireline billing and client care system for Alberta residential customers that was put into service in March 2007; and (ii) the effect of amortization in the first quarter of 2007 being reduced by approximately $5 million to recognize investment tax credits, then determined eligible by the tax authority, for assets capitalized in prior years that were fully amortized. Amortization is expected to increase significantly for the full year of 2008 as compared to 2007, due to the Emergis acquisition and the July 2008 implementation of the new converged client care and billing system for residential wireline customers in B.C. See Caution regarding forward- looking statements.

Operating income

Operating income increased by $4.3 million and $134.7 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. Excluding net-cash settlement feature expenses in both years, operating income (as adjusted) increased by $2.2 million in the second quarter of 2008, when compared to the same period in 2007, as the $30.9 million increase in EBITDA (as adjusted) exceeded higher depreciation and amortization expenses. Operating income (as adjusted) decreased by $40.7 million for the first six months of 2008, primarily due to an additional three months amortization for a new billing system and increased depreciation, partly offset by the $42.8 million increase in EBITDA (as adjusted).

Other income statement items ------------------------------------------------------------------------- Six-month periods Other expense, net Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- 2.4 18.5 (87.0)% 19.2 22.3 (13.9)% -------------------------------------------------------------------------

Other expense includes accounts receivable securitization expense, charitable donations, gains and losses on disposal of real estate, and income (loss) or impairments in equity or portfolio investments. Accounts receivable securitization expenses were $1.0 million and $6.9 million, respectively, in the second quarter and first six months of 2008, or decreases of $3.9 million and $1.2 million from the same periods in 2007, which were caused by the reduction in proceeds from securitized accounts receivable by June 30, 2008 (see Section 7.6 Accounts receivable sale). Net gains and losses on investments in 2008, including valuation adjustments on investments held for trading, were gains of $3.3 million in the second quarter and losses of $6.2 million for the first six months. An $11.8 million write-off of an equity investment in AMP'D Mobile, Inc. was recorded in the second quarter of 2007.

------------------------------------------------------------------------- Six-month periods Financing costs Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Interest on long-term debt, short-term obligations and other 116.6 126.8 (8.0)% 228.4 246.1 (7.2)% Foreign exchange losses (gains) 0.2 5.7 (96.5)% 0.5 7.6 (93.4)% Capitalized interest during construction (1.3) - n.m. (2.6) - n.m. Interest income (1.2) (5.3) 77.4 % (2.6) (8.9) 70.8 % ------------------------------------------------------------------------- 114.3 127.2 (10.1)% 223.7 244.8 (8.6)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- n.m. - not meaningful -------------------------------------------------------------------------

Interest expenses decreased $10.2 million and $17.7 million, respectively, in the second quarter and first six months of 2008 when compared to the same periods in 2007. Decreased interest expenses were due primarily to financing activities that lowered the effective interest rate. For the first six months, lower interest was partly offset by the initial application in 2007 of the effective rate method for issue costs.

Interest income decreased $4.1 million and $6.3 million, respectively, in second quarter and first six months of 2008, when compared to the same periods in 2007. Lower interest income was due primarily to lower average temporary investment and bank balances.

------------------------------------------------------------------------- Six-month periods Income taxes Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Basic blended federal and provincial tax at statutory income tax rates 117.8 116.9 0.8 % 241.8 209.2 15.6 % Revaluation of future income tax liability to reflect future statutory income tax rates (7.9) (24.2) - (26.1) (27.9) - Share option award compensation 1.5 1.2 - 2.9 (6.5) - Other 2.1 (0.2) - 4.3 (1.8) - ------------------------------------------------------------------------- 113.5 93.7 21.1 % 222.9 173.0 28.8 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Blended federal and provincial statutory tax rates (%) 30.9 33.6 (2.7)pts 30.9 33.5 (2.6)pts Effective tax rates (%) 29.8 26.9 2.9 pts 28.5 27.7 0.8 pts -------------------------------------------------------------------------

The blended federal and provincial statutory income tax expense increased in the second quarter and first six months of 2008 when compared to the same periods in 2007, due to the respective 9.6% and 25.5% increases in income before taxes, partly offset by the lower blended statutory tax rates. A one per cent reduction in B.C. provincial income tax rates beginning July 1, 2008 was substantively enacted in the first quarter of 2008. Reductions to federal income tax rates for 2008 to 2012 were enacted in the second and fourth quarters of 2007. The effective tax rates were lower than the statutory tax rates due to revaluations of future income tax liabilities resulting from enacted reductions to future provincial and federal income tax rates, as well as future tax rates being applied to temporary differences.

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 30.5 to 31.5% in 2008. See Caution regarding forward-looking statements at the beginning of Management's discussion and analysis.

------------------------------------------------------------------------- Non-controlling Six-month periods interests Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- 0.9 1.3 (30.8)% 1.7 2.8 (39.3)% -------------------------------------------------------------------------

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

Comprehensive income

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.

5.4 Wireline segment results ------------------------------------------------------------------------- Operating revenues - Six-month periods wireline segment Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Voice local(1) 496.9 515.6 (3.6)% 998.6 1,047.7 (4.7)% Voice long distance(2) 174.7 167.7 4.2 % 353.8 355.3 (0.4)% Data(3) 521.5 434.6 20.0 % 1,027.7 859.4 19.6 % Other 63.2 62.2 1.6 % 126.8 123.3 2.8 % ------------------------------------------------------------------------- External operating revenue(4) 1,256.3 1,180.1 6.5 % 2,506.9 2,385.7 5.1 % Intersegment revenue 32.3 28.7 12.5 % 63.1 53.8 17.3 % ------------------------------------------------------------------------- Total operating revenues(4) 1,288.6 1,208.8 6.6 % 2,570.0 2,439.5 5.3 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Voice local revenue decreased by approximately 3.5% in the first six months of 2008 when the impact of first quarter regulatory adjustments are excluded from both 2008 and 2007. (2) Voice long distance revenue decreased by 3.5% and 4.0%, respectively, in the second quarter and first six months of 2008 when the impact of the second quarter 2007 adjustment is excluded. (3) Data revenue increased by approximately 7% and 8%, respectively, in the second quarter and first six months of 2008, when revenues from acquisitions are excluded from 2008 and the impact of first quarter mandated retroactive competitor price reductions are excluded from both 2008 and 2007. (4) External and total operating revenue increased by approximately 1% in the second quarter and first six months of 2008, when excluding revenues from acquisitions and regulatory adjustments. -------------------------------------------------------------------------

Wireline revenues increased $79.8 million and $130.5 million in the second quarter and first six months of 2008, when compared with the same period in 2007, due to the following:

- Voice local revenue decreased by $18.7 million and $49.1 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. The decreases were mainly due to two factors: (i) lower revenues from basic access and optional enhanced service revenues caused by increased competition for residential subscribers, offset in part by growth in business local services; and (ii) for the six-month periods, approximately $13 million lower recoveries from the price cap deferral account. The 2007 deferral account recovery of approximately $14.5 million included previously incurred amounts associated with mandated local number portability and start-up costs, and it offset unfavourable mandated retroactive rate adjustments in the same period for basic data revenue pursuant to two CRTC decisions (see the discussion for wireline data revenue below). ------------------------------------------------------------------------- Network access lines As at June 30 (000s) 2008 2007 Change ------------------------------------------------------------------------- Residential network access lines 2,497 2,685 (7.0)% Business network access lines 1,828 1,793 2.0 % ------- ------- -------- Total network access lines 4,325 4,478 (3.4)% Six-month periods Quarters ended June 30 ended June 30 (000s) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Change in residential network access lines (48) (56) 14.3 % (99) (90) (10.0)% Change in business network access lines 8 8 - % 20 20 - % ------- ------- -------- ------- ------- -------- Change in total network access lines (40) (48) 16.7 % (79) (70) (12.9)% -------------------------------------------------------------------------

Residential line losses include the effect of increased competition from resellers and VoIP competitors (including cable-TV companies), as well as technological substitution to wireless services. The increase in business lines was experienced in incumbent areas as well as Ontario and Quebec urban non-incumbent areas.

- Voice long distance revenues increased by $7.0 million in the second quarter of 2008, and decreased by $1.5 million for the first six months of 2008, when compared with the same periods in 2007. Long distance revenue in the second quarter of 2007 included a $13 million negative one-time adjustment associated with implementation of a new billing system for Alberta residential customers. Excluding the one- time adjustment last year, revenue decreased by $6.0 million and $14.5 million, respectively, due mainly to lower average per-minute rates from industry-wide price competition and a lower base of residential subscribers, partly offset by higher minute volumes. - Wireline segment data revenues increased by $86.9 million and $168.3 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. Data revenue increased primarily due to: (i) revenues from two acquisitions in January 2008; (ii) increased Internet, enhanced data and hosting service revenues from growth in business services and high-speed Internet subscribers; (iii) increased broadcast, videoconferencing and data equipment sales; (iv) mandatory retroactive rate reductions recorded in 2007 (see next paragraph); and (v) increased provision of digital entertainment services to consumers in urban incumbent markets. The underlying growth absent acquisitions and regulatory adjustments was approximately 8%.

Retroactive rate reductions of approximately $11 million were recorded in the first quarter of 2007, pursuant to CRTC Decision 2007-6 (digital network access link charges) and CRTC Decision 2007-10 (relating to basic service extension feature charges).

------------------------------------------------------------------------- Internet subscribers As at June 30 (000s) 2008 2007 Change ------------------------------------------------------------------------- High-speed Internet subscribers 1,064.1 962.7 10.5 % Dial-up Internet subscribers 142.0 172.2 (17.5)% ------- ------- -------- Total Internet subscribers 1,206.1 1,134.9 6.3 % Six-month periods Quarters ended June 30 ended June 30 (000s) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- High-speed Internet net additions 23.6 13.9 69.8 % 43.9 46.0 (4.6)% Dial-up Internet net reductions (4.4) (9.4) 53.2 % (13.3) (21.9) 39.3 % ------- ------- -------- ------- ------- -------- Total Internet subscriber net additions 19.2 4.5 n.m. 30.6 24.1 27.0 % -------------------------------------------------------------------------

High-speed Internet subscriber net additions increased during the second quarter of 2008, when compared to the same period in 2007, as the prior year's net additions were temporarily constrained by reduced order processing capability after the March 2007 implementation of a new billing and client care system for Alberta residential customers. High-speed Internet subscriber net additions decreased slightly for the first six months of 2008, when compared to the same period in 2007, due to competitive activity and a maturing market.

- Other revenue increased by $1.0 million and $3.5 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. The increase was due mainly to increased voice equipment sales. - Intersegment revenues increased for services provided by the wireline segment to the wireless segment. These revenues are eliminated upon consolidation together with the associated expense in the wireless segment. ------------------------------------------------------------------------- Operating expenses - wireline segment Six-month periods ($ millions, except Quarters ended June 30 ended June 30 employees) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Salaries, benefits and other employee-related costs, before net-cash settlement feature 480.7 428.0 12.3 % 940.4 856.9 9.7 % Net-cash settlement feature (1.3) - n.m. (0.7) 153.1 n.m. Other operations expenses 372.5 344.1 8.3 % 740.2 667.5 10.9 % ------------------------------------------------------------------------- Operations expense 851.9 772.1 10.3 % 1,679.9 1,677.5 0.1 % Restructuring costs 4.1 2.8 46.4 % 10.6 7.2 47.2 % ------------------------------------------------------------------------- Total operating expenses 856.0 774.9 10.5 % 1,690.5 1,684.7 0.3 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(1) 853.2 772.1 10.5 % 1,680.6 1,524.4 10.2 % Total operating expenses (as adjusted)(1) 857.3 774.9 10.6 % 1,691.2 1,531.6 10.4 % ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature expenses. -------------------------------------------------------------------------

Total operating expenses adjusted to exclude the net-cash settlement feature expense increased by $82.4 million and $159.6 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. The increases were mainly due to acquisitions, compensation increases, increased cost of sales, and initial costs incurred to implement services for several new enterprise customers, partly offset by system conversion expenses recorded in 2007 for an Alberta wireline billing and client care system. The billing conversion expenses in the second quarter of 2007 were approximately $16 million for temporary labour to perform system fixes and maintain service levels.

- Salaries, benefits and employee-related costs increased by $52.7 million and $83.5 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. The increase resulted from more staff for the provision of outsourcing services to customers, including Emergis operations beginning in 2008, and compensation increases. - Other operations expenses increased by $28.4 million and $72.7 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. The increases were due to higher costs of sales for increased data equipment sales with lower margins, expenses in acquired companies, increased advertising and promotions expenses, and higher costs for the provision of digital entertainment services, partly offset by higher capitalized labour. In addition, regulated revenue-based contribution expenses in 2008 do not include a recovery recorded in the second quarter of 2007. External labour costs increased to maintain higher service levels and to implement services for new enterprise customers, but were offset by the absence in the second quarter of 2008 of system conversion expenses recorded in 2007 for the new Alberta wireline billing and client care system. Offnet facility costs also increased to support new enterprise customers. - Restructuring costs increased by $1.3 million and $3.4 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. Restructuring charges in 2008 were for a number of smaller initiatives under the Company's competitive efficiency program. ------------------------------------------------------------------------- EBITDA ($ millions) and Six-month periods EBITDA margin (%) Quarters ended June 30 ended June 30 Wireline segment 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- EBITDA 432.6 433.9 (0.3)% 879.5 754.8 16.5 % EBITDA (as adjusted)(1) 431.3 433.9 (0.6)% 878.8 907.9 (3.2)% EBITDA margin 33.6 35.9 (2.3)pts 34.2 30.9 3.3 pts EBITDA margin (as adjusted) 33.5 35.9 (2.4)pts 34.2 37.2 (3.0)pts ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature (recoveries) expenses of $(1.3) million and $(0.7) million, respectively, in the second quarter and first six months of 2008 and $nil and $153.1 million, respectively, in the second quarter and first six months of 2007. -------------------------------------------------------------------------

Wireline segment EBITDA decreased by $1.3 million and in the second quarter of 2008 and increased by $124.7 million for the first six months of 2008, when compared with the same periods in 2007. The increase for the six- month period was mainly due to the net-cash settlement feature expense recorded in 2007. Wireline EBITDA (as adjusted) decreased by $2.6 million and $29.1 million, respectively, due to lower margins on increased data equipment sales, initial costs to implement services for new enterprise customers, increased advertising and promotions, and higher costs for the provision of digital entertainment services.

5.5 Wireless segment results ------------------------------------------------------------------------- Operating revenues - Six-month periods wireless segment Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Network revenue 1,076.7 989.8 8.8 % 2,113.9 1,934.3 9.3 % Equipment revenue 65.7 58.2 12.9 % 128.5 113.7 13.0 % ------------------------------------------------------------------------- External operating revenue 1,142.4 1,048.0 9.0 % 2,242.4 2,048.0 9.5 % Intersegment revenue 7.2 6.7 7.5 % 14.2 13.0 9.2 % ------------------------------------------------------------------------- Total operating revenues 1,149.6 1,054.7 9.0 % 2,256.6 2,061.0 9.5 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- Key wireless operating indicators As at June 30 (000s) 2008 2007 Change ------------------------------------------------------------------------- Subscribers - postpaid 4,670.1 4,236.0 10.2 % Subscribers - prepaid 1,161.8 1,036.0 12.1 % ------- ------- --------- Subscribers - total 5,831.9 5,272.0 10.6 % Proportion of subscriber base that is postpaid (%) 80.1 80.3 (0.2)pts Digital POPs(1) covered including roaming/resale (millions)(2) 32.4 31.5 2.9 % Six-month periods Quarters ended June 30 ended June 30 2008 2007 Change 2008 2007 Change ------------------------------------------------- Subscriber gross additions - postpaid 278.9 219.2 27.2 % 483.1 392.5 23.1 % Subscriber gross additions - prepaid 143.3 134.8 6.3 % 284.3 257.5 10.4 % ------ ------ -------- ------ ------ -------- Subscriber gross additions - total 422.2 354.0 19.3 % 767.4 650.0 18.1 % Subscriber net additions - postpaid 157.2 99.2 58.5 % 229.6 160.0 43.5 % Subscriber net additions - prepaid 18.4 29.0 (36.6)% 34.4 58.7 (41.4)% ------ ------ -------- ------ ------ -------- Subscriber net additions - total 175.6 128.2 37.0 % 264.0 218.7 20.7 % ARPU ($)(3) 62.73 63.65 (1.4)% 62.31 62.85 (0.9)% Churn, per month (%)(3) 1.43 1.45 (0.02)pts 1.48 1.40 0.08 pts COA(4) per gross subscriber addition ($)(3) 332 425 (21.9)% 326 431 (24.4)% Average minutes of use per subscriber per month (MOU) 420 411 2.2 % 408 397 2.8 % EBITDA (as adjusted)(5) to network revenue (%) 45.1 45.7 (0.6)pts 46.7 47.4 (0.7)pts Retention spend to network revenue(3) (%) 9.4 8.2 1.2 pts 9.1 7.8 1.3 pts EBITDA (as adjusted) excluding COA(3) ($ millions) 626.0 602.9 3.8 % 1,238.2 1,196.2 3.5 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- pts - percentage points (1) 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. (2) At June 30, 2008, 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). (3) See Section 11.3 Definitions 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. (4) Cost of acquisition. (5) EBITDA excluding net-cash settlement feature expenses of $1.0 million and $0.6 million, respectively, in the second quarter and first six months of 2008 and $1.8 million and $22.2 million, respectively, in the second quarter and first six months of 2007. -------------------------------------------------------------------------

Wireless segment revenues increased by $94.9 million and $195.6 million, respectively, in the second quarter and first six months of 2008 when compared with the same period in 2007, due to the following:

- Network revenue increased by $86.9 million and $179.6 million, respectively, in the second quarter and first six months of 2008 when compared to the same periods in 2007. Network revenue increased due primarily to the 10.6% expansion in the subscriber base over the past twelve months. Wireless data revenues were $158.6 million in the second quarter of 2008, up 54% from the same period in 2007, and now represent 14.6% of network revenue. This compares to 10.4% of network revenue in the same period in 2007. For the first six months of 2008, wireless data revenues were $305.8 million, up 53% from the previous year. This growth reflects strength in text messaging and RIM/BlackBerry service revenues driven by increased usage and data roaming, as well as continued migration of existing subscribers to full function smartphones and EVDO-capable handsets. Blended ARPU of $62.73 in the second quarter of 2008 was down by $0.92, when compared to the same period in 2007. Data ARPU increased $2.59 or 39% to $9.17 in the second quarter of 2008, as compared to the same period in 2007, but was more than offset by declining Voice ARPU. Voice ARPU decreased $3.51 or 6.2% to $53.56 in the second quarter of 2008, as compared to the same period in 2007, as the cumulative subscriber base shifted slightly to prepaid, increased use of included-minute rate plans, pricing competition, and lower inbound voice roaming. Lower volume non-push-to-talk-centric Mike(R) subscribers and higher-value prepaid subscribers continue to be actively migrated to PCS smartphones for the enhanced data applications, contributing to future revenue growth prospects. Gross and net subscriber additions this quarter include the results of TELUS' postpaid value brand launch in March 2008. Consistent with industry practice, the Company does not breakout the results for this service for competitive reasons. Gross subscriber additions of 422,200 in the second quarter of 2008 were a TELUS second quarter record, increasing 19% from the same period in 2007, and were positively affected by the introduction of the new brand. The proportion of postpaid gross subscriber additions was 66.1% in the second quarter of 2008, up 4.2 percentage points when compared to the second quarter of 2007. For the first six months of 2008, gross subscriber additions were 767,400, up 18% when compared to the same period in 2007. The proportion of postpaid gross additions for the first half of 2008 was 63.0%, up 2.6 percentage points when compared to the same period in 2007. Net additions of 175,600 in the second quarter of 2008 were a TELUS second quarter record, increasing 37% from the same period in 2007. Postpaid subscriber net additions for the same period represented 89.5% of total net additions as compared with 77% of total net additions for the second quarter of 2007. Net additions for the first six months of 2008 were 264,000, up almost 21% from the same period in 2007 and were comprised of 87% postpaid subscribers, up from 73% in the same period in 2007. The blended churn rate of 1.43% in the second quarter decreased slightly from 1.45% in the same period in 2007, and improved from the 1.53% in the first quarter of 2008. These blended churn improvements were driven by lower postpaid churn that was supported by successful retention activities. The blended churn rate of 1.48% for the first six months of 2008 increased from 1.40% in the same period in 2007, reflecting increased prepaid churn and absence of the wireless number portability impact in the first quarter of 2007. Total deactivations were 246,600 and 503,400, respectively, in the second quarter and first six months of 2008 as compared to 225,800 and 431,300, respectively, for the same periods in 2007. The increase in deactivations primarily reflects higher prepaid churn rate and a larger subscriber base. - Equipment sales, rental and service revenue increased by $7.5 million and $14.8 million, respectively, in the second quarter and first six months of 2008 when compared to the same periods in 2007. Equipment sales were up due to the increase in gross subscriber additions and incremental handset migrations to full function smartphones to support data revenue growth. - Intersegment revenues increased for services provided by the wireless segment to the wireline segment. Intersegment revenues are eliminated upon consolidation along with the associated expense in the wireline segment. ------------------------------------------------------------------------- Operating expenses - wireless segment(1) Six-month periods ($ millions, except Quarters ended June 30 ended June 30 employees) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Equipment sales expenses 176.7 166.6 6.1 % 329.3 312.0 5.5 % Network operating expenses 149.4 126.7 17.9 % 290.1 241.3 20.2 % Marketing expenses 121.3 114.6 5.8 % 224.5 215.4 4.2 % General and administration expenses 216.8 195.7 10.8 % 424.5 397.5 6.8 % ------------------------------------------------------------------------- Operations expense 664.2 603.6 10.0 % 1,268.4 1,166.2 8.8 % Restructuring costs 0.4 0.4 - 0.6 0.7 (14.3)% ------------------------------------------------------------------------- Total operating expenses 664.6 604.0 10.0 % 1,269.0 1,166.9 8.7 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operations expense (as adjusted)(1) 663.2 601.8 10.2 % 1,267.8 1,144.0 10.8 % Total operating expenses (as adjusted)(1) 663.6 602.2 10.2 % 1,268.4 1,144.7 10.8 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature expenses of $1.0 million and $0.6 million, respectively, in the second quarter and first six months of 2008 and $1.8 million and $22.2 million, respectively, in the second quarter and first six months of 2007. -------------------------------------------------------------------------

Wireless segment total operating expenses increased by $60.6 million and $102.1 million, respectively, in the second quarter and first six months of 2008 when compared with the same period in 2007. Total operating expenses adjusted to exclude the net-cash settlement feature increased by $61.4 million and $123.7 million, respectively, to promote, acquire, support and retain the 10.6% year-over-year growth in the subscriber base, as well as the 9% growth in Network revenue.

- Equipment sales expenses increased by $10.1 million and $17.3 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007, due to higher gross subscriber additions and incremental handset migrations to full function smartphones to support the more than 50% increase data revenues, partly offset by lower handset costs from a stronger Canadian dollar. - Network operating expenses increased by $22.7 million and $48.8 million, respectively, in the second quarter and first six months of 2008 when compared with the same periods in 2007. The increases resulted from a combination of higher roaming, content and licensing costs in support of the strong increase in data revenues. - Marketing expenses increased by $6.7 million and $9.1 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. The increases were due to higher advertising and promotion costs in support of successful gross subscriber loading and the March introduction of new postpaid value brand in the market. COA per gross subscriber addition decreased by $93 or 21.9% in the second quarter of 2008, and decreased by $105 or 24.4% for the first six months of 2008, when compared to the same periods in 2007, in part due to lower advertising and promotion costs on a per unit basis, the mix of gross subscriber loading towards lower variable costs channels, and lower equipment subsidies. Retention costs as a percentage of network revenue were 9.4% and 9.1% in the second quarter and first six months of 2008, respectively, up from 8.2% and 7.8%, respectively, in the same periods in 2007. The increase was due primarily to handset upgrades to full function smartphones to support data revenue growth and the continued migration of non-push-to-talk-centric Mike service clients and high- value prepaid clients to PCS postpaid services, with an emphasis on smartphones. - General and administration increased by $21.1 million and $27.0 million, respectively, in the second quarter and first six months of 2008 when compared with the same periods in 2007. General and administration expenses adjusted to exclude the net-cash settlement feature, increased by $21.9 million and $48.6 million, respectively, due to employee and contracted labour costs to support increasingly complex data products and service offerings, growth in the subscriber base, expansion of company-owned retail stores, and to a lesser extent, an increase in bad debt expense. - Restructuring costs were for a number of smaller initiatives under the Company's competitive efficiency program. ------------------------------------------------------------------------- EBITDA ($ millions) and Six-month periods EBITDA margin (%) Quarters ended June 30 ended June 30 Wireless segment 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- EBITDA 485.0 450.7 7.6 % 987.6 894.1 10.5 % EBITDA (as adjusted)(1) 486.0 452.5 7.4 % 988.2 916.3 7.8 % EBITDA margin 42.2 42.7 (0.5)pts 43.8 43.4 0.4 pts EBITDA margin (as adjusted) 42.3 42.9 (0.6)pts 43.8 44.5 (0.7)pts ------------------------------------------------------------------------- (1) Excluding net-cash settlement feature expenses of $1.0 million and $0.6 million, respectively, in the second quarter and first six months of 2008 and $1.8 million and $22.2 million, respectively, in the second quarter and first six months of 2007. ------------------------------------------------------------------------- -------------------------------------------------------------------------

Wireless segment EBITDA increased by $34.3 million and $93.5 million, respectively, in the second quarter and first six months of 2008, when compared with the same periods in 2007. Wireless EBITDA adjusted to exclude the net-cash settlement feature, increased by $33.5 million and $71.9 million, respectively. The increase in EBITDA (as adjusted) was due to higher Network revenue and a lower COA expense, partially offset by higher retention spend (supporting smartphone upgrades), increased network costs related to data usage, and higher general and administrative costs to support business growth.

6. Financial condition

The following are changes in the Consolidated balance sheets in the six- month period ended June 30, 2008.

------------------------------------------------------------------------- June 30, Dec. 31, Changes Explanation of the As at -------------------- change in balance ($ millions) 2008 2007 ------------------------------------------------------------------------- Current Assets Cash and 45.7 19.9 25.8 129.6 % See Section 7: temporary Liquidity and investments, capital resources net Short-term - 42.4 (42.4) (100.0)% Liquidation of investments short-term investments Accounts 1,007.4 710.9 296.5 41.7 % Mainly due to a receivable $350 million reduction in proceeds from securitized accounts receivable and an increase from acquisitions, partly offset by a seasonal decrease in accounts receivable turnover (approximately 46 days versus 49 days) Income and 80.4 120.9 (40.5) (33.5)% Mainly due to other taxes current income tax receivable expense booked during the first half of 2008 Inventories 262.5 243.3 19.2 7.9 % Mainly increased wireless handset inventory for new handset launches Prepaid 295.0 199.5 95.5 47.9 % Primarily prepayment expenses of annual wireless and other licence fees, employee benefits, property taxes, and maintenance contracts, net of amortization Current 5.1 3.8 1.3 34.2 % Fair value portion of adjustments to derivative handset, restricted assets share units and other operational hedges ------------------------------------------------------------------------- Current Liabilities Accounts 1,384.7 1,476.6 (91.9) (6.2)% Mainly lower payable and payables for handset accrued purchases, as well liabil- as lower payroll and ities other employee- related liabilities, net of liabilities for acquisitions Income and 11.8 7.3 4.5 61.6 % Mainly due to income other taxes payable from taxes acquisitions payable Restructuring 30.2 34.9 (4.7) (13.5)% Payments under accounts previous and current payable programs exceeded and accrued new obligations liabilities Advance 634.7 631.6 3.1 0.5 % - billings and customer deposits Current 6.5 5.4 1.1 20.4 % An increase in maturities capital leases, of long-term primarily from the debt acquisition of Emergis Current 50.0 26.6 23.4 88.0 % Fair value portion of adjustments for derivative share option hedges liabilities Current 638.3 503.6 134.7 26.7 % An increase in portion of temporary future differences for income current assets and taxes liabilities, as well as changes in partnership taxable income that will be allocated in the next 12 months ------------------------------------------------------------------------- Working (1,060.1) (1,345.3) 285.2 21.2 % Includes a reduction capital(1) in proceeds from securitized accounts receivable following the second quarter $500 million Note issue ------------------------------------------------------------------------- Capital 11,379.4 11,122.0 257.4 2.3 % Includes Assets, $326.2 million for Net acquired software, customer contracts and related customer relationships and other capital assets, plus capital expenditures for the first half of 2008, net of depreciation and amortization. See also Section 5.3 Consolidated results from operations - Depreciation, Amortization of intangible assets, as well as Section 7.2 Cash used by investing activities ------------------------------------------------------------------------- Other Assets Deferred 1,418.1 1,318.0 100.1 7.6 % Primarily related to charges pension plan funding, favourable cumulative returns on plan assets and continued amortization of transitional pension assets Investments 32.4 38.9 (6.5) (16.7)% Mainly the value of Emergis shares purchased in the open market in December 2007 that were exchanged at the close of acquisition in January 2008, partly offset by other sales, purchases and revaluation of investments Goodwill 3,540.4 3,168.0 372.4 11.8 % Primarily January 2008 acquisitions of Emergis and Fastvibe ------------------------------------------------------------------------- Long-Term 5,512.3 4,583.5 928.8 20.3 % Includes the April Debt 2008 publicly issued $500 million, seven- year Notes, a $212.8 million increase in commercial paper, draws of $162.0 million from the 2012 credit facility, as well as an increase in the Canadian dollar value of 2011 U.S. dollar Notes ------------------------------------------------------------------------- Other 1,680.7 1,717.9 (37.2) (2.2)% Primarily changes in Long-Term U.S. dollar exchange Liabil- rates and a fair ities value adjustment of the derivative liabilities associated with 2011 U.S. dollar Notes ------------------------------------------------------------------------- Future 1,100.8 1,048.1 52.7 5.0 % An increase in Income temporary Taxes differences for long-term assets and liabilities, partly offset by a revaluation resulting from reductions in future provincial income tax rates ------------------------------------------------------------------------- Non- 22.0 25.9 (3.9) (15.1)% Primarily payment of Controlling dividends by a Interests subsidiary to a non- controlling interest, net of non-controlling interests' share of earnings ------------------------------------------------------------------------- Shareholders' Equity Common 6,994.4 6,926.2 68.2 1.0 % Primarily Net income equity of $558 million, less dividends declared of $289.5 million and NCIB purchases of $199.2 million ------------------------------------------------------------------------- (1) Current assets subtracting Current liabilities - an indicator of the ability to finance current operations and meet obligations as they fall due. ------------------------------------------------------------------------- 7. Liquidity and capital resources

In 2008, the balance of Cash and temporary investments decreased by $3.4 million during the second quarter and increased by $25.8 million during the first six months.

In 2007, the balance of Cash and temporary investments decreased by $531.8 million during the second quarter and increased slightly during the first six months, primarily due to repayment of $1.5 billion of maturing Notes on June 1, funded by $1 billion of debt issues in the first quarter and initiation of a commercial paper program in the second quarter.

------------------------------------------------------------------------- Six-month periods Quarters ended June 30 ended June 30 ($ millions) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Cash provided by operating activities 461.0 1,061.9 (56.6)% 1,086.2 1,522.5 (28.7)% Cash used by investing activities (436.7) (477.8) 8.6 %(1,437.1) (870.1) (65.2)% Cash (used) provided by financing activities (27.7)(1,115.9) 97.5 % 376.7 (638.7) n.m. ------------------------------------------------------------------------- Increase (decrease) in cash and temporary investments, net (3.4) (531.8) 99.4 % 25.8 13.7 88.3 % Cash and temporary investments, net, beginning of period 49.1 534.0 (90.8)% 19.9 (11.5) n.m. Cash and temporary investments, net, end of period 45.7 2.2 n.m. 45.7 2.2 n.m. ------------------------------------------------------------------------- ------------------------------------------------------------------------- 7.1 Cash provided by operating activities

Cash provided by operating activities decreased by $600.9 million and $436.3 million, respectively, in the second quarter and first six months of 2008 when compared with the same periods in 2007, mainly due to the following:

- A reduction in proceeds from securitized accounts receivable of $350 million for the second quarter and first six month of 2008, as compared to a $350 million increase in proceeds during the second quarter of 2007 and no change for the first six months of 2007. The year-over-year comparative reductions in cash flow from changes in securitized accounts receivables were $700 million in the second quarter and $350 million for the first six months. - Increases in EBITDA of $33.0 million and $218.2 million, respectively, as described in Section 5.3 Consolidated results from operations; - An increase in share-based compensation expense in excess of payments of $19.0 million for the second quarter, which adds to increased EBITDA for the same period; - A decrease of $113.3 million in share-based compensation expense in excess of payments for the first six months, which partly offsets the increase in EBITDA for the same period; - A decrease of interest paid of $42.7 million and $21.3 million, respectively, due to financing activities that lowered the effective interest rate, net of repayment of forward starting interest rate swaps in the first quarter of 2007; - Cash provided from liquidation of Short-term investments was $116.0 million and $42.4 million, respectively, during the second quarter and first six months of 2008, compared with approximately $55 million for the second quarter and first six months of 2007; and - Other changes in non-cash working capital including reduced accounts payable and accrued liabilities for the six-month period ended June 30, 2008. 7.2 Cash used by investing activities

Cash used by investing activities decreased by $41.1 million in the second quarter of 2008 and increased by $567.0 million in the first six months of 2008, when compared with the same periods in 2007. The decrease for the quarter was mainly due to lower capital expenditures. The increase for the six- month period was due to acquisitions for a total of $691.3 million, net of acquired cash. This was partly offset by lower capital expenditures, as discussed further below.

Assets under construction were $722.4 million at June 30, 2008, up by $163.4 million from December 31, 2007, reflecting increases in property, plant and equipment under construction and new phases of the converged wireline billing and client care system.

------------------------------------------------------------------------- Capital expenditures Six-month periods ($ in millions, Quarters ended June 30 ended June 30 ratios in %) 2008 2007 Change 2008 2007 Change ------------------------------------------------------------------------- Wireline segment 320.9 308.7 4.0 % 576.1 579.4 (0.6)% Wireless segment 114.7 173.1 (33.7)% 179.2 284.3 (37.0)% ------------------------------------------------------------------------- TELUS consolidated 435.6 481.8 (9.6)% 755.3 863.7 (12.6)% ------------------------------------------------------------------------- ------------------------------------------------------------------------- Capital expenditure intensity ratio(1) 18.2 21.6 (3.4)pts 15.9 19.5 (3.6)pts EBITDA (as adjusted) less capital expenditures(2) 481.7 404.6 19.1 % 1,111.7 960.5 15.7 % ------------------------------------------------------------------------- ------------------------------------------------------------------------- (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 11.1 for the calculation and description. -------------------------------------------------------------------------

The consolidated capital intensity for the first six months of 2008 reflects a Wireline capital intensity level of 22% (versus 24% in the same period in 2007) and a Wireless capital intensity level of 8% (versus 14% in the same period in 2007). TELUS' EBITDA (as adjusted) less capital expenditures increased by $77.1 million and $151.2 million, respectively, in the second quarter and first six months of 2008 when compared to the same periods in 2007, mainly due to the lower total capital spending and higher Wireless EBITDA (as adjusted).

- Wireline segment capital expenditures increased by $12.2 million in the second quarter of 2008 and decreased by $3.3 million in the first six months of 2008, when compared to the same periods in 2007. The increase for the second quarter was primarily for upfront expenditures to support new enterprise customers. The decrease for the first six months was due primarily to the high-speed broadband (ADSL2+) network builds in 2007, as well as lower demand in 2008 for network access builds resulting from more moderate residential construction activity in B.C. and Alberta, partly offset by an increase in upfront expenditures to support new enterprise customers. Wireline cash flows (EBITDA as adjusted less capital expenditures) were $110.4 million and $302.7 million, respectively, in the second quarter and first six months of 2008, or decreases of 11.8% and 7.9%, when compared to the same periods in 2007. The decreases were due to lower adjusted EBITDA, as well as higher capital expenditures in the second quarter. - Wireless segment capital expenditures decreased by $58.4 million and $105.1 million, respectively, in the second quarter and first six months of 2008 when compared to the same periods in 2007. Expenditures in 2007 were higher than in 2008 due to cell site capacity and coverage spending, including network upgrades for higher-speed EVDO RevA service, as well as expenditures to implement wireless number portability in March 2007. Wireless cash flows (EBITDA as adjusted less capital expenditures) were $371.3 million and $809.0 million, respectively, in the second quarter and first six months of 2008, or increases of 32.9% and 28.0%, respectively, when compared to the same periods in 2007. The increases resulted from lower capital spending and increased adjusted EBITDA.

Subsequent to quarter-end on July 21, the Company provisionally acquired 59 licences in Industry Canada's wireless spectrum auction for approximately $880 million that is expected to be reflected as a third quarter capital expenditure. The Company expects that the amount of successful bids will be paid through a combination of drawing on its credit facilities and utilization of cash on hand.

7.3 Cash (used) provided by financing activities

Net cash used by financing activities decreased by $1,088.2 million during the second quarter of 2008, when compared to the same period in 2007, while net Cash provided by financing activities for the first six months of 2008 increased by $1,015.4 million when compared to the same period in 2007. Changes in financing activities included:

- Cash dividends paid were $289.5 million for both the second quarter and first six months of 2008, and were in respect of the first quarter dividend paid April 1 and the second quarter dividend remitted June 30. Cash dividends paid in during the second quarter and first six months of 2007 were $125.0 million and $250.9 million, respectively. Increased dividend payments for the six-month period reflected a higher quarterly dividend rate (45 cents per share in 2008 compared to 37.5 cents per share in 2007), partly offset by lower shares outstanding from NCIB share repurchase programs. - Purchases of shares under NCIB programs decreased by $92.8 million and $171.0 million, respectively, in the second quarter and first six months of 2008, when compared to the same periods in 2007. Fewer shares were repurchased at a lower average price.

The Company's renewed NCIB program (Program 4) came into effect on December 20, 2007 and is set to expire on December 19, 2008. At June 30, 2008, the Company has repurchased 12% of the maximum eight million Common Shares and 32% of the maximum 12 million Non-Voting Shares under Program 4. Since December 20, 2004, TELUS has repurchased 20.2 million of its Common Shares and 37.4 million of its Non-Voting Shares for $2.7 billion under four NCIB programs, consistent with the Company's intent to return cash to shareholders.

Shares repurchased for cancellation under normal course issuer bid programs ------------------------------------------------------------------------- Purchase cost Shares repurchased ($ millions) ------------------------------- -------------------------- Charged Charged to to Non- Share Retained Common Voting capi- earn- Shares Shares Total tal(1) ings(2) Paid ---------------------------------------------- -------------------------- 2007 - Program 3 First quarter 1,975,000 1,530,000 3,505,000 57.8 142.9 200.7 Second quarter 330,000 2,367,300 2,697,300 55.0 114.5 169.5 ---------------------------------------------- -------------------------- Six months ended June 30 2,305,000 3,897,300 6,202,300 112.8 257.4 370.2 ---------------------------------------------- -------------------------- 2008 - Program 4 First quarter 950,000 1,968,900 2,918,900 54.3 68.2 122.5 Second quarter - 1,716,300 1,716,300 36.8 39.9 76.7 ------------------------------------------------------------------------- Six months ended June 30 950,000 3,685,200 4,635,200 91.1 108.1 199.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Represents the book value of shares repurchased. (2) Represents the cost in excess of the book value of shares repurchased. ------------------------------------------------------------------------- - In April 2008, the Company publicly issued $500 million, 5.95%, Series CE, Canadian dollar Notes at a price of $998.97 per $1,000.00 of principal. The Notes mature in April 2015. The net proceeds of the offering were used for general corporate purposes, including repayment of amounts under the 2012 revolving credit facility, and to refinance short-term financing sources, which had been utilized in January for purchase of the then issued and outstanding Emergis common shares for $743 million. The Series CE 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 66 basis points, 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. The Series CE Notes require that the Company make an offer to repurchase the Notes at a price equal to 101% of their principal plus accrued and unpaid interest to the date of repurchase upon the occurrence of a change in control triggering event, as defined in the supplemental trust indenture. - During the first quarter, the Company increased utilization of the 2012 bank facility from $nil to $320.9 million and increased commercial paper by $212.8 million for general corporate purposes, including acquisitions in January. During the second quarter of 2008, the Company reduced the amount drawn from the 2012 bank facility to $162.0 million at June 30, 2008. Commercial paper outstanding was $800 million at June 30, unchanged from March 31, 2008. - In comparison, debt financing activities in the first half of 2007 included the March issue of Series CC and CD Notes totalling $1 billion, establishment of a commercial paper program in May, and repayment of approximately $1.5 billion of maturing Notes in June. These activities contributed to a lower effective interest rate in subsequent periods. - On August 6, 2008, the Board of Directors approved an increase in the currently authorized commercial paper program from $800 million to $1.2 billion. 7.4 Liquidity and capital resource measures ------------------------------------------------------------------------- Liquidity and capital resource measures As at, or 12-month periods ended, June 30 2008 2007 Change ------------------------------------------------------------------------- ------------------------------------------------------------------------- Components of debt and coverage ratios(1) ($ millions) ------------------------------------------------------------------------- Net debt 6,644.4 6,239.7 404.7 Total capitalization - book value 13,775.0 13,122.3 652.7 EBITDA - excluding restructuring costs 3,831.2 3,520.0 311.2 Net interest cost 419.0 495.0 (76.0) ------------------------------------------------------------------------- Debt ratios ------------------------------------------------------------------------- Fixed-rate debt as a proportion of total indebtedness (%) 83.4 81.4 2 pts Average term to maturity of debt (years) 4.8 5.7 (0.9) Net debt to total capitalization (%)(1) 48.2 47.6 0.6 pts Net debt to EBITDA - excluding restructuring costs(1) 1.7 1.8 (0.1) ------------------------------------------------------------------------- Coverage ratios(1) ------------------------------------------------------------------------- Interest coverage on long-term debt 4.7 3.8 0.9 EBITDA - excluding restructuring costs interest coverage 9.1 7.1 2.0 ------------------------------------------------------------------------- Other measures ------------------------------------------------------------------------- Free cash flow ($ millions)(2) 1,812.8 1,399.5 413.3 Dividend payout ratio(3), excluding tax-related adjustments and the net-cash settlement feature (%) 52 48 4 pts Dividend payout ratio (%)(3) 43 50 (7)pts ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) See Section 11.4 Definitions of liquidity and capital resource measures. (2) Twelve-month trailing measurement. See Section 11.2 Free cash flow for the definition. (3) Twelve-month trailing measurement. See Section 11.4 Definitions of liquidity and capital resource measures. -------------------------------------------------------------------------

Net debt at June 30, 2008 increased from one year earlier due to the $500 million debt issue in April 2008, as well as increased use of commercial paper and amounts drawn on the 2012 credit facility, net of lower proceeds from securitized accounts receivable and a higher cash balance. Total capitalization increased because of higher net debt, retained earnings and accumulated other comprehensive income, partly offset by lower share capital due to share repurchases.

The average term to maturity of debt of 4.8 years at June 30, 2008 decreased from 5.7 years at June 30, 2007 due to shorter average long-term debt maturity, increased commercial paper and amounts drawn against the 2012 credit facility, partly offset by the issuance in April 2008 of $500 million, Series CE, seven-year Notes. The proportion of debt on a fixed rate basis increased mainly due to the April 2008 Note issue, as increased commercial paper and drawn amounts against the 2012 credit facility were offset by a decrease in proceeds from securitized accounts receivable.

When compared to one year earlier, the interest coverage on long-term debt ratio increased by 0.9, of which, 0.6 resulted from lower long-term interest and 0.3 resulted from higher income before income taxes and long-term interest. The EBITDA interest coverage ratio increased by 2.0, of which, 1.3 resulted from a lower net interest cost and 0.7 resulted from higher EBITDA before restructuring. Free cash flow for the 12-month period ended June 30, 2008, increased by 29.5% when compared to the measure one year earlier, due to higher income tax recoveries and interest income, higher EBITDA after share- based compensation and restructuring payments, lower paid interest and lower capital expenditures.

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 guidelines and policies are: - Net debt to EBITDA - excluding restructuring costs of 1.5 to 2.0 times The ratio was 1.7 times at June 30, 2008, or a decrease of 0.1 from one year earlier, as higher net debt was more than offset by improved 12-month trailing EBITDA before restructuring costs. The ratio remained within the long- term target range. - Dividend payout ratio of 45 to 55% of sustainable net earnings. The ratio calculated to exclude favourable tax-related adjustments and the net-cash settlement feature from earnings for the 12-month period ended June 30, 2008 was 52%, as compared to 48% one year earlier. The adjusted ratios are more representative of a sustainable calculation. The ratios based on actual earnings were 43% and 50%, respectively. 7.5 Credit facilities

On March 3, 2008, TELUS Corporation closed a new $700 million, 364-day credit facility with a select group of Canadian banks. This new facility provides incremental liquidity to TELUS and allows the Company to continue to meet one of its financial objectives, which is to generally maintain $1 billion in available liquidity. The financial ratio tests in the new facility are substantially the same as those in the 2012 $2 billion syndicated facility, which states that the borrower will not permit its net debt to operating cash flow ratio to exceed 4 to 1 and may not permit its operating cash flow to interest expense ratio to be less than 2 to 1, each as defined. The new credit facility is unsecured and bears interest at Canadian prime and Canadian bankers' acceptance rates, plus applicable margins.

At June 30, 2008, TELUS had available liquidity exceeding $1.5 billion from unutilized credit facilities, consistent with the Company's objective of maintaining at least $1 billion of available liquidity.

TELUS Credit Facilities at June 30, 2008 ------------------------------------------------------------------------- Out- Backstop standing for undrawn commer- letters cial of paper Available ($ in millions) Expiry Size Drawn credit program liquidity ------------------------------------------------------------------------- Five-year revolving facility(1) May 1, 2012 2,000.0 (162.0) (272.3) (800.0) 765.7 364-day revolving facility(2) March 2, 2009 700.0 - - - 700.0 Other bank facilities - 137.2 - (65.5) - 71.7 ------------------------------------------------------------------------- Total - 2,837.2 (162.0) (337.8) (800.0) 1,537.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Canadian dollars or U.S. dollar equivalent. (2) Canadian dollars only. -------------------------------------------------------------------------

TELUS' revolving credit facilities contain customary covenants, including a requirement that TELUS not permit its consolidated Leverage Ratio (debt to trailing 12-month EBITDA) to exceed 4 to 1 (approximately 1.7 to 1 at June 30, 2008) and not permit its consolidated Coverage Ratio (EBITDA to Interest Expense on a trailing 12-month basis) to be less than 2 to 1 (approximately 9.1 to 1 at June 30, 2008) 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 agreements 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 facilities is not contingent on the maintenance by TELUS of a specific credit rating.

7.6 Accounts receivable sale

On July 26, 2002, TELUS Communications Inc. (TCI), a wholly owned subsidiary of TELUS, entered into an agreement, which was amended September 30, 2002, March 1, 2006, November 30, 2006 and March 31, 2008, 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. The March 31, 2008 amendment resulted in the term being extended to July 17, 2009, for this revolving-period securitization agreement.

TCI is required to maintain at least a BBB (low) credit rating by DBRS Ltd. (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 August 6, 2008.

------------------------------------------------------------------------- Balance of proceeds from securitized receivables 2008, 2008, 2007, 2007, ($ millions) June 30 Mar. 31 Dec. 31 Sept. 30 ------------------------------------------------------------------------- 150.0 500.0 500.0 550.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Balance of proceeds from securitized receivables 2007, 2007, 2006, 2006, ($ millions) June 30 Mar. 31 Dec. 31 Sept. 30 ------------------------------------------------------------------------- 500.0 150.0 500.0 350.0 ------------------------------------------------------------------------- 7.7 Credit ratings

There were no changes to the Company's investment grade credit ratings since TELUS' 2007 Management's discussion and analysis. On March 27, 2008, DBRS confirmed its credit ratings and trend for TELUS and TCI, and on April 7, assigned a rating and trend of A (low), stable, to TELUS' new $500 million, 5.95%, seven-year unsecured Note issue. On April 2, Moody's Investors Service (Moody's) assigned a Baa1 rating with a stable outlook to TELUS' new debt issue, while confirming the same for TELUS' existing senior unsecured Notes. On April 3, FitchRatings assigned a BBB+ rating with a stable outlook to the new TELUS debt issue. Standard and Poor's assigned a BBB+ rating with a stable outlook to new Series CE Notes.

------------------------------------------------------------------------- Credit rating summary DBRS S&P Moody's FitchRatings ------------------------------------------------------------------------- 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- - - ------------------------------------------------------------------------- 7.8 Financial instruments, commitments and contingent liabilities Financial instruments

The Company's financial instruments, and the nature of risks that they may be subject to, were described in the Company's 2007 Management's discussion and analysis. Commencing with the Company's 2008 fiscal year, the new recommendations of the CICA for financial instrument disclosures (CICA handbook section 3862) apply to the Company and result in incremental disclosures, relative to those previously, with an emphasis on risks associated with both recognized and unrecognized financial instruments to which an entity is exposed during the period and at the balance sheet date, and how an entity manages those risks. This information is in Note 4 of the interim Consolidated financial statements.

Commitments and contingent liabilities (Note 18 of the interim Consolidated financial statements) Price cap deferral accounts

On January 17, 2008, the CRTC issued Decision Telecom 2008-1 Use of deferral account funds to improve access to telecommunications services for persons with disabilities and to expand broadband services to rural and remote communities. This decision approved TELUS' use of its deferral account for expansion of broadband services to an additional 119 rural and remote communities (cumulatively 234 rural and remote communities), and confirmed approximately five per cent of the deferral account balance was to be used to enhance accessibility to telecommunications services for individuals with disabilities. The decision also confirmed that the remaining balance of accumulated balance of TELUS' deferral account was to be rebated to local residential customers in non-high cost serving areas.

On April 16, 2008, the Company petitioned to the Federal Cabinet seeking to rescind those parts of Decision 2008-1 that prevent the use of the remaining deferral account funds for broadband expansion. The petition also seeks to vary the decision to allow incumbent local exchange carriers to file additional proposals to use all of the available remaining deferral account for the purpose of broadband extension in their respective areas where it would otherwise be uneconomic to do so, except for the five per cent of the deferral account designated to improve access for persons with disabilities. On February 11, 2008, Bell Canada applied to the Federal Court of Appeal for leave to appeal, and for a stay of, Decision 2008-1. The stay was granted on April 23, 2008, and applies to the rebate and broadband expansion determinations in Decision 2008-1.

The Federal Court of Appeal heard two appeals of the CRTC's initial decision on disposition of funds in the deferral account (Decision 2006-9) in January 2008. The Consumers Association of Canada and the National Anti- Poverty Organization sought rebates from the deferral account direct to consumers rather than have the account used for purposes designated by the CRTC. Bell Canada's appeal grounds were that the CRTC exceeded its jurisdiction to the extent that the CRTC approved rebates from the deferral account. Within that hearing, the Federal Court of Appeal further granted Bell Canada a motion for a stay of Decision 2006-9 in so far as it requires the disposition of funds in the deferral accounts for any purpose other than improvement of accessibility to communications services for individuals with disabilities. In March 2008, the Federal Court of Appeal dismissed both appeals. On May 6, 2008, TELUS applied to the Supreme Court of Canada for leave to appeal Decision 2006-9, in so far as the decision requires rebates of funds in the deferral accounts. The Company argued that the Federal Court of Appeal erred in upholding the CRTC's jurisdiction to order rebates of the funds in the ILEC deferral accounts. Bell Canada and the Consumer Groups also applied to the Supreme Court for leave to appeal the Federal Court of Appeal's ruling alleging various jurisdictional errors.

Claims and lawsuits

A number of claims and lawsuits seeking damages and other relief are pending against the Company. It is impossible at this time for the Company to predict with any certainty the outcome of such litigation. However, management is of the opinion, based upon legal assessment and information presently available, that it is unlikely that any liability, to the extent not provided for through insurance or otherwise, would be material in relation to the Company's consolidated financial position, other than as disclosed in Note 18(d) of the interim Consolidated financial statements and Section 10.3 Litigation and legal matters.

7.9 Outstanding share information

The table below contains a summary of the outstanding shares for each class of equity at June 30, 2008. The total number of outstanding and issuable shares is also presented, assuming full conversion of outstanding options and shares reserved for future option grants. The number of issuable shares at July 31, 2008 was not materially different from June 30.

------------------------------------------------------------------------- Non- Outstanding shares Common Voting Total (millions of shares) Shares Shares shares ------------------------------------------------------------------------- Common equity (1) Outstanding shares at June 30, 2008 174.8 145.0 319.8 Options outstanding and issuable(2) at June 30, 2008 0.4 15.4 15.8 ------------------------------------------------------------------------- 175.2 160.4 335.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) For the purposes of calculating diluted earnings per share, the number of shares was 322.0 million for the three-month period ended June 30, 2008. (2) Assuming full conversion and ignoring exercise prices. ------------------------------------------------------------------------- 8. Critical accounting estimates and accounting policy developments 8.1 Critical accounting estimates

Critical accounting estimates are described in Section 8.1 of TELUS' 2007 Management's discussion and analysis. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

8.2 Accounting policy developments (Note 2 of the interim Consolidated financial statements)

Accounting policies are consistent with those described in Note 1 of TELUS' 2007 Consolidated financial statements, other than for developments set out below.

Convergence with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB)

In 2006, Canada's Accounting Standards Board ratified a strategic plan that will result in Canadian GAAP, as used by publicly accountable enterprises, being fully converged with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS- IASB) over a transitional period to be complete by 2011. TELUS will be required to report using the converged standards effective for interim and annual financial statements relating to fiscal years beginning no later than on or after January 1, 2011, the date that the Company has selected for adoption.

Canadian GAAP will be fully converged with IFRS-IASB through a combination of two methods: (i) as current joint-convergence projects of the United States Financial Accounting Standards Board and the International Accounting Standards Board are agreed upon, they will be adopted by Canada's Accounting Standards Board and may be introduced in Canada before the publicly accountable enterprises' transition date to IFRS-IASB; and (ii) standards not subject to a joint-convergence project will be exposed in an omnibus manner for introduction at the time of the publicly accountable enterprises' transition date to IFRS-IASB. The first convergence method may, or will, result in the Company either having the option to, or being required to, effectively, change over certain accounting policies to IFRS-IASB prior to 2011.

The International Accounting Standards Board currently, and expectedly, has projects underway that are expected to result in new pronouncements that continue to evolve IFRS-IASB, and, as a result, IFRS-IASB as at the transition date is expected to differ from its current form. There are several phases that the Company will have to complete on the path to changing over to IFRS-IASB:

------------------------------------------------------------------------- Implementation phase Description and status ------------------------------------------------------------------------- Initial impact This phase includes the identification of assessment and scoping significant differences between existing Canadian GAAP and IFRS-IASB, as relevant to the Company's specific instance. Based upon the current state of IFRS-IASB, this phase identified a modest number of topics possibly impacting either the Company's financial results and/or the Company's effort necessary to change over to IFRS-IASB. The IASB has activities currently underway which may, or will, change IFRS-IASB and such change may, or will, impact the Company. The Company will assess any such change as a component of its key elements phase. ------------------------------------------------------------------------- Key elements This phase includes identification, evaluation and selection of accounting policies necessary for the Company to change over to IFRS-IASB. As well, this phase includes other operational elements such as information technology, internal control over financial reporting and training. Currently underway are the identification, evaluation and selection of accounting policies necessary for the Company to changeover to IFRS- IASB; consideration of impacts on operational elements, such as information technology and internal control over financial reporting, are integral to this process. Targeted training activities, which leveraged both internal and external resources, occurred during the current reporting period. Although its impact assessment activities are underway and progressing according to plan, continued progress is necessary before the Company can prudently increase the specificity of the disclosure of pre- and post-IFRS-IASB changeover accounting policy differences. ------------------------------------------------------------------------- Embedding This phase will integrate the solutions into the Company's underlying financial system and processes that are necessary for the Company to change over to IFRS-IASB. -------------------------------------------------------------------------

The Company is required to qualitatively disclose its implementation impacts in conjunction with its 2008 and 2009 financial reporting. As activities progress, disclosure on pre- and post-IFRS-IASB implementation accounting policy differences is expected to increase.

The Company will present its results for fiscal 2010 using contemporary Canadian GAAP. The Company will also present supplementary disclosure for fiscal 2010 according to IFRS-IASB. To accomplish this, in 2010 the Company will effectively maintain two parallel books of account: one using the contemporary version of Canadian GAAP and the other using the contemporary IFRS-IASB.

Financial instruments - disclosure; presentation

As an activity consistent with Canadian GAAP being evolved and converged with IFRS-IASB, the existing recommendations for financial instrument disclosure were replaced with new recommendations (CICA Handbook Section 3862); the existing recommendations for financial instrument presentation were carried forward, unchanged (as CICA Handbook Section 3863).

Commencing with the Company's 2008 fiscal year, the new recommendations of the CICA for financial instrument disclosures apply to the Company. As set out in Note 4 of the interim Consolidated financial statements, the new recommendations result in incremental disclosures, relative to those previously, with an emphasis on risks associated with both recognized and unrecognized financial instruments to which an entity is exposed during the period and at the balance sheet date, and how an entity manages those risks. The transitional provisions provide that certain of the incremental disclosures need not be provided on a comparative basis in the year of adoption.

Inventories

Commencing with the Company's 2008 fiscal year, the new, IFRS-IASB converged recommendations of the CICA for accounting for inventories (CICA Handbook Section 3031) apply to the Company. The new recommendations provide more guidance on the measurement and disclosure requirements for inventories; significantly, the new recommendations allow the reversals of previous write- downs to net realizable value where there is a subsequent increase in the value of inventories. The Company's results of operations and financial position are not materially affected by the new recommendations.

9. Annual guidance for 2008

The following discussion is qualified in its entirety by the Caution regarding forward-looking statements at the beginning of Management's discussion and analysis, Section 10: Risks and risk management of TELUS' 2007 and first quarter 2008 Management's discussions and analyses, as well as updates reported in Section 10 of this document. The Company has revised its full year guidance for 2008. The revised guidance for the full year considers the Company's performance for the first half of 2008, including strong wireless subscriber growth. The revised guidance is in compliance with the Company's long-term policy guidelines for Net debt to EBITDA and dividend payout, as described in Section 7.4.

------------------------------------------------ Expected change Annual from 2007 guidance Original Revised for revised for 2008 target guidance guidance ------------------------------------------------------------------------- Consolidated Revenues $9.6 to $9.675 to 7 to 8% $9.8 billion $9.825 billion EBITDA(1) (2007 as $3.8 to $3.8 to adjusted(2)) $3.95 billion $3.9 billion 1 to 4% EPS - basic (2007 as adjusted(3)) $3.50 to $3.80 $3.50 to $3.70 (10) to (15)% EPS - basic (2007 as adjusted), excluding favourable tax- related impacts $3.50 to $3.80 $3.50 to $3.70 4 to 10% Capital expenditures, excluding Approx. Approx. spectrum auction $1.9 billion $1.9 billion 7% ------------------------------------------------------------------------- Wireline segment Revenue $4.975 to $5.025 to (external) $5.075 billion $5.1 billion 4 to 6% EBITDA (2007 as $1.725 to $1.75 to adjusted(2)) $1.8 billion $1.8 billion (4) to (2)% ------------------------------------------------------------------------- Wireless segment Revenue $4.625 to $4.65 to (external) $4.725 billion $4.725 billion 9 to 11% EBITDA (2007 as $2.075 to $2.05 to adjusted(2)) $2.15 billion $2.1 billion 6 to 9% ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) See Section 11.1 Earnings before interest, taxes, depreciation and amortization (EBITDA) for the definition. (2) EBITDA for 2007 adjusted to exclude an incremental pre-tax charge of $168.7 million that related to the introduction of a net-cash settlement feature for share option awards granted prior to 2005. Of the total amount, $145.1 million was recorded in wireline and $23.6 million was recorded in wireless. (3) Basic EPS for 2007 adjusted to exclude an incremental after-tax charge of $0.32 per share for the introduction of a net-cash settlement feature. -------------------------------------------------------------------------

The following key assumptions were made at the time the original 2008 targets were announced in December 2007. Expectations for GDP growth and the expected statutory tax have been revised and actual or expected results to date are reported for each assumption as follows:

------------------------------------------------------------------------- Assumptions for 2008 original Actual result to-date or revised targets expectation for 2008 ------------------------------------------------------------------------- Canadian real GDP growth The Summer Outlook of the Conference estimate of 2.8% and above Board of Canada (CBOC) revised the 2008 average growth in the provinces Canadian GDP growth estimate to 1.7%, of Alberta and B.C. down from the Spring Outlook of 2.2%. The CBOC provincial outlook published early this year predicted above average growth in Alberta and B.C. ------------------------------------------------------------------------- Canadian dollar at or near The Canadian dollar closing exchange parity with the U.S. dollar rate varied between U.S. $0.972 and U.S. $1.016 during the three-month period ended June 30, 2008 (between U.S. $0.968 and U.S. $1.024 during the first six months of 2008). The average close was approximately U.S. $0.99 for both periods. (Source: the Bank of Canada.) ------------------------------------------------------------------------- Increased wireline competition Confirmed by: (i) a Western cable-TV in both business and consumer competitor reporting strong high-speed markets, particularly from Internet and telephone net additions cable-TV and VoIP companies for their quarter ended February 2008; and (ii) TELUS' network access line losses of 3.4% for the 12-month period ended June 30, 2008 ------------------------------------------------------------------------- The impact from the acquisition The transaction closed in mid-January of Emergis was assumed to begin 2008 instead of the beginning of March in March 2008 and is expected to have a minor impact on TELUS' 2008 targets ------------------------------------------------------------------------- Canadian wireless industry No change market penetration gain estimate is 4.5 to five percentage points for the year ------------------------------------------------------------------------- The capital expenditures target No change to capital expenditure explicitly excluded potential guidance excluding the spectrum purchases of wireless spectrum auction. The AWS spectrum auction costs in the AWS spectrum auction of approximately $880 million are expected to be recorded in the third quarter ------------------------------------------------------------------------- No new wireless competitive Several regional competitive entrants entrant assumed for 2008 have provisionally acquired spectrum in the AWS auction concluded July 2008, but it is expected that entrants are not likely to offer services until 2009. See Section 10.1 Regulatory ------------------------------------------------------------------------- Restructuring expenses of Assumption is revised to approximately approximately $50 million $30 million include the integration of Emergis ------------------------------------------------------------------------- A blended statutory income tax The blended statutory rate is expected rate of 31 to 32% to be approximately 30.5 to 31.5% as a result of enacted British Columbia tax rate changes ------------------------------------------------------------------------- A discount rate of 5.5% (50 Assumptions are set at the beginning of basis points higher than 2007) the year for pension accounting and expected long-term return of 7.25% for pension accounting (unchanged from 2007) ------------------------------------------------------------------------- Average shares outstanding of Average shares for the six-month period approximately 320 million (down ended June 30, 2008 were 322.3 million, 3.5% from 331.7 million in or 3.9% lower than the same period in 2007). 2007, consistent with the assumption for the full year ------------------------------------------------------------------------- 10. Risks and risk management

The following are updates to the risks and risk management discussions in Section 10 of TELUS' annual 2007 and first quarter 2008 Management's discussions and analyses.

10.1 Regulatory Advanced wireless service (AWS) and other spectrum auction in the 2 GHz range

Industry Canada conducted a spectrum auction between May 27 and July 21, 2008, for 90 MHz of AWS spectrum in 1.7/2.1 GHz ranges, of which 40 MHz was set aside for new entrants. Also auctioned were 10 MHz for PCS service extension, and 5 MHz in the 1670-1675 MHz range. Licence terms: The rules for the spectrum auction were released February 29, 2008, by Industry Canada in Conditions of Licence for Mandatory Roaming and Antenna Tower and Site Sharing and to Prohibit Exclusive Site Arrangements. The rules endorsed a continued facilities-based regulatory orientation and included the following:

- licence terms began at the conclusion of the auction; - entrants shall be entitled to roam on incumbents' networks within their licensed areas for five years and outside their licensed areas for 10 years on commercial terms; - entrants shall be entitled to utilize incumbents' towers at commercial rates (and subject to space availability); - new entrants must build facilities in areas where they have won spectrum (no roaming on competitors' networks within their own areas until they have built their own networks); - no mandatory resale of incumbents' services outside new entrants' coverage areas; - a subscriber cannot roam unless he or she is already served on another radio access network; - new entrants have no right to roam through incumbents' international roaming agreements; - data service roaming need only be provided at a comparable quality to a new entrant's service; - mandated roaming is not available to incumbents if they have licences in the service area; - there are 90-day time limits to respond to tower/site sharing requests; and - where there are disputes between service providers, a binding arbitration process will apply, with arbitrators appointed from a list of retired judges and lawyers.

While TELUS successfully acquired additional spectrum to facilitate its own long-term growth, the availability of AWS spectrum to competitors, as well as mandatory roaming and tower and site sharing rules may increase competitive intensity. Several apparent new regional competitors have acquired spectrum, as summarized in Section 4.1. The long-term viability of all new entrants in the market remains uncertain because of network build-out and spectrum costs, capital market conditions, and restrictions on foreign investment. The presence of new regional entrants in the marketplace may negatively affect the future market share of wireless incumbents such as TELUS and may impact pricing of services.

TELUS Communications Company (TCC) - Network access charge (Telecom Decision 2008-33)

In late 2007, TCC introduced a $2.95 monthly long distance network access fee for the Company's long distance subscribers who were not on a rate plan (basic toll subscribers). Subscribers could avoid the charge by subscribing free of charge to a toll restrict service (subject to a $10 termination fee), or enrolling in a TCC long distance rate plan.

On April 17, 2008, Decision 2008-33 stated that TCC should not have imposed this monthly charge in certain circumstances. For basic toll subscribers who had not used TCC's long distance network during the applicable period, the CRTC found that the network access charge was equivalent to an unauthorized residential local rate increase. TCC was directed to reimburse or credit those affected customers. Basic toll subscribers who did use TCC's long distance network in a particular month continue to be subject to the charge for that month. The CRTC also directed that customers who subscribed to a toll restrict service since TCC implemented the long distance network access charge, and who wished to be removed that service, should be allowed to do so without charge, within three months of April 17, 2008.

The Company is configuring its billing systems to reflect this charge only when long distance services were used in the service period. The Company has started issuing credits where charges were applied and no long distance services were used. The amounts to be reimbursed are not material to TELUS' financial results.

Additional forbearance decisions

In 2008, the CRTC continues to take steps to forbear from regulating prices, particularly for services offered in competitive markets. Recent decisions include forbearance from regulation of certain local exchange services, promotions, and high capacity inter-exchange private line routes.

Residential and business local exchange services: In the first seven months of 2008, the CRTC approved TELUS' forbearance applications for residential local services in 26 exchanges in B.C., Alberta and Eastern Quebec. The CRTC also determined that the competitor presence test was not met in nine Eastern Quebec exchanges and denied applications for forbearance in those communities. In July 2008, the CRTC approved TELUS' forbearance applications for business local exchange services in Langley and West Vancouver, B.C., but denied two other applications for smaller centres. Cumulatively, TELUS has received approval for deregulation of local phone services for residential markets covering approximately 80% of its residential lines in non-high cost serving areas, and for approximately two-thirds of its business lines.

Promotions for residential and business local wireline services in non- forborne areas: The CRTC decided to forbear from regulation of residential and business promotions offered in non-forborne areas when three criteria are met. The three criteria are: the combined enrolment and benefit period of the promotion does not exceed 12 months; there is a cooling-off period of at least one-half of the combined enrolment and benefit period; and there are no existing or recently elapsed promotions that involve any of the same tariffed services or underlying services in the same geographic areas.

High capacity/digital data services inter-exchange private lines: In May 2008, following a semi-annual review, the CRTC forbore from regulating more than 70 additional TELUS inter-exchange private line routes, where competitor presence tests were met.

10.2 Process risks

TELUS continues to develop new phases of a wireline billing and customer care system. In 2007, TELUS converted its wireline consumer customers in Alberta to the new integrated billing and client care system. Initial system difficulties were experienced, which temporarily reduced order processing capability and caused increased installation backlogs and higher costs, such as extra call centre resources to maintain service levels.

Building on the experience gained with the 2007 conversion, a pilot implementation for approximately 150,000 residential customers in B.C. began in the second quarter of 2008, followed by a system conversion for more than one million B.C. residential customers in mid-July. While it is early in the post-conversion period, the billing and order entry functions have performed well and service levels have not been materially impacted. However, there can be no assurance that system difficulties will not occur over the next few months of billing experience.

10.3 Litigation and legal matters

Uncertified class action: A class action was brought on June 26, 2008 in the Saskatchewan Court of Queen's Bench alleging that, among other things, Canadian telecommunications carriers, including the Company, have failed to provide proper notice of 9-1-1 charges to the public and have been deceitfully passing them off as a government charge. The plaintiffs seek restitution and direct and punitive damages in an unspecified amount. The Company is assessing the merits of this claim, but the potential for liability and magnitude of potential loss cannot be reliably determined at this time.

11. Reconciliation of non-GAAP measures and definitions 11.1 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 11.4 - 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.

------------------------------------------------------------------------- Six-month periods Quarters ended June 30 ended June 30 ------------------------------------------- ($ millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Net income 267.0 253.1 558.0 447.9 Other expense (income) 2.4 18.5 19.2 22.3 Financing costs 114.3 127.2 223.7 244.8 Income taxes 113.5 93.7 222.9 173.0 Non-controlling interest 0.9 1.3 1.7 2.8 ------------------------------------------------------------------------- Operating income 498.1 493.8 1,025.5 890.8 Depreciation 343.5 318.3 689.2 636.0 Amortization of intangible assets 76.0 72.5 152.4 122.1 ------------------------------------------------------------------------- EBITDA 917.6 884.6 1,867.1 1,648.9 Net-cash settlement feature (recovery) expense (0.3) 1.8 (0.1) 175.3 ------------------------------------------------------------------------- EBITDA (as adjusted) 917.3 886.4 1,867.0 1,824.2 ------------------------------------------------------------------------- -------------------------------------------------------------------------

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.

------------------------------------------------------------------------- Six-month periods Quarters ended June 30 ended June 30 ------------------------------------------- ($ millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- EBITDA 917.6 884.6 1,867.1 1,648.9 Capital expenditures (435.6) (481.8) (755.3) (863.7) ------------------------------------------------------------------------- EBITDA less capital expenditures 482.0 402.8 1,111.8 785.2 Net-cash settlement feature (recovery) expense (0.3) 1.8 (0.1) 175.3 ------------------------------------------------------------------------- EBITDA (as adjusted) less capital expenditures 481.7 404.6 1,111.7 960.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 11.2 Free cash flow

TELUS 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 acquisitions, 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:

------------------------------------------------------------------------- Six-month periods Quarters ended June 30 ended June 30 ------------------------------------------- ($ millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Cash provided by operating activities 461.0 1,061.9 1,086.2 1,522.5 Cash (used) by investing activities (436.7) (477.8) (1,437.1) (870.1) ------------------------------------------------------------------------- 24.3 584.1 (350.9) 652.4 Net employee defined benefit plans expense 24.6 21.0 49.5 45.0 Employer contributions to employee defined benefit plans 24.3 14.7 51.3 48.6 Amortization of deferred gains on sale-leaseback of buildings, amortization of deferred charges and other, net 4.5 (4.3) 5.6 4.8 Reduction (increase) in securitized accounts receivable 350.0 (350.0) 350.0 - Non-cash working capital changes except changes from income tax payments (receipts), interest payments (receipts) and securitized accounts receivable, and other (126.5) (99.8) 94.8 (114.7) Acquisitions 4.4 - 691.3 - Proceeds from the sale of property and other assets (3.3) (1.3) (3.3) (1.3) Other investing activities - (2.7) (6.2) 7.7 ------------------------------------------------------------------------- Free cash flow 302.3 161.7 882.1 642.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- The following shows management's calculation of free cash flow. ------------------------------------------------------------------------- Six-month periods Quarters ended June 30 ended June 30 ------------------------------------------- ($ millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- EBITDA 917.6 884.6 1,867.1 1,648.9 Restructuring costs net of cash payments (1.5) (7.3) (4.7) (24.3) Share-based compensation 10.1 (8.9) 16.4 129.7 Donations and securitization fees included in Other expense (7.3) (9.1) (17.1) (18.4) Cash interest paid (175.8) (218.5) (220.8) (242.1) Cash interest received 0.7 5.6 2.0 7.5 Income taxes received (paid), less investment tax credits received that were previously recognized in either EBITDA or capital expenditures, and other (5.9) (2.9) (5.5) 4.9 Capital expenditures (435.6) (481.8) (755.3) (863.7) ------------------------------------------------------------------------- Free cash flow 302.3 161.7 882.1 642.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 11.3 Definitions 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.

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

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.

11.4 Definitions 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 $23.7 million and $28.3 million, respectively, for the 12-month periods ended June 30, 2008 and 2007.

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.

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 June 30 --------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- Long-term debt including current portion 5,518.8 4,806.9 Debt issuance costs netted against long-term debt 30.8 32.5 Derivative liability 1,137.0 1,081.8 Accumulated Other comprehensive income amounts arising from financial instruments used to manage interest rate and currency risks associated with U.S. dollar denominated debt (146.5) (179.3) Cash and temporary investments (45.7) (2.2) Proceeds from securitized accounts receivable 150.0 500.0 ------------------------------------------------------------------------- Net debt 6,644.4 6,239.7 ------------------------------------------------------------------------- -------------------------------------------------------------------------

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 is in respect of the US$1,925.0 million debenture maturing June 1, 2011. 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 12-months ended June 30, 2008 and 2007 are the same as 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 June 30 --------------------- ($ millions) 2008 2007 ------------------------------------------------------------------------- Net debt 6,644.4 6,239.7 Non-controlling interests 22.0 22.1 Shareholders equity 6,994.4 6.734.7 Accumulated other comprehensive loss 114.2 125.8 ------------------------------------------------------------------------- Total capitalization - book value 13,775.0 13,122.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation interim consolidated statements of income and other comprehensive income (unaudited) Periods ended June 30 Three months Six months (millions except per share amounts) 2008 2007 2008 2007 ------------------------------------------------------------------------- OPERATING REVENUES $ 2,398.7 $ 2,228.1 $ 4,749.3 $ 4,433.7 ------------------------------------------------------------------------- OPERATING EXPENSES Operations 1,476.6 1,340.3 2,871.0 2,776.9 Restructuring costs 4.5 3.2 11.2 7.9 Depreciation 343.5 318.3 689.2 636.0 Amortization of intangible assets 76.0 72.5 152.4 122.1 ------------------------------------------------------------------------- 1,900.6 1,734.3 3,723.8 3,542.9 ------------------------------------------------------------------------- OPERATING INCOME 498.1 493.8 1,025.5 890.8 Other expense, net 2.4 18.5 19.2 22.3 Financing costs 114.3 127.2 223.7 244.8 ------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES AND NON-CONTROLLING INTEREST 381.4 348.1 782.6 623.7 Income taxes 113.5 93.7 222.9 173.0 Non-controlling interests 0.9 1.3 1.7 2.8 ------------------------------------------------------------------------- NET INCOME AND COMMON SHARE AND NON-VOTING SHARE INCOME 267.0 253.1 558.0 447.9 OTHER COMPREHENSIVE INCOME Change in unrealized fair value of derivatives designated as cash flow hedges (13.8) 27.9 (10.3) 55.8 Foreign currency translation adjustment arising from translating financial statements of self-sustaining foreign operations (2.3) (6.2) (3.9) (3.8) Change in unrealized fair value of available-for-sale financial assets 4.6 (0.1) 3.5 (0.1) ------------------------------------------------------------------------- (11.5) 21.6 (10.7) 51.9 ------------------------------------------------------------------------- COMPREHENSIVE INCOME $ 255.5 $ 274.7 $ 547.3 $ 499.8 ------------------------------------------------------------------------- NET INCOME PER COMMON SHARE AND NON-VOTING SHARE - Basic $ 0.83 $ 0.76 $ 1.73 $ 1.34 - Diluted $ 0.83 $ 0.75 $ 1.72 $ 1.32 DIVIDENDS DECLARED PER COMMON SHARE AND NON-VOTING SHARE $ 0.45 $ 0.375 $ 0.90 $ 0.75 TOTAL WEIGHTED AVERAGE COMMON SHARES AND NON-VOTING SHARES OUTSTANDING - Basic 321.0 333.5 322.3 335.3 - Diluted 322.0 336.9 323.7 338.3 TELUS Corporation interim consolidated balance sheets (unaudited) June 30, December 31, As at (millions) 2008 2007 ------------------------------------------------------------------------- ASSETS Current Assets Cash and temporary investments, net $ 45.7 $ 19.9 Short-term investments - 42.4 Accounts receivable 1,007.4 710.9 Income and other taxes receivable 80.4 120.9 Inventories 262.5 243.3 Prepaid expenses and other 295.0 199.5 Derivative assets 5.1 3.8 ------------------------------------------------------------------------- 1,696.1 1,340.7 ------------------------------------------------------------------------- Capital Assets, Net Property, plant, equipment and other 7,124.0 7,196.1 Intangible assets subject to amortization 1,288.9 959.4 Intangible assets with indefinite lives 2,966.5 2,966.5 ------------------------------------------------------------------------- 11,379.4 11,122.0 ------------------------------------------------------------------------- Other Assets Deferred charges 1,418.1 1,318.0 Investments 32.4 38.9 Goodwill 3,540.4 3,168.0 ------------------------------------------------------------------------- 4,990.9 4,524.9 ------------------------------------------------------------------------- $ 18,066.4 $ 16,987.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accrued liabilities $ 1,384.7 $ 1,476.6 Income and other taxes payable 11.8 7.3 Restructuring accounts payable and accrued liabilities 30.2 34.9 Advance billings and customer deposits 634.7 631.6 Current maturities of long-term debt 6.5 5.4 Current portion of derivative liabilities 50.0 26.6 Current portion of future income taxes 638.3 503.6 ------------------------------------------------------------------------- 2,756.2 2,686.0 ------------------------------------------------------------------------- Long-Term Debt 5,512.3 4,583.5 ------------------------------------------------------------------------- Other Long-Term Liabilities 1,680.7 1,717.9 ------------------------------------------------------------------------- Future Income Taxes 1,100.8 1,048.1 ------------------------------------------------------------------------- Non-Controlling Interests 22.0 25.9 ------------------------------------------------------------------------- Shareholders' Equity 6,994.4 6,926.2 ------------------------------------------------------------------------- $ 18,066.4 $ 16,987.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation interim consolidated statements of cash flows (unaudited) Periods ended June 30 Three months Six months (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- OPERATING ACTIVITIES Net income $ 267.0 $ 253.1 $ 558.0 $ 447.9 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and amortization 419.5 390.8 841.6 758.1 Future income taxes 179.2 92.5 176.9 170.7 Share-based compensation 10.1 (8.9) 16.4 129.7 Net employee defined benefit plans expense (24.6) (21.0) (49.5) (45.0) Employer contributions to employee defined benefit plans (24.3) (14.7) (51.3) (48.6) Restructuring costs, net of cash payments (1.5) (7.3) (4.7) (24.3) Amortization of deferred gains on sale-leaseback of buildings, amortization of deferred charges and other, net (4.5) 4.3 (5.6) (4.8) Net change in non-cash working capital (359.9) 373.1 (395.6) 138.8 ------------------------------------------------------------------------- Cash provided by operating activities 461.0 1,061.9 1,086.2 1,522.5 ------------------------------------------------------------------------- INVESTING ACTIVITIES Capital expenditures (435.6) (481.8) (755.3) (863.7) Acquisitions (4.4) - (691.3) - Proceeds from the sale of property and other assets 3.3 1.3 3.3 1.3 Change in non-current materials and supplies, purchase of investments and other - 2.7 6.2 (7.7) ------------------------------------------------------------------------- Cash used by investing activities (436.7) (477.8) (1,437.1) (870.1) ------------------------------------------------------------------------- FINANCING ACTIVITIES Common Shares and Non-Voting Shares issued 0.2 0.2 0.3 0.6 Dividends to shareholders (289.5) (125.0) (289.5) (250.9) Purchase of Common Shares and Non-Voting Shares for cancellation (76.7) (169.5) (199.2) (370.2) Long-term debt issued 2,862.0 993.8 6,574.3 2,091.6 Redemptions and repayment of long-term debt (2,523.7) (1,811.1) (5,704.6) (2,104.6) Dividends paid by a subsidiary to non-controlling interests - (4.3) (4.6) (4.3) Other - - - (0.9) ------------------------------------------------------------------------- Cash provided (used) by financing activities (27.7) (1,115.9) 376.7 (638.7) ------------------------------------------------------------------------- CASH POSITION Increase (decrease) in cash and temporary investments, net (3.4) (531.8) 25.8 13.7 Cash and temporary investments, net, beginning of period 49.1 534.0 19.9 (11.5) ------------------------------------------------------------------------- Cash and temporary investments, net, end of period $ 45.7 $ 2.2 $ 45.7 $ 2.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- SUPPLEMENTAL DISCLOSURE OF CASH FLOWS Interest (paid) $ (175.8) $ (218.5) $ (220.8) $ (242.1) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Interest received $ 0.7 $ 5.6 $ 2.0 $ 7.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Income taxes (inclusive of Investment Tax Credits (paid) received, net $ (5.9) $ (3.6) $ (6.6) $ 2.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- TELUS Corporation segmented information (unaudited) Three-month periods ended June 30 Wireline Wireless (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenues External revenue $ 1,256.3 $ 1,180.1 $ 1,142.4 $ 1,048.0 Intersegment revenue 32.3 28.7 7.2 6.7 ------------------------------------------------------------------------- 1,288.6 1,208.8 1,149.6 1,054.7 ------------------------------------------------------------------------- Operating expenses Operations expense 851.9 772.1 664.2 603.6 Restructuring costs 4.1 2.8 0.4 0.4 ------------------------------------------------------------------------- 856.0 774.9 664.6 604.0 ------------------------------------------------------------------------- EBITDA(1) $ 432.6 $ 433.9 $ 485.0 $ 450.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 320.9 $ 308.7 $ 114.7 $ 173.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ 111.7 $ 125.2 $ 370.3 $ 277.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) 853.2 772.1 663.2 601.8 Restructuring costs 4.1 2.8 0.4 0.4 ------------------------------------------------------------------------- 857.3 774.9 663.6 602.2 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ 431.3 $ 433.9 $ 486.0 $ 452.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 320.9 $ 308.7 $ 114.7 $ 173.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ 110.4 $ 125.2 $ 371.3 $ 279.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Three-month periods ended June 30 Eliminations Consolidated (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenues External revenue $ - $ - $ 2,398.7 $ 2,228.1 Intersegment revenue (39.5) (35.4) - - ------------------------------------------------------------------------- (39.5) (35.4) 2,398.7 2,228.1 ------------------------------------------------------------------------- Operating expenses Operations expense (39.5) (35.4) 1,476.6 1,340.3 Restructuring costs - - 4.5 3.2 ------------------------------------------------------------------------- (39.5) (35.4) 1,481.1 1,343.5 ------------------------------------------------------------------------- EBITDA(1) $ - $ - $ 917.6 $ 884.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 435.6 $ 481.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ - $ - $ 482.0 $ 402.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) (39.5) (35.4) 1,476.9 1,338.5 Restructuring costs - - 4.5 3.2 ------------------------------------------------------------------------- (39.5) (35.4) 1,481.4 1,341.7 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ - $ - $ 917.3 $ 886.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 435.6 $ 481.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ - $ - $ 481.7 $ 404.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) (from above) $ 917.3 $ 886.4 Incremental charge(3) (0.3) 1.8 --------------------------------------------- EBITDA (from above) 917.6 884.6 Depreciation 343.5 318.3 Amortization 76.0 72.5 --------------------------------------------- Operating income 498.1 493.8 Other expense, net 2.4 18.5 Financing costs 114.3 127.2 --------------------------------------------- Income before income taxes and non-controlling interests 381.4 348.1 Income taxes 113.5 93.7 Non-controlling interests 0.9 1.3 --------------------------------------------- Net income $ 267.0 $ 253.1 --------------------------------------------- --------------------------------------------- (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 $(0.3) (2007 - $1.8) and did not result in an immediate cash outflow. In respect of 2008 and 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) Six-month periods ended June 30 Wireline Wireless (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenues External revenue $ 2,506.9 $ 2,385.7 $ 2,242.4 $ 2,048.0 Intersegment revenue 63.1 53.8 14.2 13.0 ------------------------------------------------------------------------- 2,570.0 2,439.5 2,256.6 2,061.0 ------------------------------------------------------------------------- Operating expenses Operations expense 1,679.9 1,677.5 1,268.4 1,166.2 Restructuring costs 10.6 7.2 0.6 0.7 ------------------------------------------------------------------------- 1,690.5 1,684.7 1,269.0 1,166.9 ------------------------------------------------------------------------- EBITDA(1) $ 879.5 $ 754.8 $ 987.6 $ 894.1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 576.1 $ 579.4 $ 179.2 $ 284.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ 303.4 $ 175.4 $ 808.4 $ 609.8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) 1,680.6 1,524.4 1,267.8 1,144.0 Restructuring costs 10.6 7.2 0.6 0.7 ------------------------------------------------------------------------- 1,691.2 1,531.6 1,268.4 1,144.7 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ 878.8 $ 907.9 $ 988.2 $ 916.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ 576.1 $ 579.4 $ 179.2 $ 284.3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ 302.7 $ 328.5 $ 809.0 $ 632.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Six-month periods ended June 30 Eliminations Consolidated (millions) 2008 2007 2008 2007 ------------------------------------------------------------------------- Operating revenues External revenue $ - $ - $ 4,749.3 $ 4,433.7 Intersegment revenue (77.3) (66.8) - - ------------------------------------------------------------------------- (77.3) (66.8) 4,749.3 4,433.7 ------------------------------------------------------------------------- Operating expenses Operations expense (77.3) (66.8) 2,871.0 2,776.9 Restructuring costs - - 11.2 7.9 ------------------------------------------------------------------------- (77.3) (66.8) 2,882.2 2,784.8 ------------------------------------------------------------------------- EBITDA(1) $ - $ - $ 1,867.1 $ 1,648.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 755.3 $ 863.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA less CAPEX $ - $ - $ 1,111.8 $ 785.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating expenses (as adjusted)(3) Operations expense (as adjusted)(3) (77.3) (66.8) 2,871.1 2,601.6 Restructuring costs - - 11.2 7.9 ------------------------------------------------------------------------- (77.3) (66.8) 2,882.3 2,609.5 ------------------------------------------------------------------------- EBITDA (as adjusted)(3) $ - $ - $ 1,867.0 $ 1,824.2 ------------------------------------------------------------------------- ------------------------------------------------------------------------- CAPEX(2) $ - $ - $ 755.3 $ 863.7 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) less CAPEX $ - $ - $ 1,111.7 $ 960.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EBITDA (as adjusted) (from above) $ 1,867.0 $ 1,824.2 Incremental charge(3) (0.1) 175.3 --------------------------------------------- EBITDA (from above) 1,867.1 1,648.9 Depreciation 689.2 636.0 Amortization 152.4 122.1 --------------------------------------------- Operating income 1,025.5 890.8 Other expense, net 19.2 22.3 Financing costs 223.7 244.8 --------------------------------------------- Income before income taxes and non-controlling interests 782.6 623.7 Income taxes 222.9 173.0 Non-controlling interests 1.7 2.8 --------------------------------------------- Net income $ 558.0 $ 447.9 --------------------------------------------- --------------------------------------------- (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 $(0.1) (2007 - $175.3) and did not result in an immediate cash outflow. In respect of 2008 and 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

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

exiderdome Cruises Into the Motor City

DETROIT, Aug. 8 /PRNewswire/ -- In the second stop on its U.S. tour, Siemens Energy & Automation, Inc. brought exiderdome, a traveling technology expo of its productivity solutions to Detroit, the epicenter of automotive manufacturing in the United States. exiderdome will be in Detroit until Friday, Aug. 15, 2008.

(Photo: http://www.newscom.com/cgi-bin/prnh/20080808/NYF031 ) (Logo: http://www.newscom.com/cgi-bin/prnh/20070904/SIEMENSLOGO )

Events kicked off on Thursday evening with an Automotive Summit hosted by Siemens. Customers gathered at exiderdome for an interactive discussion with the heads of design of two major U.S. automakers about the current challenges facing the automotive industry and the latest technologies and solutions for factory automation.

"As a native of Detroit, I understand the importance of industry, especially the automotive industry, to the city of Detroit and its surrounding areas," said Raj Batra, vice president, Automation and Motion Division, Siemens Energy & Automation. "With exiderdome, we are bringing our solutions directly to our customers to demonstrate how they can increase their productivity and in turn keep jobs in the area."

Throughout its stay in Detroit, exiderdome will feature sessions and programming in Drives and Motors Technology, SIMATIC IT and MES, Process Instrumentation and Automation and Innovative Power Distribution Solutions. exiderdome will also host tours and technical training.

As part of its event on Thursday evening, Siemens also presented Focus Hope with a $30,000 donation to fund scholarships for students pursuing an education in math, science and engineering.

"Siemens is not only committed to our customers," said Batra. "We are also committed to the communities that we live and work in. With this contribution to Focus HOPE, we are helping train the next generation of scientists and engineers."

On Friday morning, following the event, 20 fourth and fifth graders from the Focus HOPE program participated in a Siemens Science Day at exiderdome. Siemens Science Days is a program to encourage interest in science and engineering at a young age.

Alternatively called The World of Automation, exiderdome combines technology displays and expertise delivered through learning events to demonstrate how Siemens brings more to its customers in the manufacturing and commercial facilities segments than any other automation company. After Detroit , exiderdome will visit Boston (Oct. 20-24), New York (Nov. 1-7), Charlotte (Dec. 8-12), Orlando (2009), Denver (2009), Los Angeles (2009) and Houston (2009).

For more information on exiderdome, please visit http://www.exiderdome.com/. About Siemens:

Siemens Energy & Automation, Inc. is one of Siemens' operating companies in the U.S. Headquartered in the Atlanta suburb of Alpharetta, Ga., Siemens Energy & Automation, Inc. manufactures and markets one of the world's broadest ranges of electrical and electronic products, systems and services to industrial and construction market customers. Its technologies range from circuit protection and energy management systems to process control, industrial software and totally integrated automation solutions. The company also has expertise in systems integration, technical services and turnkey industrial systems. For more information: http://www.sea.siemens.com/.

Siemens AG is a global powerhouse in electronics and electrical engineering, and operates in the industry, energy and healthcare sectors. For more than 160 years, Siemens has built a reputation for leading-edge innovation and the quality of its products, services and solutions. With nearly 400,000 employees in 190 countries, Siemens reported worldwide sales of $96.6 billion in fiscal 2007. With its U.S. corporate headquarters in New York City, Siemens in the USA reported sales of $19.8 billion and employs approximately 70,000 people throughout all 50 states and Puerto Rico. For more information on Siemens in the United States, visit http://www.usa.siemens.com/.

Photo: Newscom: http://www.newscom.com/cgi-bin/prnh/20080808/NYF031
http://www.newscom.com/cgi-bin/prnh/20070904/SIEMENSLOGO
AP Archive: http://photoarchive.ap.org/
AP PhotoExpress Network: PRN8
PRN Photo Desk, photodesk@prnewswire.com Siemens Energy & Automation, Inc.

CONTACT: Michael Krampe of Siemens Energy & Automation, Inc.,
+1-770-330-0086, michael.krampe@siemens.com

Web site: http://www.sea.siemens.com/
http://www.exiderdome.com/

China Information Security Announces Second Quarter 2008 Results Conference Call

SHENZHEN, China, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- China Information Security Technology, Inc. ("China Information Security," "CIST" or the "Company"), a leading provider of Information Security and 3S (Geographic Information Systems -- GIS, Global Positioning Systems -- GPS and Remote Sensing -- RS) services in China, today announced that it will conduct a conference call to discuss the second quarter of 2008 results.

To participate in the live conference call, please dial the call-in number five to ten minutes prior to the scheduled conference call time:

Date: Wednesday, August 13, 2008 Time: 9:00 a.m. EDT Conference Call-In #: 800 688 0796 International Callers: 617 614 4070 Conference Passcode #: 663 605 25 Webcast Link: http://www.visualwebcaster.com/event.asp?id=50785 If you are unable to participate in the call at this time, please call: Replay Call-In #: 888 286 8010 International Callers: 617 801 6888 Replay Passcode: 802 129 94 Replay Expires on: Wednesday, August 20, 2008 About China Information Security Technology, Inc.

Through its wholly-owned Chinese subsidiary, China Information Security is focused on the development and implementation of large scale, high-tech information security and 3S (Geographic Information Systems -- GIS, Global Positioning Systems -- GPS and Remote Sensing -- RS) related projects. The Company provides a broad portfolio of fully integrated solutions and services, including Information Security (First Responder Coordination Platform, Intelligent Border Control System and Residence Card Information Management System), 3S and Product Sales and Services. Through its exclusive contractual arrangement with iASPEC Software Company Limited (iASPEC), China Information Security has the licenses to numerous registered and copyrighted software applications in China. In addition, iASPEC is considered the Company's variable interest entity, and its financial data and information is consolidated into the Company's accounts. To learn more about the Company, please visit the corporate website at http://www.chinacpby.com/ .

Safe Harbor Statement

This press release may contain certain "forward-looking statements" relating to the business of China Information Security Technology, Inc., and its subsidiary companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements the general ability of the Company to achieve its commercial objectives; the business strategy, plans and objectives of the Company and its subsidiaries; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov/). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact: Company Contact: Mr. Michael Lin Vice President, Investor Relations China Information Security Technology, Inc. Tel: +1-949-743-0868 Email: mlin@chinacpby.com Web: http://www.chinacpby.com/ Investor Relations Contact: Mr. Crocker Coulson President CCG Investor Relations Tel: +1-646-213-1915 (NY office) Email: crocker.coulson@ccgir.com Web: http://www.ccgir.com/

China Information Security Technology, Inc.

CONTACT: Company Contact: Mr. Michael Lin, Vice President, Investor
Relations of China Information Security Technology, Inc., +1-949-743-0868, or
mlin@chinacpby.com; Investor Relations Contact: Mr. Crocker Coulson, President
of CCG Investor Relations, +1-646-213-1915 (NY office), or
crocker.coulson@ccgir.com

Web Site: http://www.chinacpby.com/
http://www.ccgir.com/

China TransInfo Technology Corp. Chairman and CEO to Ring Closing Bell at NASDAQ

BEIJING, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- China TransInfo Technology Corp., , ("China TransInfo" or "the Company"), a leading provider of public transportation information systems technology and comprehensive solutions in the People's Republic of China ("PRC"), today announced that the Company's chairman and CEO will ring the closing bell at the NASDAQ MarketSite in New York City's Times Square on Thursday, August 28, 2008 at 4:00 pm EST to celebrate the Company's listing on the NASDAQ Capital Market.

"By listing on the NASDAQ Capital Market, we have achieved another significant milestone for the Company's development," said Mr. Shudong Xia, CEO of China TransInfo. "We would like to express our sincere gratitude to our shareholders, dedicated employees, the entire management team, and all other parties who have made great contributions to allow us to reach this point today. We are honored to have been given the opportunity to ring the closing bell at NASDAQ, one of the most prestigious equity markets in the world."

About China TransInfo

China TransInfo, through its subsidiary Beijing PKU ChinaFront High Technology Co., Ltd. ("PKU"), is primarily focused on providing transportation information services. The Company aims to become the largest transportation information product and comprehensive solutions provider, as well as the largest integrated transportation information platform and commuter traffic media platform builder and operator in PRC. China TransInfo is involved in developing multiple applications in transportation, digital city land and resource filling system based on Geographic Information Systems ("GIS") technologies which is used to service the public sector. In addition, the Company is also developing its transportation system to include Electronic Toll Collection ("ETC") technology. The Company is the co-formulator to several transportation technology national standards and has software copyrights to 23 software products. China TransInfo has won 3 of 4 model cases sponsored by the PRC Ministry of Communications. The Company's affiliation with Peking University, which currently owns 5% of PKU, provides access to the University's GeoGIS Research Laboratory, including over 30 Ph.D. researchers. As a result, the Company is currently playing a key role in setting the standards for electrified transportation information solutions. For more information please visit the company website at http://www.chinatransinfo.com/ .

Safe Harbor Statement

This press release contains certain statements that may include "forward looking statements". All statements other than statements of historical fact included herein are "forward-looking statements". These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website ( http://www.sec.gov/ ). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

For more information, please contact: China TransInfo Technology Corp. Ms. Cathy Zhuang, IR Supervisor Phone: +86-10-8267-1299 x8032 (Beijing) Email: cathyzhuang@ctfo.com CCG Investor Relations Inc. Mr. Crocker Coulson, President Phone: +1-646-213-1915 (New York) Email: crocker.coulson@ccgir.com Web: http://www.ccgir.com/

China TransInfo Technology Corp.

CONTACT: Ms. Cathy Zhuang, IR Supervisor of China TransInfo Technology
Corp., +86-10-8267-1299 x8032 (Beijing), or cathyzhuang@ctfo.com; Or Mr.
Crocker Coulson, President of CCG Investor Relations Inc., +1-646-213-1915
(New York), or crocker.coulson@ccgir.com

Web site: http://www.chinatransinfo.com/
http://www.ccgir.com/
http://www.sec.gov/

Atmel Supports Digital Broadcasting Information Service, Journaline, at the Olympic Games in Beijing

HEILBRONN, Germany, Aug. 8 /PRNewswire/ -- Atmel(R) Corporation announced today that it supports a new text-based information service for digital broadcasting, called Journaline(R), which will be integrated into several shuttle vehicles at the 2008 Summer Olympics in China. This service delivers passengers and drivers live news in a ticker format. Users can access current news information and track live sporting results directly from an in-car module with text-to-speech presentation or from a portable receiver with text presentation.

Atmel offers a complete DAB chipset solution for Journaline. It includes an RF frontend ATR2732 and a DAB-decoding baseband ATR2740. The ATR2740 baseband processor is a highly functional system-on-chip solution. Its flexibility enables easy implementation of application-related tasks. This chipset forms the hardware basis for the Digital Radio Box, Atmel's verification and visualization tool for data-based services, which is also used in the Journaline trials.

The Journaline data service was internationally standardized by the WorldDMB forum in September 2007. The data service is currently broadcast as part of DAB/DMB and DRM digital radio transmissions.

Availability and Pricing

The ATR2732 and ATR2740 are currently in production. Please contact your local distributor or Atmel sales office.

Footnote DAB = Digital Audio Broadcasting DMB = Digital Multimedia Broadcasting DRM = Digital Radio Mondiale About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.

(C) 2008 Atmel Corporation. All Rights Reserved. Atmel(R), logo and combinations thereof, and others are registered trademarks, or trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

Information

Product information on Atmel's DAB products and the DAB Digital Radio Box may be retrieved at: http://www.atmel.com/products/audio/default.asp

For more information on Journaline see http://www.journaline.info/ Press Contacts Dr. Susanne van Clewe, Marcom Manager Communications and Automotive Products Tel: +49 7131 67-2081, Email: susanne.van-clewe@atmel.com Helen Perlegos, Public Relations Tel: +1 408 487-2963, Email: hperlegos@atmel.com

Atmel Corporation

CONTACT: Dr. Susanne van Clewe, Marcom Manager Communications and
Automotive Products, +49 7131 67-2081, susanne.van-clewe@atmel.com; or Helen
Perlegos, Public Relations of Atmel Corporation, +1-408-487-2963,
hperlegos@atmel.com

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

Honeywell Downsizes Skaneateles Facility, Maintains Business Presence in Region

SKANEATELES FALLS, N.Y., Aug. 8 /PRNewswire-FirstCall/ -- Honeywell today announced workforce reductions in its Imaging and Mobility manufacturing facility in Skaneateles Falls, NY. Plans call for the reductions to take place over the next 12 months and affect approximately 290 of the site's 580 employees. A number of the business' key capabilities will remain in the greater Skaneateles Falls/Syracuse area including Engineering, R&D, marketing, sales and customer support as well as other key business functions.

"This is a very difficult decision, but one that better positions us to grow and compete in the global marketplace," said Kevin Jost, vice president, global strategy for Honeywell Security.

Employees whose jobs are eliminated will be eligible for severance benefits and job search support. In addition, the company is working with federal, state and local agencies to provide information and support for employees seeking job search and training resources.

"This is an extremely hard time for our employees, our business and the greater community. We are going to do everything we can to make this transition as smooth as possible for those affected," Jost said.

Honeywell International is a $38 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London and Chicago Stock Exchanges. For additional information, please visit http://www.honeywell.com/.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.

Media Contact: Julie Franklin 763-234-3557 Julie.franklin@honeywell.com

Honeywell

CONTACT: Julie Franklin of Honeywell, +1-763-234-3557,
Julie.franklin@honeywell.com

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

Atmel Supports Digital Broadcasting Information Service, Journaline, at the Olympic Games in Beijing

HEILBRONN, Germany, August 8 /PRNewswire/ --

Atmel(R) Corporation (Nasdaq: ATML) announced today that it supports a new text-based information service for digital broadcasting, called Journaline(R), which will be integrated into several shuttle vehicles at the 2008 Summer Olympics in China. This service delivers passengers and drivers live news in a ticker format. Users can access current news information and track live sporting results directly from an in-car module with text-to-speech presentation or from a portable receiver with text presentation.

Atmel offers a complete DAB chipset solution for Journaline. It includes an RF frontend ATR2732 and a DAB-decoding baseband ATR2740. The ATR2740 baseband processor is a highly functional system-on-chip solution. Its flexibility enables easy implementation of application-related tasks. This chipset forms the hardware basis for the Digital Radio Box, Atmel's verification and visualization tool for data-based services, which is also used in the Journaline trials.

The Journaline data service was internationally standardized by the WorldDMB forum in September 2007. The data service is currently broadcast as part of DAB/DMB and DRM digital radio transmissions.

Availability and Pricing

The ATR2732 and ATR2740 are currently in production. Please contact your local distributor or Atmel sales office.

Footnote DAB = Digital Audio Broadcasting DMB = Digital Multimedia Broadcasting DRM = Digital Radio Mondiale

About Atmel

Atmel is a worldwide leader in the design and manufacture of microcontrollers, advanced logic, mixed-signal, nonvolatile memory and radio frequency (RF) components. Leveraging one of the industry's broadest intellectual property (IP) technology portfolios, Atmel is able to provide the electronics industry with complete system solutions focused on consumer, industrial, security, communications, computing and automotive markets.

(C) 2008 Atmel Corporation. All Rights Reserved. Atmel(R), logo and combinations thereof, and others are registered trademarks, or trademarks of Atmel Corporation or its subsidiaries. Other terms and product names may be trademarks of others.

Information

Product information on Atmel's DAB products and the DAB Digital Radio Box may be retrieved at: http://www.atmel.com/products/audio/default.asp

For more information on Journaline see http://www.journaline.info

Press Contacts Dr. Susanne van Clewe, Marcom Manager Communications and Automotive Products Tel: +49-7131-67-2081, Email: susanne.van-clewe@atmel.com Helen Perlegos, Public Relations Tel: +1-408-487-2963, Email: hperlegos@atmel.com

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

Atmel Corporation

Dr. Susanne van Clewe, Marcom Manager Communications and Automotive Products, +49-7131-67-2081, susanne.van-clewe@atmel.com; or Helen Perlegos, Public Relations of Atmel Corporation, +1-408-487-2963, hperlegos@atmel.com

Harland Clarke Holdings Corp. Reports Second Quarter and First Half 2008 ResultsHarland Clarke Holdings Corp. to Participate in M & F Worldwide Corp. Conference Call on August 13, 2008

DECATUR, Ga., Aug. 8 /PRNewswire/ -- Harland Clarke Holdings Corp. ("Harland Clarke Holdings" or the "Company"), formerly known as Clarke American Corp., today reported results for the second quarter and six months ended June 30, 2008. In addition to the Harland Clarke Holdings Form 10-Q filed with the Securities and Exchange Commission today, Harland Clarke Holdings' financial results are also consolidated in the quarterly report on Form 10-Q filed today by M & F Worldwide Corp. , which is the indirect parent company of Harland Clarke Holdings.

M & F Worldwide Corp. will host a conference call to discuss its second quarter and six months ended June 30, 2008 results, including results for Harland Clarke Holdings, on August 13, 2008, at 9:00 a.m. (EDT). The conference call will be accessible by dialing (888) 423-3275 in the U.S. and (612) 332-0725 internationally. For those unable to listen live, a replay of the call will be available by dialing (800) 475-6701 in the U.S. and (320) 365-3844 internationally; Access Code: 954347. The replay will be available from 11:00 a.m. (EDT), Wednesday, August 13, 2008, through 11:59 p.m. (EDT), Wednesday, August 27, 2008.

As previously announced, on May 1, 2007, M & F Worldwide Corp. completed the acquisition of John H. Harland Company ("Harland") and related financing transactions. Upon the completion of the acquisition, Harland became a wholly owned subsidiary of Clarke American Corp., which was then renamed Harland Clarke Holdings Corp. As a result of the acquisition of Harland ("Harland Acquisition"), Harland Clarke Holdings now has three business segments -- Harland Clarke (which is the combination of Clarke American Corp.'s check printing, contact center and direct marketing capabilities with Harland's corresponding businesses), Harland Financial Solutions and Scantron.

As previously announced, on February 22, 2008, the Company's wholly owned subsidiary, Scantron Corporation, purchased all of the limited liability membership interests of Data Management I LLC ("Data Management"), from NCS Pearson for $218.7 million in cash, after giving effect to working capital adjustments of $1.6 million, which were paid to the Company in July 2008 (the "Data Management Acquisition"). Data Management designs, manufactures and services scannable data collection products, including printed forms, scanning equipment and related software, and provides survey consulting and tracking services, including medical device tracking, as well as field maintenance services to corporate and governmental clients. Data Management's results of operations have been included in the Company's results of operations since February 22, 2008.

Through June 30, 2008 Harland Clarke Holdings has taken actions to achieve approximately $102.3 million of its Harland Acquisition related synergy targets, on an annual basis. As a result of these actions, Harland Clarke Holdings has realized approximately $19.6 million and $36.9 million of EBITDA improvement in the second quarter and six months ended June 30, 2008, respectively. Harland Clarke Holdings believes that it is on track to achieve cost reduction targets previously disclosed in connection with the financing for the Harland Acquisition.

Second Quarter 2008 Performance Consolidated Results

Consolidated net revenues increased by $117.8 million to $457.4 million in the second quarter of 2008 from $339.6 million in the second quarter of 2007, primarily as a result of the Harland Acquisition which accounted for $82.1 million of the increase and the Data Management Acquisition which accounted for $25.8 million of the increase. Net income for the second quarter of 2008 was $14.6 million, as compared to a net loss of $37.5 million for the second quarter of 2007. The net income for the second quarter of 2008 includes pre-tax charges of $0.6 million ($0.4 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory related to the Harland and Data Management Acquisitions and $3.9 million ($2.4 million after tax) for restructuring costs. The net loss for the second quarter of 2007 includes a non-recurring pre-tax loss on early extinguishment of debt of $54.6 million ($34.1 million after tax) related to refinancing transactions completed in connection with the Harland Acquisition. The net loss for the second quarter of 2007 also includes pre-tax charges of $8.6 million ($5.2 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory related to the Harland Acquisition and $1.7 million ($1.0 million after tax) for restructuring costs. For the second quarter of 2008, Adjusted EBITDA increased by $34.0 million to $119.1 million as compared to $85.1 million for the second quarter of 2007 primarily as a result of the Harland Acquisition which accounted for $22.9 million of the increase and the Data Management Acquisition which accounted for $4.9 million of the increase. Adjusted EBITDA is a non-GAAP measure that is defined in the footnotes to this release and which is reconciled to net income, the most directly comparable GAAP measure, in the accompanying financial tables.

Segment Results

Net revenues from the Harland Clarke segment increased by $52.7 million to $329.0 million for the second quarter of 2008 from $276.3 million in the second quarter of 2007, primarily as a result of the Harland Acquisition which accounted for $49.5 million of the increase. The remaining $3.2 million of the increase was primarily due to higher revenues per unit, partially offset by a decline in units. Operating income for the Harland Clarke segment increased by $19.1 million to $63.1 million for the second quarter of 2008 from $44.0 million for the second quarter of 2007, of which the Harland Acquisition accounted for $10.2 million of the increase. The remaining $8.9 million was largely related to growth in revenue and cost reductions in labor and facilities expenses more than offsetting increased integration related costs.

Net revenues from the Harland Financial Solutions segment increased by $28.7 million to $73.9 million for the second quarter of 2008 from $45.2 million in the second quarter of 2007, primarily as a result of the Harland Acquisition which accounted for $23.5 million of the increase. The remaining $5.2 million of the increase was primarily due to a $2.9 million difference in the fair value adjustment to deferred revenue and organic growth in the risk management and enterprise solutions product lines. Operating income for the Harland Financial Solutions segment increased by $3.8 million to $6.4 million for the second quarter of 2008 from $2.6 million in the second quarter of 2007, partially as a result of the Harland Acquisition which accounted for $1.8 million of the increase. Operating income for the Harland Financial Solutions segment for the second quarter of 2008 includes pre-tax charges of $0.2 million ($0.1 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue related to the Harland Acquisition and $2.6 million ($1.6 million after tax) for compensation expense related to an incentive agreement for the Peldec assets purchase. Operating income for the Harland Financial Solutions segment for the second quarter of 2007 includes pre-tax charges of $3.1 million ($1.9 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue related to the Harland Acquisition.

Net revenues from the Scantron segment increased by $36.4 million to $54.7 million for the second quarter of 2008 from $18.3 million in the second quarter of 2007, primarily as a result of the Data Management Acquisition which accounted for $25.8 million of the increase and the Harland Acquisition which accounted for $9.3 million of the increase. The remaining $1.3 million of the increase was primarily due to a $0.6 million difference in the fair value adjustment of deferred revenues and organic growth, primarily in K-12 software. Operating income for the Scantron segment increased by $6.3 million to $4.5 million in the second quarter of 2008 from an operating loss of $1.8 million in the second quarter of 2007, primarily as a result of the Harland Acquisition which accounted for $1.1 million of the increase, and the Data Management Acquisition which accounted for $1.8 million of the increase and decrease in by non-cash purchase accounting adjustments, discussed below. Operating income for the Scantron segment for the second quarter of 2008 includes pre-tax charges of $0.4 million ($0.3 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory, related to the Harland and Data Management Acquisitions. Operating income for the Scantron segment for the second quarter of 2007 includes pre-tax charges of $3.8 million ($2.3 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory, related to the Harland Acquisition.

First Half 2008 Performance Consolidated Results

Consolidated net revenues increased by $397.7 million to $901.9 million in the six months ended June 30, 2008 from $504.2 million for the six months ended June 30, 2007, primarily as a result of the Harland Acquisition which accounted for $345.1 million of the increase and the Data Management Acquisition which accounted for $36.6 million of the increase. Net income for the six months ended June 30, 2008 was $21.8 million, as compared to a net loss of $32.4 million for the six months ended June 30, 2007. The net income for the six months ended June 30, 2008 includes pre-tax charges of $2.2 million ($1.3 million after tax) related to non-cash fair value purchase accounting adjustments to deferred revenue and inventory related to the Harland and Data Management Acquisitions and $5.3 million ($3.2 million after tax) for restructuring costs. The net loss for the six months ended June 30, 2007 includes a non-recurring pre-tax loss on early extinguishment of debt of $54.6 million ($34.1 million after tax) related to refinancing transactions completed in connection with the Harland Acquisition. The net loss for the six months ended June 30, 2007 also includes pre-tax charges of $8.6 million ($5.2 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory related to the Harland Acquisition and $2.9 million ($1.8 million after tax) for restructuring costs. For the six months ended June 30, 2008, Adjusted EBITDA increased by $103.0 million to $226.5 million as compared to $123.5 million for the six months ended June 30, 2007 primarily as a result of the Harland Acquisition which accounted for $87.7 million of the increase and the Data Management Acquisition which accounted for $7.8 million of the increase.

Segment Results

Net revenues from the Harland Clarke segment increased by $220.2 million to $661.1 million for the six months ended June 30, 2008 from $440.9 million in the six months ended June 30, 2007, primarily as a result of the Harland Acquisition which accounted for $210.9 million of the increase. The remaining $9.3 million of the increase was primarily due to higher revenues per unit, partially offset by a decline in units. Operating income for the Harland Clarke segment increased by $49.0 million to $116.4 million for the six months ended June 30, 2008 from $67.4 million for the six months ended June 30, 2007, of which the Harland Acquisition accounted for $38.1 million of the increase. The remaining $10.9 million of the increase was largely related to growth in revenue and cost reductions in labor, materials and facilities expenses more than offsetting increased integration related expenses.

Net revenues from the Harland Financial Solutions segment increased by $99.9 million to $145.1 million for the six months ended June 30, 2008 from $45.2 million in the six months ended June 30, 2007, primarily as a result of the Harland Acquisition which accounted for $94.8 million of the increase. The remaining $5.1 million of the increase was primarily due to a $2.9 million difference in the fair value adjustment to deferred revenue and organic growth in risk management and enterprise solutions product lines. Operating income for the Harland Financial Solutions segment increased by $10.2 million to $12.8 million for the six months ended June 30, 2008 from $2.6 million in the six months ended June 30, 2007, primarily as a result of the Harland Acquisition which accounted for $8.2 million of the increase. Operating income for the Harland Financial Solutions segment for the six months ended June 30, 2008 includes pre-tax charges of $1.2 million ($0.7 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue related to the Harland Acquisition and $5.1 million ($3.1 million after tax) for compensation expense related to an incentive agreement for the Peldec assets purchase. Operating income for the Harland Financial Solutions segment for the six months ended June 30, 2007 includes pre-tax charges of $3.1 million ($1.9 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue related to the Harland Acquisition.

Net revenues from the Scantron segment increased by $78.0 million to $96.3 million for the six months ended June 30, 2008 from $18.3 million in the six months ended June 30, 2007, primarily as a result of the Harland Acquisition which accounted for $40.0 million of the increase and the Data Management Acquisition which accounted for $36.6 million of the increase. The remaining $1.4 million of the increase was primarily due to a $0.3 million difference in the fair value adjustment to deferred revenues and organic growth, primarily in K-12 software. Operating income for the Scantron segment increased by $12.0 million to $10.2 million in the six months ended June 30, 2008 from an operating loss of $1.8 million in the six months ended June 30, 2007, primarily as a result of the Harland Acquisition which accounted for $5.6 million of the increase, the Data Management Acquisition which accounted for $3.1 million of the increase and a decrease in non-cash purchase accounting adjustments, discussed below. Operating income for the Scantron segment for the six months ended June 30, 2008 includes pre-tax charges of $1.0 million ($0.6 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory related to the Harland and Data Management Acquisitions. Operating income for the Scantron segment for the six months ended June 30, 2007 includes pre-tax charges of $3.8 million ($2.3 million after tax) for non-cash fair value purchase accounting adjustments to deferred revenue and inventory related to the Harland Acquisition.

Harland Acquisition

As previously announced, on May 1, 2007, M & F Worldwide completed its acquisition of Harland at a price per share of Harland common stock of $52.75, contributing to an approximate transaction value of $1.7 billion. Upon the completion of the transaction, Harland became a wholly owned subsidiary of the Company. In connection with the Harland Acquisition, Clarke American's prior senior secured credit facility, Harland's then outstanding credit facility and Clarke American Corp.'s prior 11.75% senior notes due 2013 were repaid in full. The acquisition and debt repayments were funded with new borrowings by Harland Clarke Holdings, consisting of a $1.8 billion senior secured term loan and an aggregate $615.0 million principal amount of senior notes due 2015, composed of $310.0 million principal amount of 9.50% senior fixed rate notes and $305.0 million principal amount of senior floating rate notes bearing interest at LIBOR plus 4.75%.

Data Management Acquisition

As previously announced, on February 22, 2008, M & F Worldwide completed its acquisition of all of the limited liability company membership interests of Data Management, pursuant to the terms of the Membership Interest Purchase Agreement, dated as of February 13, 2008, by and among M & F Worldwide, NCS Pearson, Inc. and Pearson, Inc. Prior to the closing, M & F Worldwide assigned the Purchase Agreement to its indirect wholly owned subsidiary, Scantron Corporation, which upon closing became the direct parent company of Data Management. The net purchase price was $218.7 million in cash, after giving effect to working capital adjustments of $1.6 million which were paid to the Company in July 2008. M & F Worldwide financed the Data Management Acquisition and related fees and expenses with cash on hand at Harland Clarke Holdings.

About Harland Clarke Holdings

Prior to the acquisition of Harland on May 1, 2007, Clarke American Corp. provided checks and related products and direct marketing services through two segments: the Financial Institution segment, which was focused on financial institution clients and their customers, and the Direct to Consumer segment, which was focused on individual customers. As a result of the Harland Acquisition, Harland Clarke Holdings now has three business segments, which are operated by Harland Clarke, Harland Financial Solutions, and Scantron. Subsequent to the closing of the Harland Acquisition, Clarke American Corp.'s check printing, contact center and direct marketing capabilities have been combined with Harland's corresponding business and operate under the name "Harland Clarke." The operations of Harland Financial Solutions include core processing, retail and lending software solutions. Scantron is a leading provider of data collection and testing and assessment products and services sold primarily to educational and commercial customers.

Forward Looking Statements

This press release contains forward looking statements that reflect management's current assumptions and estimates of future performance and economic conditions, which are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of risks and uncertainties, many of which are beyond Harland Clarke Holdings' control. All statements other than statements of historical facts included in this press release, including those regarding Harland Clarke Holdings' strategy, future operations, financial position, estimated revenues, projected costs, projections, prospects, plans and objectives of management, are forward-looking statements. When used in this press release, the words "believes," "anticipates," "plans," "expects," "intends," "estimates" or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. All forward-looking statements speak only as of the date of this press release. Although Harland Clarke Holdings believes that its plans, intentions and expectations reflected in or suggested by the forward-looking statements made in this press release are reasonable, such plans, intentions or expectations may not be achieved. In addition to factors described in Harland Clarke Holdings' Securities and Exchange Commission filings and others, the following factors may cause Harland Clarke Holdings' actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release include: 1) Harland Clarke Holdings' substantial indebtedness; 2) covenant restrictions under Harland Clarke Holdings' indebtedness that may limit its ability to operate its business and react to market changes; 3) the maturity of the principal industry in which the Harland Clarke segment operates and trends in the paper check industry, including a faster than anticipated decline in check usage due to increasing use of alternative payment methods and other factors; 4) consolidation among financial institutions and other adverse changes among the large clients on which Harland Clarke Holdings depends, resulting in decreased revenues; 5) the ability to retain Harland Clarke Holdings' clients; 6) the ability to retain Harland Clarke Holdings' key employees and management; 7) lower than expected cash flow from operations; 8) significant increases in interest rates; 9) intense competition in all areas of Harland Clarke Holdings' business; 10) interruptions or adverse changes in Harland Clarke Holdings' supplier relationships, technological capacity, intellectual property matters, and applicable laws; 11) variations in contemplated brand strategies, business locations, management positions and other business decisions in connection with integrating Harland and Data Management; 12) Harland Clarke Holdings' ability to successfully integrate Harland and Data Management into its business and manage future acquisitions; 13) Harland Clarke Holdings' ability to implement any or all components of its business strategy or realize all of its expected cost savings or synergies from the Harland acquisition or from other acquisitions, including the recent acquisition of Data Management by Scantron; and 14) the acquisitions of Harland and Data Management otherwise not being successful from a financial point of view, including, without limitation, due to any difficulties with Harland Clarke Holdings servicing its debt obligations.

You should read carefully the factors described in Harland Clarke Holdings' Annual Report on Form 10-K for the year ended December 31, 2007 for a description of risks that could, among other things, cause actual results to differ from these forward looking statements.

Non-GAAP Financial Measures

In this release, Harland Clarke Holdings presents certain adjusted financial measures that are not calculated according to generally accepted accounting principles in the United States ("GAAP"). These non-GAAP financial measures are designed to complement the GAAP financial information presented in this release because management believes they present information regarding Harland Clarke Holdings that management believes is useful to investors. The non-GAAP financial measures presented should not be considered in isolation from or as a substitute for the comparable GAAP financial measure.

EBITDA represents net income before interest income and expense, income taxes, depreciation and amortization (other than amortization related to contract acquisition payments). Harland Clarke Holdings presents EBITDA because it believes it is an important measure of its performance and believes it is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in Harland Clarke Holdings' industries.

Harland Clarke Holdings believes EBITDA provides useful information with respect to its ability to meet its future debt service, capital expenditures, working capital requirements and overall operating performance, although EBITDA should not be considered as a measure of liquidity. In addition, Harland Clarke Holdings utilizes EBITDA when interpreting operating trends and results of operations of its business.

Harland Clarke Holdings also uses EBITDA for the following purposes: Harland Clarke Holdings' senior credit facilities use EBITDA (with additional adjustments) to measure compliance with financial covenants such as debt incurrence. Harland Clarke Holdings' executive compensation is based on EBITDA (with additional adjustments) performance measured against targets. EBITDA is also widely used by Harland Clarke Holdings and others in its industry to evaluate and value potential acquisition candidates. EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. See below for a description of these limitations. Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to Harland Clarke Holdings to invest in the growth of its business.

In addition, in evaluating EBITDA, you should be aware that in the future Harland Clarke Holdings may incur expenses such as those excluded in calculating it. Harland Clarke Holdings' presentation of this measure should not be construed as an inference that its future results will be unaffected by unusual or nonrecurring items.

EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as substitutes for analysis of our results as reported under GAAP. Some of these limitations are:

-- it does not reflect Harland Clarke Holdings' cash expenditures and future requirements for capital expenditures or contractual commitments;

-- it does not reflect changes in, or cash requirements for, Harland Clarke Holdings' working capital needs;

-- it does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payments on Harland Clarke Holdings' debt;

-- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements;

-- it is not adjusted for all non-cash income or expense items that are reflected in Harland Clarke Holdings' statements of cash flows; and

-- other companies in Harland Clarke Holdings' industries may calculate EBITDA differently from Harland Clarke Holdings, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to invest in the growth of Harland Clarke Holdings' business or as a measure of cash that will be available to Harland Clarke Holdings to meet its obligations. You should compensate for these limitations by relying primarily on Harland Clarke Holdings' GAAP results and using EBITDA only supplementally.

Harland Clarke Holdings presents Adjusted EBITDA as a further supplemental measure of its performance. Harland Clarke Holdings prepares Adjusted EBITDA by adjusting EBITDA to reflect the impact of a number of items it does not consider indicative of Harland Clarke Holdings' ongoing operating performance. Such items include, but are not limited to, loss on early extinguishment of debt, restructuring costs, deferred purchase price compensation related to the Peldec assets purchase and non-recurring purchase accounting adjustments. You are encouraged to evaluate each adjustment and the reasons Harland Clarke Holdings considers them appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, you should be aware that in the future, Harland Clarke Holdings may incur expenses, including cash expenses, similar to the adjustments in this presentation. Harland Clarke Holdings' presentation of Adjusted EBITDA should not be construed as an inference that its future results will be unaffected by unusual or non-recurring items.

- tables to follow - Harland Clarke Holdings Corp. and Subsidiaries Consolidated Statements of Operations (in millions) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Product revenues, net $380.3 $299.5 $755.1 $464.0 Service revenues, net 77.1 40.1 146.8 40.2 Total net revenues 457.4 339.6 901.9 504.2 Cost of products sold 227.7 186.1 459.9 287.3 Cost of services provided 40.2 25.2 76.2 25.3 Total cost of revenues 267.9 211.3 536.1 312.6 Gross profit 189.5 128.3 365.8 191.6 Selling, general and administrative expenses 115.9 87.8 229.6 126.5 Restructuring costs 3.9 1.7 5.3 2.9 Operating income 69.7 38.8 130.9 62.2 Interest income 0.2 1.3 1.6 1.3 Interest expense (44.3) (45.3) (94.5) (60.5) Loss on early extinguishment of debt - (54.6) - (54.6) Other income (expense), net 0.1 0.1 (0.2) 0.1 Income (loss) before income taxes 25.7 (59.7) 37.8 (51.5) Provision (benefit) for income taxes 11.1 (22.2) 16.0 (19.1) Net income (loss) $14.6 $(37.5) $21.8 $(32.4) Harland Clarke Holdings Corp. and Subsidiaries Business Segment Information (in millions) (unaudited) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Net revenues Harland Clarke segment $329.0 $276.3 $661.1 $440.9 Harland Financial Solutions segment (a) 73.9 45.2 145.1 45.2 Scantron segment (a) 54.7 18.3 96.3 18.3 Eliminations (0.2) (0.2) (0.6) (0.2) Total net revenues $457.4 $339.6 $901.9 $504.2 Operating income Harland Clarke segment $63.1 $44.0 $116.4 $67.4 Harland Financial Solutions segment (a) 6.4 2.6 12.8 2.6 Scantron segment (a) 4.5 (1.8) 10.2 (1.8) Corporate (4.3) (6.0) (8.5) (6.0) Total operating income $69.7 $38.8 $130.9 $62.2 (a) During the first quarter of 2008, the Company transferred its field maintenance services from the Harland Financial Solutions segment to the Scantron segment.

Reconciliation of net income to EBITDA and EBITDA to Adjusted EBITDA (in millions) (unaudited):

Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Net income (loss) $14.6 $(37.5) $21.8 $(32.4) Interest expense, net 44.1 44.0 92.9 59.2 Provision (benefit) for income taxes 11.1 (22.2) 16.0 (19.1) Depreciation and amortization 41.7 33.5 82.7 47.3 EBITDA 111.5 17.8 213.4 55.0 Adjustments: Restructuring (a) 3.9 1.7 5.3 2.9 Peldec deferred purchase price compensation (b) 2.6 - 5.1 - Loss on early extinguishment of debt (c) - 54.6 - 54.6 Impairment of intangible assets (d) 0.5 - 0.5 - Transaction related expenses (e) - 2.4 - 2.4 Impact of purchase accounting adjustments (f) 0.6 8.6 2.2 8.6 Adjusted EBITDA $119.1 $85.1 $226.5 $123.5 (a) Reflects restructuring expenses, including adjustments, recorded in accordance with GAAP, consisting primarily of severance, post-closure facility expenses and other related expenses, which were not recorded in purchase accounting. The expenses recorded in the three and six months ended June 30, 2008 primarily relate to closures of facilities and other restructuring activities in connection with the Harland and Data Management Acquisitions. The expenses recorded in the three and six months ended June 30, 2007 include expenses from restructuring activities that were not related to the Harland or Data Management Acquisitions. (b) Reflects charges accrued under a deferred purchase price agreement required to be recorded as compensation expense in selling, general and administrative expense resulting from the 2007 purchase of the Peldec assets. (c) Reflects costs incurred to retire prior Clarke American Corp. debt as a result of the Harland Acquisition. (d) Reflects a non-cash impairment charge from the write-down of Alcott Routon intangible assets. (e) Reflects non-recurring employee retention bonuses incurred in connection with the Harland Acquisition. (f) Reflects the negative effect on net income primarily from the non- cash fair value deferred revenue and inventory adjustments related to purchase accounting.

Harland Clarke Holdings Corp.

CONTACT: Pete Fera of Harland Clarke Holdings Corp., +1-210-697-1208

Darwin Professional Underwriters, Inc. Reports Second Quarter Net Income of $13.5 MillionNet income increases 74% and net premiums written increase 4.2% over the comparable year-earlier results

FARMINGTON, Conn., Aug. 8 /PRNewswire-FirstCall/ -- Darwin Professional Underwriters, Inc. ("Darwin," the "Company," or "Our") today announced its financial results for the second quarter ended June 30, 2008. Highlights include:

(Logo: http://www.newscom.com/cgi-bin/prnh/20060829/NETU014LOGO )

-- Gross premiums written for the second quarter are $64.0 million. Second quarter gross premiums written are 2.9% below our gross premiums for the same period a year ago. Net premiums written for the quarter of $51.1 million are up 4.2% over the second quarter of 2007.

-- Net income of $13.5 million for the quarter ended June 30, 2008 represents a 73.7% increase over the $7.8 million for the quarter ended June 30, 2007.

-- Overall, the combined ratio is 67.9% for the second quarter 2008, which compares favorably to the second quarter 2007 combined ratio of 82.7%. The combined ratio excludes certain aspects of the Company's long-term incentive plan which is included in other expenses. The improvement in the Company's results is primarily driven by a decrease in the loss ratio (16.9% improvement to 37.6%). The second quarter results include approximately $13.2 million ($8.6 million, net of tax) in favorable loss reserve development and the corresponding ceded premiums, net of incentive compensation and profit sharing expenses stemming from the favorable development of the 2003 through 2007 accident years.

-- Earnings per diluted share for the three months ended June 30, 2008 are $0.79 compared to $0.45 per share for the same period in 2007.

-- Annualized return on average equity is 21.3% for the quarter ended June 30, 2008, while shareholders' equity grew $23.8 million, or 9.4% for the six months ended June 30, 2008, from $254.2 million at December 31, 2007 to $278.0 million at June 30, 2008. Book value per share grew 9.4% to $16.33 at June 30, 2008 from $14.93 at December 31, 2007.

Stephen Sills, Darwin's Chief Executive Officer commented, "Darwin recorded a significant increase in net income in the current quarter as compared to the second quarter of 2007, and we demonstrated our commitment to underwriting profitability with a second-quarter combined ratio of 67.9 percent. We are gratified that we have built an organization that has delivered strong earnings and solid returns for our shareholders. We are pleased that this quarter, perhaps one of our last as a stand-alone public company, continues this trend. As Darwin becomes part of the Allied World family, I believe that the franchise we have built, the people who have helped us build it, and the business relationships we have forged will enable continued success as part of the new combined organization."

Jack Sennott, Darwin's Executive Vice President, added, "We are focused on completing the remaining items needed to close the merger with Allied World, and we look forward to a successful integration in what we see as a very complementary merger of capabilities. With significant expertise across all of our lines, we believe we're well positioned to take advantage of the continued opportunities we see in specialty insurance. We have cleared one regulatory hurdle related to the merger already. On July 21st, the Federal Trade Commission granted early termination of the Hart-Scott-Rodino Act's pre-merger waiting period."

Important Information

Certain matters discussed in this release are forward-looking statements. Such statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include the accuracy of assumptions underlying the Company's outlook and other risks described in the Company's filings with the Securities and Exchange Commission ("SEC"), including the Company's Annual Report on Form 10-K for 2007 and Form 10-Q for second quarter 2008. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims any intent or obligation to update these forward-looking statements.

Additional Information

In connection with the proposed merger with Allied World Assurance Company Holdings, Ltd, Darwin will file a proxy statement with the SEC. Investors are urged to read the proxy statement when it becomes available because it will contain important information. Darwin's stockholders and other interested parties will be able to obtain the proxy statement, as well as other filings containing information about Darwin (when they become available), free of charge, at the website maintained by the SEC at http://www.sec.gov/. Copies of the proxy statement and other filings made by Darwin with the SEC can also be obtained, free of charge, by visiting Darwin's website at http://www.darwinpro.com/.

Participants in the Solicitation

The directors and executive officers of Darwin may be deemed to be participants in the solicitation of proxies in respect of the proposed merger. Information regarding Darwin's directors and executive officers is available in Darwin's proxy statement for its 2008 Annual Meeting filed with the SEC on April 7, 2008. Other information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement and other relevant materials to be filed with the SEC regarding the merger when they become available. Investors should read the proxy statement carefully when it becomes available before making any voting or investment decisions.

About Darwin Professional Underwriters, Inc.

Darwin is a specialty insurance group based in Farmington, Connecticut. The Company is focused on the specialty liability insurance market and underwrites D&O liability insurance for public and private companies, E&O liability insurance, medical malpractice liability insurance, and other specialty coverages. Darwin member companies include Darwin Professional Underwriters, Inc., Darwin National Assurance Company ("DNA"), and Darwin Select Insurance Company ("Darwin Select"). DNA and Darwin Select have earned a financial strength rating of "A- (Excellent)" from A.M. Best Company. Darwin is traded on the New York Stock Exchange under the ticker symbol, "DR." For more information about Darwin, visit http://www.darwinpro.com/.

Additional information concerning Darwin, its finances, and business operations can be found in the Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 which will be filed with the SEC.

Darwin Professional Underwriters, Inc. and Subsidiaries Selected Consolidated Statements of Operations Data Three and Six Months Ended June 30, 2008 and June 30, 2007 (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Gross premiums written $63,994 $65,882 $144,037 $140,160 Net premiums written $51,113 $49,032 $109,127 $97,974 Revenues: Net premiums earned $54,928 $46,378 $106,911 $86,375 Net investment income 5,930 5,441 11,999 10,680 Other income 1,294 - 2,889 17 Net realized investment losses (614) 17 (614) - Total revenues 61,538 51,836 121,185 97,072 Costs and expenses: Losses and loss adjustment expenses 20,653 25,253 40,617 50,723 Commissions and brokerage expenses 5,992 6,329 12,438 11,509 Other underwriting, acquisition and operating expenses 10,638 6,760 17,838 13,245 Other expenses 4,817 2,237 9,816 2,814 Interest expense 69 - 138 - Total costs and expenses 42,169 40,579 80,847 78,291 Earnings before income taxes 19,369 11,257 40,338 18,781 Income tax expense 5,906 3,505 12,015 5,809 Net earnings $13,463 $7,752 $28,323 $12,972 Basic earnings per share: Net earnings per share $0.80 $0.48 $1.68 $0.80 Weighted average shares outstanding 16,892,327 16,133,472 16,892,092 16,130,177 Diluted earnings per share: Net earnings per share $0.79 $0.45 $1.66 $0.76 Weighted average shares outstanding 17,070,697 17,064,606 17,078,570 17,076,716 Combined ratio: Loss ratio 37.6% 54.5% 38.0% 58.7% Expense ratio 30.3% 28.2% 28.3% 28.7% Combined ratio(1) 67.9% 82.7% 66.3% 87.4% See accompanying notes to Condensed Consolidated Financial Statements. Darwin Professional Underwriters, Inc. and Subsidiaries Selected Consolidated Balance Sheets Data June 30, 2008 and December 31, 2007 (Unaudited) (Dollars in thousands, except per share amounts) June 30, December 31, 2008 2007 ASSETS: Available-for-sale securities, at fair value: Equity securities (cost: 2008, $7,413; 2007, $4,000) $7,067 $3,680 Fixed maturity securities (amortized cost: 2008, $566,811; 2007, $439,748) 565,429 445,661 Short-term investments, at cost which approximates fair value 47,784 107,597 Total investments 620,280 556,938 Cash 6,440 7,469 Premiums receivable (net of allowance for doubtful accounts of $75 as of June 30, 2008 and December 31, 2007) 27,169 30,986 Reinsurance recoverable on paid and unpaid losses 148,635 136,370 Ceded unearned reinsurance premiums 44,174 43,244 Deferred insurance acquisition costs 13,949 13,814 Property and equipment at cost, less accumulated depreciation 1,981 1,783 Goodwill and intangible assets 12,448 7,455 Net deferred income tax asset 18,844 13,546 Current income taxes receivable 1,808 - Other assets 16,493 15,530 Total assets $912,221 $827,135 LIABILITIES AND STOCKHOLDERS' EQUITY: Loss and loss adjustment expense reserves $426,136 $387,865 Unearned premium reserves 144,270 141,126 Reinsurance payable 24,320 20,999 Due to brokers for unsettled trades 8,771 - Debt 5,000 5,000 Income taxes payable - 1,155 Accrued expenses and other liabilities 25,763 16,817 al liabilities 634,260 572,962 Stockholders' equity: Common stock; $0.01 par value; authorized 50,000,000 shares; issued and outstanding 17,017,881 shares at June 30, 2008 and 17,025,501 shares at December 31, 2007 170 170 Additional paid-in capital 204,802 204,583 Retained earnings 74,112 45,790 Accumulated other comprehensive income (loss) (1,123) 3,630 Total stockholders' equity 277,961 254,173 Total liabilities and stockholders' equity $912,221 $827,135 Book value per common share: Book value per common share $16.33 $14.93 Tangible book value per common share $15.60 $14.49 Net income return on average equity(2) 21.3% 13.7%

(1) Excludes other expenses which primarily consist of the company's long-term incentive plan.

(2) Return on average equity for first six months is annualized.

Photo: http://www.newscom.com/cgi-bin/prnh/20060829/NETU014LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Darwin Professional Underwriters, Inc.

CONTACT: Analyst and investor inquiries, Jack Sennott, +1-860-284-1918,
jsennott@darwinpro.com

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

Cogent Communications Reports Second Quarter 2008 Results

WASHINGTON, Aug. 8 /PRNewswire-FirstCall/ -- Cogent Communications Group, Inc. today announced net service revenue of $53.9 million for the three months ended June 30, 2008, an increase of 19.4% over $45.1 million for the three months ended June 30, 2007. On-net revenue was $44.2 million for the three months ended June 30, 2008, an increase of 25.3% over $35.3 million for the three months ended June 30, 2007. On-net service is provided to customers located in buildings that are physically connected to Cogent's network by Cogent facilities. Off-net revenue was $8.5 million for the three months ended June 30, 2008, an increase of 6.6% from $7.9 million for the three months ended June 30, 2007. Off-net customers are located in buildings directly connected to Cogent's network using other carriers' facilities and services to provide the last mile portion of the link from the customers' premises to Cogent's network. Non-core revenue was $1.2 million for the three months ended June 30, 2008, a decrease of 36.8% from $1.9 million for the three months ended June 30, 2007. Non-core services are legacy services, which Cogent acquired and continues to support but does not actively sell.

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Gross profit, excluding equity-based compensation expense, increased 30.5% from $23.7 million for the three months ended June 30, 2007 to $30.9 million for the three months ended June 30, 2008. Gross profit margin, excluding equity-based compensation expense, increased from 52.5% for the three months ended June 30, 2007 to 57.4% for the three months ended June 30, 2008.

Earnings before interest, taxes, depreciation and amortization (EBITDA), as adjusted, was $16.6 million for the three months ended June 30, 2008, an increase of 50.0%, over $11.1 million for the three months ended June 30, 2007. EBITDA, as adjusted, margin increased from 24.5% for the three months ended June 30, 2007 to 30.8% for the three months ended June 30, 2008.

Basic and diluted net loss applicable to common stock was $(0.12) per share for the three months ended June 30, 2008 compared to $(0.19) per share for the three months ended June 30, 2007. Weighted average common shares outstanding -- basic and diluted -- were 45.4 million for the three months ended June 30, 2008 compared to 48.4 million for the three months ended June 30, 2007.

Total customer connections were 16,181 as of June 30, 2008 compared to 13,786 as of June 30, 2007, an increase of 17.4%. On-net customer connections were 12,502 as of June 30, 2008 compared to 9,773 as of June 30, 2007, an increase of 27.9%. Off-net customer connections were 2,994 as of June 30, 2008 compared to 3,128 as of June 30, 2007, a decrease of 4.3%. Non-core customer connections were 685 as of June 30, 2008 compared to 885 as of June 30, 2007, a decrease of 22.6%.

The number of on-net buildings increased by 115 from 1,159 as of June 30, 2007 to 1,274 as of June 30, 2008.

Outlook - Third Quarter 2008 Estimates

-- Cogent estimates net service revenue for the third quarter of 2008 to be over $55.0 million.

-- Cogent estimates that its on-net revenues for the third quarter of 2008 will increase by over 2% from the second quarter of 2008.

-- Cogent estimates EBITDA, as adjusted, for the third quarter of 2008 to be over $16.5 million.

-- Cogent estimates its net loss per basic and diluted common share for the third quarter of 2008 to be between $(0.10) and $(0.15). Cogent's guidance includes the estimated impact of its share repurchase program and includes an estimated $4.5 million of non-cash equity-based compensation expense, an estimated $16.0 million of depreciation and amortization expense, an estimated $2.5 million of net interest expense and assumes approximately 44.0 million weighted average common shares outstanding.

Outlook - Fiscal Year 2008 Estimates

Cogent is updating the following previously released fiscal year 2008 estimates:

-- Cogent is amending its previously released estimate for its net service revenue for fiscal 2008 to be more than $218.0 million from its previously issued guidance of between $225.0 million and $235.0 million.

-- Cogent is amending its previously released estimate for its on-net revenues to increase by more than 22% from fiscal year 2007 to fiscal year 2008 from its previously issued guidance of an increase of approximately 30%. Cogent is amending its previously released estimate for EBITDA, as adjusted, for fiscal 2008 to be more than $65.0 million from its previously issued guidance of between $75.0 million and $80.0 million.

-- Cogent estimates its net loss per basic and diluted common share for fiscal 2008 to be between $(0.50) and $(0.60). Cogent previously estimated its net loss per basic and diluted common share for fiscal 2008 to be between $(0.20) and $(0.30). Cogent's 2008 net loss per basic and diluted common share guidance includes the estimated impact of its share repurchase program and includes an estimated $18.0 million to $19.0 million of non-cash equity-based compensation expense, an estimated $62.0 to $63.0 million of depreciation and amortization expense, an estimated $7.0 to $8.0 million of net interest expense (from its previously released guidance of between $4.5 and $5.5 million) and assumes 45.0 million weighted average common shares outstanding (from its previously released guidance of approximately 46.0 million weighted average common shares outstanding).

Conference Call and Web site Information

Cogent will host a conference call with financial analysts at 8:30 a.m. (ET) on August 8, 2008 to discuss Cogent's operating results for the second quarter of 2008 and Cogent's expectations for the third quarter of 2008 and fiscal year 2008. Investors and other interested parties may access a live audio webcast of the earnings call under "Events" at the Investor Relations section of Cogent's website at http://www.cogentco.com/us/ir_events.php. A replay of the web cast, together with the press release, will be available on the website following the earnings call.

About Cogent Communications

Cogent Communications is a multinational, Tier 1 facilities-based ISP. Cogent specializes in providing businesses with high speed Internet access and point-to-point transport services. Cogent's facilities-based, all-optical IP network backbone spans over 20 countries and provides IP services in over 100 markets located in North America and Europe.

Cogent Communications is headquartered at 1015 31st Street, NW, Washington, D.C. 20007. For more information, visit http://www.cogentco.com/. Cogent Communications can be reached in the United States at (202) 295-4200 or via email at info@cogentco.com.

COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES --------------------------------------------------- Summary of Financial and Operational Results Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Metric ($ in 000's, except share and per share data) - unaudited On-Net revenue $33,153 $35,295 $37,646 $40,511 $42,811 $44,215 % Change from previous Qtr. 10.6% 6.5% 6.7% 7.6% 5.7% 3.3% Off-Net revenue $8,460 $7,938 $7,757 $7,968 $7,994 $8,459 % Change from previous Qtr. 0.5% -6.2% -2.3% 2.7% 0.3% 5.8% Non-Core revenue (1) $2,008 $1,875 $1,566 $1,486 $1,305 $1,185 % Change from previous Qtr. -5.1% -6.6% -16.5% -5.1% -12.2% -9.2% Net service revenue - total $43,621 $45,108 $46,969 $49,965 $52,110 $53,859 % Change from previous Qtr. 7.7% 3.4% 4.1% 6.4% 4.3% 3.4% Network operations expenses (2) $21,015 $21,428 $22,710 $22,395 $21,958 $22,952 % Change from previous Qtr. 3.3% 2.0% 6.0% -1.4% -2.0% 4.5% Gross profit (2) $22,606 $23,680 $24,259 $27,570 $30,152 $30,907 % Change from previous Qtr. 12.0% 4.8% 2.4% 13.6% 9.4% 2.5% Gross profit margin (2) 51.8% 52.5% 51.6% 55.2% 57.9% 57.4% Selling, general and adminis- trative expenses (3) $12,562 $12,625 $12,512 $14,312 $15,550 $14,448 % Change from previous Qtr. 0.8% 0.5% - 0.9% 14.4% 8.7% -7.1% Depreciation and amorti- zation expenses $15,907 $16,332 $16,627 $16,773 $16,296 $15,828 % Change from previous Qtr. 8.0% 2.7% 1.8% 0.9% -2.8% -2.9% Asset impairment $ - $ - $ - $ - $1,592 $ - % Change from previous Qtr. -% -% -% -% 100.0% -100.0% Equity- based compen- sation expense $1,619 $2,466 $3,061 $3,238 $5,425 $4,166 % Change from previous Qtr. 58.9% 52.3% 24.1% 5.8% 67.5% -23.2% Net loss $(9,404) $(9,192) $(5,423) $(7,006) $(9,540) $(5,553) % Change from previous Qtr. 5.7% 2.3% 41.0% -29.2% -36.2% 41.8% Basic and diluted net loss per common share $(0.19) $(0.19) $(0.12) $(0.15) $(0.21) $(0.12) % Change from previous Qtr. 9.5% 0.0% 36.8% -25.0% -40.0% 42.9% Weighted average common shares - basic and diluted 48,655,385 48,378,853 47,073,070 46,885,843 46,265,575 45,397,919 % Change from previous Qtr. 0.3% -0.6% -2.7% -0.4% -1.3% -1.9% EBITDA, as adjusted (4) $10,057 $11,055 $11,747 $13,340 $14,618 $16,585 % Change from previous Qtr. 26.3% 9.9% 6.3% 13.6% 9.6% 13.5% EBITDA, as adjusted margin (4) 23.1% 24.5% 25.0% 26.7% 28.1% 30.8% Cash provided by operating activities $13,627 $10,286 $11,256 $13,461 $11,492 $14,223 % Change from previous Qtr. 2,862.4% -24.5% 9.4% 19.6% -14.6% 23.8% Capital expendi- tures $7,580 $9,548 $8,977 $4,284 $9,778 $9,029 % Change from previous Qtr. 111.4% 26.0% -6.0% -52.3% 128.2% -7.7% Customer Connections - end of period On-Net 8,565 9,773 10,501 11,192 11,849 12,502 % Change from previous Qtr. 10.1% 14.1% 7.4% 6.6% 5.9% 5.5% Off-Net 3,433 3,128 3,021 2,986 3,003 2,994 % Change from previous Qtr. -2.7% -8.9% -3.4% -1.2% 0.6% -0.3% Non Core 941 885 861 804 744 685 % Change from previous Qtr. -6.7% -6.0% -2.7% -6.6% -7.5% -7.9% Total 12,939 13,786 14,383 14,982 15,596 16,181 % Change from previous Qtr. 5.1% 6.5% 4.3% 4.2% 4.1% 3.8% Other - end of period Buildings On-Net 1,129 1,159 1,189 1,217 1,247 1,274 Employees 372 394 421 451 460 483 (1) Consists of legacy services of companies whose assets or businesses were acquired by Cogent, including voice services (only provided in Toronto, Canada), point-to-point private line services and managed modem services. (2) Excludes equity-based compensation expense of $49, $74, $61, $65, $85 and $83 in the three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007, March 31, 2008 and June 30, 2008, respectively. (3) Excludes equity-based compensation expense of $1,570, $2,392, $3,000, $3,173, $5,340 and $4,083 in the three months ended March 31, 2007, June 30, 2007, September 30, 2007, December 31, 2007 and March 31, 2008, respectively. (4) See schedule of non-GAAP metrics below for definition and reconciliation to GAAP measures. EBITDA, as adjusted, includes net gains from the disposition of assets of $13, $82, $16 and $126 in the three months ended March 31, 2007, December 31, 2007, March 31, 2008 and June 30, 2008, respectively. EBITDA, as adjusted, excludes gains on lease restructurings of $154 and $2,110 for the three months ended March 31, 2007 and September 30, 2007, respectively. Schedule of Non-GAAP Measures - EBITDA and EBITDA, as adjusted

EBITDA represents net (loss) income before income taxes, net interest expense, depreciation and amortization. Management believes the most directly comparable measure to EBITDA calculated in accordance with GAAP is cash flows provided by operating activities.

EBITDA, as adjusted, represents EBITDA less gains on lease restructurings. The Company has excluded these gains because they relate to its capital structure. The Company believes EBITDA, as adjusted, is a useful measure of its ability to service debt, fund capital expenditures, expand its business and make bonus determinations for its employees. EBITDA, as adjusted, is an integral part of the internal reporting and planning system used by management as a supplement to GAAP financial information. The Company also believes that EBITDA is a frequently used measure by securities analysts, investors, and other interested parties in their evaluation of issuers.

EBITDA and EBITDA, as adjusted, are not recognized terms under generally accepted accounting principles in the United States, or GAAP, and accordingly, should not be viewed in isolation or as a substitute for the analysis of results as reported under GAAP, but rather as a supplemental measure to GAAP. For example, EBITDA is not intended to reflect the Company's free cash flow, as it does not consider certain current or future cash requirements, such as capital expenditures, contractual commitments, and changes in working capital needs, interest expenses and debt service requirements. The Company's calculations of EBITDA and EBITDA, as adjusted, may also differ from the calculation of EBITDA and EBITDA, as adjusted, by its competitors and other companies and as such, its utility as a comparative measure is limited.

COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES --------------------------------------------------- EBITDA and EBITDA, as adjusted, are reconciled to cash flows provided by operating activities in the table below. Q1 2007 Q2 2007 Q3 2007 Q4 2007 ------- ------- ------- ------- ($ In 000's) - unaudited Cash flows provided by operating activities $13,627 $10,286 $11,256 $13,461 Changes in operating assets and liabilities (4,947) (144) 590 (351) Cash interest expense (income) 1,364 913 (99) 148 Gains (losses) on lease restructurings and asset sales 167 - 2,110 82 EBITDA, including gains $10,211 $11,055 $13,857 $13,340 Gains on lease restructurings (154) - (2,110) - EBITDA, as adjusted $10,057 $11,055 $11,747 $13,340 Q1 2008 Q2 2008 Q3 2008 2008 ------- ------- ------- ------- Estimated Estimated ($ In 000's) - unaudited Cash flows provided by operating activities $11,492 $14,223 $14,500 $55,000 Changes in operating assets and liabilities 2,439 250 - 3,000 Cash interest expense (income) 671 1,986 2,000 7,000 Gains (losses) on lease restructurings and asset sales 16 126 - - EBITDA, including gains $14,618 $16,585 $16,500 $65,000 Gains on lease restructurings - - - - EBITDA, as adjusted $14,618 $16,585 $16,500 $65,000

Cogent's SEC filings are available online via the Investor Relations section of http://www.cogentco.com/ or on the Securities and Exchange Commission's website at http://www.sec.gov/.

COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2007 AND JUNE 30, 2008 (IN THOUSANDS, EXCEPT SHARE DATA) December 31, June 30, 2007 2008 ----------- ---------- (Unaudited) Assets Current assets: Cash and cash equivalents $177,021 $129,008 Short term investments - restricted 812 162 Accounts receivable, net of allowance for doubtful accounts of $1,159 and $1,393, respectively 21,760 22,004 Prepaid expenses and other current assets 6,636 7,198 ----------- ---------- Total current assets 206,229 158,372 Property and equipment, net 245,420 253,988 Deposits and other assets - $306 and $323 restricted, respectively 3,676 4,111 ----------- ---------- Total assets $455,325 $416,471 =========== ========== Liabilities and stockholders' equity Current liabilities: Accounts payable $12,868 $10,886 Accrued liabilities 12,891 12,102 Current maturities, capital lease obligations 7,717 7,917 ----------- ---------- Total current liabilities 33,476 30,905 Capital lease obligations, net of current maturities 84,857 97,505 Convertible senior notes, net of discount of $4,133 and $3,818, respectively 195,867 196,182 Other long term liabilities 2,295 2,472 ----------- ---------- Total liabilities 316,495 327,064 ----------- ---------- Commitments and contingencies: Stockholders' equity: Common stock, $0.001 par value; 75,000,000 shares authorized; 47,929,874 and 45,821,280 shares issued and outstanding, respectively 48 46 Additional paid-in capital 430,402 394,587 Stock purchase warrants 764 764 Accumulated other comprehensive income-foreign currency translation adjustment 3,600 5,087 Accumulated deficit (295,984) (311,077) ----------- ---------- Total stockholders' equity 138,830 89,407 ----------- ---------- Total liabilities and stockholders' equity $455,325 $416,471 =========== ========== COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2007 AND JUNE 30, 2008 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Three Months Three Months Ended Ended June 30, 2007 June 30, 2008 ------------- ------------- (Unaudited) (Unaudited) Net service revenue $45,108 $53,859 Operating expenses: Network operations (including $74 and $83 of equity-based compensation expense, respectively, exclusive of amounts shown separately) 21,502 23,035 Selling, general, and administrative (including $2,392 and $4,083 of equity-based compensation expense, respectively, and $707 and $678 of bad debt expense, net of recoveries, respectively) 15,017 18,531 Depreciation and amortization 16,332 15,828 ----------- ----------- Total operating expenses 52,851 57,394 ----------- ----------- Operating loss (7,743) (3,535) Interest income and other, net 1,091 895 Interest expense (2,540) (2,913) ----------- ----------- Net loss $(9,192) $(5,553) =========== =========== Net loss per common share: Basic and diluted net loss per common share $(0.19) $(0.12) =========== =========== Weighted-average common shares-basic and diluted 48,378,853 45,397,919 =========== =========== COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND JUNE 30, 2008 (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) Six Months Six Months Ended Ended June 30, 2007 June 30, 2008 ------------- ------------- (Unaudited) (Unaudited) Net service revenue $88,729 $105,970 Operating expenses: Network operations (including $123 and $168 of equity-based compensation expense, respectively, exclusive of amounts shown separately) 42,566 45,078 Selling, general, and administrative (including $3,961 and $9,423 of equity-based compensation expense, respectively, and $907 and $1,837 of bad debt expense, net of recoveries, respectively) 29,148 39,423 Asset impairment - 1,592 Depreciation and amortization 32,238 32,125 ----------- ----------- Total operating expenses 103,952 118,218 ----------- ----------- Operating loss (15,223) (12,248) Interest income and other, net 1,880 2,377 Interest expense (5,253) (5,222) ----------- ----------- Net loss $(18,596) $(15,093) =========== =========== Net loss per common share: Basic and diluted net loss per common share $(0.38) $(0.33) =========== =========== Weighted-average common shares-basic and diluted 48,535,502 45,855,898 =========== =========== COGENT COMMUNICATIONS GROUP, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2007 AND JUNE 30, 2008 (IN THOUSANDS) Six Months Six Months Ended Ended June 30, 2007 June 30, 2008 ------------- ------------- (Unaudited) (Unaudited) Cash flows from operating activities: Net cash provided by operating activities $23,913 $25,715 ---------- ---------- Cash flows from investing activities: Purchases of property and equipment (17,128) (18,807) (Purchases) maturities of short term investments, net (570) 650 Proceeds from dispositions of assets 14 66 ---------- ---------- Net cash used in investing activities (17,684) (18,091) ---------- ---------- Cash flows from financing activities: Purchases of common stock (50,052) (46,048) Proceeds from issuance of senior convertible notes, net 195,500 - Repayment of convertible notes (10,187) - Proceeds from exercises of stock options 435 100 Repayments of capital lease obligations (3,205) (10,034) ---------- ---------- Net cash provided by (used in) financing activities 132,491 (55,982) ---------- ---------- Effect of exchange rate changes on cash 392 345 ---------- ---------- Net increase (decrease) in cash and cash equivalents 139,112 (48,013) Cash and cash equivalents, beginning of period 42,642 177,021 ---------- ---------- Cash and cash equivalents, end of period $181,754 $129,008 ========== ==========

Except for historical information and discussion contained herein, statements contained in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of Cogent's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences. Some of the factors and risks associated with our business are discussed in Cogent's filings with the Securities and Exchange Commission.

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020204/DCM032LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com Cogent Communications Group, Inc.

CONTACT: Public Relations, Travis Wachter, +1-202-295-4217,
twachter@cogentco.com; or Investor Relations, John Chang, +1-202-295-4212,
investor.relations@cogentco.com, both of Cogent Communications Group, Inc.

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

DuPont Fabros Technology, Inc. Reports Second Quarter 2008 Results

WASHINGTON, Aug. 8 /PRNewswire-FirstCall/ -- DuPont Fabros Technology, Inc. , a real estate investment trust (REIT) that acquires, develops, owns and operates wholesale data centers, today reported results for the quarter and six months ended June 30, 2008. All per share results are reported on a fully diluted basis.

The 2007 results include only the operations for the entity that constituted the Predecessor of DuPont Fabros Technology, Inc. The historical financial results of the company's Predecessor do not include the financial performance of those entities that were consolidated under the ownership of the company as a result of the October 24, 2007 IPO or the company's operating data centers, other than ACC3, which is owned by the Predecessor. In addition, the Predecessor's results exclude the impact of purchase accounting adjustments resulting from the company's formation. For these and other reasons, the Predecessor's historical operating results are not directly comparable to the company's operating results after the IPO.

Hossein Fateh, President and Chief Executive Officer of DuPont Fabros Technology, said "To date, despite a slowing economy, we remain on track to meet our 2008 FFO guidance at the top half of our original range. The build out of our pipeline is progressing, and we believe that overall demand for our data centers remains healthy."

Second Quarter 2008

For the quarter ended June 30, 2008, the company reported net income of $5.9 million, or $0.17 per share compared to $0.5 million at the Predecessor for the second quarter of 2007. Funds from operations ("FFO") for the quarter ended June 30, 2008 were $23.2 million, or $0.35 per share, while Adjusted FFO ("AFFO") was $14.3 million, or $0.21 per share. Revenues were $42.1 million for the second quarter of 2008, an increase of $1.0 million, or 2.4%, sequentially as compared to the first quarter of 2008.

Six Months Ended June 30, 2008

For the six months ended June 30, 2008, the company reported net income of $11.5 million, or $0.32 per share, compared to $1.0 million at the Predecessor for the six months ended June 30, 2007. FFO for the six months ended June 30, 2008 was $45.6 million, or $0.69 per share, while AFFO was $27.4 million, or $0.41 per share.

Current Status

As of June 30, 2008, the company's operating data center portfolio, encompassing 82.4 megawatts ("MW") of critical load and 539,198 raised square feet, was 93.9% leased compared to 93.2% leased as of March 31, 2008. During the second quarter the company entered into one lease for 0.6 megawatts of critical load at ACC4 in Ashburn, Virginia. Critical load, also referred to as IT load or load used by tenants' servers or related equipment, is the power that is available for exclusive use of the company's tenants.

Development Update

Effective August 1, 2008, the company opened Phase 1 of CH1 in Elk Grove Village, Illinois, comprising 18.2 megawatts of critical load. During the second quarter of 2008, the company commenced construction of Phase 1 of NJ1 in Piscataway, New Jersey. The company anticipates starting construction of Phase 1 of SC1 in Santa Clara, California in the third quarter of 2008.

Liquidity

As of June 30, 2008, total debt outstanding was $381.7 million, representing 23.5% of the company's total market capitalization. As of the date of this press release, the company has $179.0 million available on its revolving credit facility and approximately $12 million of unrestricted cash. The company expects to close on a secured loan within the next ninety days specific to its unencumbered ACC4 facility to fund data center development. These existing funding sources, combined with the new borrowing, give the company liquidity to meet its current funding requirements.

Dividends

On May 20, 2008, the company's Board of Directors declared a regular quarterly cash dividend for the second quarter of 2008 at the rate of $0.1875 ($0.75 annualized) per common share for shareholders of record as of June 27, 2008. The dividend was paid on July 11, 2008.

2008 Guidance

The company has revised its guidance for full year 2008 on a per share fully diluted basis. The change to the full year guidance is listed below:

Previous Revised FFO $1.20 to $1.30 $1.24 to $1.30 The company anticipates FFO at the midpoint of the revised guidance range. About DuPont Fabros Technology, Inc.

DuPont Fabros Technology, Inc. is a real estate investment trust (REIT) and leading owner, developer, operator and manager of wholesale data centers. The company's data centers are highly specialized, secure facilities used primarily by national and international technology companies to house, power and cool the computer servers that support many of their most critical business processes. The company is headquartered in Washington, DC. For more information please visit http://www.dft.com/.

Forward-Looking Statements

Certain statements contained in this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters described in these forward-looking statements describe expectations regarding future events, results and trends and are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond the company's control. The company faces many risks that could cause its actual performance to differ materially from the results predicted by its forward-looking statements, including, without limitation, the risk that the company may be unable to obtain financing on favorable terms, the risks commonly associated with construction and development of new facilities, risks relating to compliance with permitting, zoning, land-use and environmental requirements, the risks related to the leasing of space to third-party tenants, the risk that the company may be unable to acquire additional properties on favorable terms or at all, and the risk that the company may not be able to maintain its qualification as a REIT for federal tax purposes. The periodic reports that the company files with the Securities and Exchange Commission, as well as the annual report on Form 10-K, contain detailed descriptions of these and many other risks to which the company is subject. Because of those risks, the company's actual results, performance or achievements may differ materially from the results, performance or achievements contemplated by its forward- looking statements. The information set forth in this news release represents management's current expectations and intentions. The company assumes no responsibility to issue updates to the forward-looking matters discussed in this press release.

Conference Call and Web Cast Information

The Company will host a conference call to discuss these results today, Friday, August 8, 2008 at 10:00 a.m. EDT. Please visit the Investor section of the company's website at http://www.dft.com/ for the link or by dialing 888-244-2435 (Domestic) or 913-312-6678 (International). A replay of the webcast will be available for seven days at this site. To access the replay, dial 888-203-1112 (Domestic) or 719-457-0820 (International) using conference ID 5749634. The webcast will be archived on the company's website for one year at http://www.dft.com/ on the Presentations & Webcasts page.

DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands except share and per share data) DuPont Fabros The DuPont Fabros The Technology, Inc. Predecessor Technology, Inc. Predecessor Quarter Quarter Six months Six months ended ended ended ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Revenue: Base rent $25,910 $ 4,533 $51,741 $9,006 Recoveries from tenants 13,475 1,862 25,936 3,545 Other revenue 2,683 - 5,539 - Total operating revenue 42,068 6,395 83,216 12,551 Expenses: Property operating costs 11,000 1,372 21,307 2,694 Real estate taxes and insurance 995 98 1,880 189 Management fees - 393 - 696 Depreciation and amortization 12,064 1,090 24,078 2,180 General and administrative 3,082 28 5,725 65 Other expenses 2,230 - 4,570 - Total operating expenses 29,371 2,981 57,560 5,824 Operating income 12,697 3,414 25,656 6,727 Other income and expense: Interest income 34 45 81 84 Interest expense (1,568) (2,907) (4,054) (5,762) Income before minority interests - operating partnership 11,163 552 21,683 1,049 Minority interests - operating partnership (5,249) - (10,203) - Net income $5,914 $552 $11,480 $1,049 Earnings per common share - basic $0.17 N/A $0.32 N/A Earnings per common share - diluted $0.17 N/A $0.32 N/A Dividends declared per common share $0.1875 N/A $0.3750 N/A Weighted average number of common shares outstanding - basic 35,418,119 N/A 35,417,923 N/A Weighted average number of common shares outstanding - diluted 35,439,836 N/A 35,425,373 N/A DUPONT FABROS TECHNOLOGY, INC. RECONCILIATIONS OF NET INCOME TO FFO AND AFFO (1) (unaudited and in thousands except per share data) DuPont Fabros The DuPont Fabros The Technology, Inc. Predecessor Technology, Inc. Predecessor Quarter Quarter Six months Six months ended ended ended ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 Net income $5,914 $552 $11,480 $1,049 Real estate depreciation and amortization 12,010 1,090 23,944 2,180 Minority interests in operating partnership 5,249 - 10,203 - FFO $23,173 $ 1,642 $45,627 $3,229 Straight-line revenue (7,513) (1,300) (15,408) (2,591) Non-cash stock based compensation expense 355 - 704 - Below market lease amortization, net of above market lease amortization (1,743) - (3,487) - AFFO $14,272 $342 $27,436 $638 FFO per share - diluted $0.35 n/a $ 0.69 n/a AFFO per share - diluted $0.21 n/a $ 0.41 n/a (1) Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. We calculate FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income (loss) determined in accordance with GAAP, excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We use FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating expenses. We also believe that, as a widely recognized measure of the performance of equity REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to funds from operations published herein. Therefore, we believe that in order to facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (loss) as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income as an indicator of the properties' financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. We also present FFO with a supplemental adjustment which we call Adjusted FFO ("AFFO"). AFFO is FFO excluding straight-line revenue, non-cash stock based compensation, gain or loss on derivative instruments, acquisition of service agreements, below market lease amortization net of above market lease amortization and early extinguishment of debt costs. AFFO does not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered an alternative to net income as an indicator of our operating performance or as an alternative to cash flow provided by operations as a measure of liquidity and is not necessarily indicative of funds available to fund our cash needs including our ability to pay dividends. In addition, AFFO may not be comparable to similarly titled measurements employed by other companies. Our management uses AFFO in management reports given to our board of directors, to provide a measure of REIT operating performance that can be compared to other companies using AFFO and as an important measure of operating performance. DUPONT FABROS TECHNOLOGY, INC. CONSOLIDATED BALANCE SHEETS (in thousands except share and per share data) June 30, 2008 December 31, 2007 (unaudited) ASSETS Income producing property: Land $26,971 $26,971 Buildings and improvements 1,101,459 1,102,954 1,128,430 1,129,925 Less: accumulated depreciation (39,439) (17,710) Net income producing property 1,088,991 1,112,215 Construction in progress and land held for development 379,320 245,636 Net real estate 1,468,311 1,357,851 Cash and cash equivalents 10,426 11,510 Restricted cash 119 119 Rents and other receivables 4,599 1,304 Deferred rent 28,019 12,611 Lease contracts above market value, net 20,645 22,078 Deferred costs, net 42,032 45,863 Prepaid expenses and other assets 3,525 2,819 Total assets $1,577,676 $1,454,155 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Line of credit $62,000 $- Mortgage notes payable 319,676 296,719 Accounts payable and accrued liabilities 14,491 11,011 Construction costs payable 68,919 28,070 Dividend and distribution payable 12,558 10,044 Lease contracts below market value, net 43,357 48,277 Other liabilities 11,112 12,359 Total liabilities 532,113 406,480 Minority interests - operating partnership 489,010 490,102 Commitments and contingencies - - Stockholders' equity: Preferred stock, par value $.001, 50,000,000 shares authorized, no shares issued or outstanding at June 30, 2008 and December 31, 2007 - - Common stock, par value $.001, 250,000,000 shares authorized, 35,473,563 shares issued and outstanding at June 30, 2008, and 35,453,833 issued and outstanding at December 31, 2007 35 35 Additional paid in capital 651,513 664,714 Accumulated deficit (87,826) (99,306) Accumulated other comprehensive loss (7,169) (7,870) Total stockholders' equity 556,553 557,573 Total liabilities and stockholders' equity $1,577,676 $1,454,155 DUPONT FABROS TECHNOLOGY, INC. Operating Properties As of July 1, 2008 Year Gross Raised Critical Property Built/ Building Square Load Property Location Renovated Area (1) Feet (2) MW (3) VA3 Reston, VA 2003 (8) 256,000 144,901 13.0 VA4 Bristow, VA 2005 (8) 230,000 90,000 9.6 ACC2 Ashburn, VA 2001/2005 87,000 53,397 10.4 ACC3 Ashburn, VA 2001/2006 147,000 79,600 13.0 ACC4 Ashburn, VA 2007 307,000 171,300 36.4 Totals 1,027,000 539,198 82.4 Annualized Management Fee Annualized Recoveries Year Rent (in (in Property Built/ % thousands) thousands) Property Location Renovated Leased (4) (5)(6) (7) VA3 Reston, VA 2003 (8) 100% $8,579 $702 VA4 Bristow, VA 2005 (8) 100% $16,095 $1,143 ACC2 Ashburn, VA 2001/2005 100% $11,154 $776 ACC3 Ashburn, VA 2001/2006 100% $18,076 $1,203 ACC4 Ashburn, VA 2007 85.9% $44,631 $2,654 Totals 93.9% $98,535 $6,478 (1) Gross building area is the entire building area, including raised square footage (the portion of gross building area where our tenants' computer servers are located), tenant common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our tenants. (2) Raised square footage is that portion of gross building area where our tenants locate their computer servers. We consider raised square footage to be the net rentable square footage in each of our facilities. (3) Critical load (also referred to as IT load or load used by tenants' servers or related equipment) is the power available for exclusive use by our tenants expressed in terms of megawatt, or MW, or kilowatt, or kW (1 MW is equal to 1,000 kW). In addition to critical load, each of our data centers is designed to provide sufficient additional power to cool our tenants' servers, which we refer to as essential load. (4) Percentage leased is expressed as a percentage of critical load that is subject to an executed lease as of July 1, 2008. (5) Annualized rent is presented for leases executed as of July 1, 2008 on a straight-lined basis over the non-cancellable terms of the respective leases beginning from the date of the most recent amendment to a lease agreement, or from the later of the original date of an agreement if not amended or the acquisition date of the property holding the lease. Annualized rent includes base rent and other rents (including, as applicable, office, storage, parking and cage space) and all historical and future contractual increases to such rents, including any increases that are scheduled to occur subsequent to July 1, 2008. Annualized rent excludes the amortization of above and below market leases. On an annualized basis this amortization will increase revenue by $7.0 million. (6) Annualized rent based on actual base rental rates in effect as of July 1, 2008, without giving effect to any future contractual rent increases, equals $8.3 million, $14.6 million, $9.7 million, $16.9 million and $21.2 million for VA3, VA4, ACC2, ACC3 and ACC4, respectively, or $70.7 million in the aggregate. (7) Annualized management fee recoveries for all leases commenced as of July 1, 2008, as determined from the date of the most recent amendment to a lease agreement, or from the original date of an agreement if not amended, consists of our property management fee, which is a variable fee that our tenants pay in exchange for receiving property management services from us, including general maintenance, operations and administration of each facility. This fee is equal to approximately 5.0% of the sum of (i) base rent, (ii) other rents (including, as applicable, office, storage, parking and cage space) and (iii) estimated recoverable operating expenses allocable to each tenant over the term of the lease other than direct electric, which we define as the cost of the critical and essential load used by a tenant to power and cool its servers. For the purposes of calculating annualized management fee recoveries with respect to each property, we have annualized the property operating expenses for the six months ended June 30, 2008. (8) Acquired as a fully-developed property. DUPONT FABROS TECHNOLOGY, INC. Lease Expirations As of July 1, 2008

The following table sets forth a summary schedule of our operating properties' lease expirations and the corresponding effects in terms of both raised square feet and critical load for each of the ten full calendar years as of July 1, 2008. The information set forth in the table assumes that tenants exercise no renewal options.

Square Number Footage % of Total kW Year of of of Net of % of Lease Leases Expiring Rentable Expiring Leased % of Expir- Expiring Leases Square Leases kW Annualized ation Property (1) (2) Feet (3) Rent 2008 VA3 1 - - 163 0.2% 0.3% 2009 VA3 1 27,268 5.3% 2,600 3.3% 1.2% ACC4 1 - - - - 0.0% 2010 VA3 1 66,661 12.9% 5,688 7.4% 4.2% 2011 VA3 1 14,320 2.8% 1,300 1.7% 1.0% 2012 VA4 1 15,000 2.9% 1,600 2.1% 2.6% 2013 VA3 1 26,943 5.2% 2,600 3.4% 1.3% VA4 1 15,000 2.9% 1,600 2.1% 2.7% 2014 VA3 1 9,709 1.9% 650 0.8% 0.8% VA4 1 15,000 2.9% 1,600 2.1% 2.7% 2015 ACC2 1 53,397 10.4% 10,400 13.5% 11.3% VA4 1 15,000 2.9% 1,600 2.1% 2.7% 2016 ACC3 1 39,800 7.7% 6,500 8.4% 9.5% VA4 1 15,000 2.9% 1,600 2.1% 2.8% 2017 ACC3 1 23,600 4.6% 3,900 5.0% 5.3% VA4 1 15,000 2.9% 1,600 2.1% 2.9% ACC4 6 37,500 7.3% 7,961 10.3% 11.4% After 2017 ACC3/ ACC4 8 126,325 24.5% 25,918 33.4% 37.3% Total 30 515,523 100% 77,280 100% 100% (1) Based on 14 separate leases. Six of these leases include staggered expiration dates. For purposes of the above chart, we have treated each staggered expiration as a separate lease. (2) Raised square footage is that portion of gross building area where our tenants locate their computer servers. We consider raised square tenants footage to be the net rentable square footage in each of our tenants facilities. (3) One megawatt is equal to 1,000 kW. DUPONT FABROS TECHNOLOGY, INC. Development Projects As of June 30, 2008 ($ in thousands) Esti- Constr- Gross Raised Critical mated uction Expected Building Square Load Total in Compl- Property Area Feet MW Cost Progress etion Property Location (1) (2) (3) (4) (5) Date Projects Under Development CH1 Elk Grove $200,000 - Phase I Village, IL 285,000 121,223 18.2 $210,000 $192,844 3Q 2008 ACC5 $170,000 - Phase I Ashburn, VA 150,000 85,600 18.2 $220,000 $57,617 1Q 2009 NJ1 Piscataway, $220,000 - Phase I NJ 150,000 85,600 18.2 $280,000 $38,322 3Q 2009 SC1 Santa $240,000 - Phase I Clara, CA 150,000 85,600 18.2 $300,000 $22,145 4Q 2009 $830,000 - 735,000 378,023 72.8 $1,010,000 $310,928 Future Development Projects CH1 Elk Grove Phase II Village, IL 200,000 89,917 18.2 * ACC5 Phase II Ashburn, VA 150,000 85,600 18.2 * SC1 Santa Phase II Clara, CA 150,000 85,600 18.2 * NJ1 Piscataway, Phase II NJ 150,000 85,600 18.2 * SC2 Santa Phase I Clara, CA 150,000 85,600 18.2 * SC2 Santa Phase II Clara, CA 150,000 85,600 18.2 * ACC6 Phase I Ashburn, VA 120,000 77,500 15.6 * ACC6 Phase II Ashburn, VA 120,000 77,500 15.6 * ACC7 Ashburn, VA 100,000 50,000 10.4 * 1,290,000 722,917 150.8 *Development costs have not yet been estimated. (1) Gross building area is the entire building area, including raised square footage (the portion of gross building area where our tenants' computer servers are located), tenant common areas, areas controlled by us (such as the mechanical, telecommunications and utility rooms) and, in some facilities, individual office and storage space leased on an as available basis to our tenants. (2) Raised square footage is that portion of gross building area where our tenants locate their computer servers. We consider raised square footage to be the net rentable square footage in each of our facilities. (3) Critical load (also referred to as IT load or load used by tenants' servers or related equipment) is the power available for exclusive use by our tenants expressed in terms of MW or kW (1 MW is equal to 1,000 kW). In addition to critical load, each of our data centers is designed to provide sufficient additional power to cool our tenants' servers, which we refer to as essential load. Estimated critical loads for ACC5, SC1, NJ1 and SC2 are based generally on our present intention to employ designs for these facilities similar to our ACC4 prototype. The estimated critical loads for ACC6 and ACC7 are expected to be lower due to constraints imposed on us by the size of the properties. (4) Includes estimated capitalization for construction and development, including closing costs, capitalized interest and capitalized operating carrying costs, as applicable. (5) This is the amount capitalized as of June 30, 2008. DUPONT FABROS TECHNOLOGY, INC. Debt Summary as of June 30, 2008 ($ in thousands) Amounts % of Total Rates (1) Maturities (years) Term Loan $200,000 52.4% 6.5% (2) 3.1 Construction Loan 119,676 31.4% 4.7% 1.5 Line of Credit 62,000 16.2% 3.7% 2.1 Total $381,676 100.0% 5.5% 2.4 Note: The company capitalized interest of $8.1 million and $0 during the six months ended June 30, 2008 and 2007, respectively. The company capitalized interest of $4.6 million and $0 during the three months ended June 30, 2008 and 2007 respectively. (1) Rate as of June 30, 2008 (2) Rate is fixed by an interest rate swap Debt Maturity Schedule as of June 30, 2008 ($ in thousands) Year Amounts % of Total Rates (1) 2008 $- - - 2009(3) 119,676 31.4% 4.7% 2010(4) 62,000 16.2% 3.7% 2011(5) 200,000 52.4% 6.5%(2) Total $381,676 100.0% 5.5% (1) Rate as of June 30, 2008 (2) Rate is fixed by an interest rate swap (3) This loan matures on December 20, 2009 subject to a one-year extension option exercisable by the company. (4) Amount outstanding on the company's $275 million floating rate revolving facility which matures on August 7, 2010, subject to a one-year extension option exercisable by the company. (5) Matures on August 7, 2011 with no extension option. Capital Structure as of June 30, 2008 (in thousands except per share data) Mortgage notes payable $ 319,676 Line of Credit 62,000 Total Debt 381,676 23.5% Common Shares 35,474 Operating Partnership ("OP") Units 31,162 Total Shares and OP Units 66,636 Common Share Price at June 30, 2008 $18.64 Total Equity 1,242,095 76.5% Total Market Capitalization $1,623,771 100.0% DUPONT FABROS TECHNOLOGY, INC. Common Share and OP Unit Weighted Average Amounts Outstanding (Amounts in thousands) Q2 2008 YTD 2008 Weighted Average Amounts Outstanding for Net Income Purposes: Common Shares basic Shares issued from assumed conversion of 35,418 35,418 - Restricted Shares 22 7 Total Common Shares and OP Units - diluted 35,440 35,425 Weighted Average Amounts Outstanding for FFO Purposes: Common Shares - basic 35,418 35,418 OP Units - basic 31,162 31,162 Total Common Shares and OP Units 66,580 66,580 Share issued from assumed conversion of - Restricted Shares 22 7 Total Common Shares and OP Units - diluted 66,602 66,587 Period Ending Amounts Outstanding: Common Shares 35,474 OP Units 31,162 Total Common Shares and OP Units 66,636 DUPONT FABROS TECHNOLOGY, INC. 2008 Guidance(1) (in thousands except per share data)

The earnings guidance provided below is based on current expectations and are

forward looking. Actual results Forecast Forecast for the for the six for the year ended months ended second half December 31, 2008 June 30, of (based on mid-point 2008 2008 of 2008 guidance) Net income $11,480 $ 6,377 $17,857 Real estate related depreciation and amortization 23,944 26,952 50,896 Minority interests in operating partnership 10,203 5,669 15,872 FFO $45,627 $38,998 $84,625 FFO per share and unit - diluted $0.69 $0.58 $1.27 Total common shares and OP units - diluted 66,587 66,617 66,602 (1) Funds from operations, or FFO, is used by industry analysts and investors as a supplemental operating performance measure for REITs. We calculate FFO in accordance with the definition that was adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. FFO, as defined by NAREIT, represents net income (loss) determined in accordance with GAAP, excluding extraordinary items as defined under GAAP and gains or losses from sales of previously depreciated operating real estate assets, plus specified non-cash items, such as real estate asset depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. We use FFO as a supplemental performance measure because, in excluding real estate related depreciation and amortization and gains and losses from property dispositions, it provides a performance measure that, when compared year over year, captures trends in occupancy rates, rental rates and operating expenses. We also believe that, as a widely recognized measure of the performance of equity REITs, FFO will be used by investors as a basis to compare our operating performance with that of other REITs. However, because FFO excludes real estate related depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effects and could materially impact our results from operations, the utility of FFO as a measure of our performance is limited. While FFO is a relevant and widely used measure of operating performance of equity REITs, other equity REITs may use different methodologies for calculating FFO and, accordingly, FFO as disclosed by such other REITs may not be comparable to funds from operations published herein. Therefore, we believe that in order to facilitate a clear understanding of our historical operating results, FFO should be examined in conjunction with net income (loss) as presented in the consolidated statements of operations. FFO should not be considered as an alternative to net income as an indicator of the properties' financial performance or to cash flow from operating activities (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions.

DuPont Fabros Technology, Inc.

CONTACT: Victoria Baker, Investor-Media Inquiries of Financial Relations
Board, +1-703-796-1798, vbaker@frbir.com, for DuPont Fabros Technology, Inc.

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

Captaris Reports Q2, 2008 Financial ResultsRevenue Increases 15% Sequentially

BELLEVUE, Wash., Aug. 8 /PRNewswire-FirstCall/ -- Captaris, Inc. , a leading provider of software products that automate document-centric processes, today reported financial results for its second quarter ended June 30, 2008.

Total revenue for the quarter was $32.1 million, a 40% increase over the prior year's second quarter and 15% higher than the first quarter of 2008. The increase from the prior year's second quarter was primarily attributable to the acquisitions of Castelle and CDT. Revenue by category compared to the second quarter of 2007 was as follows:

-- Software revenue was $11.3 million, an increase of $2.9 million, or 35% -- Maintenance, support and services revenue was $14.9 million, an increase of $5.1 million or 52% -- Hardware revenue was $3.8 million, a decrease of $1.0 million or 20% -- Appliance revenue, the FaxPress product line of hardware and embedded software, was $2.1 million

"We have made a significant improvement in our financial results from the first quarter by focusing on growing revenues and controlling costs and we will continue to work on identifying cost synergies and driving improvements in our overall business model," said David P. Anastasi, President and CEO of Captaris. "We have previewed and launched new products created by bringing together our existing offerings with technology acquired from our CDT and Castelle acquisitions. Initial results are encouraging and we have received positive feedback from both our customers and partners."

Gross profit was $21.8 million, an increase of $5.7 million from the second quarter of 2007. Gross margin was 67.9%, compared to 70.0% in the same quarter last year. The decline in the gross margin was due to including the operating results of CDT and Castelle, which have lower gross margins than the Company's legacy business, and the increased amortization expense from those acquisitions of $665,000.

Total operating expenses for the quarter were $25.6 million, compared to $16.8 million in the second quarter of 2007. R&D expenses increased $2.6 million, including $2.1 million due to acquisitions and $519,000 for the consolidation and outsourcing of the Company's software development activities. Sales and marketing expenses increased $3.5 million, including $2.9 million from the acquisitions and $1.4 million for additional sales resources, offset by a reduction of $778,000 in marketing. G&A expenses increased $2.2 million, including $1.3 million for the acquisitions, $440,000 associated with the evaluation of strategic alternatives and related shareholder matters and a decrease in capitalized labor costs of $452,000. Operating results also include a $54,000 charge for acquired in-process development expense associated with the acquisition of CDT.

Amortization of intangible assets for the quarter was $1.8 million, including $1.1 million in cost of revenue and $694,000 in operating expenses, compared to $623,000 for the same quarter last year, including $481,000 in cost of revenue and $142,000 in operating expenses. Depreciation expense was $829,000 in the second quarter of 2008 compared to $590,000 in the second quarter of 2007. Stock based compensation expense was $356,000 in the second quarter of 2008 compared to $339,000 in the second quarter of 2007.

The decrease in other income for the quarter ended June 30, 2008 compared to the same quarter last year was primarily due to less net interest income earned as a result of cash used for the acquisition of CDT combined with the net cost of the Company's foreign currency hedging activities.

The Company reported a net loss for the second quarter of 2008 of $2.7 million, or $0.10 per basic and diluted share, compared to a net loss of $165,000, or $0.01 per basic and diluted share for the second quarter of 2007.

On a year-to-date basis, total revenue of $60.0 million was an increase of $16.5 million or 38% from the same period last year. Net loss for the first six months of 2008 was $9.4 million, or a loss of $0.35 per basic and diluted share, compared to a net loss of $430,000, or a loss of $0.02 per basic and diluted share, for the same period in 2007.

Consolidated cash, cash equivalents and investment balances as of June 30, 2008 totaled $29.7 million, compared to $46.2 million as of December 31, 2007. On January 4, 2008, the Company purchased Captaris Document Technologies GmbH ("CDT") (formerly Oce Document Technologies GmbH) for a net cash payment of $17.9 million. Cash used in operations for the six months ended June 30, 2008 was $6.6 million including a $3.1 million loss on a foreign exchange contract settled in April 2008. In early January 2008, the Company established a credit facility and during the six months ended June 30, 2008 obtained cash advances, net of repayments, totaling $8.1 million.

Deferred revenue at June 30, 2008 was $31.1 million compared to $28.7 million at December 31, 2007.

Stock Repurchase

During the quarter ended June 30, 2008, the Company did not repurchase any shares of its outstanding common stock. On June 30, 2008, approximately 26.5 million shares of common stock were outstanding and $9.5 million was available for share repurchase under the Company's stock repurchase program. Captaris may repurchase shares under its stock repurchase program subject to overall market conditions, stock prices and its cash position and requirements.

Evaluation of Strategic Alternatives

In March 2008, the Company announced that the Board of Directors decided to evaluate strategic alternatives to further enhance shareholder value. The cost of this evaluation was $440,000 in the second quarter of 2008 and $1.1 million for the first half of 2008. This evaluation is ongoing and developments will be disclosed as the Board deems appropriate.

Conference Call

The Company will discuss its 2008 second quarter financial results and business outlook on its regularly scheduled conference call today, August 8th, at 7:30 a.m. PT (10:30 a.m. ET). A live webcast of the conference call can be accessed from the Captaris Web site at http://www.captaris.com/ under About Us -- Investor Relations. The live call may also be accessed by dialing into the call at 1-800-218-0713 and providing the Company name "Captaris." An audio replay of the conference call can be accessed at 1-800-405-2236. The replay will be available starting two hours after the call and remain in effect until Friday, August 15th at 11:59 PT. The required pass code is 11117557#.

About Captaris, Inc.

Captaris, Inc. is a leading provider of software products that automate document-centric business processes. Captaris specializes in document capture, recognition, routing, workflow and delivery. Captaris integrated solutions provide interoperability with leading line of business applications and technology platforms. Captaris products include RightFax, Captaris Workflow, Alchemy, FaxPress, DOKuStar, RecoStar, and Single Click Entry which are distributed through a global network of leading technology partners. Captaris customers include the entire Fortune 100 and the majority of Global 2000 companies. Headquartered in Bellevue, Washington, Captaris was founded in 1982 and is publicly traded on the NASDAQ Global Market under the symbol CAPA. http://www.captaris.com/.

(C)2008 All rights reserved. No part of this publication may be reproduced, transmitted, transcribed, stored in a retrieval system, or translated into any language in any form by any means without the written permission of Captaris. The following are registered trademarks and trademarks of Captaris Inc. and its subsidiaries: Captaris, the Captaris logo, Alchemy(R), Captaris Workflow(TM), RightDocs(TM), RightFax(R), RightFlow(TM) and RightStar(TM) in the US and/or other jurisdictions. FaxPress(TM) is a registered trademark of Castelle. RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click Entry, and Invoice CENTER are registered trademarks and trademarks of Captaris Document Technologies GmbH. All other brand names and trademarks are the property of their respective owners.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the expected impact of cost synergies, improvements to our overall business model and acceptance of new and existing products. Forward-looking statements include all passages containing verbs such as "aims," "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects" or "targets" or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect Captaris' actual results include, among others, the impact, if any, of stock-based compensation charges, the potential failure to maintain and expand Captaris' network of dealers and resellers or to establish and maintain strategic relationships, inability to integrate recent and future acquisitions, including the recent acquisition of Captaris Document Technologies GmbH, inability to develop new products or product enhancements on a timely basis, inability to protect our proprietary rights or to operate without infringing the patents and proprietary rights of others, and quarterly and seasonal fluctuations in operating results. More information about factors that potentially could affect Captaris' financial results is included in Captaris' most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, Captaris undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.

Captaris, Inc. Consolidated Balance Sheets (in thousands) June 30, December 31, 2008 2007 Assets (unaudited) (audited) Current assets: Cash and cash equivalents $29,667 $46,182 Restricted cash - 1,000 Accounts receivable, net 22,089 19,348 Inventories 2,647 1,681 Prepaid expenses and other current assets 2,981 4,564 Income tax receivable and current deferred tax assets, net 3,612 3,527 Total current assets 60,996 76,302 Other long-term assets 1,151 847 Equipment and leasehold improvements, net 10,508 7,735 Intangible assets, net 30,339 11,748 Goodwill 56,767 37,522 Long-term deferred tax assets, net 4,130 5,344 Total assets $163,891 $139,498 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $8,669 $8,621 Accrued compensation and benefits 6,733 5,528 Other accrued liabilities 2,985 1,706 Income taxes payable 74 327 Deferred revenue 25,821 22,747 Total current liabilities 44,282 38,929 Other long-term accrued liabilities 1,044 696 Long-term deferred revenue 5,321 5,962 Pension and other long-term employee benefit obligations 19,913 - Bank loan 8,072 - Total liabilities 78,632 45,587 Shareholders' equity: Common stock 265 264 Additional paid-in capital 42,118 40,971 Retained earnings 40,599 49,961 Accumulated other comprehensive income 2,277 2,715 Total shareholders' equity 85,259 93,911 Total liabilities and shareholders' equity $163,891 $139,498 Captaris, Inc. Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) Quarter Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007 Net revenue: Software revenue $11,274 $8,363 $20,129 $15,456 Maintenance, support and services revenue 14,927 9,838 29,312 19,217 Hardware revenue 3,799 4,765 7,461 8,806 Appliance revenue 2,098 - 3,115 - Net revenue 32,098 22,966 60,017 43,479 Cost of revenue 10,307 6,893 20,060 13,151 Gross profit 21,791 16,073 39,957 30,328 Operating expenses: Research and development 6,193 3,633 12,544 6,819 Selling and marketing 12,392 8,900 24,614 17,178 General and administrative 6,265 4,102 12,726 8,818 Amortization of intangible assets 694 142 1,358 283 In-process research and development 54 - 1,278 - Gain on sale of discontinued product line CallXpress - - - (1,000) Total operating expenses 25,598 16,777 52,520 32,098 Operating loss (3,807) (704) (12,563) (1,770) Other income (expense): Interest income 197 548 468 1,123 Interest expense (736) - (1,176) - Other income (expense), net (544) 82 (70) 226 Other income (expense) (1,083) 630 (778) 1,349 Loss from continuing operations before income tax (benefit) expense (4,890) (74) (13,341) (421) Income tax (benefit) expense (2,175) 90 (3,980) 6 Loss from continuing operations (2,715) (164) (9,361) (427) Discontinued operations: Loss on sale of MediaTel assets, net of income tax benefit - (1) (1) (3) Loss from discontinued operations - (1) (1) (3) Net loss $(2,715) $(165) $(9,362) $(430) Basic and diluted net loss per common share: Loss from continuing operations $(0.10) $(0.01) $(0.35) $(0.02) Loss from discontinued operations - (0.00) (0.00) (0.00) Net loss $(0.10) $(0.01) $(0.35) $(0.02) Weighted average shares used in computation of: Basic net loss per share 26,532 27,223 26,469 27,368 Diluted net loss per share 26,532 27,223 26,469 27,368 Captaris, Inc. Consolidated Statements of Cash Flows (in thousands) (Unaudited) Six Months Ended June 30, 2008 2007 Cash flows from operating activities: Net loss $(9,362) $(430) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation 1,766 1,317 Amortization 3,547 1,244 Stock-based compensation expense 752 532 Gain on foreign currency revaluation (3,765) - Loss on derivative instrument 991 - Pension and long-term employee benefit expense 1,029 - Provision for doubtful accounts 169 15 In-process research and development 1,278 - Loss on disposition of assets 115 58 Deferred income tax benefit (3,980) (605) Changes in assets and liabilities (net of acquired assets and liabilities): Accounts receivable 2,695 5,995 Inventories (387) 347 Prepaid expenses and other assets 1,362 (1,038) Income tax receivable - (100) Accounts payable (1,676) (909) Accrued compensation and benefits (981) (937) Other accrued liabilities (450) (57) Income taxes payable (8) 103 Pension liability (145) - Deferred revenue 412 1,290 Net cash flow (used in) provided by operating activities (6,638) 6,825 Cash flows from investing activities: Purchase of equipment and leasehold improvements (3,793) (2,433) Purchase of investments - (16,569) Purchase of Captaris Document Technologies GmbH (17,926) - Proceeds from disposals of assets 35 55 Proceeds from sales and maturities of investments 4 21,683 Net cash (used in) provided by investing activities (21,680) 2,736 Cash flows from financing activities: Proceeds from bank loan 13,073 - Repayments on bank loan (5,000) - Proceeds from release of restricted cash 1,000 - Proceeds from exercise of common stock options 520 2,037 Repurchase of common stock (138) (4,895) Excess tax benefits from stock-based compensation 14 294 Net cash provided by (used in) financing activities 9,469 (2,564) Net (decrease) increase in cash (18,849) 6,997 Effect of exchange rate changes on cash 2,334 (33) Cash and cash equivalents at beginning of period 46,182 10,695 Cash and cash equivalents at end of period $29,667 $17,659

Captaris, Inc.

CONTACT: Investor Relations, Erika Simms, Treasury Analyst of Captaris,
Inc., +1-425-638-4048, ErikaSimms@Captaris.com

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

New Frontier Media Reports Fiscal 2009 First Quarter Results- Company Projects Continued Growth for Full Fiscal Year -

BOULDER, Colo., Aug. 8 /PRNewswire-FirstCall/ -- New Frontier Media, Inc. , a leading producer and distributor of branded television networks and on-demand programming, today announced results for its fiscal 2009 first quarter ended June 30, 2008.

The Company reported net sales of $13.1 million compared to $12.9 million in the same prior year quarter. The Company noted that the prior year quarter included $0.4 million in net sales from C-Band services that it ceased offering in the third quarter of fiscal year 2008. Net income for the quarter was $1.2 million, or $0.05 per share, as compared to $1.5 million, or $0.06 per share, in the same prior year quarter. As previously announced and expected, the Company, in this quarter, incurred incremental costs associated with the test of a Direct-to-Consumer IPTV set-top box; these costs totaled $0.5 million. Cash flows from operations grew to $4.5 million as compared to $1.1 million in the prior year quarter.

"We continue to execute on our growth strategies for our core businesses and expect to see both segment and consolidated top-line revenue growth in this fiscal year," said Michael Weiner, Chief Executive Officer of New Frontier Media.

"New initiatives designed to better manage our working capital are having an impact," said Mr. Weiner. "During the quarter, we delivered cash flows from operations of $4.5 million, a four fold increase versus the same quarter last year. During fiscal year 2009, we expect cash flows from operations will be significantly greater than that required to fund our growth initiatives as well as our stock repurchase program. We are conducting an extensive analysis on the allocation of the Company's capital," continued Mr. Weiner. "We intend to aggressively repurchase shares under our stock repurchase program as and when market conditions permit. Under this program, we repurchased approximately 383,000 shares of our common stock at an average per share purchase price of $3.92 this quarter. The Company has approximately 746,000 shares remaining in its present repurchase program."

"Simultaneously," said Mr. Weiner, "we continue to execute on our growth strategies for our core businesses. In the Transactional TV segment, we have entered into contracts with customers in Germany, France, Canada and Mexico, which we expect to deliver meaningful revenue by the end of this fiscal year. Domestically, we expect to launch cable pay-per-view services in new systems, and to receive additional hours of video-on-demand shelf space as we continue to both gain share and participate in category growth in this marketplace. Finally, our testing of our Direct-to-Consumer IPTV set-top box in the U.K. is continuing on schedule and on budget. Beta test customers are already on-line, and preliminary test marketing communications have begun. We expect results of this test by the end of our fiscal year."

Financial Highlights

-- Adjusted EBITDA improved to $2.8 million from $1.7 million in the same prior year quarter.

-- Video-on-demand Transactional TV segment revenue increased 15.2% as compared to the same prior year quarter due to strong performance on the largest multiple system operator in the U.S.

-- Pay-per-view Transactional TV segment revenue declined 5.7% as compared to the same prior year quarter due to lower revenue from the second largest direct broadcast satellite provider in the U.S. reflecting increased competition on this platform. Revenue was also impacted by the disaffiliation of a cable system in Seattle. This system discontinued all adult pay-per-view movie services in order to reclaim bandwidth. Management does not believe this disaffiliation is evidence of a trend.

-- Owned content revenue within the Film Production segment increased to $1.7 million during the current quarter primarily as a result of the delivery of 6 titles from a 13 episode series to a premium cable channel as well as from an increase in video-on-demand revenue.

-- Cost of sales and operating expenses were slightly higher as compared to the same prior year quarter resulting from incremental costs incurred for the IPTV set-top box test.

-- Cash flows generated from operating activities were $4.5 million in the current quarter as compared to $1.1 million in the same prior year quarter and were beneficially impacted by a) increased cash collections within the Transactional TV and Film Production segments, b) a decline in fiscal year 2008 employee bonuses paid during the current quarter, and c) a decline in the use of cash for Film Production segment content creation.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures as defined in Item 10 of Regulation S-K, including EBITDA and Adjusted EBITDA on a consolidated basis for the three month periods ended June 30, 2008 and 2007. The Company believes these measures provide useful information to management and to investors; however, these non-GAAP measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. A reconciliation of EBITDA and Adjusted EBITDA, as compared to the most directly comparable GAAP financial measure, net income, is presented in a reconciliation table that follows our presentation of Consolidated Operating Results below. EBITDA is calculated as net income plus depreciation, amortization, and income taxes less other income; and Adjusted EBITDA is calculated as EBITDA less cash paid for content.

Conference Call Information New Frontier Media, Inc. will be conducting its conference call and web cast to discuss earnings today at 11 a.m. Eastern Time. The participant phone number for the conference call is (800) 366-3908. To participate in the web cast please log on to http://www.noof.com/ and click on "Investor Relations" and then "Webcasts & Events." A replay of the conference call will be available for seven days beginning after 1 p.m. Eastern Time on August 8, 2008 at (800) 405-2236, access code 11118157#. The replay will also be archived for twelve months on the Corporate web site at http://www.noof.com/. This press release can be found on the Company's corporate web site, http;//http://www.noof.com/, under "Investor Relations/News Releases."

Cautionary Statements

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements are based on current expectations, estimates and projections made by management. The Company intends for the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates", or variations of such words are intended to identify such forward-looking statements. The forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth or implied by any forward-looking statements. All forward-looking statements made in this press release are made as of the date hereof, and the Company assumes no obligation to update the forward-looking statements included in this news release whether as a result of new information, future events, or otherwise. Please refer to the Company's most recent Form 10-K and other filings with the Securities and Exchange Commission ("SEC") for additional information regarding risks and uncertainties, including, but not limited to, the risk factors listed from time to time in such SEC reports. Copies of these filings are available through the SEC's electronic data gathering analysis and retrieval (EDGAR) system at http://www.sec.gov/.

ABOUT NEW FRONTIER MEDIA, INC.

New Frontier Media, Inc. is a leading producer and distributor of branded television networks and on-demand programming. The Company delivers nine full-time transactional adult-themed pay-per-view networks to cable and satellite operators across the United States. These services reach over 175 million network homes. Additionally, the Company is a leading provider of content to video-on-demand platforms on cable and satellite. New Frontier Media is the exclusive distributor of Penthouse branded adult television in the U.S. The Company's programming originates at New Frontier Media's state of the art digital broadcast center in Boulder, Colorado. The Company owns thousands of hours of digital content and partners with more than 130 movie studios to bring together a variety of transactional adult entertainment available today. New Frontier Media's Film Production segment produces original motion pictures that are distributed in the U.S. on premium movie channels, such as Cinemax(R) and Showtime(R), and internationally on similar services. The Film Production segment also develops and produces exciting original event programming that is widely distributed on satellite and cable pay-per-view. Through the Lightning Entertainment(R) Group label, this segment also represents the work of a full range of independent U.S. film producers in markets around of the globe.

For more information about New Frontier Media, Inc. contact Grant Williams, Chief Financial Officer, at (303) 444-0900, extension 2185, and please visit our web site at http://www.noof.com/.

Consolidated Operating Results (in thousands, except per share amounts) (Unaudited) Quarter Ended June 30, 2008 2007 Net sales $13,061 $12,940 Cost of sales 3,929 3,797 Gross margin 9,132 9,143 Operating expenses 7,146 7,004 Operating income 1,986 2,139 Other income 22 236 Income before provision for income taxes 2,008 2,375 Provision for income taxes (829) (878) Net income $1,179 $1,497 Basic income per share $0.05 $0.06 Diluted income per share $0.05 $0.06 Dividends declared per common share $- $0.13 Average outstanding shares of common stock 23,692 24,315 Common stock and common stock equivalents 23,735 24,594 EBITDA and Adjusted EBITDA (Unaudited) Quarter Ended June 30, 2008 2007 Net Income $1,179 $1,497 Adjustments: Other income (22) (236) Provision for income taxes 829 878 Depreciation and amortization 2,179 1,896 EBITDA 4,165 4,035 Cash paid for content(1) (1,389) (2,344) Adjusted EBITDA $2,776 $1,691 (1) Amount includes total cash paid for prepaid distribution rights and capitalized film costs. Consolidated Balance Sheets (in thousands) June 30, 2008 March 31, 2008 Assets (Unaudited) Current assets: Cash and cash equivalents $16,395 $18,325 Restricted cash 110 38 Marketable securities 679 930 Accounts receivable, net 11,540 13,873 Deferred tax asset 627 620 Prepaid and other assets 1,512 1,899 Total current assets 30,863 35,685 Equipment and furniture, net 6,007 4,861 Prepaid distribution rights, net 10,538 10,381 Recoupable costs and producer advances 3,039 2,448 Film costs, net 7,350 7,626 Goodwill 18,608 18,608 Other identifiable intangible assets, net 3,057 3,033 Other assets 1,049 1,019 Total assets $80,511 $83,661 Liabilities and shareholders' equity Current liabilities: Accounts payable $2,666 $2,937 Dividend payable - 2,982 Taxes payable 1,476 760 Producers payable 1,239 1,012 Deferred revenue 1,742 984 Accrued compensation 1,092 1,817 Deferred producer liabilities 2,018 2,862 Accrued liabilities and other 2,509 2,257 Total current liabilities 12,742 15,611 Deferred tax liability 776 795 Taxes payable 216 216 Other long-term liabilities 806 1,002 Total liabilities 14,540 17,624 Commitments and contingencies Shareholders' equity: Common stock 2 2 Additional paid-in capital 60,609 61,854 Retained earnings 5,370 4,191 Accumulated other comprehensive loss (10) (10) Total shareholders' equity 65,971 66,037 Total liabilities and shareholders' equity $80,511 $83,661 Consolidated Statements of Cash Flows (In thousands) (Unaudited) Quarter Ended June 30, 2008 2007 Cash flows from operating activities: Net income $1,179 $1,497 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,179 1,896 Tax benefit from option/warrant exercises - 119 Share-based compensation 257 275 Charge for asset disposition and impairment - 273 Changes in operating assets and liabilities Accounts receivable 2,333 1,407 Accounts payable 46 (468) Prepaid distribution rights (1,018) (815) Capitalized film costs (371) (1,529) Deferred revenue 758 90 Producers payable 227 (312) Taxes receivable and payable, net 716 877 Deferred tax asset and liability, net (26) (271) Accrued compensation (725) (2,091) Other assets and liabilities, net (1,086) 152 Net cash provided by operating activities 4,469 1,100 Cash flows from investing activities: Purchase of investments available-for-sale (586) (2,681) Redemption of investments available-for-sale 837 1,724 Purchase of equipment and furniture (1,662) (507) Purchase of intangible assets (489) - Payment of related party note arising from business acquisition (15) (528) Net cash used in investing activities (1,915) (1,992) Cash flows from financing activities: Proceeds from exercise of stock options/warrants - 241 Purchase of common stock (1,502) - Payment of dividend (2,982) (3,049) Excess tax benefit from option/warrant exercise - 1 Net cash used in financing activities (4,484) (2,807) Net decrease in cash and cash equivalents (1,930) (3,699) Cash and cash equivalents, beginning of period 18,325 17,345 Cash and cash equivalents, end of period $16,395 $13,646 Segment Summary Data (1) (In millions) (Unaudited) Quarter Ended June 30, 2008 2007 % change Net sales Transactional TV $10.6 $10.4 2% Film Production 2.0 2.1 -5% Direct-to-Consumer 0.5 0.5 0% Total net sales 13.1 12.9 2% Cost of sales Transactional TV 2.6 2.8 -7% Film Production 0.9 0.8 13% Direct-to-Consumer 0.4 0.2 # Total cost of sales 3.9 3.8 3% Operating expenses Transactional TV 2.4 2.5 -4% Film Production 1.3 1.5 -13% Direct-to-Consumer 0.6 0.3 # Corporate Administration 2.9 2.8 4% Total operating expenses 7.1 7.0 1% Operating income (loss) Transactional TV 5.5 5.1 8% Film Production (0.1) (0.2) 50% Direct-to-Consumer (0.5) - # Corporate Administration (2.9) (2.8) -4% Total operating income $2.0 $2.1 -5% (1) Amounts in this schedule may not sum due to rounding. # Represents an increase or decrease in excess of 100%. Supplemental Revenue Data (1) (In millions) (Unaudited) Quarter Ended June 30, 2008 2007 % change Transactional TV VOD $5.3 $4.6 15% PPV 5.0 5.3 -6% C-Band and other 0.2 0.5 -60% Total $10.6 $10.4 2% Film Production Owned content $1.7 $1.4 21% Repped content 0.3 0.5 -40% Other 0.1 0.2 -50% Total $2.0 $2.1 -5% Direct-to-Consumer Net membership $0.4 $0.4 0% Other 0.1 0.1 0% Total $0.5 $0.5 0% (1) Amounts in this schedule may not sum due to rounding.

New Frontier Media, Inc.

CONTACT: Grant Williams, Chief Financial Officer of New Frontier Media,
Inc., +1-303-444-0900, ext. 2185, gwilliams@noof.com

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

Jingwei International to Report Second Quarter Financial Results on August 13

Conference Call Scheduled for After Market Opens

SHENZHEN, China, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- Jingwei International Limited (BULLETIN BOARD: JNGW) ("Jingwei"), one of the leading database marketing companies in China, today announced that it intends to report its second quarter and first six month financial results on Wednesday, August 13, 2008, before the market opens. Management will host a conference call at 10:00 a.m. EDT that day to discuss financial results.

To access the conference call within the U.S., dial: 888-422-7124. For international/toll access, dial: 334-240-1633. The participant code is: 165202. Please dial in a few minutes before the conference call is scheduled to begin.

A replay of the conference call will be accessible from 2:00 p.m. EDT the same day and ending on Friday, August 29, 2008 at 5:00 p.m. EDT, by calling either: 877-471-6581 from within the U.S., or: 402-970-2661 for international/toll access. Access code: 275568.

ABOUT JINGWEI:

Jingwei International Limited ("Jingwei") is a leading database marketing company in the fast growing Chinese market. The Company is one of the leading providers of data mining and customer relationship marketing services in China. With a customer database of over 300 million Chinese consumers, Jingwei enables leading Chinese companies to reach their target audience. The Company's services include market segmentation, customer trend and churn analysis, fraud detection and direct marketing services such as telemarketing and WVAS. The Company also operates a software services business, which provides a broad range of billing systems, provisioning solutions, decision support and customer relationship management systems for China's leading mobile telecommunication carriers. The software services business strengthens sales opportunities for Jingwei's higher margin data mining platform, and allows the Company to enhance its customer database. Jingwei plans to evolve into an integrated marketing platform with targeted outbound sales campaigns via mobile phone advertising, and customer service/order fulfillment at call centers throughout the country.

For more information, please visit the Company's web site: http://www.jingweicom.com/ .

Safe Harbor Statement

Certain of the statements made in the press release constitute forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. 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. Such statements typically involve risks and uncertainties and may include financial projections or information regarding our future plans, objectives or performance. Actual results could differ materially from the expectations reflected in such forward-looking statements as a result of a variety of factors, including the risks associated with the effect of changing economic conditions in The People's Republic of China, variations in cash flow, reliance on collaborative retail partners and on new product development, variations in new product development, risks associated with rapid technological change, and the potential of introduced or undetected flaws and defects in products, and other risk factors detailed in reports filed with the Securities and Exchange Commission from time to time.

For more information, please contact: Strategic Growth International, Inc. Miri Segal / Richard Cooper Tel: +1-212-838-1444 Email: msegal@sgi-ir.com / rcooper@sgi-ir.com

Jingwei International Limited

CONTACT: Miri Segal of Strategic Growth International, Inc., +1-212-838-
1444, or msegal@sgi-ir.com; Richard Cooper of Strategic Growth International,
Inc., +1-212-838-1444, or rcooper@sgi-ir.com

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

Acorn International to Announce Second Quarter Financial Results on August 20, 2008

SHANGHAI, China, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- Acorn International, Inc. (''Acorn'') , a leading integrated multi-platform marketing company in China, plans to release its second quarter 2008 financial results on August 20, 2008. Acorn's management will host a conference call at 8 a.m. EDT on August 20, 2008 (8:00 p.m. Beijing Time) to discuss the Company's perspective on the results and answer questions.

You may access the live interactive call via: -- +1 866 549 1292 (U.S. Toll Free) -- +852 3005 2050 (International) -- Passcode: ATV Please dial-in 10-15 minutes in advance to facilitate an on-time start.

A replay will be available for approximately two weeks after the call and may be accessed via:

-- +852 3005 2020 (International) -- Passcode: 136511#

A live and archived webcast of the call will be available on the Company's website at http://www.chinadrtv.com/ .

About Acorn

Acorn International is a leading integrated multi-platform marketing company in China, operating China's largest TV direct sales business in terms of revenues and TV air time and a nationwide off-TV distribution network. Acorn's TV direct sales platform consists of airtime purchased from both national and local channels. In addition to marketing and selling through its TV direct sales programs and its off-TV nationwide distribution network, Acorn also offers consumer products and services through catalogs, an outbound telemarketing center and an e-commerce website. Leveraging its integrated multiple sales and marketing platforms, Acorn has built a proven track record of developing and selling proprietary-branded consumer products, as well as products and services from established third parties.

For further information, please contact: Acorn International Chen Fu, Director of Investor Relations Tel: +86-21-5151-8888 x2228 Email: ir@chinadrtv.com PRChina Jane Liu Tel: +852-2522-1838 Email: jliu@prchina.com.hk Henry Chik Tel: +852-2522-1838 Email: hchik@prchina.com.hk

Acorn International, Inc.

CONTACT: Chen Fu, Director of Investor Relations, Acorn International at
+86-21-5151-8888 x2228 or ir@chinadrtv.com; Or, at PRChina: Jane Liu,
+852-2522-1838 or jliu@prchina.com.hk; or Henry Chik, +852-2522-1838 or
hchik@prchina.com.hk, both for Acorn International

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

SMIC President and CEO Dr. Richard Chang to Run Anchor Leg of Beijing Economic and Technical Development Area Portion of Olympic Torch Relay

BEIJING, Aug. 8 /Xinhua-PRNewswire/ -- On the day of the opening ceremonies of the 2008 Beijing Olympic Games, the Olympic torch relay made its final run through Beijing and into the Olympic Stadium. This morning, the torch passed through the Beijing Economic and Technical Development Area (BDA), where torchbearer Dr. Richard Ru-Gin Chang, President, CEO, and executive director of Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981), ran the anchor leg of the BDA portion of the Olympic torch relay.

At 11:20 a.m., under Olympic flags waving in the breeze, Dr. Chang received the torch and ran the final 70 meters of the relay route in the BDA. As he ran, spectators along the way cheered, "Go Olympics, go China, go Richard!" After Dr. Chang completed his leg of the torch relay, he was enveloped by well-wishers.

Dr. Chang was pleased to have been selected as an Olympic torchbearer. "I was born in mainland China, so I am immensely honored to be one of the relay torchbearers in the Beijing Olympics, which is the realization of a dream for millions of Chinese people," he said. "After studying and working overseas for more than 30 years, I was very happy to have the opportunity to move back to China and play a role in developing its semiconductor industry. I wish great success for the Beijing Olympics and great prosperity for China and for all Chinese, whether at home or overseas."

SMIC, the leading integrated silicon-manufacturing foundry in China and one of the most advanced in the world, was founded in Shanghai in 2000 and completed its Beijing fab, located in Beijing's BDA, in 2004. The 300mm fab was the first in mainland China. Dr. Chang was selected in August 2007 as one of three Olympic torchbearers representing the Beijing BDA.

About SMIC

Semiconductor Manufacturing International Corporation ("SMIC"; NYSE: SMI; SEHK: 981) is one of the leading semiconductor foundries in the world and the largest and most advanced foundry in Mainland China, providing integrated circuit (IC) manufacturing service at 0.35um to 65nm and finer line technologies. Headquartered in Shanghai, China, SMIC has a 300mm wafer fabrication facility (fab) under pilot production and three 200mm wafer fabs in its Shanghai mega-fab, two 300mm wafer fabs in its Beijing mega-fab, a 200mm wafer fab in Tianjin, and an in-house assembly and testing facility in Chengdu. SMIC also has customer service and marketing offices in the U.S., Europe, and Japan, and a representative office in Hong Kong. In addition, SMIC manages and operates a 200mm wafer fab in Chengdu owned by Cension Semiconductor Manufacturing Corporation and a 300mm wafer fab under construction in Wuhan owned by Wuhan Xinxin Semiconductor Manufacturing Corporation. For more information, please visit http://www.smics.com/ .

Semiconductor Manufacturing International Corporation

CONTACT: Rena Xia, Public Relations of SMIC Beijing, +86-10-6785-5000
x20403, or Rena_Xia@smics.com

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

SinoHub Receives New RMB 30 Million (US$4.4 Million) Combined Bank Line From Commercial Industrial Bank

Company Will Use New Funding for Continued Expansion in VMI and Component Brokerage Business Lines

SHENZHEN, China, Aug. 8 /Xinhua-PRNewswire/ -- SinoHub, Inc. (BULLETIN BOARD: SIHI) today announced that it has successfully closed a combined RMB 23 Million (US$3.4 million) Letter of Credit facility and a RMB 7 Million (US$1 million) Revolving Credit Line with the Commercial Industrial Bank of Fujian (CIB).

The Company said it will use the funds for continued expansion of its electronic component procurement, which accounts for 80% of SinoHub's Vendor Managed Inventory (VMI), and component brokerage business lines in China. Already a leading company in the rapidly growing field of electronic component supply chain management (SCM) services in China (import/export, warehousing, logistics and other related services), SinoHub is leveraging the relationships it has with electronic component suppliers that use the Company's SCM services to gain ground in the VMI and component brokerage businesses.

SinoHub began adding manufacturers to its customer list a few years ago after successfully building its SCM business based on customers in the electronic component distribution sector. The company's entry point for manufacturing customers was the mobile phone design houses and factories in and around Shenzhen and Shanghai. Now, however, other verticals (e.g. network equipment) have been penetrated.

''We are happy to see SinoHub adding new manufacturing customers in several verticals,'' said Le Sheng Zhang, President of Commercial Industrial Bank. ''The platform they have built based on their unique MIS system, SinoHub SCM, warehouses and distribution centers in Hong Kong and Mainland China, and over 100 employees with deep electronics knowledge is propelling the SinoHub brand and resulting in a sustainable competitive advantage for the Company.''

''This new commitment from Commercial Industrial Bank provides solid backing for SinoHub to continue to ramp up our procurement and component brokerage business lines. Our new status as a public company in the United States has made it easier for banks such as CIB to lend us money,'' said Harry Cochran, CEO of SinoHub. ''Our business is extremely scalable, and we have the ability to deploy new funding profitably at a very fast rate. Now that we have reached the exponential part of the growth curve, I expect SinoHub to move quickly into a dominant market position.''

SinoHub Service and Software Solution Offerings

The Integrated SCM and VMI service platform provided by Sinohub is tailored to the electronic components business requirements in China. It helps electronic component industry participants reduce inventory costs, shorten purchasing lead-time and solve RMB purchasing and VAT invoicing problems.

''Commercial Industrial Bank's strong support of SinoHub is a testament to our unique business model,'' said Willa Li, SinoHub's CFO. ''Many businesses experience slower growth as they add volume, but we are in such a big market that we expect to see our rate of growth continue to increase for the foreseeable future.''

New Customer Opportunities

''With this new credit facility, SinoHub can now take better advantage of the robust platform we have built over the past seven years to offer a true one-stop-shop service experience in SCM and VMI for our customers," commented Lei Xia, President. ''As our financial resources increase, we will extend our offering to an increasing number of new customers and ultimately raise their efficiency. By continuously adding new customer- driven functionality to SinoHub SCM, we have started to become indispensable to our customers. For example, our manufacturer customers are now using the new Bill of Material management function to solve what used to be a nightmare for them when it came to synchronizing suppliers to deliver all of the components needed on time.''

About SinoHub

SinoHub Technology Company, Ltd. was founded in Shenzhen in September 2000 by veteran entrepreneur Harry Cochran and electronic component industry veteran Lei Xia to facilitate the electronics revolution in China by providing world-class services and MIS for all participants in the supply chain of electronic components. For more information, please visit our Web site at http://www.sinohub.com/ .

Cautionary Statement Regarding Forward-looking Information

The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws. Such statements include, but are not limited to, the company's ability to move quickly into a dominant market position and a continued increase in the rate of growth. These forward-looking statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. SinoHub undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

For more information, please contact: SinoHub, Inc. Nicole Cheung Tel: +86-755-2601-2481 Email: nicole@sinohub.com

SinoHub, Inc.

CONTACT: Nicole Cheung for SinoHub, Inc. at +1-755-2601-2481 or
nicole@sinohub.com

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

UMC Reports Sales for July 2008

TAIPEI, Taiwan, Aug. 8 /Xinhua-PRNewswire-FirstCall/ -- United Microelectronics Corporation (NYSE: UMC; TAIEX: 2303), (UMC) today reported unaudited net sales for the month of July 2008.

Revenues for July 2008 Period 2008 2007 Y/Y Change Y/Y(%) M/M(%) July 8,536,578 10,052,824 -1,516,246 -15.08% +5.33% Jan.-July 57,771,963 58,174,789 -402,826 -0.69% N/A

(*) All figures in thousands of New Taiwan Dollars (NT$), except for percentages.

Additional information about UMC is available on the web at http://www.umc.com/ .

Contacts: Bowen Huang or I Cheng Lu UMC, Investor Relations Tel: +886-2-2700-6999 ext. 6957 Email: bowen_huang@umc.com or i_cheng_lu@umc.com

United Microelectronics Corporation

CONTACT: Bowen Huang, or I Cheng Lu, both of UMC, Investor Relations,
+886-2-2700-6999 ext. 6957, bowen_huang@umc.com, i_cheng_lu@umc.com

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

Rockford Fosgate and Renaissance Sound Expand RelationshipRF and RSL have partnered to further develop vibro-tactile transducers for mobile environments

TEMPE, Ariz., Aug. 8 /PRNewswire/ -- Rockford Fosgate and Renaissance Sound LLC (RSL) announced today that they will collaborate on the further development of vibro-tactile transducer technology. Vibro-tactile transducer technology is a radical new method of delivering high quality sound and tactile energy. The technology develops massive amounts of low frequency energy and unsurpassed bass output in a small, easily mountable footprint, enhancing the bass performance of any sound system.

"With today's automotive environments decreasing in size the ability to add low frequency output is becoming increasingly difficult. We (Rockford Fosgate), in our ever-continuing quest to improve the over-all listening experience believe that these types of devices are essential in optimizing interior space versus audio output. This technology is also crucial to our development of non-car audio specific applications ... such as home, gaming, simulators and marine" proclaims Jake Braaten, Rockford Fosgate's Director of Brand Development.

Jim Kirschman, the CEO of RSL, whose company owns the intellectual property rights for the vibro-tactile transducer technology states: "Rockford Fosgate's reputation as a leading-edge company in the development of better bass makes it the perfect company to introduce our product into the automobile and marine markets and to use the unique high-quality characteristics of our products in the development of bass management."

Rockford Fosgate is scheduled to unveil it's first branded product offering, utilizing vibro-tactile technology at the upcoming 2009 Consumer Electronics Show in Las Vegas Nevada.

Rockford Fosgate is a division of Rockford Corporation in Tempe, Ariz., a publicly traded company under the NASDAQ stock symbol ROFO. Company websites can be viewed at rockfordfosgate.com and rockfordcorp.com

Rockford Fosgate

CONTACT: Zach Luke of Rockford Fosgate, +1-480-517-3157,
zach.luke@rockfordcorp.com

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

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