SERVICE STREAM LIMITED — AGM Information 2005

Nov 8, 2005

Chairman's Comments - TCI Annual General Meeting

9 November 2005

Fellow Shareholders.

It is a great pleasure to open this, our first, Annual General Meeting.

The business has performed exceptionally well in our first year as a public company, and we are pleased to have shared that success with you.

The communications industry has, and will continue to write its own history and is one of the few industries that change dramatically on a regular basis with fresh technologies appearing every decade or so. Consequently, it continues to generate excitement and growth at every turn

We are confident that fixed-to-mobile conversion and the inevitable convergence of voice and data into one Internet Protocol platform pose opportunities, rather than threats, to the future of TCI. At the same time we are making positive progress in the areas of recyclable and renewable resources. Based on the experience gained in the UK market, we see that these industries are an excellent fit for our core skills in multi-site, concurrent technology deployment.

When Samantha Grant and I started this company in 1996 we believed that the opportunity to succeed could come in two distinct phases. The first phase we were confident we could initiate and, to some extent, control ourselves. The second phase we could only influence. rather than control, but had the potential to dramatically enhance the degree of success we could achieve.

To elaborate: we knew that we had the right approach and the right background to provide a superior service than was available to carriers at that time; we knew also that the industry was in its infancy and was set for spectacular growth: and we knew that we would be more profitable than our competitors who carried large head office overheads and to whom communications was only a small percentage of their business. Therefore the first phase of TCI's success came about because we were simply better than any of our competitors, despite being less than a twentieth the size of most of them. I consider this first phase to cover the years from 1996 to around 2002.

The second part of our vision for TCI had the potential to bring much greater success, but relied on us doing something that we knew was a very tall order. We had to change the way the industry thought about its core business, and the procurement of non-core business activities. Our belief was that communications carriers must, as the industry grows and competition intensifies, focus on the business of satisfying and managing their customers and leave the management of the underlying technology to a trusted partner.

A prerequisite of that, however, was to have built the business into a reliable multidisciplined team that was capable of large scale commercial rollouts.

The foundation laid in that first six years of the business has placed TCI in an excellent position to capitalize on this second phase growth opportunity.

We see strong evidence of this in the long term contract with Vodafone Australia, where we are a close partner selected partly on our proven ability to deliver but also on our cultural and strategic fit. Vodafone has taken a bold step in focusing on its customers and entrusting us with the care and development of its underlying infrastructure. We believe that this model will be closely watched by the other carriers in Australia and, indeed, around the world.

This clearly indicates that we have reached the second phase of our vision, and the exciting growth of the past three years proves that we have the spirit and ingenuity that the industry needs and that we can be trusted in the execution of the grandest of plans.

The communications world continues its move towards wireless and mobility. Here in Australia we have the two most advanced wireless broadband networks in the world in Personal Broadband's iBurst and Unwired, and it is not surprising that the rest of the world is beginning to take notice. Mobile technology just makes perfect sense - when it can do everything that you need a fixed line device to do, why is there any need to consider giving up the convenience of mobility?

As a company, we are used to the dynamic and changeable nature of network rollout, and our basic belief from the very beginning remains unmoved - that the general trend of mobile communication, be it voice or data, continues to be positive growth. All of our major clients, including Optus, Telstra and Vodafone, have been through peaks and troughs of activity over the past 10 years, and that history will continue to replay.

As we have matured and finessed the business, we have also identified new industries to which we can successfully apply our core skills. We have established processes, tools, resources and people that are capable of the deployment of any large scale technology infrastructure, not just limited to our roots in communications. To make the best of these skills we have embarked on business development programs in the recyclable and renewable energy industries.

Rod Stanton will discuss these in more detail later, but I am pleased with our progress and with the excellent fit of these industries with TCI's skills and philosophy. We believe that these industries will grow in a similar way to the communications industry, and that the principal players will rely even more on the trusted partner model to manage their non-core activities of infrastructure deployment and maintenance.

Ladies and Gentlemen, TCI has produced one of the outstanding performances of the reporting season, with a profit after tax almost 28% higher than our prospectus and earnings per share 37% higher than prospectus. At the same time we are focused on broadening our client and revenue base and maintaining our dividend payout ratio.

We have presented to you our strategy for continued growth and success of TCI in our annual report, and Rod will announce an exciting new contract later at this meeting. We, the Board, remain confident that whatever changes our chosen industries undertake, we have become a robust and resilient business and we have a broad base from which we can drive arowth.

Jim Cooney, Chairman

Chief Executive Comments - TCI Annual General Meeting

9 November 2005

Today, I will comment on our performance during the past year, and also provide some information on TCI's growth strategy for the future. This strategy is aimed at cementing TCI's position as a leading provider of infrastructure solutions in both the telecommunications and renewable resources sectors.

Financial Performance

TCI produced a very strong financial result over the 04/05 financial vear. Reflecting that strong performance, the value of the company has increased from \$109.6 million at listing, to a market capitalisation of over \$160 million today.

Revenue of \$94.1 million was 4.8% up on a forecast of \$89.8m

EBIT of \$20.2 million was 26.3% up on a forecast of \$16.0 million

NPAT of \$14.4 million was 27.6% higher than our forecast of \$11.3 million

Our dividend of 7.2 cents per share was 63 % up on a forecast of 4.4 cents and represents a 76% payout ratio based on post listing earnings.

Operations Review

Our result reflected a solid operating performance from our core business of providing turnkey mobile communications infrastructure solutions.

Our teams have been actively involved in the deployment of 3G technology, in addition to adding capacity to existing 2G networks.

TCI made a key contribution to the recent launch of Vodafone's joint venture 3G network in Sydney and Melbourne. Activity is continuing in other capital cities - including Brisbane, Adelaide and Perth - as well as in expansion to the Melbourne and Sydney regions.

Work on 2G infrastructure for Vodafone, Optus and Ericsson was consistent throughout the year, along with the completion of a number of sites for Hutchison.

TCI also completed phase one of PBA's wireless broadband network in Sydney , Melbourne, Brisbane, Canberra and the Gold Coast. Other projects included the design and construction of mobile phone coverage to the Cross City tunnel.

Other clients included Crown Castle and Nokia.

Our Systems

Safety

Key to the continuity and performance of our business is the focus on safety and the systems established to ensure the welfare of all our staff and contractors.

Irrespective of profit and company performance, life is priceless and any serious injury or death can completely devalue what we all strive hard to achieve both individually and as a company. We work in a very high risk industry and cannot afford any form of complacency.

That recognised I am in the fortunate position of advising we have had no serious injury over the period or indeed over the life of the company and I would like to sincerely congratulate all our staff and subcontractors who have contributed to this result.

The maintenance of this record, however, requires ever increasing vigilance and commitment from all across the company.

Quality

We completed the implementation and accreditation of our Quality Management System to ISO9001 in March this year. This was completed in a little over two months - a clear reflection of the standard of our existing system and the quality of service we have been providing to our clients over the years

Community

Through the widespread deployment of infrastructure we are in a strong and responsible position to affect and influence the communities in which we operate. We actively participate in consultation processes to ensure the environment that supports these communities is best considered and maintained.

We also support a number of charitable organisations including the RNSH Spinal Unit, Nelune Rajapakse Cancer appeal, and the Cystic Fibrosis foundation. Over \$25,000 was donated this year.

Summary

We can look back with a great degree of pride on our achievements over the last financial year, and our first period as a listed company.

Our revenue was up 42% on the previous year and profit up 120% on the same period. Such significant growth is never easy to manage, however, all our staff, both existing and new, have worked in closely knit teams to produce some outstanding results.

The Year Ahead

All carriers are currently operating in an extremely competitive marketplace, and we have seen announcements about how this competitiveness has accelerated through the number of operators in both fixed and wireless technologies, capped call plans and marginal revenue growth.

However, the mobile telecommunications industry is still witnessing significant capital investment by carriers in delivering both the current and the next generation of technology. TCI remains strongly placed to continue its role through both existing and potential contracts.

Carrier investment in new technology typically occurs over a 7 to 10 year period in line with consumer demand. We continue to believe that this should support a reasonably stable revenue stream over time. mainly through our relationship with Vodafone.

At the same time it is evident that carriers are rightly focussing investment on new technologies, with a resulting tapering of 2G network development. As previously flagged, this focus will result in a reduction in our traditional revenue base, perhaps brought on more quickly than first anticipated.

This includes our activity with Vodafone. Optus and Ericsson. Our current contract with Optus concludes on 31 December 2005, and – as previously indicated to the market (and built into our planning) - we have forecast minimal ongoing revenue. As always, we will continue to work with Optus to seek future opportunities for growth, and to continue to work as part of that team.

We have resumed our activity with Personal Broadband Australia following their purchase by Commander Communications. We are completing a number of infill sites for PBA, and anticipate further instructions to support services in key customer areas.

We have also recently commenced design and construction activity with:

• Advance Services (Telstra's deployment group) on the Telstra network in NSW
• Motorola, on their analogue to digital upgrade $\bullet$
• And I'm also pleased to announce the recent signing of an agreement with Austar to manage the $\bullet$ deployment of their regional broadband network across their licence areas of Queensland, NSW. Victoria and Tasmania.

While these activities are unlikely to be material in terms of 05/06 revenue, they do, however, provide a strong platform for following years.

We will vigorously pursue other opportunities as they arise, and this continues to be the key theme for our future growth - ensuring that we continue to identify opportunities to diversify the company's revenue streams.

Ultimately, there may be limits to our potential growth in the Australian market (both in total size of the market and in increasing levels of competition and pricing pressure). In view of this, we are undertaking a review of the Asian market to identify opportunities outside our current regional footprint.

In our annual report we also detailed our strategy for growth external to the communications market.

Our renewable energy business unit is in its infancy, however we have established key technology relationships in the water treatment industry and are mid way through our first project, establishing water recycling facilities on a merchant ship being refurbished by the Navy with an approx value of \$400k.

We are targeting other markets, including local government and commercial facilities.

The wind energy industry in Australia is providing only limited opportunities, mainly as there is sufficient production capacity within existing infrastructure to meet the mandated energy targets. Initiatives such as those recently announced by the Victorian Government could however stimulate demand. We are maintaining a watching brief on the industry to identify suitable entry points.

Given the environment discussed above, and following our strategy of developing a more diverse revenue base. I am pleased to say that four months into the current financial year we are tracking against previous revenue guidance. We will continue to focus the business on additional revenue opportunities where they arise, and margin growth in the business already to hand.

Conclusions

I would like to thank the Board for their leadership and guidance. I also once again acknowledge the very significant efforts of our dedicated staff who have helped grow our business in a year of considerable project pressure and change.

I am also grateful to our shareholders for their support and look forward to our continued association.

Rod Stanton Chief Executive Officer (02) 9478 9999