SERVICE STREAM LIMITED — Earnings Release 2009

Feb 18, 2009

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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

www.servicestream.com.au

ASX & Media Release

19 February 2009

Profit Guidance Update

On 28 January 2009, Service Stream advised that it was undertaking a reforecast of management’s expectations and would, if necessary, advise the market of any material change to existing guidance of $48 million EBITDA (earnings before interest, tax, depreciation and amortisation) for the full year to June 2009.

Management and the Board have now completed that reforecast, and believe that the overall slowdown in the economy will lead to a reduction in new business opportunities, which will impact full year forecast EBITDA. Together with the one off impact of losses incurred by McCourt Dando (part of the Infrastructure Services division), Service Stream now expects to report EBITDA of $38 million for the 2009 financial period.

The Board remains confident that the Company will continue to operate profitably across all divisions, at a level generally better than the earnings of the previous period for each division. While not yet declared, the Board anticipates maintaining the interim dividend at the same amount as last year. The Company will report its half year results and declare its dividend on 27 February 2009.

Reconciliation of Previous and Current EBITDA Forecast

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$48m $4.5m $5.5m $38m $37.2m
General Full year impact
Previous guidance economic slow of McCourt Revised 2009 June 2008
down and new Dando under EBITDA forecast EBITDA actual
business performance
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Background to the reforecast

Each operating group will continue to focus on its existing core business and contracted work in hand. However, it is likely that – with the general softening of the economy - some of the previously forecast new business opportunities will not be realised in this financial year.

The major part of the anticipated reduction in 2009 EBITDA is due to a one off loss arising from the recently acquired McCourt Dando operation.

The loss relates primarily to project difficulties on some substantial infrastructure projects in Queensland, resulting from weather related delays and cost overruns. In addition, McCourt Dando has a claim in relation to a major Queensland Government infrastructure project, where $14.6 million in latent conditions and contract variation claims has been brought to account. The Company has sought appropriate legal advice, together with specialist expert advice, and is confident that the claim will be resolved successfully in its favour.

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Remedial action was implemented across the McCourt Dando business by management during the period to correct the issues leading to the losses. McCourt Dando is on track to return to profitability during the current half. Despite the poor operating performance recorded by McCourt Dando, the business remains a valuable asset and strengthens the Group’s capabilities in the asset movement and recoverable works sector.

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

“The McCourt Dando loss is a major disappointment to the Company, and one which bitterly disappoints me and my entire management team. The issues that lead to that loss have now been addressed, and we are back on track with the acquisition – McCourt Dando remains a very important asset of the Company.

In addition, and despite outperformance from the team in the first half, the general economic conditions in the second half mean we can be much less confident about realising all of our forecast new business opportunities in this financial year. As I have previously told the market, the Service Stream business is very resilient to these overall market conditions. However, I do not anticipate that many observers would be surprised with our conclusion that some of our client’s new projects and capital spend activity may be deferred at this time.

We remain confident in the strength of the underlying business (reliant as it is on a strong bias toward client’s operating expenditure on essential infrastructure). We also believe that the next financial year will see the Company benefitting from a number of the deferred new business projects to add to that core revenue.”

Preliminary Half Year Result Commentary

Service Stream will release its first half results to the market on 27 February 2009. Subject to final review by its auditors, the Company expects to report revenue and EBITDA of approximately $275 million and $15.3 million for the six months to 31 December 2008, representing an increase of more than 35% and 12% on the previous corresponding period, respectively. The half year result underlines the strong operating performance from Service Stream’s core operating businesses, with divisional highlights being Field Services (Ticket of Work), Contact Centre Solutions and Infrastructure Services – Telco.

As discussed above, the reported result will also include a $5.3 million EBITDA loss (before corporate overheads) contribution from McCourt Dando which forms part of the Group’s Infrastructure Services (Utilities) division.

The Company will report negative operating cashflow of $15 million for the half year to 31 December, which relates primarily to the outstanding McCourt Dando claim. The Company expects to record a strong operating cashflow performance for the second half.

Service Stream remains conservatively geared at 3.0 times EBITDA to Net Debt. The Company continues to operate within its banking covenants and has sufficient headroom within its debt facilities to fund growth in the business. Its main senior debt is not due for renewal until October 2010.

For further details contact:

Service Stream Limited Investors & Media Patrick Flannigan, Managing Director & Chief Executive Officer Jo May Michael Doery, COO & Chief Financial Officer (61 3) 9200 7069 Tel: (61 3) 9677 8888

About Service Stream Limited:

Service Stream is a public company listed on the Australian Stock Exchange (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 staff 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.