The net cash inflow for the September quarter was $3.925m.

Net operating cashflow for the quarter resulted in a cash outflow of $3.467 which was in line with the previous quarter. During the quarter the company continued to develop and commercialise its fuel cell technology. A significant proportion of this activity was focused on the build and launch of the company's first NetGenTM micro fuel cell system for domestic applications. The first demonstration unit was launched at the recent Ninth Grove Fuel Cell Symposium in London UK and represents a significant advancement on the previous demonstration model.

During the quarter the Company also received a further $0.125m from customers in relation to its existing field trial programme and reached an agreement to install a unit in a showcase energy efficient office building redevelopment being undertaken in Melbourne by the property developer szencorp.

Cash from financing activities during the quarter resulted in a net cash inflow of $7.376m, principally arising from the issue of $8.200m worth of convertible notes. The notes have a maturity date of 2 August 2008 and bear interest at a fixed rate 10% per annum payable quarterly in arrears. The first interest payment took place at the end of the quarter which saw interest payments for the quarter totalling $0.120m. During the quarter notes with a value of $1.180m were converted to equity.

The company's cash position at the end of the quarter was $9.226m.

As previously announced, the company is working with its advisors on a planned capital raising.  The company will keep shareholders informed of the progress of the raising and AIM listing over the next few weeks and will update shareholders at the AGM on 23 November 2005.  

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More information about CFCL is available at www.cfcl.com.au.