QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2004

Sep 4, 2003

August 2003 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LIMITED and controlled entities

ACN or ARBN		Month Ended
081 688 164		31 August 2003
Consolidated statement of cash flows		Company		Consolidated
		Current Month	Year to Date	Current Monthl	Year to Date
		Aug 2003	2 months	Aug 2003	2 months
	Cash flows related to operating activities	$°000	$'000	$°000	$°000
1.1	Receipts from customers				1
1.2	Payments for
	(a) staff costs	(32)	(65)	(32)	(77)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	(16)	(56)	(19)	(71)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	11	23	12	25
1.5	Interest and other costs of finance paid
1.6	Income taxes paid
1.7	Other (provide details if material)
	Net operating cash flows	(37)	(98)	(39)	(122)

Note:

The Company currently has a 48.817% interest in ASX listed Central Exchange Limited ("CXL").

CXL is a controlled entity of the Company pursuant to Accounting Standard AASB 1024 "Consolidated Accounts."

Therefore, the Consolidated columns in this Monthly Cash Flow Report takes into account the cash flows of the Company and its controlled entities, including CXL.

		Company		Consolidated
	Current Month Current Month Current Month			Year to Date
		Aug 2003	2 months	Aug 2003	2 months
		$'000	$'000	$'000	$'000
1.8	Net operating cash flows (carried forward)	(37)	(98)	(39)	(122)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	(b)equity investments
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	equity investments(b)
	intellectual property(c)
	physical non-current assets(d)
	other non-current assets(e)
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Other (provide details if material)
	Net investing cash flows
1.14	Total operating and investing cash flows	(37)	(98)	(39)	(122)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings
1.18	Repayment of borrowings
1.19	Dividends paid
1.20	Other (provide details if material)
	Net financing cash flows
	Net increase (decrease) in cash held	(37)	(98)	(39)	(122)
1.21	Cash at beginning of month/year to date	2,980	3,041	3,379	3,462
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of month	2,943	2,943	3,340	3,340

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

		Current Month
		Aug 2003
		$000
1.24	Aggregate amount of payments to the parties included in item 1.2	12
1.25	Aggregate amount of loans to the parties included in item 1.11

• 1.26 Explanation necessary for an understanding of the transactions
  • (1) $12,019 Directors' salaries and fees.

Non-cash financing and investing activities

$2.1$ Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

'None'
--------

$2.2$ Details of outlays made by other entities to establish or increase their share in businesses in which the reporting entity has an interest

None.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

		Amt available$$^{\circ}000$	Amount used$$^{\circ}$ 000
3.1	Loan facilities	$\sim$
3.2	Credit standby arrangements	$\sim$

Reconciliation of cash		Company		Consolidated
Reconciliation of cash at the end of the month (as shown in		Current	Previous	Current	Previous
the consolidated statement of cash flows) to the related		Month	Month	Month	Month
items in the accounts is as follows		$000	$000	$000	$°000
4.1	Cash on hand and at bank	144	240	541	639
4.2	Deposits at call	60	2,740	60	2,740
4.3	Bank overdraft
4.4	Other (Bank Bills)	2,739		2,739
	Total: cash at end of month (item 1.22)	2,943	2,980	3,340	3,379

$\overline{a}$

Acquisitions and disposals of business entities

• $5.1$ Name of entity
• $5.2$ Place of incorporation or registration
• $5.3$ Consideration for acquisition or disposal
• 5.4 Total net assets
• 5.5 Nature of business

Compliance statement

• This statement has been prepared under accounting policies which comply with accounting standards as defined in the $\mathbf{1}$ Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• $\overline{2}$ This statement does give a true and fair view of the matters disclosed.

Victor Ho Company Secretary

Date: 5 September 2003

The Company also has the following share investments:		04-Sep-03
	No Shares	% Interest	Last Closing Price	Value
Shares in Central Exchange Ltd	4.149.112	48.817%	suspended
Shares in Altera Capital Ltd	10.699.428	11.628%	suspended
Shares in Other Listed Securities	various		various	$92,457

Acquisitions	Disposals
(Item $1.9(a)$ )	(Item $1.10(a)$ )
	m
-	STATE