TELUS Proposes Converting Non-Voting Shares Into Voting Shares

TELUS Corporation TU today announced that it is proposing to convert its Non-Voting Shares into Voting Shares. Through this proposal, TELUS will give shareholders the opportunity to decide whether to eliminate the Corporation's dual class share structure at TELUS' upcoming annual and special meeting of shareholders to be held on May 9, 2012. Under the terms of TELUS' proposal, each Non-Voting Share would be converted into a Common Share on a one for one basis if approved by two-thirds of the votes cast by the holders of Common Shares and two-thirds of the votes cast by the holders of Non-Voting Shares, each voting separately as a class. Darren Entwistle, President and CEO, said: "This proposed share conversion is responsive to shareholder feedback, resulting in enhanced trading liquidity and the extension of voting rights to all TELUS shareholders. Notwithstanding the fact that both classes of shares are entitled to the same dividend, are widely held and have similar liquidity, our Non-Voting Shares have historically traded at a discount to our Common Shares. The approval of this proposal will eliminate this price discount. TELUS believes the proposed simplification of our share structure to a single class is beneficial and fair to all shareholders, and consistent with good corporate governance." Mr. Entwistle added: "Consistent with our commitment to target two dividend increases per year to 2013 in the range of circa 10 per cent annually, TELUS is pleased to announce an increase in the quarterly dividend by three cents to sixty-one cents, which will be payable on July 3, 2012. This is 11 per cent higher than the dividend a year earlier and is the fifth dividend increase in the past 19 months. This reflects our continued confidence in our prospects for earnings and cash flow growth in 2012 and beyond."