Investor Relations

Company Update

Back Oct 31, 2000
Q MULTIMEDIUM LIMITED                         2000-10-31  ASX-SIGNAL-G

HOMEX - Perth                                                         

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The directors of Q Multimedium Limited (QMM), as part of the
company's short term goal of producing positive monthly cashflow,
have now completed the strategic restructuring referred to in the
announcement to the market on 16 June 2000, which includes the
following:

* Commitments in regard to the development and production of the
Sports Mini Discs were completed by the end of the September 2000
quarter. The development of this product was the major area of
expenditure within the group without commensurate short term
offsetting revenue's.

QMM will now only undertake Q Sports disc development;

(1) once a sponsor contract is in place. This strategy has already
proven successful, as QMM will soon produce a production run of
125,000 discs sponsored by a major corporation or;

(2) enter into contractual Sports Disc development such as their
contract with Midas Interactive Entertainment BV, where revenue
covers development cost and QMM is paid an ongoing royalty on a per
disc basis.

* The restructuring of human resources so as to capitalise on the
growing demand for high-end business solutions and website
development.

* The minimisation of non-revenue earning corporate costs.

* Concentration on securing sufficient contracts on a per month basis
so as to exceed breakeven point.

* Being in a position where no further asset acquisitions are
required.

The implementation of the above has resulted in;

* Current multimedia work on hand exceeding $600,000.

* Current multimedia work out to tender being $2.4 million.

* Digital division operating profitably.

* Corporate and other non-revenue earning costs reducing by $50,000
per month.

* Focusing Jumbuck Corporation Ltd (50% owned by QMM Ltd) on a
business strategy that delivers short-term revenue streams, whilst
aligning the business with major global telecommunications
businesses, as per the recent contracts signed with Sprint PCS in the
USA and Globe Philippines.

The company has carried out its expenditure program as described in
the prospectus dated 11th November 1999.

QMM is largely debt free and has a working capital surplus in excess
of 1.0 million and unencumbered Plant and Equipment totalling $2.3
million.

K M Stedman 
DIRECTOR

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