SERVICE STREAM LIMITED — Capital/Financing Update 2011

Sep 29, 2011

Service Stream Limited Lovel 1, 355 Spencer Street West Melbourne, VIC 3003 PO Box 14570 Melbourne, VIC 8001 www.servicestream.com.au

Tel: 61 3 9677 8668 Fex: 61 3 9677 8800 ABN: 46-072-369-870

ASX & Media Release

30 September 2011

Alteration to Telstra's allocation of work under Access and Associated Services (A&AS) Contract

Telstra has advised Service Stream via a brief notice that it intends to alter the model by which it provides Installation & Maintenance Services (I&M) and Broadband Cable Installation and Maintenance Services (BCIMS) to Its customers.

Service Stream is working with Telstra to better understand the new model, but our current understanding is that Telstra intends to despatch I&M and BCIMS orders directly to the subcontractors who currently work under the direction of Service Stream and Telstra's other A&AS contractors. Service Stream's understanding is that the new model will replace existing A&AS arrangements nationally and will be rolled out in stages commencing December 2011 through March 2012.

Telstra has advised that this new model does not affect the majority balance of the services provided by Service Stream under the A&AS contract.

In FY11, the I&M and BCIMS services provided to Telstra accounted for around \$100 million or 16% of Service Stream's revenues. The precise Impact of this decision by Telstra on Service Stream's FY12 result is not yet clear, but on an initial assessment the Company is confident that FY12 earnings will be broadly in line with the previous year's result.

Service Stream believes that, based on its recent National Broadband Network contract wins in New Estates and Western Australia, together with its current pipeline of related opportunities, its growth prospects in the telecommunications sector in the medium term remain strong.

For further details contact:

Service Stream Limited Bob Grant Chief Financial Officer Tel: (61 3) 9677 8841

About Service Stream Limited:

Service Stream is a public company listed on the Australian Securities Exchange (ASX Code: SSM) with FY11 revenues of \$633 million. The Company is an industrial services enterprise with proven outsourced infrastructure deployment, menagement and service capabilities operating out of more than 50 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.

Capability + Ambition + Growth