QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2003

Jun 10, 2003

Year to date

Current Month

May 2003 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LIMITED and controlled entities

ACN or ARBN	Month ended ("Current Month")
081 688 164	31 May 2003

Consolidated statement of cash flows

		May 2003$'000	11 months$'000
	Cash flows related to operating activities
1.1	Receipts from customers	1	88
1.2	Payments for
	(a) staff costs	(47)	(616)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	57	(342)
1.3	Dividends received
1.4	Interest and other items of a similar nature received	13	163
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	24	(695)

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
		May 2003	11 months
		$' 000	$' 000
1.8	Net operating cash flows (carried forward)	24	(695)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	(b)equity investments
	intellectual property(c)
	physical non-current assets(d)	(4)	(4)
	other non-current assets(e)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	equity investments(b)		24
	intellectual property(c)
	physical non-current assets(d)	20	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
	Net investing cash flows	16	1,474
1.14	Total operating and investing cash flows	40	779
	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	40	757
1.21	Cash at beginning of quarter/year to date	3,562	2,845
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of quarter	3,602	3,602

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 MonthMay 2003$'000
1.24	Aggregate amount of payments to the parties included in item 1.2
125.	Acoreogte amount of loans to the parties included in item 1.11

1.26 Explanation necessary for an understanding of the transactions

(1) $46,887 - Director salaries and fees, of which $18,463 were paid by Central Exchange Ltd ("CXL") to its own directors.

$(2)$ $49,062 - Payment received from Central Exchange Ltd pursuant to shared office and 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	$\blacksquare$
3.2	Credit standby arrangements	$\blacksquare$

Reconciliation of cash

	Reconciliation of cash at the end of the quarter (as shown in theconsolidated statement of cash flows) to the related items in the	CurrentMonth	PreviousMonth
accounts is as follows		$'000	$'000
4.1	Cash on hand and at bank	764	673
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (provide details)	2,838	2,889
Total: cash at end of quarter (item 1.22)		3,602	3,562

May 2003

Acquisitions and disposals of business entities

		Acquisitions(ltem 1.9(a))	Disposals(Item $1.10(a)$ )
5.1	Name of entity	$\overline{a}$
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 June 2003

Print name:

Victor Ho Company Secretary

Notes:

The Company holds the following share investments:

	No. Shares	Price/Value per Share	Total Value
(1) Central Exchange Ltd	4.149.112	$0.0593	$245.950
(2) Bigshop.com.au Ltd	10.079.028	$0.0611	$616,320
(3) Other Listed Company	50.000	$0.0100	$500

$(1) + (2)$ values are based on their last reported cash balance + value of share investments

Central Exchange Ltd holds share investments with a current marlet value of:

$862,770