QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2005

Mar 10, 2005

February 2005 Monthly Cash Flow Report

Name of entity

QUESTE COMMUNICATIONS LIMITED and controlled entities

ACN or ARBN		Month Ended
081 688 164		28 February 2005
	Consolidated statement of cash flows	ConsolidatedCompany
		Current Month	Year to Date	Current MonthYear to Date
		Feb 2005	8 months	Feb 2005	8 months
		$°000	$°000	$'000	$°000
Cash flows related to operating activities
1.1	Receipts from customers
1.2	Payments for
	(a) staff costs	(23)	(212)	(45)	(360)
	(b) advertising and marketing
	(c) research and development
	(d) leased assets
	(e) other working capital	20	22	(3)	(229)
1.3	Dividends received		417		153
1.4	Interest and other items of a similar nature received		2	39	427
1.5	Interest and other costs of finance paid				(1)
1.6	Income taxes paid
1.7	Other (provide details if material)
	- Professional fees		(6)		(333)
	Net operating cash flows	(3)	223	(9)	(343)

Note:

The Company currently has a 48.2% 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.

		ConsolidatedCompany
		Current Month	Year to Date	Current Month	Year to Date
		Feb 2005	8 months	Feb 2005	8 months
		$'000	$'000	$'000	$'000
1.8	Net operating cash flows (carried forward)	(3)	223	(9)	(343)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	businesses (item 5)(a)
	equity investments(b)		(469)	(2,467)	(14, 505)
	intellectual property(c)
	(d)physical non-current assets				(51)
	other non-current assets(e)			(6)	(14)
1.10	Proceeds from disposal of:
	businesses (item 5)(a)
	(b)equity investments		176	953	8,067
	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)
	Net income from options(a)				55
	Net investing cash flows	ä,	(293)	(1, 520)	(6, 448)
1.14	Total operating and investing cash flows	(3)	(70)	(1, 529)	(6, 791)
	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			(1)	(417)
1.20	Other (provide details if material)
	Payments in relation to share buy back			(1)	(3)
	Net financing cash flows	$\blacksquare$	$\blacksquare$	(2)	(412)
	Net increase (decrease) in cash held	(3)	(70)	(1, 531)	(7,203)
1.21	Cash at beginning of month/year to date	32	99	12,541	18,213
1.22	Exchange rate adjustments to item 1.20
$1.23 -$	Cash at end of month	29	29	11,010	11,010

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

		Current Month
		Feb 2005
		$000
1.24	Aggregate amount of payments to the parties included in item 1.2	34
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) $12,019 Salaries, fees and superannuation paid by the Company to Directors;
  • (2) $22,047 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	Amount used
		$$^{\circ}000$	$$^{\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	29	32	4,312	780
4.2	Deposits at call
4.3	Bank overdraft
4.4	Other (Bank Bills)			6,698	11,761
	Total: cash at end of month (item 1.22)	29	32	11,010	12,541

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 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.

Company Secretary

Notes:

Victor Ho

The Company currently holds the following listed share investments:

	No Shares	% Interest	Last Closing Price	Market Value
Shares in Central Exchange Ltd (CXL)	8,303,779	48.22%	$0.61	$5,065,305
Shares in Altera Capital Ltd (AEA)	10,699,428	17.25%	suspended
Shares in Other Listed Securities (liquid
investments)	various		various	$3,168,301
				$8,233,606

Share investments are regarded as liquid assets to supplement the Company's cash reserves.

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

Acquisitions	Disposals
(Item $1.9(a)$ )	(Item $1.10(a)$ )
$\blacksquare$	m
$\sim$

Date:

11-Mar-05

11 March 2005