TELSTRA GROUP LIMITED — Capital/Financing Update 2006

Jan 30, 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

31 January 2006

Service Stream Secures \$100M Telecommunications Contract

Service Stream Limited (STR) today announced it has been successfully awarded a portion of the Specialist Services Contract from Telstra in Sydney, Melbourne, Brisbane, Adelaide and Perth. This contract is supported by Service Stream's Australia wide network of branches and involves the ongoing maintenance activities on the Telstra infrastructure network.

The contract will require STR to provide specialist services across a range of works on the Telstra network. These works range from simple pole and/or pit replacements to small network upgrades and optical fibre work on Telstra's external plant.

This is a 3 year contract with STR estimating revenue in excess of \$100M over the period of the contract.

Commenting on the awarding of this contract Patrick Flannigan, Service Stream's CEO, said "This is another substantial piece of work for Service Stream with the most pleasing aspect being the confidence shown in our capabilities by such a valued customer as Telstra. The Specialist Services contract is structured along similar lines to our current Installations and Maintenance contract allowing both Service Stream and Telstra to take advantage of the synergies and economies of scale when providing these critical services back to Telstra."

This new contract is in addition to existing works currently undertaken for Telstra by Service Stream including the Installations & Maintenance contract which earlier this year was expanded to include Telstra ADSL installations and exchange jumpering activities. Combined, with other existing contracts this will see Service Stream completing more than 5,000 installations and maintenance tasks per day around Australia across a broad range of telecommunications customers.

For further details contact:

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

Jo May, Investors & Media Alitum Partnership Tel: (61 3) 9200 7069

Michael Doery, Finance Director 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\$135 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.