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MedQuist Reports First Quarter 2008 Results
Date:5/12/2008

nd uncertainties in MedQuist's subsequent filings with the Securities and Exchange Commission.

MedQuist Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands, except per share amounts)

Unaudited

Three months ended

March 31,

2008 2007

Net revenues $83,725 $89,066

Operating costs and expenses:

Cost of revenues 61,258 68,345

Selling, general and

administrative 13,095 14,693

Research and development 4,119 3,442

Depreciation 2,928 2,539

Amortization of intangible assets 1,361 1,346

Cost of investigation and legal

proceedings, net 6,398 1,741

Restructuring charges - 256

Total operating costs and expenses 89,159 92,362

Operating loss (5,434) (3,296)

Equity in income of affiliated company 16 260

Other income 438 -

Interest income, net 1,288 2,102

Loss before income taxes (3,692) (934)

Income tax provision 725 952

Net loss $(4,417) $(1,886)

Net loss per share:

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SOURCE MedQuist Inc.
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