TELUS IN DISCUSSIONS TO ACQUIRE BCE

CNW

Telus today confirmed it has entered into a mutual non-disclosure and standstill agreement and is pursuing non-exclusive discussions with BCE about a possible business combination as part of the strategic review process announced by BCE on April 17, 2007.

"Telus believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and Telus stakeholders. It would be an all Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry," said Darren Entwistle, President and CEO, Telus. "Telus has a unique opportunity to create a truly national Canadian enterprise with the requisite balance sheet strength as well as scale and scope to continue Telus' development as a global leader in the deployment of state of the art technology and innovative new services for customers."

A combined Telus/BCE could:

• Create a combined organization poised for improved growth and returns through the realization of significant operating synergies to the ongoing benefit of Telus and BCE investors
• Retain investment grade credit ratings thereby retaining financial strength to invest in long-term growth with the associated public benefits related to innovation and productivity
• Preserve and enhance a public Canadian investment vehicle for ordinary Canadians and institutional investors
• Ensure access to leading edge technology, services and devices for the benefit of Canadian consumers and the competitiveness of businesses
• Allow current BCE shareholders to participate in ongoing value creation on a largely tax deferred rollover basis which would be attractive to the many BCE shareholders with a low tax cost basis
• Preserve an income tax base for Canadian governments that would otherwise be eliminated by highly levered private equity structures with non-taxable equity holders and U.S. sourced debt
• Be the most likely strategic alternative to preserve long-term Canadian control if foreign ownership restrictions are removed
• Establish a truly national telecommunications company, similar to other G8, European and Commonwealth countries (e.g. British Telecom, France Telecom, Deutsche Telekom, NTT, Telecom Italia) in an industry critical to national sovereignty
• Foster the continued evolution of security, health, and educational infrastructure of Canada

Given the accelerated process that BCE has adopted, among other things, there is no assurance that Telus and BCE will continue discussions or enter into any agreement to proceed with any transaction.

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