Investor Relations

Response to ASX Query - Appendix 4C

Back May 03, 2001
Q MULTIMEDIUM LIMITED                         2001-05-03  ASX-SIGNAL-G

HOMEX - Perth                                                         


Thank you for your letter of 1 May 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 to fund
its activities. In particular, the Company has closed the rights
issue offer pursuant to its Prospectus dated 7 March 2001.
Subscriptions totalling $749,421 have been received under the
Prospectus. The Company is presently in discussions with its
underwriter to finalise the receipt of $1,120,584 in accordance with
the terms of the underwriting obligations of the underwriter as set
out in the Prospectus. 

2. the amount of $138,000 disclosed under item 1.24 represents
payment of salaries to executive directors and directors fees to
non-executive directors.

3. the Company confirms that to the best of its information,
knowledge and belief, it is in compliance with the Listing Rules and,
in particular, Listing Rule 3.1.

B Robinson 


I refer to the Company's Quarterly Report in the form of Appendix 4C
for the period ended 31 March 2001, released to Australian Stock
Exchange Limited ("ASX") on 30 April 2001, (the "Appendix 4C"), the
Notes to the Appendix 4C, the Company's Half-Yearly report for the
period ended 31 December 2000 and to the Company's announcement dated
2 February 2001.

ASX notes that the Company has reported the following.

1. Receipts from customers of $1,813,000.

2. Net negative operating cash flows for the quarter of $88,000

3. Cash at end of quarter of negative $183,000, and a loan facility
of $300,000.

4. A prospectus for a non-renounceable entitlements issue dated 7
March 2001.

In light of the information contained in the Company's prospectus,
the announcement and the Appendix 4C, please respond to each of the
following questions.

1. It is possible to conclude on the basis of the information
provided that if the Company were to continue to expend cash at the
rate for the quarter indicated by the Appendix 4C, the Company may
not have sufficient cash to fund its activities. (We note in this
connexion the $300,000 loan facilities.) We note also that the
Company has made a fully underwritten rights issue of 17 million
shares and options to raise approximately $1.7 million (after costs)
pursuant to the prospectus, the closing date of which was 12 April
2001. Can the Company confirm that the offer has closed, the amount
of money which the Company will receive pursuant to subscriptions
under the prospectus, and when the Company expects to receive the
subscription monies.

2. Please provide an explanation of the payments referred to in item
1.24 on the Appendix 4C, as required by item 1.26. 

3. Can the Company confirm that it is in compliance with the listing
rules, and in particular, listing rule 3.1?


Listing rule 3.1 requires an entity to give ASX immediately any
information concerning it that a reasonable person would expect to
have a material effect on the price or value of the entity's
securities. The exceptions to this requirement are set out in the

In responding to this letter you should consult listing rule 3.1 and
the guidance note titled "Continuous disclosure: listing rule 3.1".

If the information requested by this letter is information required
to be given to ASX under listing rule 3.1 your obligation is to
disclose the information immediately.

Your responsibility under listing rule 3.1 is not confined to, or
necessarily satisfied by, answering the questions set out in this

This letter and your response will be released to the market. If you
have any concerns about your response being released, please contact
me immediately. Your response should be sent to me on facsimile
number (08) 9221 2020. It should not be sent to the Company
Announcements Office.

Unless the information is required immediately under listing rule
3.1, a response is requested as soon as possible and, in any event,
not later than half an hour prior to the commencement of trading (ie,
7.30 am WST) on Friday, 4 May 2001.

If you are unable to respond by the time requested you should
consider a request for a trading halt in the Company's securities.

If you have any queries regarding any of the above, please let me

J Moran 

Direct Line: (08) 9224 0013