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MedQuist Announces Appointment of Brian O'Donoghue and Mark E. Schwarz to its Board of Directors
Date:12/10/2007

MOUNT LAUREL, N.J., Dec. 10 /PRNewswire-FirstCall/ -- MedQuist Inc. (Pink Sheets: MEDQ) today announced the appointment of Brian O'Donoghue and Mark E. Schwarz as independent members of its board of directors effective December 7, 2007. Each of Messrs. O'Donoghue and Schwarz are affiliated with significant shareholders of MedQuist other than MedQuist's majority shareholder, Koninklijke Philips Electronics N.V.

Mr. O'Donoghue is a founder and, since 2005, managing member of Arklow Capital, LLC, a private investment management company. Mr. O'Donoghue served as the General Counsel and Senior Vice President of Viewpoint Corporation, a publicly traded internet marketing and software company from 2000 to 2005. Before joining Viewpoint in 2000, he was an associate in the Global Corporate Finance and Financial Restructuring groups of the New York law firm Milbank, Tweed, Hadley & McCloy LLP specializing in finance and securities, mergers and acquisitions, public and private offerings, and restructurings and reorganizations.

Mr. Schwarz has served, directly or indirectly through entities he controls, as the sole general partner of Newcastle Partners, L.P. since 1993. He has also served as the President and sole Managing Member of Newcastle Capital Group, L.L.C., the general partner of Newcastle Capital Management, L.P. since 2000. Mr. Schwarz presently serves as Chairman of the boards of directors of the following publicly held companies: Hallmark Financial Services, Pizza Inn, Inc., Bell Industries and New Century Equity Holdings Corp. In addition, Mr. Schwarz is a director of Nashua Corporation and SL Industries, Inc.

On November 9, 2007, MedQuist announced the resignation of its three former independent directors following the timely filing on November 8, 2007 by the Company with the Securities and Exchange Commission (SEC) of its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2007. In October 2007, the Company became
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