investment recouped

Today's announcement re QAD's investment in Q-Tel augers well for the realisation of the company's Iridium asset.

After just two years, the Quadrant has recouped US$350,000 of an invested US$400,000 and so is virtually 'free-carried' its remaining 50% stake in the UK-based enhanced telephony business.

That's not bad going, and a clear vindication of management's stratagem of buying undervalued assets and adding value.



INVESTMENT RECOUPED

Melbourne, May 11, 2005: The Directors of Quadrant Iridium Ltd (“Quadrant” or “the Company”) are pleased to advise that they have received settlement of $350,000 USD (plus costs and interest) from a former partner in their Q-Tel investment.

The Company made a $400,000 (USD) investment in the operations of QTel in 2003, a UK based company providing enhanced telephony services. Quadrant initially received a 10% stake in Q-Tel’s revenues.

In the ensuing 2 years the investment was restructured several times (as announced to the market) and Quadrant’s stake was increased to 50% of the Q-Tel business as a result of the input and support provided by the Company’s management. No additional funds were invested for this result.

This latest settlement resulted from an early partner in the business exiting the relationship and Quadrant asserting its right for a return of a substantial portion of the initial capital invested.

Quadrant maintains its strong relationship with the remaining UK based investor and its 50% ownership in the Q-Tel business.

The overall result is commercially positive for the Company. As noted by Michael Abela, CEO, “Quadrant has recouped a substantial portion of the initial capital invested in the Q-Tel venture. At the same time, we have continued to increase our ownership, which the Directors’ find encouraging.”