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MedQuist Announces Resolution of the DOJ Investigation and Dismissal of Shareholder Lawsuits
Date:12/3/2008

MOUNT LAUREL, N.J., Dec. 3 /PRNewswire/ -- MedQuist Inc. (Nasdaq: MEDQ), the largest Medical Transcription Service Organization (MTSO) in the world, is pleased to announce the positive resolution of several material legal matters

Resolution of the DOJ Investigation

As previously announced, the Company received an administrative HIPAA subpoena for documents from the United States Department of Justice ("DOJ") on December 17, 2004. The subpoena sought information primarily about the Company's provision of medical transcription services to governmental and non-governmental customers. The information was requested in connection with a government investigation into whether MedQuist and others violated federal laws in connection with the provision of medical transcription services. MedQuist fully cooperated with the DOJ from the inception of the investigation.

On November 25, 2008, MedQuist executed a Settlement Agreement (the "Settlement Agreement") by and among (i) the United States of America, acting through the DOJ and on behalf of the Department of Veteran's Affairs, the Department of Defense, the Public Health Service and part of the Department of Health and Human Resources, (ii) two individual qui tam relators and (iii) MedQuist. The DOJ intervened in the qui tam actions with respect to those claims raised in the qui tam actions that related to the same alleged conduct by MedQuist that was the subject of the DOJ's investigation (the "Covered Conduct").

Pursuant to the Settlement Agreement, MedQuist has agreed to pay the United States$6.6 million (the "Settlement Amount"). Under the terms of the Settlement Agreement, the United States releases MedQuist and its representatives from any civil or administrative money claim the United States has or may have for the Covered Condu
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