Investor Relations

Response to ASX Query - Appendix 4C

Back Feb 02, 2001
Part A | Part B

Q MULTIMEDIUM LIMITED                         2001-02-02  ASX-SIGNAL-G

HOMEX - Perth                                                         


Q Multimedium responds as follows to the questions raised by the
Australian Stock Exchange on 1 February 2001.

1. QMM has a fluctuating overdraft facility of $300,000 with
BankWest. The facility was not utilised at 31 December 2000.

2. QMM has sufficient working capital and facilities to fund its
future activities.

As stated in the Appendix 4C QMM produced a positive operating cash
flow for December 2000 of $123,313 and a positive cash flow of
$54,422 after capital acquisitions of $68,891.

Current work on hand in the Multimedia Division is approximately
$850,000 and the Digital Division has sustainable revenue of between
$360,000 and $400,000 per month.

Trade Debtors as at 31 December 2000 were $1,189,325 payable under
normal trading terms. Current enquiry rates and tenders are at record
levels with live tenders exceeding $2.0 million.

Budgets and forecasts, based on current work, show a positive cash
flow for the six months ended 30 June 2001.

The company owns over $2.0 million of unencumbered Plant and

3. The negative operating cash flows for the December quarter were
part of the re-aligning of corporate strategy relating to the Sports
Mini Disks whereby future production and development will now only
be commenced when supported by a commercial sponsor.

This strategy is illustrated by our contract with the AFL to produce
100,000 football training CD-ROM's for Auskick participants.

The overdraft facility is in place to cover variations in work in
progress not invoiced at any given time.

4/5. Revenue and expenses for the past six months were in line with
the company's expectations and will result in a loss of approximately
$1.65 million for the half year to 31 December 2000.

However with the restructuring and revenue focus completed by the end
of December, the company is budgeting for a positive contribution in
the second half of the year.

6. The company's announced strategies to focus on core business
Multimedia and Digital revenues have been adopted.

In addition, QMM's 50% owned associated company, Jumbuck Corporation
Ltd is expected to be cash flow positive from 1 April 2001 due to
ongoing contracts with Sprint PCS, Telstra and Globe Telecom.

7. The company confirms that it is in compliance with the listing
rules, in particular, listing rule 3.1.

8. The company's Balance Sheet is strong. It has a core business
with an 18-year trading history. As at 31 December 2000 Trade
Debtors and Plant and Equipment totalled in excess of $3.0 million
and the company had an unused overdraft facility of $300,000.

K Stedman