SERVICE STREAM LIMITED — M&A Activity 2006

Aug 20, 2006

Service Stream Limited Level 12, 555 Lonsdate Street Melbourne, Victoría, 3000

Telephone: 61 3 9677 8888 Facsimile: 61 3 9677 8877
ABN: 58 008 027 978

ASX & Media Release

21 August 2006

Service Stream acquires Fibercom Technology Pty Ltd

Diversified industrial services company Service Stream Limited (STR) is pleased to announce that it has reached agreement to acquire Fibercom Technology Pty Ltd (Fibercom). Fibercom specialises in telecommunication infrastructure design, build and maintenance offering clients a wide range of services for both internal and external networks including optical fibre, coaxial cable, copper cable and wireless solutions. Fibercom was established in 1988 and since that time it has developed an impressive range of expertise and skills which are supported by specialised plant and equipment.

Headquartered in Tullamarine, north of Melbourne, Fibercom has a strong track record of delivering effective supply and installation solutions to an impressive range of customers.

Consideration for the acquisition is based on an earn out and will approximate \$2.5M representing a multiple of approximately 5 times Fibercom's forecast earnings before interest and tax for the year ending 30 June 2007. The acquisition will be funded by vendor terms over 2 years and from Service Stream's existing cash reserves and facilities.

Commenting on the announcement Chief Executive Officer Mr. Patrick Flannigan said: "Fibercom's expert quality work and advanced testing and installation techniques in the fibre space is a good fit and complements our existing telecommunication asset movement business and installation and maintenance businesses. Over recent vears we have developed a strong relationship with Fibercom as a fellow contractor on several major projects. This acquisition will allow us to drive significant efficiencies and improvements in our service delivery capability.

Following the proposed merger with Total Communications Infrastructure Limited announced on 27 July this is an important strategic acquisition for Service Stream as we continue to develop our capabilities and strengths across a broad range of services to the telecommunications sector.

We look forward to maximising synergies and benefits that will be derived from the Fibercom acquisition and further growing Service Stream in the important and developing area of fibre technologies."

For further details contact:

Patrick Flannigan, Managing Director & Chief Executive Officer Service Stream Limited Tel: (61 3) 9677 8888

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: STR) with annual revenues exceeding A\$162 million. The company is an Australian owned and operated industrial services enterprise with proven outsourced field force management, technical support, 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.