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

of period 161,582 175,412

Cash and cash equivalents - end of period $152,711 $173,409

Supplemental cash flow information:

Cash paid for income taxes $95 $93

Accommodation payments paid with credits $404 $689

MedQuist Inc. and Subsidiaries Reconciliation of GAAP financial measures to the aforementioned non-GAAP

financial measures

(In thousands, except per share amounts)

Unaudited

Three months ended

March 31,

2008 2007

GAAP Operating (Loss) $(5,434) $(3,296)

Add: Cost of investigation and legal

proceedings, net 6,398 1,741

Non-GAAP Operating Profit (Loss), excluding

Cost of investigation and legal

proceedings, net $964 $(1,555)

Operating profit, excluding Cost of investigation and legal proceedings, is a financial measure not computed in accordance with United States generally accepted accounting principles, or GAAP. The Company believes that this non- GAAP measure, when presented in conjunction with comparable GAAP measures, is useful to both management and investors in analyzing the Company's ongoing business and operating performance. The Company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the Company's financial results in the way that management views financial results. Management believes Operating profit, excluding Cost of investigation and legal proceedings is useful as a supplemental measure of the
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SOURCE MedQuist Inc.
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