Investor Relations

Underwritten Rights Issue

Back Feb 28, 2001
Q MULTIMEDIUM LIMITED                         2001-02-28  ASX-SIGNAL-G

HOMEX - Perth                                                         

Q Multimedium Limited announces a non renounceable rights issue
fully underwritten by Dicksons Ltd of Sydney to raise $1.87M by
offering one new share for every four shares held on the record date
together with an entitlement to one free option for every new share
allotted. The issue price for the new shares is 11 cents including
the attached option and the options are exercisable at 11 cents on or
before 2 April 2003.

It is expected that the Prospectus covering this issue will be lodged
with ASIC by 2 March 2001.

The purposed of the issue is to create a general working capital
reserve, which will be used in part for;

* Commercialisation of Jumbuck Corporation Ltd (Jumbuck). QMM has
announced its intention to acquire the remaining 50% of the issued
capital of Jumbuck. This acquisition will make Jumbuck a 100% owned

* Working capital reserve for the development of the QMM alliance
with Ernst & Young, Perth.

* Working capital reserve for the opportunities with regard to the
development of Data Asset Management Systems (DAMS) relating to
Granada West and other high content databases.

The offer provides the shareholders with the opportunity to apply for
more than their entitlement if they so wish. In the event of an
overall shortfall, shares available will be applied to the additional
shareholder applications before allowing underwriter take-up.

We believe that QMM is now well positioned to achieve its strategic
goals with revenue sources clearly defined in each division of the
company. QMM was cash flow positive for December 2000 and is
forecasting a positive cash flow for the six months to June 2001,
followed by a profitable year ended June 2002.