SAFEROADS HOLDINGS LIMITED — Capital/Financing Update 2006

Oct 2, 2006

• saferoads -

RELEASE TO AUSTRALIAN STOCK EXCHANGE

COMPLETION OF ACQUISITION

Saferoads Holdings Limited (ASX:SRH) is pleased to announce that it has completed the acquisition of the business and assets of Swift-Tech Solutions Pty Ltd and Swift Cartage Pty Ltd (Swift-Tech) previously announced on 31 August 2006.

The Company has today lodged an Appendix 3B announcement of new issue in relation to the issue of 560,000 shares as part consideration for the acquisition (the residual being a cash payment raised under the recently announced institutional placement).

The vendor of the business and assets of Swift-Tech has entered into a voluntary restriction agreement with Saferoads under which the 560,000 shares have been voluntarily escrowed for a period of 2 years from their date of issue.

The shares issued as part consideration will rank equally with existing ordinary shares on issue except that the shares issued will not confer the riaht on the holder to receive a final dividend for the financial year ended 30 June 2006 which has a record date of 20 October 2006.

Darren Hotchkin Managing Director

3 October 2006

SAFEROADS HOLDINGS LIMITED ABN 81 116 668 538

PO Box 340, Drouin, Vic., Australia 3818 Phone: 1800 060 672 Fax: 1800 060 673 Web: www.saferbads.com.au