QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2004

Jul 11, 2004

June 2004 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LIMITED and controlled entities

ACN or ARBN081 688 164		Month Ended
		30 June 2004
Consolidated statement of cash flows		Company		Consolidated
		Current Month	Year to Date	Current Monthl	Year to Date
		Jun 2004	12 months	Jun 2004	12 months
	Cash flows related to operating activities	$'000	$' 000	$$^{\circ}000$	$'000
1.1	Receipts from customers				1
1.2	Payments for
	(a) staff costs	(9)	(414)	(38)	(489)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	(32)	37	(15)	(208)
1.3	Dividends received				$\mathbf{2}$
1.4	Interest and other items of a similar nature received	8	128	178	605
1.5	Interest and other costs of finance paid
1.6	Income taxes paid		1		1
1.7	Other (provide details if material)
	(a) Settlement Deed payment				19,051
	Net operating cash flows	(33)	(248)	125	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 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
		Jun 2004	12 months	Jun 2004	12 months
		$'000	$'000	$'000	$'000
1.8	Net operating cash flows (carried forward)	(33)	(248)	125	18,963
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	equity investments(b)	(1, 572)	(3,683)	(2,070)	(5,629)
	intellectual property(c)
	physical non-current assets(d)
	other non-current assets(e)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	(b)equity investments	73	989	222	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	(1,499)	(2,694)	(1, 841)	(4, 404)
1.14	Total operating and investing cash flows	(1, 532)	(2,942)	(1,716)	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		٠	192	192
	Net increase (decrease) in cash held	(1, 532)	(2,942)	(1, 524)	14,751
1.21	Cash at beginning of month/year to date	1,631	3,041	19,737	3,462
1.22	Exchange rate adjustments to item 1.20
1.23	Cash at end of month	99	99	18,213	18,213

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
		Jun 2004
		$000
1.24	Aggregate amount of payments to the parties included in item 1.2	30
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) $14,161 Salaries, fees and superannuation paid by the Company to Directors;
  • (2) $15,684 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	$\sim$

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	$$^{\circ}000$	$000
4.1	Cash on hand and at bank	99	386	1,774	1,069
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (Bank Bills)		1,245	16,439	18,668
	Total: cash at end of month (item 1.22)	99	1,631	18,213	19,737

г

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
• Nature of business 5.5

Compliance statement

Shares in Altera Capital Ltd

• This statement has been prepared under accounting policies which comply with accounting standards as defined in the 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 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

10,699,428

17.252%

Acquisitions	Disposals
( Item $1.9(a)$ )	(Item $1.10(a)$ )
m	$\blacksquare$
$\mathbf{r}$	$\overline{\phantom{a}}$
m	$\blacksquare$
-	$\blacksquare$

11 July 2004

$9 - Jul - 04$

Date:

suspended