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Comntinued Growth - Solid Business Model

  1. July 16 2002 - June Quarter 2002 Results - 2nd Straight Quarter of Positive Cash Flow

    Jumbo Corporation Ltd today announced its 2nd straight quarter of positive cash flow, and its 8th straight quarter of increasing turnover. The following table compares the result with previous quarters.



    Jun-01-Qtr Sep-01-Qtr Dec-01-Qtr Mar-02-Qtr Jun-02-Qtr
    ---------------------------------------------------------------------------------------
    Gross Turnover $620,000 $1,245,000 $1,967,000 $2,944,000 $4,357,000
    Receipts from customers $181,000 $320,000 $308,000 $528,000 $751,000
    Operating expenses $254,000 $364,000 $445,000 $510,000 $722,000
    Net operating cash flow ($73,000) ($44,000) ($137,000) +$18,000 +$29,000



    "These results were achieved after expenses relating to new projects still in development", said Mr Mike Veverka, CEO of Jumbo Corp. "Our goal is to continue growth through investment in new projects and small incremental acquisitions which have contributed to our growth over the last 6 months".

    In addition to the $29,000 positive cash flow generated from operating activities, an additional $120,000 was raised from the recent shareholder scheme. This resulted in an increase in cash balance from $593,000 at the end of March 2002 to $742,000 at the end June 2002.

    Jumbo Corp sells a variety of goods and services online using proprietary online marketing techniques and a secure online payments system that has been developed in-house over the past 7 years. Products include computer software, hardware and gifts. The marketing techniques and payments system is used to maximize customer loyalty and increase the amount of repeat business. The majority of goods are sold to consumers in the USA and Australia, however Jumbo also has many customers in the UK, Europe, Asia and other countries.

    New Projects - Online Music/DVD's, Jewellery and Health Products

    Work has commenced on 3 new projects to continue growth in the coming months.

    Online Music and DVD's
    Online Jewellery
    Online Health Products
    Negotiations are currently being held with potential suppliers and the development of new web sites has commenced.

    "Online music and DVD's, jewellery and health products are 3 more types of businesses that meet our profile of potentially successful online businesses", said Mr Veverka. "They have strong online advantages and fit well with our current activities".

    Jumbo Corp considers products and suppliers that offer strong online advantages such as competitive prices, favourable trading terms and global delivery at affordable prices.

    PREVIOUSLY ANNOUNCED PROJECTS AND ACQUISITIONS

    Online Fragrances and Cosmetics

    As previously announced, Jumbo has expanded into online fragrances and cosmetics through the release of 3 new web sites.

    Fragrancehim.com - Discount brand name fragrances targeted at men in the USA.
    Fragranceher.com - Discount brand name fragrances targeted at women in the USA.
    Lookingfresh.com - Discount cosmetics targeted at women worldwide.

    Agreements were signed with 2 leading online cosmetic distributors - FragranceNet (USA) and Strawberry Limited (Hong Kong). These companies supply over 8,500 quality brand name products to Jumbo who markets the products globally through Jumbomall.com and the 3 new specialized sites.

    "Although the online fragrances and cosmetics business is still young, early sales are encouraging", said Mr Veverka.

    Online Computer Software

    The sale of online software via the Rocketfuel.com web site is progressing well. Further development of Jumbo's online ordering system has been completed allowing customers to securely purchase software, and instantly be able to download the software and receive all necessary serial numbers.

    "The Rocketfuel.com web site is adding real value to customers by providing a secure environment to purchase new software or upgrade existing licenses, download the required files and be issued with licenses", said Mr Veverka. "Customers can start using their software within a few minutes of placing their order".

    Online Computer Hardware

    On 29th May 2002, Jumbo announced the formation of a new subsidiary, Online Computing Australia Pty Ltd and the acquisition of the successful web site "bozzo.com.au" from Internet IT Pty Ltd. This acquisition expands the company's online computer hardware business that began in 2001 with the development of the "dealerdan.com.au" web site. These 2 web sites together deliver a large variety of new and used computers and peripherals to dealers and end users in Australia and New Zealand.

    The Jumbo secure online payments system was modified to streamline the purchase of computer components online and allow customers to build their own systems online. The Jumbo fraud prevention system is used to ensure the validity of all orders before dispatch. All orders are assembled and checked by Jumbo technicians before delivery to the customer.

    Neobuild Information Services

    In February 2001, Jumbo announced the acquisition of 70% of Building Site Services (Aust) Pty Ltd and in April 2001 launched the web site "Neobuild.com.au". This information service for the commercial building industry gives subscribers access to information such as tenders, development applications and jobs won. In the 6 months to June 2002 this project has been converted from a negative cash flow state into a neutral cash flow. The outlook is for cautious growth as effort is made to increase the number of subscribers.

    Growth Outlook

    Directors will be endeavouring to continue the growth in the coming months by focusing on online promotions of successful products. Online promotions have proven to be a cost-effective method of marketing a variety of goods and services to customer around the world and the Jumbo secure online ordering system is proving to be a strong competitive advantage.

    Download full Appendix 4C



    For further enquiries,
    please contact:
    Mike Veverka MANAGING DIRECTOR
    PH: (07) 3831 3705
    Fax: (07) 3831 9720
    Email: [email protected]

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