Investor Relations

Q Multimedium Limited Announces Restructure

Back Jun 19, 2001
Q MULTIMEDIUM LIMITED                         2001-06-19  ASX-SIGNAL-G

HOMEX - Perth                                                         

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Q Multimedium Limited announces that as part of its continuing
restructuring and focus on core revenue streams it has exited the
multimedia markets in Perth and Singapore.

The Melbourne division has been merged with QMM's 50% owned wireless
internet applications developer, Jumbuck Corporation Ltd. Jumbuck
will become 100% owned effective 30 June 2001, subject to QMM
shareholder approval.

This decision was based on the inconsistency of revenue and
competitive margins, which were not commensurate with the ongoing
related risks.

The Melbourne division has an ongoing role supporting Jumbuck and
also currently has contracts with the Australian Football League and
the Australian Cricket Board.

The one off Balance Sheet / Profit and Loss effect relating to the
restructure will be accounted for in the 30 June 2001 financial
accounts and is expected to be a write down of approximately $900,000
which includes Goodwill, Plant and Equipment and employee termination
payments.

QMM is now positioned to apply its resources to its two core
businesses, Q Digital and Jumbuck Corporation Ltd.

Q Digital has a strong revenue stream and with its recent commitment
to acquire a Heidelberg SM74 Direct Imaging Press for approximately
$2,500,000 it is well positioned to produce sustainable cash flow and
profitability.

Jumbuck Corporation Ltd is already generating revenue from major
Telco's Sprint PCS, Genie - British Telecom's mobile internet portal,
Globe Telecom in the Philippines and Telstra Australia. It is also
negotiating with a number of other large international Telco's.

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