QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2008

Oct 11, 2007

Appendix 4C Appendix Quarterly Report for entities admitted on the basis of commitments

Name of entity Name of

QUESTE COMMUNICATIONS LTD and controlled entities ACN or ARBN 081 688 164 Consolidated statement of cash flows Current Quarter Year to Date Current Quarter Year to Date Quarter Ended 30 September 2007 Company Consolidated Current QuarterYear to DateCurrent QuarterYear to DateSept 2007 3 month Sept 2007 3 month $' 000 $' 000 $' 000 $' 000 Cash flows related to operating activities 1.1 Receipts from customers - - - - 1.2 Payments for (a) staff costs (127) (127) (263) (263) (b) advertising and marketing - - - - (c) research and development - - - - (d) leased assets - - - - (e) other working capital (12) (12) (939) (939) 1 3. Dividends received Dividends 171 171 25 25 1.4 Interest and other items of a similar nature received 38 38 56 56 1.5 Interest and other costs of finance paid - - - - 1.6 Income taxes paid - - (76) (76) 1.7 Other (provide details if material) - Professional fees - - - - Net operating cash flows 70 70 (1,197) (1,197)

Note:

The Company currently has a 48% interest in ASX listed investment company, Orion Equities Limited ("OEQ").

OEQ is a controlled entity of the Company under the Accounting Standards.

Therefore, the Consolidated columns in this Monthly Cash Flow Report takes into account the cash flows of the Company and its controlled entities, including OEQ

			Company		Consolidated
		Current QuarterCurrent	Year to DateYear to	Current QuarterCurrent	Year to DateYear to
		Sept 2007	3 month	Sept 2007	3 month
		$' 000	$' 000	$' 000	$' 000
1.8	Net operating cash flows (carried forward)	70	70	(1,197)	(1,197)
	Cash flows related to investing activities
1.9	Payment for acquisition of:
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	-	(551)	(551)
	(c)intellectual property	-	-	-	-
	(d)physical non-current assets	-	-	(3)	(3)
	(e)other non-current assets	-	-	-	-
1 10 .	Proceeds from disposal of:Proceeds from disposal
	(a)businesses (item 5)	-	-	-	-
	(b)equity investments	-	-	1,622	1,622
	(c)intellectual property	-	-	-	-
	(d)physical non-current assets	-	-	-	-
	(e)other non-current assets	-	-	-	-
1.11	Loans to other entities	-	-	-	-
1.12	Loans repaid by other entities	-	-	-	-
1.13	Other (provide details if material)	-	-	-	-
	(a)Net income from options	-	-	(65)	(65)
	Net investing cash flows	-	-	1,003	1,003
1.14	Total operating and investing cash flows	70	70	(194)	(194)
	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 paidDividends	(74)	(74)	(259)	(259)
1.20	Other (provide details if material)	-	-	-	-
	Payments in relation to share buy back	-	-	-	-
	Net financing cash flows	(74)	(74)	(259)	(259)
	Net increase (decrease) in cash held	(4)	(4)	(453)	(453)
1 21 .	Cash at beginning of month/year to dateCash at beginning of month/year to date	3 158,	3 158,	4 811,	4 811,
1.22	Exchange rate adjustments to item 1.20	-	-		-
1.23	Cash at end of month	3,154	3,154	4,358	4,358

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
		Sept 2007
		$' 000
1.24	Aggregate amount of payments to the parties included in item 1.2	(182)
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) $48,351 - Salaries and fees paid by the Company to Directors; (2) $133,665 - Salaries and fees paid by controlled entity, Orion Equities Limited, 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

None

2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting

None.

Financing facilities available

Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).

	Amt available$' 000	Amount used$' 000
3.1Loan facilities	-	-
3.2Credit standby arrangements	-	-

Acquisitions Disposals

(Item 1.9(a)) (Item 1.10(a))

Date: 12 October 2007

	Reconciliation of cash	Company		Consolidated
	Reconciliation of cash at the end of the month (as shown inthe consolidated statement of cash flows) to the related items		PreviousQuarter$' 000	CurrentQuarter$' 000	PreviousQuarter$' 000
4.14.2	Cash on hand and at bankDeposits at callp	2292,925,	3,13325	1,4332,925,	3,79125
4.3	Bank overdraft	-	-	-	-
4.4	Other (Bank Bills)	-	-	-	995
	Total: cash at end of month (item 1.22)	3,154	3,158	4,358	4,811
		-	-	-	-

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

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law (except to the extent that information is not required because of note 2) or other standards acceptable to ASX.
• 2 This statement does give a true and fair view of the matters disclosed.

Victor Ho
Company Secretary
Notes:
The Company currently holds the following listed share investments:			12-Oct-07
	No Shares	% Interest	Last Closing Price	Market Value
Shares in Orion Equities Limited (OEQ)	8,558,127	48.04%	$1.305	$11,168,356
Shares in Sofcom Limited (SOF)
	6,255,349	14.01%	suspended

$11,168,356The above investments are regarded as liquid assets to supplement the Company's cash reserves.