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MQ Associates, Inc. Announces Results for the Third Quarter and Nine Months Ended September 30, 2007
Date:11/7/2007

,250) $(30,591) $(15,255)

Adjusted EBITDA

This press release contains a discussion of Adjusted EBITDA, which, according to applicable Securities and Exchange Commission ("SEC") rules, is a "non-GAAP financial measure" of MedQuest's historical performance that is different from measures calculated and presented in accordance with GAAP. MedQuest defines Adjusted EBITDA as net income plus (a) interest expense, net, (b) income taxes, (c) depreciation and amortization, (d) non-cash expenses and (e) audit committee review and other charges. Adjusted EBITDA as calculated by MedQuest is not necessarily comparable to similarly titled measures by other companies. In addition, Adjusted EBITDA (a) does not represent net income or cash flows from operations as defined by GAAP, (b) is not necessarily indicative of cash available to fund MedQuest's cash flow needs, and (c) should not be considered as an alternative to net income, operating income, cash flows from operating activities or MedQuest's other financial information as determined under GAAP.

Management uses Adjusted EBITDA in its internal analysis of operating performance and monitors it to ensure compliance with certain maintenance and debt incurrence covenants under MedQuest's senior credit facility, which is described in more detail in MedQuest's Annual Report on Form 10-K for the year ended December 31, 2006 and other periodic reports. Management believes that Adjusted EBITDA provides useful information to investors for meaningful comparison to prior periods and analysis of critical components of results of operations, since it allows investors to compare the company's ongoing performance before the effect of various items that do not directly affect the company's ongoing financial performance. Management also believes that disclosure of Adjusted EBITDA is valuable to investors because it allows them to monitor a key component of maintenance and debt incurrence covenants that determine MedQuest
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SOURCE MQ Associates, Inc.
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