Q MULTIMEDIUM LIMITED 2001-08-06 ASX-SIGNAL-G HOMEX - Perth +++++++++++++++++++++++++ RESPONSE TO ASX QUERY Thank you for your letter dated 1 August 2001. In response to the queries set out in your letter, Q Multimedium Limited (Company) responds as follows (using your numbering): 1. The Company considers that it will have sufficient cash and working capital to fund its current and envisaged activities. In particular the Company has cash, working capital and unused overdraft facilities totalling $1,330,000 made up as follows: Cash on hand 485,000 Positive working capital 545,000 Unused overdraft limit 300,000 $ 1,330,000 During the three month period to 30 June 2001 the Company reduced current liabilities by $680.000. The negative operating cash flow for the June quarter, including exit costs for the multimedia business was $408,000. The two ongoing core businesses of Q Multimedium Ltd are Q Digital and Jumbuck Corporation. Q Digital produced an operating cash surplus of $513,000 for the year ended 30 June 2001 and forecasts a positive cash flow for the year ended 30 June 2002. Jumbuck Corporation, subject to approval at a general meeting on August 22, will be a 100% owned subsidiary of Q Multimedium Ltd. The forecast for the three months ended 30 September indicates an operating cash neutral position for Jumbuck. 2. During the quarter ended 30 June 2001, the Company's revenue from multimedia was less than anticipated due to the decision to exit multimedia activities in Singapore and Perth. This decision however has resulted in Q eliminating an area of historical negative operating cash flows. 3. On the 19th June 2001, the company announced its intention to exit the multimedia markets in Singapore and Perth. This will result in an approximate write down of $900,000, including goodwill plant and equipment and employee termination payments. Subsequently on the 3rd July 2001 the Company announced an estimated financial result for the year ended 30 June 2001 of a net loss attributable to members of $4.0M (future income tax benefit has not been taken into account). This was inclusive of the $900,000 relating to the restructure of the Company. 4. The Company since issuing its prospectus in December 1999 has changed its strategies and objectives in line with previous announcements and as stated in the content of this announcement. These changes were made to protect and grow shareholder wealth and ensure that the company focused on the two core businesses being Q Digital and Jumbuck Corporation. 5. The Company confirms that it has continued to comply with the listing rules and in particular Listing Rule 3.1. 6. The Company complies with Listing Rule 12.2 and has a balance sheet with sufficient quality to fulfil the company's strategies. K Stedman DIRECTOR MORE TO FOLLOW 1