SERVICE STREAM LIMITED — Capital/Financing Update 2009

Sep 13, 2009

==> picture [141 x 35] intentionally omitted <==

Service Stream Limited Level 12, 555 Lonsdale Street Tel: 61 3 9677 8888 Melbourne, Victoria, 3000 Fax: 61 3 9677 8800 PO Box 14570 ABN: 46-072-369-870 Melbourne, Victoria 8001

www.servicestream.com.au

ASX & Media Release

14 September 2009

Service Stream - Equity Raising and Debt Reduction

Service Stream Limited (ASX: SSM) today announced a fully underwritten renounceable rights issue to raise $32.9 million (“ Offer ”). The raising will significantly improve Service Stream’s financial flexibility and debt profile. Following the Offer, pro-forma net debt as at 30 June 2009 is expected to be $71.1 million. The net proceeds of the Offer will be used to repay existing debt.

The Offer in summary

Service Stream intends to raise:

• approximately $32.9 million in new equity capital;

• at an issue price of $0.38 per share;

• under an 11-for-25 renounceable rights issue (“ Entitlement Offer ”)

No shareholder approvals are necessary under the Entitlement Offer.

The Entitlement offer is fully underwritten by Austock Securities Limited.

Debt Repayment

Net proceeds from the Offer will be used to repay part of the $102.6m net debt (including $9.0 million cash and liquidity) as at 30 June 2009.

Following completion of the Offer and debt repayment, Service Stream’s financial leverage will be reduced significantly, with pro-forma net debt / FY09 EBITDA reducing from 3.4 times to 2.4 times.

Financial Results

For an overview of Service Stream’s full year results as at 30 June 2009, please refer to the 2009 Results Presentation and Release dated 31 August 2009 available on www.servicestream.com.au/news.asp

==> picture [141 x 35] intentionally omitted <==

Current Activities

Acting Managing Director, Michael Doery said:

“We have commenced 2010 with a solid foundation underpinned by the AAS Contract, Jemena Networks and Sydney Water as well as the recent renewal of numerous contracts in TCI (Telstra Mobile Towers), Contact Centre Solutions (Optus DSL) and AMRS (Origin Energy & ETSA meter reading). The capital raising will enhance our financial platform to continue to execute on the business.”

The Company has commenced discussions with a major client in the Contact Centre Solutions division who has expressed a desire to in-source activities to their off-shore facility. Both in the current year and in future years - after removing the costs and overheads associated with this contract - the impact to Service Stream is not expected to be material to the overall profit of the Company.

Shareholder Enquiries

Shareholders who have queries about the Entitlement Offer should contact the Company Secretary on +61 3 9677 8829 or Service Stream’s share registrar, Computershare Investor Services Pty Limited on 1300 850 505 (within Australia) or +61 3 9415 4000 (from outside Australia) Monday to Friday between 8.30am and 5.00pm (AEST).

Eligible Shareholders will receive an Offer Statement including personalized Entitlement and Acceptance Form in relation to the Entitlement Offer which will provide further details of how to participate.

The capital raising described in this announcement is also set out in the Capital Raising Presentation which Service Stream has filed with the ASX today. This presentation contains important information with respect to the Offer.

For further details about Service Stream contact:

Service Stream Limited Michael Doery, Managing Director Ken Latchford, Chief Financial Officer Tel: (61 3) 9677 8817

About Service Stream Limited:

Service Stream is a public company listed on the Australian Securities Exchange (ASX Code: SSM) with annualised revenues approaching A$600 million. The company is an industrial services enterprise with proven outsourced infrastructure deployment, management and service capabilities across 60 locations throughout Australia. Service Stream’s technical workforce of nearly 5,000 supports large asset owners on the deployment, management and servicing of essential network infrastructure in the telecommunication, electricity, water and gas sectors. For more information please visit the Company’s website at www.servicestream.com.au.