QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2004

Jul 11, 2004

Appendix 4C

Quarterly Report for entities admitted on the basis of commitments

Name of entity
	QUESTE COMMUNICATIONS LIMITED and controlled entities
	ACN or ARBN			Quarter Ended
	081 688 164			30 June 2004
	Consolidated statement of cash flows	ConsolidatedCompany
		Current QuarterYear to Date		Current Quarter	Year to Date
		Jun 2004	12 months	Jun 2004	12 months
		$'000	$000	$'000	$'000
	Cash flows related to operating activities
1.1	Receipts from customers				19,052
1.2	Payments for
	(a) staff costs	(84)	(414)	(126)	(489)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	65	37	8	(208)
1.3	Dividends received			$\overline{2}$	$\overline{2}$
1.4	Interest and other items of a similar nature received	25	128	358	605
1.5	Interest and other costs of finance paid
1.6	Income taxes paid	3	1	3
1.7	Other (provide details if material)
	Net operating cash flows	9	(248)	245	18,963

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 Quarterly Cash Flow Report takes into account the cash flows of the Company and its controlled entities, including CXL.

		Company		Consolidated
		Current Quarter	Year to Date	Current Quarter	Year to Date
		Jun 2004	12 months	Jun 2004	12 months
		$'000	$'000	$'000	$'000
1.8	Net operating cash flows (carried forward)	9	(248)	245	18,963
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	(b)equity investments	(2, 313)	(3,683)	(3,800)	(5,629)
	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	73	989	253	1,218
	intellectual property(c)
	(d)physical non-current assets
	other non-current assets(e)			7	7
1.11	Loans to other entities
1.12	Loans repaid by other entities
1.13	Other (provide details if material)
	Net investing cash flows	(2, 240)	(2,694)	(3, 540)	(4, 404)
1.14	Total operating and investing cash flows	(2, 231)	(2,942)	(3, 295)	14,559
	Cash flows related to financing activities
1.15	Proceeds from issues of shares, options, etc.			192	192
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			192	192
	Net increase (decrease) in cash held	(2, 231)	(2,942)	(3, 103)	14,751
1.21	Cash at beginning of quarter/year to date	2,330	3,041	21,316	3,462
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of quarter	99	99	18,213	18,213

Queste Communications Ltd 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

		Current Quarter
		Jun 2004
		$000
1.24	Aggregate amount of payments to the parties included in item 1.2	74
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) $48,170 Directors' salaries, fees and superannuation paid by the Company;
  • (2) $26,380 Salary and superannuation paid by the Central Exchange Ltd to its Director.

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

INone.
--------	--

$2.2$ 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 quarter (as shown in		Current	Previous	Current	Previous
the consolidated statement of cash flows) to the related		Quarter	Quarter	Quarter	Quarter
items in the accounts is as follows		$000	$000	$000	$000
4.1	Cash on hand and at bank	99	339	1,774	1,902
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (Bank Bills)		1,991	16,439	19,414
	Total: cash at end of quarter (item 1.22)	99	2,330	18,213	21,316

Acquisitions

(Item $1.9(a)$ )

$\mathbf{L}$

$\mathbf{r}$

$\overline{a}$

$\overline{\phantom{a}}$

$\overline{a}$

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.

11 July 2004 Date:

Victor Ho Company Secretary

Notes:
The Company also currently has the following share investments:
	No Shares	% Interest	Last Closing Price	Value
Shares in Central Exchange Ltd	8.303.779	48.222%	$0.72	$5,978.721
Shares in Altera Capital Ltd	10.699.428	17.252%	suspended
Shares in Other Listed Securities (liquidinvestments)	various		various	$3,248,059