SERVICE STREAM LIMITED — Capital/Financing Update 2009

Jul 7, 2009

www.servicestream.com.au

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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

ASX & Media Release

8 July 2009

Market Update: revised 2009 Revenue and EBITDA estimates, CEO to step down

The Board of Service Stream (ASX:SSM) today advised that the Company expects to report EBITDA of around $30 million for the 2009 financial period, on revenue of $550 million. In addition, Patrick Flannigan has indicated to the Board that he will step down as CEO of the Company, and the Board has agreed the termination of his contract, effective from 31 July 2009.

Revised Revenue and EBITDA estimates

Since the Company’s previous market update, Service Stream has felt the impact of the further softening of the economy. The Company now expects to report EBITDA of $30 million for the 2009 financial period, on revenue of $550 million.

The further softening in the economy led to delays in work expected in the final quarter of the 2009 financial year. The major item has been a delay in the commencement of certain capital projects which were budgeted as new business and growth opportunities for the Company. While Service Stream anticipates that substantial new business opportunities remain across all its operating divisions, over and above its existing and ongoing customer activities, those opportunities are likely to be deferred into the 2010 financial year (and, in some cases, beyond).

In addition, as previously advised the losses associated with the McCourt Dando operation significantly contributed to the result. The Company continues to be in dispute in relation to one project, where $14.6 million in latent conditions and contract variation claims has been brought to account. A successful outcome in this matter will see no change to the profit and loss of the Company, but a boost to cash flow, once finalised.

Despite the further losses and a flow on of an overall softening of the market for new business, the Company will report strong operating cash flow for the second half of the financial year, and has continued to reduce its outstanding bank debt over the second half of the year.

The Company continues to operate within the terms of the banking covenants agreed with its funders, and has sufficient headroom within its debt facilities to fund growth in the business. The major banking arrangements are not due for renewal until October 2010, with further amounts not due until 2012. Both of the Company’s primary banks (Commonwealth and Westpac) have confirmed their ongoing support for the Company.

Given the prevailing soft market conditions, the Board has decided that it is not appropriate to declare a final dividend for the full year.

CEO to step down

Managing Director and CEO of Service Stream Mr Patrick Flannigan commented saying:

“While our expected 2009 result is very disappointing, excluding McCourt Dando all operating divisions are performing profitably and the company continues to be positioned very well for a return to growth in 09/10 and beyond. As the Company completes this significant initial phase in its history, and commences the next major

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phase of consolidation and growth, I believe it is timely for a process of renewal to take place - I therefore advised the Board of my intention to step down as CEO. The Board and I have agreed to the termination of my contract, effective from the end of this month.

It has been a pleasure to work with such a committed management team and I am very proud of what has been achieved at Service Stream over the last five years, in a very large way brought about by the efforts of our 4,000 plus workforce.

I look forward to seeing Service Stream realise its potential, as it grows and prospers in the coming years.”

The Board has retained an international executive recruitment firm to undertake a local and international search for a replacement Managing Director and Chief Executive Officer, and that process will also include a formal review of the talented internal candidates for the role. Given how well placed the Company is in its chosen sectors, the Board anticipates a strong field of potential candidates.

Commenting on Patrick’s departure from Service Stream, Lyn Davies, Chairman, said:

“Despite the recent weakness in the operations of Service Stream, the Board and I commend Patrick on the extensive work he has undertaken over the more than five years since his appointment as Managing Director. Over that time, Patrick contributed enormously to the growth of the Company, from initial revenues of some tens of millions of dollars, to a very profitable operation with revenues now in excess of $550 million. We are grateful to Patrick for his work over that period. We believe the current search process will allow a new person to come in and build on the foundations that have been laid, address the current issues facing the Company, and then deliver the future success for which the Company is well positioned.

Patrick has also indicated that he would make himself available where possible during the transition period, to assist the Company with its current projects, as and when required by the Board. In addition, the Board will continue to be able to draw on the skills and knowledge of the Company’s founders, Adrian Field and Russell Small.

I look forward to updating the market on our progress in retaining a new Managing Director in due course.”

For further details contact:

Service Stream Limited Patrick Flannigan, CEO Lyn Davies, Chairman 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 52 locations throughout Australia. Service Stream’s technical workforce of over 4,000 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.