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MedQuist Reports Fourth Quarter and Year End 2008 Results
Date:3/11/2009

on.

                    MedQuist Inc. and Subsidiaries
                 Consolidated Statements of Operations
               (In thousands, except per share amounts)
                               Unaudited

                             Three months ended   For the year ended
                                December 31,         December 31,
                                ------------         ------------
                               2008      2007       2008      2007
                               ----      ----       ----      ----

    Net revenues              $79,387   $80,066   $326,853  $340,342
                              -------   -------   --------  --------
    Operating costs and
     expenses:
      Cost of revenues         53,867    61,961    230,375   260,879
      Selling, general
       and administrative      11,808    14,130     50,855    62,288
      Research and
       development              3,346     3,622     15,848    13,695
      Depreciation              3,049     2,948     11,950    10,988
      Amortization of
       intangible assets        1,409     1,446      5,554     5,511
      Cost of
       investigation and
       legal proceedings,
       net                      1,096     6,539     16,403     6,083
      Goodwill impairment
       charge                  82,233         -     82,233         -
      Restructuring
       charges                  2,137     1,821      2,055     2,756
                              -------    ------    -------   -------

        Total operating
         costs and
         expenses             158,945    92,467    415,273   362,200
                              -------    ------    -------   -------

        Operating loss        (79,558)  (12,401)   (88,420)  (21,858)

    Equity in income of
     affiliated company            36       178        236       625
    Other income                    -         -        438    
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SOURCE MedQuist Inc.
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