QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2003

Jul 10, 2003

Year to date

Current Month

June 2003 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LIMITED and controlled entities

ACN or ARBN	Month ended ("Current Month")
081 688 164	30 June 2003

Consolidated statement of cash flows

		June 2003$' 000	12 months$' 000
Cash flows related to operating activities
1.1	Receipts from customers	1	89
1.2	Payments for
	(a) staff costs	(71)	(687)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	9	(333)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	13	176
1.5	Interest and other costs of finance paid
1.6	Income taxes (paid) / refunded		12
1.7	Other (provide details if material)
	Net operating cash flows	(48)	(743)

Notes:

The Company currently holds and has held since August 2002, 48.817% of ASX Listed Central Exchange Ltd's total issued ordinary share capital.

Central Exchange Ltd has been treated as a controlled entity pursuant to Accounting Standard 1024 "Consolidated Accounts" for the first time in the February 2003 Monthly Cash Flow Report.

Previously, the Company had accounted for its investment in Central Exchange Ltd on a equity accounting basis as an Associate entity pursuant to Accounting Standard AASB 1016 'Accounting for Investment in Associates."

Therefore, this Monthly Cash Flow Report is for the Company and its controlled entities, including Central Exchange Ltd.

		Current Month	Year to date
		June 2003	12 months
		$' 000	$' 000
1.8	Net operating cash flows (carried forward)	(48)	(743)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	(b)equity investments	(92)	(92)
	intellectual property(c)
	physical non-current assets(d)		(4)
	other non-current assets(e)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	(b)equity investments		24
	intellectual property(c)
	physical non-current assets(d)		435
	(e)other non-current assets
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Net cash inflow from acquisition of Central Exchange Ltd		1,019
1.14	Net investing cash flowsTotal operating and investing cash flows	(92)(140)	1,382639
	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)
	(a) Net proceeds from sale of unmarketable parcels		17
	(b) Payments to former unmarketable parcels' shareholders		(23)
	(c) Payments in relation to share buy back		(16)
	Net financing cash flows		(22)
	Net increase (decrease) in cash held	(140)	617
1.21	Cash at beginning of quarter/year to date	3,602	2,845
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of quarter	3,462	3,462

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 MonthJune 2003$'000
1.24	Aggregate amount of payments to the parties included in item 1.2	40
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) $40,258 - Director salaries, fees and superannuation, of which $20,669 were paid by Central Exchange Ltd to its own directors.

$11,657 - Payment received from Central Exchange Ltd pursuant to shared office and $(2)$ administration expenses for December 2002 to April 2003.

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).

		Amount available	Amount used
		$'000	$'000
3.1	Loan facilities	$\blacksquare$	$\mathbf{r}$
3.2	Credit standby arrangements

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in the	Current	Previous
	consolidated statement of cash flows) to the related items in the	Month	Month
accounts is as follows		$'000	$'000
4.1	Cash on hand and at bank	1.022	764
4.2	Deposits at call
4.3Bank overdraft
4.4Other (provide details)		2,440	2,838
	Total: cash at end of quarter (item 1.22)	3,462	3,602

Acquisitions and disposals of business entities

		Acquisitions(Item $1.9(a)$ )	Disposals(Item $1.10(a)$ )
5.1	Name of entity	$\overline{\phantom{a}}$
5.2	Place of incorporationor registration	$\mathbf{r}$
5.3	Consideration foracquisition or disposal
5.4	Total net assets
5.5	Nature of business

Compliance statement

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

Sign here:

Date: 10 July 2003

Print name:

Victor Ho Company Secretary