SERVCORP LIMITED — AGM Information 2004

Nov 10, 2004

Level 17, BNP Paribas Centre 60 Castlereagh Street Sydney NSW 2000 Telephone: (612) 9231 7500 Facsimile: (612) 9231 7660 www.servcorp.com.au SEKADOHIY LAMPIDANA SILAMPIDA LAMP

11 November 2004

The Manager Company Announcements Office Australian Stock Exchange Limited By Electronic Lodgement

Dear Sir

Servcorp Limited Annual General Meeting 2004

Servcorp Limited (SRV) will today address its Members at its Annual General Meeting to be held at Level 29 The Chifley Tower, 2 Chifley Square, Sydney, commencing at 5.00 pm.

Following is the Chairman's address that is to be presented.

Yours faithfully

Greg Pearce Company Secretary GLP:ks:c:\announcements\annual_general_meet:chair_address_coversheet_2004.doc:111104

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SERVCORP LIMITED ABN 97 089 222 506

CHAIRMAN'S ADDRESS

ANNUAL GENERAL MEETING 2004

Ladies and Gentleman.

Before handing over to our Managing Director, who will talk about the prospects for the 2005 year, I propose making a few comments.

2004 has been a rewarding year for Servcorp.

At the last two Annual General Meetings, I have spoken about the tough and competitive environment confronting serviced office operators around the world. I pointed out how those conditions had driven down revenue and profits, as our competitors were forced into desperate measures to survive, I also expressed confidence that the Servcorp business model, executed by its very capable management team, would see our Company through the difficult times.

Happily, I can now say that our confidence has been vindicated.

The commitment shown in the tough years has seen Servcorp reap the benefits, now that markets have returned to more stable conditions.

Revenue for the year was $107.5 million. This was down slightly on 2003, due to the strong Australian dollar. In local currency terms, revenue continued to increase, up 2.9% on 2003.

As predicted, our emphasis on controlling expenses in the tough years has given ongoing benefit now that markets have improved. Accordingly, net profit before tax was up an impressive 160%, when compared to the previous year, to $13.65 million.

Evidencing the underlying strength of the business, all geographic sectors contributed to the improvement in net profit before tax. Mature floors contributed $14.9 million (at the net profit before tax line) to the result, but most pleasing is the speed at which our immature floors are moving into profitability.

The meticulous planning in the location of new floors and timing of our expansion, together with the intimate understanding of each market, is one of Servcorp's great strengths. It is supported by our superior IT and business solutions.

The focus on positive cash flow is one of Servcorp's principle drivers. It is Alf's measure of true performance. In 2004 cash generated from operating activities before tax was $22.5 million. This enabled the company to reduce interest bearing debt to $2.5 million, increase cash and interest earning financial assets to $44.3 million and reward shareholders with fully franked dividends totaling $6.0 million.

Our strong cash position leaves us well placed to grow our business and plans are well under way for further expansion in the current financial year. Alf will elaborate on these plans shortly.

The Servcorp management team, led by Alf, Taine and Marcus, has been resolute in the years of adversity and my Board colleagues and I are delighted that their efforts are beginning to increase shareholder wealth. We expect this trend to continue in the current financial year.

When we released our 2004 annual results in August, the directors forecast that 2005 net profit before tax on mature floors would be $18.0 million. $8.0 million in the first half and $10.0 million in the second half.

The company has had a stronger than expected first quarter. Accordingly, a profit upgrade was released to the ASX following close of business on Tuesday 9 November. If current market conditions continue, we expect net profit before tax on mature floors for the full year to June 2005 will be approximately $22.0 million, $10.5 million in the first half and $11.5 million in the second half.

Of course, mature floor profits will be tempered by expected losses on new floors, as we continue our expansion.

I travelled, with my fellow non-executive directors, to Japan last week to appraise Servcorp's operations in this significant segment. Such visits are an important part of our commitment to continually renewing and growing our knowledge of Servcorp's markets.

We were deeply impressed by what we saw.

For foreigners to start and grow a business in Japan is a very difficult challenge. What Alf has achieved over the past decade is truly remarkable. He pioneered the establishment of the serviced office industry in that country, and his initiative has now been accepted by the broad community. We are confident that Servcorp now has a solid base in Japan upon which we will build a sustainable and even more profitable business in the future.

Importantly, Servcorp has real depth of management in Japan. The management team to whom we were extensively exposed are committed professionals who are so proud to be given the opportunity to represent our company.

So Alf. well done.

GLP.ks.c/imaetinostannus) cenarsí meet/2004.chairmans address apm2004:11/11/04