QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2005

Oct 7, 2004

September 2004 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LIMITED and controlled entities

ACN or ARBN		Month Ended
081 688 164		30 September 2004
Consolidated statement of cash flows		Company		Consolidated
		Current MonthSept 2004$°000	Year to Date3 months$°000	Current MonthSept 2004$'000	Year to Date3 months$°000
	Cash flows related to operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) staff costs	(29)	(81)	(48)	(131)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	(5)	3	(21)	(135)
1.3	Dividends received	$\overline{2}$	417	21	21
1.4	Interest and other items of a similar nature received		$\overline{2}$	74	176
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	(32)	341	26	(69)

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
		Sept 2004	3 months	Sept 2004	3 months
		$'000	$°000	$'000	$'000
1.8	Net operating cash flows (carried forward)	(32)	341	26	(69)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	equity investments(b)		(469)	(1,630)	(6, 320)
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	(b)equity investments	30	76	414	1,849
	intellectual property(c)
	(d)physical non-current assets
	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)
	Hedging contracts			6	13
	Net investing cash flows	30	(393)	(1, 210)	(4, 458)
1.14	Total operating and investing cash flows	(2)	(52)	(1, 184)	(4, 527)
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.				8
1.16	Proceeds from sale of forfeited shares
1.17	Proceeds from borrowings
1.18	Repayment of borrowings
1.19	Dividends paid			(9)	(404)
1.20	Other (provide details if material)
	Payments in relation to share buy back				(2)
	Net financing cash flows		٠	(9)	(398)
	Net increase (decrease) in cash held	(2)	(52)	(1, 193)	(4,925)
1.21	Cash at beginning of month/year to date	49	99	14,481	18,213
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of month	47	47	13,288	13,288

Queste Communications Ltd (ABN 58 081 688 164) Level 14, The Forrest Centre, 221 St Georges Terrace, Perth, Western Australia 6000 Tel: (08) 9214 9777 Email: info@queste.com.au Fax: (08) 9322 1515

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

		l Current Monthl
		Sept 2004
		$000
1.24	Aggregate amount of payments to the parties included in item 1.2	32
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) $13,822 Salaries, fees and superannuation paid by the Company to Directors;
  • (2) $18,632 Salaries and superannuation paid by Central Exchange Ltd to its Directors.

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	$\sim$

Disposals

(item $1.10(a)$ )

$\overline{a}$

$\overline{a}$

$\overline{a}$

$\overline{a}$

$\overline{a}$

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		$$^{\circ}000$	$$^{\circ}000$	$$^{\circ}000$	$000
4.1	Cash on hand and at bank	47	49	1,398	596
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (Bank Bills)			11,890	13,885
	Total: cash at end of month (item 1.22)	47	49	13,288	14,481

Acquisitions (Item $1.9(a)$ )

$\blacksquare$

$\overline{a}$

$\overline{a}$

$\omega$

$\overline{a}$

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 1 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 give a true and fair view of the matters disclosed.

Date: 8 October 2004

Victor Ho Company Secretary

Notes:

The Company also currently has the following listed share investments:

		7-Oct-04
	No Shares	% Interest	Last Closing Price	Value
Shares in Central Exchange Ltd (CXL)	8.303.779	48.22%	$0.57	$4,733,154
Shares in Altera Capital Ltd (AEA)	10.699.428	17.25%	suspended
Shares in Other Listed Securities (liquid	various
investments)			various	$3,030,361