SERVICE STREAM LIMITED — Capital/Financing Update 2007

Sep 3, 2007

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Service Stream Limited Level 12, 555 Lonsdale Street Tel: 61 3 9677 8888 Melbourne, Victoria, 3001 Fax: 61 3 9677 8800 PO Box 14570 ABN: 46-072-369-870 Melbourne, Victoria 8001

www.servicestream.com.au

ASX & Media Release

4 September 2007

Service Stream Limited completes $40 Million Placement

Leading industrial and technical services group Service Stream Limited (ASX Code: SSM) is pleased to announce the successful completion of a $40 million capital raising to institutional investors.

The offer of 20,000,000 new ordinary shares at a fixed price of $2.00 per share was managed by Citi. The offer closed over subscribed reflecting strong institutional demand from existing shareholders and new investors.

The new ordinary shares issued under the placement will rank pari passu with existing securities in all respects, and will be eligible for the final dividend of 4.5 cent per share (fully franked) payable on 19 October 2007.

Proceeds from the offer will be used for general corporate purposes, including the funding of organic growth opportunities and the acquisition of complementary businesses in Australia.

The placement follows the announcement yesterday of the $1Billion Telstra AAS contract awarded to SSM.

Commenting on the placement Service Stream Managing Director and CEO Mr Patrick Flannigan said, "We are pleased with the ongoing support of existing shareholders and that a number of new investors have become shareholders of Service Stream.”

Trading in the shares issued under the institutional placement is expected to commence on the ASX on or about 14 September 2007.

The trading halt that has been in place since 3 September 2007 will be lifted today.

Ends-

For further details contact:

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

Jo May & John Dowell, Investors & Media Alitum Partnership Tel: (61 3) 9200 7066

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

About Service Stream Limited:

Service Stream is a public company listed on the Australian Stock Exchange (Code: SSM) with annual revenues approaching A$500 million. The company is an Australian owned and operated industrial services enterprise with proven outsourced field force management, technical support, customer contact, 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.

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