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MedQuist Reports Second Quarter 2008 Results
Date:8/8/2008

income taxes $263 $276

Accommodation payments paid with credits $611 $1,288

MedQuist Inc. and Subsidiaries

Reconciliation of GAAP financial measures to the aforementioned non-GAAP

measures

Operating Income (Loss), excluding cost of investigation and legal

proceedings, net

(In thousands, except per share amounts)

Unaudited

Three months ended Six months ended

March 31, June 30,

2008 2007 2008 2007

GAAP operating income (loss) $1,848 $4,184 $(3,586) $888

Add: Cost of investigation and legal

proceedings, net 1,728 (6,638) 8,126 (4,897)

Non-GAAP operating income (loss),

excluding Cost of investigation

and legal proceedings, net $3,576 $(2,454) $4,540 $(4,009)

MedQuist Inc. and Subsidiaries Reconciliation of GAAP financial measures to the aforementioned non-GAAP

measures
Cost of investigation and legal proceedings, excluding insurance recoveries
(In thousands, except per share amounts)

Unaudited

Three months ended Six months ended

March 31, June 30,

2008 2007 2008 2007

GAAP Cost of investigation and legal

proceedings, net $1,728 $(6,638) $8,126 $(4,897)

Add: Insurance recoveries - 11,850 - 15,386
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SOURCE MedQuist, Inc.
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