SERVICE STREAM LIMITED — Capital/Financing Update 2006

Apr 17, 2006

17 April 2006

Total Communications Infrastructure Limited (TCI) Market Update - Revenue Deferral

Sydney, Australia - 17 April 2006: The Board of Directors of Total Communications Infrastructure Limited has prepared the following updated guidance on the Company's expected performance for the full year ending June 2006

Following the company's record performance for the 2005 financial year, the business continued to generate strong revenues into the first half of 2006. This was reflected in the excellent result the company recorded for the first half of the year.

TCI continues to expand its customer base, with the recent Ericsson/Telstra and Austar contracts being prime examples of substantial workload and revenue contributions, both this year and into the 2007 financial year. In addition, the company continues to benefit from its strong existing relationships, and has substantial revenues from existing clients.

Our revenues for the third quarter 2006 indicated some slowing of the workload arising from existing clients, in line with the carriers adjusting their network rollout plans. Current indications are that work is accelerating again in the final quarter, with strong ongoing work into the next financial year. However, some of the revenues from projects that were expected in the second half of the current financial year will now be realised in the first half of the next financial year.

Similarly, our new projects are being deployed at an extremely intense rate, and it is likely that a part of the revenues from these projects that was expected to fall in May and June 2006 will also be realised in the next financial year. A limited part of the projected workload has not been allocated to the company and is no longer in the company's projections.

On our current forecasts, the company's revenues for the full 2006 financial year are likely to be some 10% to 15% lower than our previous record year. Earnings before interest and taxes (EBIT) will show a flow on effect from this slippage in revenue, particularly as the company continues to maintain and invest in the appropriate people and resources to address the growth profile and the workload already in place for the next financial year. Were this a systemic shift in overall demand, the company would immediately look to reduce its cost base to offset any reduction in revenues – that is not the case in the present circumstances.

In the Board's view, the majority of the reduction in revenue represents 'slippage' rather than lost opportunity. and - with strong wireless industry growth to continue over the long term, as Telstra and the other carriers rollout and subsequently expand capacity for 2G, 3G and Wireless Broadband networks - the Board expects the company's strong performance to continue in 2006/07 and beyond.

Indeed, a positive result of these slippages is that 2007 will commence with flow on revenues that were otherwise expected in this financial year, and we are confident of a strong full year.

We are also confident of continued growth in our other emerging business sectors, including renewable energy projects and recyclable water - confirmed by our recent contract wins and the significant tender activity in the

sector. The company and Board remain committed to business development in this sector in the coming financial year and we remain confident that the sector will contribute strongly to the company's future.

TCI has seen similar circumstances of revenue slippage, and even overall revenue reductions in the past - while the trend over the company's ten year history has continued to be substantial positive growth. The Board believes that the company is well positioned for further growth, and that this result is primarily around timing rather than any deeper industry issue.

The Board continues to expect that the company will maintain its final dividend payment in line with levels paid for the year ending 30 June 2005.