SERVCORP LIMITED — AGM Information 2002

Nov 7, 2002

SERVCORP Smart Office TM

Level 17, BNP Paribas Centre 60 Castlereagh Street Sydney NSW 2000 Telephone: (612) 9231 7500 Facsimile: (612) 9231 7660 www.servcorp.com.au ana watan wasan ing

8 November 2002

Company Announcements Office Australian Stock Exchange 20 Bridge Street Sydney NSW 2000

Dear Sir

Serveorp Limited Chairman's Address to Members

Following is the Chairman's Address to Members at Serveorp's Annual General Meeting held at Exchange Square, 18 Bridge Street, Sydney on 8 November 2002.

Yours faithfully

Greg Pearce Company Secretary GLP:th:d:announcements:annualgeneralmeet:chairmans_address_agm2002.doc:081102

SYDNEY SYDNEYSYDNEY NORTH SYDNEYNORTH RYDE CANBERRABRISBANEMELBOURNE MELBOURNE MELBOURNE PERTHADELAIDE ALICKLAND AUCKLANDHONG KONG SHANGHAIKUALA LUMPUR MLC Centre Chisey TowerBNP Paribas Centre DIVE Fanbas Ceve201 Miller Street123 Epping Road St. George CentreAMP Place103 Collins Street140 William Street Optus CentreSt Martins Tower Santos House ASB Bank Centre PWC TowerPWC TowerBank of China Tower HSBC TowerMenara Citibank

(612) 9238 2100(612) 9375 2100(612) 9231 7500 (012) 5231 1500(612) 9959 2222(612) 8875 7700 $(612) 8613 7700$ $(632) 6243 5151$ $(617) 3303 8400$ $(633) 9653 9444$ $(633) 9607 8200$ $(633) 9221 6100$ (013) 5221 0100(618) 9268 2400(618) 8233 5888 (649) 358 7100(649) 358 7100(652) 2251 1888 (222) 2290 3000(8621) 2890 3000

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Hong Leong BuildingSix Battery RoadSunted Tower ThreeCP TowerBangkok City Tower Edobori Centre BuildingShinjuku Nomura BuildingShiroyama JT Trust TowerHibiya Central Building Hibiya Central BulldingPark West BulldingAdyama Pałacio TowerYebisu Garden Płace TowerJT BulldingAIG BulldingAIG Bullding Are BundingSquare Edouard VII Bastion TowerEmirates Towers

(65) 6225 5535 (65) 6550 9888(65) 6866 3888 (05) 0000 5000(662) 231 8100(662) 343 1888 (862) 343 1888 (813) 5322 2900 (813) 5322 2900 (813) 5322 3900 (813) 5332 7300 (813) 5778 7600 (813) 5778 7600 (813) 5778 7600 (813) 5778 7600 (613) 5768 5766(813) 5114 8200(813) 5268 5100(331) 5343 9000 (32) 2550 3500(9714) 319 9100

SERVCORP LIMITED

ABN 97 089 222 506

CHAIRMAN'S ADDRESS

ANNUAL GENERAL MEETING 2002

LADIES AND GENTLEMEN.

Our second full year as a public company was one of the toughest for us in over 20 years as a serviced office operator:

• Our revenue was down 3.5% on last year
• We recorded a loss, although this was after expensing $7 million of one off significant items, and
• Our global expansion was put on hold while we waited for the world economies to recover from their downturn

Obviously we are not happy with the results, however there were some achievements made in the tough conditions.

Let us look at the positives:

• We maintained our commitment to client services
• We completed development of the majority of our communications and I.T. solutions, thereby ensuring that we stayed at the leading edge of technological advancements in our industry and maintained our real market advantage for the future
• Our action early in the 2002 financial year to substantially reduce monthly operating expenses allowed us to deliver an acceptable trading outcome in the second half of the year, and

• Despite our loss, the company continued to generate positive operating cash flow and cash balances remained high at $46 million, after paying our members dividends totalling $6.3 million.

The global economic outlook continues to look troubled. We obviously don't know what is going to happen to the world economy in the short and medium term but we have been, and will continue to be, diligent in dealing with trading issues that are within our control.

As in prior years I emphasise that we, as members, are extremely fortunate to have an outstanding management team, led by Alf, totally focused on profit generation and creation of shareholder wealth.

Through this challenging year, Alf and his management team have ensured that Servcorp has outperformed its major competitors and emerged financially strong and ready to take advantage of future upturns. Given the competitive pressures, we can be thankful for their efforts.

Where global trading conditions take us in the short term is problematic and Alf will comment on this when he addresses you. However, over the medium and longer term, we are all extremely confident that our members will reap the rewards of our absolute focus on shareholder wealth creation. We are confident that we have the right formula for a sustainable and dynamic global serviced office business.

R B Corlett Chairman