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

nd cash equivalents - end of year $39,918 $161,582 ======= ======== Supplemental cash flow information: Cash (recovered) paid for income taxes $210 $(451) ---- ----- Accommodation payments paid with credits $740 $2,595 ---- ------ MedQuist Inc. and Subsidiaries Reconciliation of GAAP financial measures to the non-GAAP measures Adjusted EBITDA (In thousands) Unaudited Three months ended For the year ended December 31, December 31, ------------ ------------ 2008 2007 2008 2007 ---- ---- ---- ---- GAAP operating (loss) $(79,558) $(12,401) $(88,420) $(21,858) Add: Depreciation 3,049 2,948 11,950 10,988 Add: Amortization of intangible assets 1,409 1,446 5,554 5,511 Add: Cost of investigation and legal proceedings, net 1,096 6,539 16,403 6,083 Add: Goodwill impairment charge 82,233 - 82,233 - ------ ------- ------- ---- Adjusted EBITDA $8,229 $(1,468) $27,720 $724 ====== ======= ======= ====

Adjusted EBITDA is a financial measure not computed in accordance with United States generally accepted accounting principles,
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