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MedQuist Reports Third Quarter 2008 Results
Date:11/4/2008

y 237,842 236,412

Retained earnings (deficit) (38,746) 72,876

Accumulated other comprehensive income 4,050 5,356

Total shareholders' equity 203,146 314,644

Total liabilities and shareholders' equity $297,129 $417,772

MedQuist Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In thousands)

Unaudited

Nine months ended

September 30,

2008 2007

Operating activities:

Net loss $(8,344) $(4,935)

Adjustments to reconcile net loss to cash

provided by (used in) operating activities:

Depreciation and amortization 13,046 12,105

Equity in income of affiliated company (200) (447)

Deferred income tax provision 2,425 1,848

Stock option expense 1,361 446

Provision for doubtful accounts 2,065 3,649

Loss on disposal of property and equipment 47 78

Changes in operating assets and liabilities:

Accounts receivable (1,917) (4,707)

Income tax receivable 184 (151)

Insurance receivable - 707

Other current assets (1,437) (954)

Other non-current assets 117 (219)

Accounts payable
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SOURCE MedQuist Inc.
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