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MedQuist Announces Entry Into Settlement Term Sheet Resolving South Broward Litigation
Date:3/14/2008

MOUNT LAUREL, N.J., March 14 /PRNewswire-FirstCall/ -- MedQuist Inc. (Pink Sheets: MEDQ.PK). On March 10, 2008, the company executed a settlement term sheet with the individual named plaintiffs and certain other putative class members represented by plaintiffs' counsel in the South Broward customer class action. As previously announced, on September 9, 2004, a putative class action was filed against the company and certain present and former officers in the U.S. District Court for the Central District of California entitled South Broward Hospital District, d/b/a Memorial Regional Hospital, et al. v. MedQuist Inc. et al., Case No. CV-04-7520-TJH-VBKx). In the complaint, plaintiffs alleged that the Company overcharged certain non-federal governmental hospitals and medical centers for transcription services. Plaintiffs twice amended the complaint adding and dropping named plaintiffs. On March 30, 2005, the action was transferred to the U.S. District Court District for the District of New Jersey and assigned Case No. 05-CV-2206-JBS- AMD. Plaintiffs filed a Third Amended Complaint on January 4, 2006. Under the settlement term sheet, the Company will pay $7,537,001.83 to resolve all claims by the individual named plaintiffs and certain other putative class members represented by plaintiffs' counsel but not named in the action. The settling parties will release the company and all individual defendants from any and all claims and dismiss the action in its entirety with prejudice. The settlement is subject to formal documentation by the parties. Because the parties are not settling on a class-wide basis, no class will be certified, and thus there is no requirement to give notice. Neither the company, nor any of the individual defendants, has admitted or will admit to liability or any wrongdoing in connection with the proposed settlement.

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MedQuist is the largest Medical Transcription Service Organization (MTSO) in the world, and a leader
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