SAFEROADS HOLDINGS LIMITED — Capital/Financing Update 2008

May 11, 2008

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SAFEROADS HOLDINGS LIMITED ABN 81 116 668 538

LOT 8 WEERONG RD Drouin Vic 3818 Phone: 03 5625 6600; Fax 03 5625 4986

12 May 2008

The Company Announcement Platform Australian Stock Exchange

Acquisition of Guardrail Installations assets.

The Directors of Saferoads Holdings Limited (ASX:SRH) advise that the company has entered into an agreement for its wholly owned subsidiary Saferoads Pty Ltd to acquire the Guard Rail Installations assets from Traffic Technologies Ltd (TTI). The acquisition involves the purchase of the fixed assets, stock and work-in-progress of TTI’s guard rail business.

The acquisition fits closely with Saferoads’ strategic direction as a national supplier and installer of road safety equipment. TTI has held a significant share of the guard rail safety barrier supply and installation market particularly in NSW and Qld. The acquisition will consolidate Saferoads’ existing business in this market segment.

The purchase consideration is $1.2 million plus stock as at completion date, and will be funded through an existing debt facility.

The anticipated completion date is 15 May 2008.

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D Hotchkin Managing Director

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.saferoads.com.au