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

Non-GAAP Cost of investigation and

legal proceedings, excluding

insurance recoveries $1,728 $5,212 $8,126 $10,489

Operating income (loss), excluding Cost of investigation and legal proceedings, net, and Cost of investigation and legal proceedings, excluding insurance recoveries, are financial measures not computed in accordance with United States generally accepted accounting principles, or GAAP. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, are useful to both management and investors in analyzing the Company's ongoing business and operating performance. The Company believes that providing the non-GAAP information to investors, in addition to the GAAP presentation, allows investors to view the Company's financial results in the way that management views financial results. Management believes Operating income (loss), excluding Cost of investigation and legal proceedings, net, and Cost of investigation and legal proceedings, excluding insurance recoveries, are useful as supplemental measures of the Company's financial results because it removes costs not related to the Company's operating performance. Management believes that Operating income (loss), excluding Cost of investigation and legal proceedings, net, and Cost of investigation and legal proceedings, excluding insurance recoveries should be considered in addition to, but not as a substitute for items presented in accordance with GAAP that are presented in this press release. A reconciliation of Operating income (loss), excluding Cost of investigation and legal proceedings, net, to Operating income (loss) is provided above. A reconciliation of Cost of investigation and legal proceedings, excluding insurance recoveries, to Cost of investigation and legal proceedings, net, is provided above.


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SOURCE MedQuist, Inc.
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