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

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Deferred income tax provision 719 710

Stock option expense 92 83

Provision for doubtful accounts 263 1,418

Asset writeoff charges 26 51

Changes in operating assets and liabilities

excluding effects of acquisitions:

Accounts receivable (3,700) (347)

Income tax receivable 78 (91)

Insurance receivable - (2,619)

Other current assets (189) 58

Other non-current assets 70 (39)

Accounts payable (2,773) 805

Accrued expenses (746) (1,337)

Accrued compensation (999) 409

Customer accommodation and quantification (459) (2,046)

Deferred revenue 1,441 (628)

Other non-current liabilities (70) 1,930

Net cash (used in) provided by operating

activities $(6,391) $96

Investing activities:

Purchase of property and equipment (1,837) (1,889)

Capitalized software (611) (217)

Net cash used in investing activities (2,448) (2,106)

Financing activities:

Net cash provided financing activities - -

Effect of exchange rate changes (32) 7

Net decrease in cash and cash equivalents (8,871) (2,003)

Cash and cash equivalents - beginning
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SOURCE MedQuist Inc.
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