Stream Global Services, Inc. Announces Close of Stock-for-Stock Transaction With eTelecare Global Solutions and Close of Financing Transactions of Approximately US$300 Million

BOSTON -

- Creates a Global BPO Services Company Approaching US$1 Billion in Projected Revenue in 2010 and Approximately 30,000 Combined Employees

Stream Global Services, Inc., (NYSE Amex: OOO), a premium business process outsourcing (BPO) provider specializing in customer relationship management services for the Fortune 1000, today announced the closing of its previously announced stock-for-stock exchange with EGS Corp., the parent company of eTelecare Global Solutions, Inc.

The combined company, which will retain the Stream Global Services name, will have approximately 30,000 employees located throughout 50 service centers in North America, Europe, the Philippines, Latin America, India and Africa. The combination creates a global BPO company with a diversified Fortune 1000 customer base, an experienced executive team, a comprehensive BPO services portfolio, and complementary businesses with technical and product leadership across a wide range of industries, including the technology, retail, entertainment, media telecommunications and financial service sectors. The combined company will draw upon the broad range of service strengths of each business’s integrated service offerings, ranging from sales and revenue generation to customer care and technical support, as well as warranty services. It is estimated that the combined enterprise will have annualized revenues approaching US$1 billion in 2010.

Stream has completed a previously announced private placement of US$200 million aggregate principal amount of 11.25 percent senior secured notes due 2014 (the “Notes”). The Notes were issued by the company at an initial offering price of 95.454 percent of the principal amount. We intend to use the net proceeds of the Notes Offering to refinance existing indebtedness of Stream and eTelecare. The Notes offering was led by Goldman Sachs & Co., and joint book runners were Wells Fargo Securities, Morgan Stanley and RBC Capital Markets. Stream also completed a Revolving Credit Facility secured by certain assets of the company and certain of its foreign subsidiaries totaling US$100 million availability, subject to borrowing base and other restrictions (the “Credit Facility”). The Credit Facility was led by Wells Fargo Foothill, LLC; as the agent and a lender, and the other lenders include Goldman Sachs Lending Partners LLC, Morgan Stanley Senior Funding Inc., and Royal Bank of Canada.

Scott Murray will continue to be the Chairman and Chief Executive Officer of the combined company. Other members of the executive team will include: Robert Dechant as EVP Global Sales & Marketing; Robert Lyons as EVP Chief Technology & Information Officer; Sheila Flaherty as EVP Chief Legal Officer; Jeff Bishop as EVP Operations of Americas; Harry Jackson as EVP Operations of EMEA; Gilbert Santa Maria as SVP of Corporate Business Development; Andrew Suchoff as SVP of Global Human Resources; and Robert Aldrich as SVP of Global Finance.

“The completion of the combination of Stream and eTelecare today brings together two very strong franchises to deliver a diversified set of BPO and CRM services for our clients on a truly global basis. Stream is now one of the top service providers in the world offering customer lifecycle support services such as: sales, customer care, warranty and technical support to many of the leading companies in the world. The new capital we have raised, together with the deep support we have from our financial sponsors Ares Management LLC, Providence Equity Partners LLC and Ayala Corporation, will allow us to make long-term investments in new services and technology, as well as expand our geographic footprint into additional areas including China, South America and Japan,” said CEO Scott Murray. Murray went on to say, “We have assembled one of the most experienced and proven management teams in the BPO industry, and we believe that Stream will continue to be a terrific place for young people to build and grow their careers with us over the next decade as we expand our business model to suit the needs of our clients.”

Contact Information: Sally Comollo Director of Marketing Communications sally.comollo@stream.com +1-781-304-1847

About Stream Global Services:

Stream Global Services is a premium business process outsource (BPO) provider specializing in customer relationship management services including sales, customer care and technical support for Fortune 1000 companies. Stream is a trusted advisor to some of the world’s leading technology, computing, telecommunications, retail, entertainment/media, and financial services companies. Our service programs are delivered through a set of standardized best practices by a highly skilled workforce of approximately 30,000 employees based out of 50 solution centers in 22 countries supporting 34 languages. Stream continues to expand its global presence and service offerings to increase revenue, improve operational efficiencies and drive brand loyalty. To learn more about the company and its complete service offering, please visit www.stream.com.

Safe Harbor. This press release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our business expectations and objectives, including without limitation, our projected revenue in 2010. These statements are based upon the current expectations and beliefs of management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. We cannot guarantee that we will achieve the plans, intentions or expectations disclosed in the forward-looking statements. Important factors that may affect future results and outcomes include, but are not limited to, our inability to become or remain profitable, our customer concentration, our dependence on a few industries and the level of demand for outsourced business processes in these industries, our inability to realize the anticipated benefits of our combination with eTelecare, our substantial amount of debt, which could impact our ability to obtain future financing or pursue our growth strategy, negative public reaction to outsourcing and recently proposed legislation, fluctuations in foreign currency exchange rates, payment on our indebtedness will require a significant amount of cash, our ability to maintain and win additional client business, continue to maintain our operating performance and margin expansion, continue to have sufficient capital to grow and maintain our business, retain our management team and effectively operate a global franchise across multiple jurisdictions, delays or interruptions of service due to system failures, natural disasters, fire, security breaches and other similar events, an inability to predict future tax liabilities, political and economic instability in countries where we do business, risks associated with our international operations, increases in labor-related rates, our inability to maintain sufficient capacity utilization in our service centers, our long selling cycle, the potential for unauthorized disclosure of personal information, an outbreak of a pandemic, our dependence on third party technology, government regulation may increase our costs and other risks and important factors detailed in our filings with the SEC. We undertake no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this release or to reflect actual outcomes.

Source: Stream Global Services, Inc.

Sally Comollo, Director of Marketing Communications of Stream Global Services, Inc., +1-781-304-1847, sally.comollo at stream.com