Investor Relations

Notice re: Expected Year End Results

Back Jun 16, 2000
Q MULTIMEDIUM LIMITED                         2000-06-16  ASX-SIGNAL-G

HOMEX - Perth                                                         

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Q Multimedium Ltd wishes to advise that the result for the year ended
30 June 2000 will vary from the forecast result incorporated in the
prospectus dated 11 November 1999.

The directors have resolved to expense approximately $1.85M of
development costs relating to new media consumer products and
marketing c0
ollateral, rather than amortise them over their expected
useful life, (as proposed in the prospectus). The directors believe
this change in accounting policy, is more suitable for a business
involved in the development of technology based products and
services.

Due to the aforementioned change in accounting policy the expected
result for the year ended 30th June 2000 will be an approximate loss
of $2.0M, subject to final June accounts and audit. If Q Multimedium
had adopted 0
the amortisation policy as proposed in the prospectus,
the result for the year-end 30th June 2000 would be an approximate
loss of $150,000.

Over the last three months Q Multimedium Ltd has been focusing its
corporate strategy so as to achieve, at a minimum, a cash flow
neutral situation. This situation has been enhanced by the fact that
Q Multimedium's established core businesses have continued to provide
strong revenues.

Whilst the directors of Q Multimedium have already i0
mplemented
strategies to maintain a cash flow neutral status for the forthcoming
financial year, the company will still pursue innovative product
development and marketing strategies. These strategies will deliver
improved revenue streams from the company's existing core businesses,
and focus development resources on opportunities that deliver revenue
in the short to medium term.

The directors are, confident that the investment made in product
development so far, will allow 0
the company to leverage access to
multiple online and offline revenue streams in the near future. Q
Multimedium will also continue to develop enabling technology
associated with the integration of their mini discs and the Internet
and in the WAP environment through their associate company Jumbuck.
Both of these areas will further facilitate access to global online
markets.

Q Multimedium is actively negotiating strategic alliances, which will
further underpin its core revenue0
 and cash flow stream.

The directors believe that these strategies and the actions already
implemented will secure Q Multimedium Ltd's long-term position as an
innovative and profitable 'new economy' business.


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