SERVICE STREAM LIMITED — Capital/Financing Update 2006

Aug 28, 2006

Service Stream Limited Level 12, 555 Lonsdate StreetMelbourne, Victoria, 3000 Telephone: 61 3 9677 8888 Facsimile: 61 3 9677 8877ABN: 58 008 027 978

ASX & Media Release

29 August 2006

Vodafone Services Expansion and Extension

Leading telecommunication services provider Service Stream Limited (STR) today announced an expansion and extension of its existing arrangements with Vodafone Australia (Vodafone).

The appointment of STR to a new 3-year contract agreement (with a two year extension option) follows a comprehensive review conducted by Vodatone of the outsourced component of its customer contact centre and supporting technology requirements in Australia.

STR will provide customer support services to Vodafone customers under an expanded contract valued at approximately $100 million over 5 years. The new agreement represents a 35% increase on existing contracted revenues with Vodafone, and builds on a relationship spanning over 9 years.

Under the new agreement. STR will manage the majority of Vodafone's outsourced customer contact centre requirements in Australia including directory assistance and prepay support services. These services will continue to be underpinned by STR's technologies integrated within the Vodafone network.

Vodafone CEO Russell Hewitt commented on the new contract arrangements: "The decision to appoint Service Stream follows a rigorous four-month review of Vodafone's outsourced customer contact centre requirements in Australia, and our desire to appoint a trusted partner with proven capabilities in outsourced customer services. The close working relationship between Vodafone and Service Stream will ensure that we continue to provide customers with the best possible standard of service. Service Stream understands our goals and is committed to working with us to meet and exceed the needs and expectations of our customers for premium quality services.*

STR Managing Director and CEO Mr Patrick Flannigan commented: "We are delighted to extend our relationship with Vodafone. The new agreement demonstrates STR's customer service and technology capabilities, and the ability to deliver bundled solutions to clients in the telecommunications sector. The extension and expansion of our services to Vodafone represents a resounding endorsement of the STR service delivery model and is a credit to our dedicated customer service team."

The new contract arrangements with Vodafone follow the proposed merger announced between STR and listed technology infrastructure services company Total Communications Infrastructure Limited on 27 July 2006.

For further details contact:

Patrick Flannigan, Managing Director & CEO Service Stream Limited Tel: (61 3) 9677 8888

Michael Doery, Executive Director & CFO Service Stream Limited Tel: (61 3) 9677 8888

Jo May, Investors & Media, Alitum Partnership Tel: (61 3) 9200 7069

Greg Spears, Head of Corporate Communications Vodafone Australia Tel: (+61) (0) 406 315 014

About Service Stream Limited:

Service Stream is a public company listed on the Australian Stock Exchange (Code: STR) with annual revenues exceeding A$162 million. The company is an Australian owned and operated industrial services enterprise with a strong IT capability, proven outsourced field force management, technical support, customer assistance and asset management capabilities. Service Stream aims to generate superior returns for shareholders by leveraging its equipment installation and maintenance capabilities across a range of infrastructure based industries. For more information please visit the Company's website at www.servicestream.com.au.

About Vodafone:

Vodafone Group Pic is a leading mobile communications company. Vodafone Group has mobile network ownership interests in 26 countries, and partner networks in a further 33 countries - leaving an unmatched network footprint. The company provides quality services to 3.47 million Australian customers and has more than 186.8 million proportionate customers worldwide.

@ Vodafone Pfy Limited 2006: VODAFONE and the Vodafone logos are trade marks of the Vodafone Group. Other product and company names mentioned herein may be the trade marks of their respective owners.