SERVICE STREAM LIMITED — Capital/Financing Update 2007

Sep 2, 2007

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Service Stream Limited Level 12, 555 Lonsdale Street Melbourne, Victoria, 3001 PO Box 14570 Melbourne, Victoria 8001

Tel: 61 3 9677 8888 Fax: 61 3 9677 8800 ABN: 46-072-369-870

www.servicestream.com.au

ASX & Media Release

3 September 2007

Awarded $1bn dollar services contract with Telstra

Leading industrial and technical services group Service Stream Limited (ASX Code: SSM) announces that it has been awarded a major national contract with Telstra Limited (ASX Code: TLS) referred to as Access and Associated Services (AAS).

The AAS contract is for 4 years (2 years, with a 2 year option) with Service Stream estimating revenues in excess of $300 million per annum. The contract replaces existing contracts with Telstra that covered installation and maintenance and specialist services valued at approximately $55 million in the 2007 financial period.

The new contract represents the Company’s move to full national supplier status with Telstra. This involves the supply of services to each state and capital city across Australia. Service Stream will provide Installation, Maintenance and Construction of copper, fibre and broadband networks from the exchange to Telstra’s customers’ premises. Service Stream has full responsibility for these services in the following areas:

AAS – Contract Profile	AAS Region	Area	Metropolitan/ Regional
Specialist Services Installation &Maintenance Services Broadband Cable Installation & Maintenance Services Access Services	QLD	Brisbane North	Metro
		Queensland South	Regional
	NSW	Sydney South	Metro
		NSW North East	Regional
		NSW South East	Regional
	WA / SA / NT	Western Australia South	Metro / Regional
		South Australia North Incl. Northern Territory	Metro / Regional Metro / Regional
	VIC / TAS	Melbourne South East	Metro
		Victoria West	Regional
		Incl. Tasmania	Regional

The AAS contract leverages Service Stream’s existing national network of over 2,500 people, as well as its strong metropolitan and regional presence in each of the regions detailed above. Over the last decade Service Stream has provided the full range of services listed under the AAS contract including access services and broadband tasks in every state and territory.

The move to national supplier status under this contract is a demonstration of Service Stream’s knowledge, capacity, geographical coverage, and its ability to integrate workflow management systems to fit the customer’s needs.

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Commenting on the announcement, Service Stream’s Managing Director and CEO Patrick Flannigan said:

“It's great to be working with Telstra the major provider of high speed broadband to the vast majority of Australians.”

“The Access and Associated Services (AAS) contract represents Service Stream’s second major contracts win with Telstra in 2007 and our single largest contract since listing in 2004. Similar to the Telstra payphones contract awarded to us in May 2007, AAS demonstrates our ability to provide large scale infrastructure services to clients in the telecommunications sector.”

“EBITDA margins are expected to be in line with previous guidance provided to the market for this type of activity. The contract will involve recruitment, training and mobilisation of a significant nationwide workforce.”

“Importantly, Service Stream has sufficient capacity in its management team and work allocation management systems to support the increased volumes required under this contract. Work has already commenced on securing additional offices and depots to enable the smooth transition within all regions.”

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$300 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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