Mailing to Shareholders - Company Update

Jul 19, 2002

Document date: Fri 19 Jul 2002 Published: Fri 19 Jul 2002 14:48:17 Document No: 147518 Document part: A Market Flag: N Classification: Letter to Shareholders - Other   JUMBO CORPORATION LIMITED                                                    2002-07-19          ASX-SIGNAL-G HOMEX - Brisbane +++++++++++++++++++++++++ LETTER TO SHAREHOLDERS   The Board of Directors of Jumbo Corporation Limited ("Jumbo") are pleased to advise that the company has recently passed an important milestone by delivering 2 straight quarters of positive cash flow and 8 straight quarters of increasing revenue. This result is further evidence that the company has successfully commercialized its technology and is growing at a time when other companies are encountering difficulties.   A summary of this announcement is enclosed for your convenience. I also draw to your attention that the company's shareholder scheme is due to close on Friday 26th July 2002.   WHAT DOES JUMBO CORP DO?   Jumbo Corp uses a chain of web sites to sell a variety of "online-friendly" products from computers and software to gifts, cosmetics and very soon music CD's, movie DVD's and jewellery. These products are sold primarily into the large US market as well as Australia, Europe and Asia.   Since 1995, Jumbo has developed its own unique computer system to provide safe and secure shopping to all customers. The computer system is designed to increases customer loyalty and encourages repeat purchases. The software is also licensed to other companies wishing to emulate Jumbo's success online.   WHAT WILL JUMBO DO WITH THE CAPITAL?   Jumbo Corp intends to expand the number of web sites and sell a greater variety of goods. Now that the software has proven its effectiveness, the opportunity exists to expand the company by expanding the product range.   Thank you for your support and should you wish to discuss this, please do not hesitate to contact myself on 07-3831-3705.   M Veverka CEO

  COMPANY UPDATE MAIN POINTS *   JUNE 2002 QUARTER RESULTS ANNOUNCED   # 2nd straight quarter of positive cash flow -   Operating cash flow: $29,000 (June Qtr) up from $18,000 (March Qtr) -   Total cash flow: $149,000 (June Qtr) up from $32,000 (March Qtr) - Cash level: $742,000 (June 30) up from $593,000 (March 31)   # 8th straight quarter of increasing turnover -   $4.3 million (June Qtr) up from $2.9 million (March Qtr)   # Growth in online computer software, hardware and online gifts.   # Expansion into online music and DVD's, jewellery and health products.   # Full announcement available at www.jumbocorporation.com   * SHARE PURCHASE OFFER CLOSES FRIDAY 26 JULY 2002   # Purchase between $250 and $3,000 worth of shares at 2.5c   # No brokerage costs and no trading restrictions   # Shares have traded generally between 2.5c and 3.0c since May 2002.   # The Share Purchase Offer is recommended to you by directors. If you wish to apply for shares an Application Form is attached for your use.   # For further information or discussion please contact Mr Mike Veverka, CEO on (07) 3831 3705

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 19072002.pdf