SAFEROADS HOLDINGS LIMITED — M&A Activity 2006

Aug 31, 2006

31 August 2006

The Company Announcement Platform Australian Stock Exchange

Acquisition of Swift Tech Solutions Pty Ltd and Swift Tech Cartage Pty Ltd

Saferoads Holdings Limited (Saferoads or The Company) is pleased to announce that it has entered into an agreement for its wholly-owned subsidiary Saferoads Pty Ltd to acquire the net assets of Swift Tech Solutions Pty Ltd and Swift Tech Cartage Pty Ltd (Swift Tech).

Swift Tech is a Drouin (Victoria) based manufacturer and supplier of decorative street lighting and will be an ideal first acquisition for Saferoads.

Swift Tech has audited financial statements to 30 June 2006 which indicate an annual profit of $800,000 before tax on sales of $6.182 million. The acquisition will be earnings per share positive for Saferoads.

The purchase consideration will be $3.0 million as follows:

• 1. $700,000 in Saferoads' shares which will be held in escrow for 24 months:
• 1. $2.3 million in cash.

The value of the net assets acquired will be approximately $1,023 million.

The anticipated completion date is 2 October 2006.

Darren 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