QUESTE COMMUNICATIONS LIMITED — Interim / Quarterly Report 2008

Oct 11, 2007

Queste Communications Ltd September 2007 and Controlled Entities

Monthly Cash Flow Report

September 2007 Monthly Cash Flow Report

Name of entit y

QUESTE COMMUNICATIONS LTD and controlled entities

ACN or ARBN 081 688 164	Month Ended	Month Ended	Month Ended	Month Ended
	30 September 2007
Consolidated statement of cash flows Cash flows related to operating activities 1.1 Receipts from customers 1.2 Payments for (a) staff costs (b) advertising and marketing (c) research and development (d) leased assets (e) other working capital 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) - Professional fees Net operating cash flo s w	Company		Consolidated
	Current Month Sept 2007 $' 000	Year to Date 3 month $' 000	Current Month Sept 2007 $' 000	Year to Date 3 month $' 000
	- (43) - - - (20) 171 3 - - -	- (127) - - - (12) 171 38 - - -	- (93) - - - (319) 9 8 - - -	- (263) - - - (939) 25 56 - (76) -
	111	70	(395)	(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

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

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Monthly Cash Flow Report

Queste Communications Ltd and Controlled Entities

September 2007

	Company	Company	Consolidated	Consolidated
	Current Month Sept 2007 $' 000	Year to Date 3 month $' 000	Current Month Sept 2007 $' 000	Year to Date 3 month $' 000
1.8 Net operatingcash flows(carried forward)	111	70	(395)	(1,197)
Cash flows related to investing activities 1.9 Payment for acquisition of: (a) businesses (item 5) (b) equity investments (c) intellectual property (d) physical non-current assets (e) other non-current assets 1 10 Proceeds from disposal of: . (a) businesses (item 5) (b) equity investments (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 Net investing cash flows 1.14Total operating and investing cash flows	- - - - - - - - - - - - - -	- - - - - - - - - - - - - -	- - - - - - 990 - - - - - - (64)	- (551) - (3) - - 1,622 - - - - - - (65)
	-	-	926	1,003
	111	70	531	(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 paid . 1.20 Other (provide details if material) Payments in relation to share buy back Net financing cash flows	- - - - (74) - -	- - - - (74) - -	- - - - (259) - -	- - - - (259) - -
	(74)	(74)	(259)	(259)
Net increase (decrease) in cash held 1 21 Cash at beginning of month/year to date . 1.22 Exchange rate adjustments to item 1.20 1.23Cash at end of month	37 3 117 , -	(4) 3 158 , -	272 4 086 ,	(453) 4 811 , -
	3,154	3,154	4,358	4,358

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

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Queste Communications Ltd September 2007 and Controlled Entities

Monthly Cash Flow Report

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

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
1.24 Aggregate amount of payments to the parties included in item 1.2 1.25Aggregate amount of loans to the partiesincludedin item 1.11	Current Month Sept 2007 $' 000
	(66)
	-

• 1.26 Explanation necessary for an understanding of the transactions

• (1) $18,854 - Salaries and fees paid by the Company to Directors; (2) $47,547 - Salaries and fees paid by controlled entity, Orion Equities Limited, to its Directors.

==> picture [500 x 32] intentionally omitted <==

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).

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

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

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Queste Communications Ltd and Controlled Entities

Monthly Cash Flow Report

September 2007

Reconciliation of cash	Company	Company	Consolidated	Consolidated
Reconciliation of cash at the end of the month (as shown in the consolidated statement of cash flows) to the related items	Current Month $' 000	Previous Month $' 000	Current Month $' 000	Previous Month $' 000
4.1 Cash on hand and at bank 4.2 Deposits at call 4.3 Bank overdraft 4.4 Other(Bank Bills)	229	3,092	1,433	4,061
	2,925	25	2,925	25
	-	-	-	-
	-	-	-	-
Total: cash at end of month(item 1.22)	3,154	3,117	4,358	4,086
	- - - -

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	Acquisitions (Item 1.9(a))	Disposals (Item 1.10(a))
	-	-
	-	-
	-	-
	-	-
	-	-

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.

Date: 12 October 2007

Victor Ho Company Secretary

Notes:

TheCompany currently holds the following listed share investments:	TheCompany currently holds the following listed share investments:	TheCompany currently holds the following listed share investments:	12-Oct-07
	No Shares	% Interest	Last ClosingPrice	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
				$11 168 356 , ,

The above 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

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