MedQuist Announces Unaudited Financial Results, 6 Million in Operating Loss

DocQment(TM) Ovation - MedQuist Launches Next-Generation [2006-07-07]
MOUNT LAUREL, N.J., June 29 /PRNewswire-FirstCall/ -- Today's healthcare providers face what appear to be several conflicting challenges in the area of dictation. Pressures to decrease costs and improve productivity must be weighed against the need to demonstrate compliance and increase physician choice and satisfaction. To help its customers meet these challenges, Medquist Inc. (Pink Sheets: MEDQ) has introduced DocQment(TM) Ovation, a Web-based, enterprise digital voice capture and transport solution. Studies by the Healthcare Information and Management Systems Society (http://www.himss.org/) have shown that when considering the purchase of a new dictation system, providers value HIPAA compliance most highly, followed by Web-based, centralized administration and automatic document routing. Because Ovation is Web-based, it offers easy-to-use tools to manage documents, users and workflow from any computer with Internet access, creating numerous opportunities for productivity improvement. Physicians can select from a variety of options for capturing their dictation, including telephones, PDAs, and desktop computer-based dictation devices. DocQment Ovation is our newest technology innovation developed in direct response to industry feedback and providers' interest in replacing previous- generation dictation systems, says Scott Bennett, MedQuist senior vice president of Sales and Marketing. An integral component of our growing technology portfolio, Ovation helps to provide an end-to-end solution from dictation to billing, including front-end and back-end speech recognition. Document Ovation was specifically engineered to be compatible with MedQuist's previous-generation dictation stations, thus facilitating the retention and recruitment of transcriptionists, and making it easy for providers to upgrade with little or no physician retraining required. Deployed at the customer's location, Ovation provides an enterprise view that allows transcription supervisors to easily manage users, documents and voice files from a single dashboard instead of using multiple systems. Ovation's sophisticated configuration options enable administrators to easily track work and share resources in order to get the right document to the right Transcriptionist at the right time. According to Emmy Weber, MedQuist vice president of Product Management, Breakthrough capabilities engineered into DocQment Ovation, like the ability to define the date that begins the aging process for documents (including admit date and date of discharge), give users better information at the point of dictation to improve workflow, accuracy and report routing. With MedQuist's help, we configured DocQment Ovation around the way we do business, says Wanda Newton, HIM director at Maury Regional Healthcare System, a three-hospital system located in Tennessee. With Ovation, we are now managing our hospitals and departments more efficiently. We saw a 34 percent increase in productivity in the first two months of use of Ovation, a positive trend that we expect will continue. Ovation is available for immediate installation. For more information, contact a local MedQuist representative or dial 1-877-489-1500 for sales assistance. MedQuist, a member of the Philips Group of Companies, is a leading provider of clinical documentation workflow solutions in support of the electronic health record. MedQuist provides electronic medical transcription, health information and document management products and services, including digital dictation, speech recognition, Web-based transcription, electronic signature, medical coding, mobile dictation devices, and outsourcing services.

MedQuist Announces Unaudited Financial Results, 6 Million in Operating Loss [2006-05-11]
MT. LAUREL, N.J.--(BUSINESS WIRE)--May 11, 2006--MedQuist Inc. (Pink Sheets: MEDQ.PK) announced today certain preliminary, partial and unaudited financial results, and provided updated information regarding previously-announced litigation and governmental investigations and proceedings. Once the Company completes the financial assessment and review of its billing practices disclosed in the Company's previous filings with the SEC, KPMG LLP, the Company's independent registered public accounting firm, will complete the audit the Company's financial statements. The Company is continuing the process of working toward becoming current in its periodic reports pursuant to the Securities Exchange Act of 1934. The Company's review of its current and prior period unaudited financial statements, as well as KPMG LLP's audits for those periods, may identify adjustments or reclassifications which may be reflected in the periods to which they relate. At this time, the Company cannot estimate the total costs of (i) the billing review, (ii) defense of the class action matters, (iii) the SEC investigation, and (iv) compliance with the Department of Justice investigation, all of which have been previously disclosed in either the Company's filings with the SEC or the Company's press releases. Accordingly, the only costs related to the defense of these matters that have been included in the results below are actual costs incurred through March 31, 2006 by the Company. Because the completion of the billing review and resolution of the litigation and governmental investigatory matters are pending, the Company is not certain whether any changes to the accounting treatment of any component of its consolidated financial statements will be required and, if any changes are necessary, whether any such changes would have a material impact on its current or prior period consolidated financial statements. Accordingly, the financial information set forth below is preliminary, unaudited, and subject to change based on the completion of the financial assessment and review of the Company's billing practices, resolution of the class action matters and governmental investigations and proceedings, and the completion of the review and/or audit of its financial statements, as appropriate. The financial information and related narrative discussion set forth below is derived from the Company's internal books and records. The Company cautions investors not to place undue reliance on the financial information presented below. As a result of the developments described above and in the Company's previous SEC filings, the Company's financial statements have not been audited or reviewed by KPMG LLP, its independent registered public accounting firm. The financial information contained in this press release also has not been audited or reviewed by an independent registered public accounting firm. Such information is not a substitute for the information required to be reported in the Company's Forms 10-K and Forms 10-Q that have not yet been filed. There can be no assurance that the results of the billing review, and resolution of the litigation and governmental investigatory matters will not have a material adverse effect on the Company's revenue, results of operations and financial condition. Legal Proceedings Investigations and Proceedings Commenced by the SEC and the Department of Justice As previously announced, the Securities and Exchange Commission (the SEC) is currently conducting a formal investigation of the Company. The Company will continue to fully cooperate with the SEC. As previously announced, the Company received an administrative HIPAA subpoena for documents from the United States Attorney's Office for the District of Massachusetts on December 17, 2004. The subpoena sought information primarily about the Company's provision of medical transcription services to governmental and non-governmental customers. The information was requested in connection with a government investigation into whether Medquist and others violated federal laws in connection with the provision of medical transcription services. MedQuist continues to cooperate fully with the Department of Justice. Shareholder Securities Litigation As previously announced, a shareholder putative class action lawsuit was filed against the Company in the United States District Court District of New Jersey on November 8, 2004. The action, entitled William Steiner v. MedQuist, Inc., et al., Case No. 1:04-cv-05487-FLW (the Shareholder Putative Action), was filed against the Company and certain former Company officials, purportedly on behalf of an alleged class of all persons who purchased MedQuist common stock during the period from April 23, 2002 through November 2, 2004, inclusive (the Class Period). The complaint specifically alleged that defendants violated federal securities laws by purportedly issuing a series of false and misleading statements to the market throughout the Class Period, which statements allegedly had the effect of artificially inflating the market price of the Company's securities. The complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. Named as defendants, in addition to the Company, were its former president and chief executive officer and its former executive vice president and chief financial officer. On August 16, 2005, a First Amended Complaint in the Shareholder Putative Class Action was filed against the Company in the United States District Court District of New Jersey. The First Amended Complaint named additional defendants, including certain current and former directors, certain former Company officers, the Company's former and current external auditors and Koninklijke Philips Electronics N.V. (Philips). Like the original complaint, the First Amended Complaint asserted claims under Sections 10b and 20(a) of the Securities and Exchange Act of 1934 (the Act) and Rule 10b5 of the Act. The Class Period of the original complaint was expanded 20 months and now includes the period from March 29, 2000 through June 14, 2004. Pursuant to an October 17, 2005 consent order approved by the Court, Lead Plaintiff Greater Pennsylvania Pension Fund filed a Second Amended Complaint on November 15, 2005. The Second Amended Complaint dropped Philips as a defendant, but alleges the same claims and the same purported class period as the First Amended Complaint. Plaintiffs seek unspecified damages. Pursuant to the provisions of the Private Securities Litigation Reform Act, discovery in the action is stayed pending the filing and resolution of the defendants' motions to dismiss, which were filed on January 17, 2006, and will be fully briefed by May 26, 2006. The Court has not set a hearing date on the motions. The Company believes that the claims asserted in the Second Amended Complaint are without merit, and is vigorously defending the action. Customer Litigation As previously announced, a putative class action was filed in the United States District Court Central District of California. The action, entitled South Broward Hospital District, dba Memorial Regional Hospital, et al. v. MedQuist, Inc. et al., Case No. CV-04-7520-TJH-VBKx, was filed on September 9, 2004 against the Company and certain present and former Company officials, purportedly on behalf of an alleged class of non-Federal governmental hospitals and medical centers that the complaint claims were wrongfully and fraudulently overcharged for transcription services by defendants based primarily on the Company's use of the AAMT line billing unit of measure discussed below. The complaint charges fraud, violation of the California Business and Professions Code, unjust enrichment, conversion, negligent supervision and violation of the Racketeer Influenced and Corrupt Organizations Act. Plaintiffs seek damages in an unspecified amount, plus costs and interest, an injunction against alleged continuing illegal activities, an accounting, punitive damages and attorneys' fees. Named as defendants, in addition to the Company, were a senior vice president, its former executive vice president of marketing and new business development, its former executive vice president and chief legal officer, and its former executive vice president and chief financial officer. On December 20, 2004, the Company and individual defendants filed motions to dismiss for lack of personal jurisdiction and improper venue, or in the alternative, to transfer the putative action to the United States District Court District of New Jersey. On February 2, 2005, plaintiffs filed a Second Amended Complaint both adding and deleting named plaintiffs in an attempt to keep the putative action in the United States District Court Central District of California. On March 30, 2005, the United States District Court Central District of California issued an order transferring the putative action to the United States District Court District of New Jersey. On August 1, 2005, the Company and the individual defendants filed their respective Answers denying the material allegations contained in the Second Amended Complaint. On August 31, 2005, the Company and individual defendants filed motions to dismiss the Second Amended Complaint for failure to state a claim and a motion to dismiss in favor of arbitration, or in the alternative, to stay pending arbitration. On December 12, 2005, the plaintiffs filed an Amendment to the Second Amended Complaint. On December 13, 2005, the Court issued an order requiring plaintiffs to file a Third Amended Complaint. Plaintiffs filed the Third Amended Complaint on January 4, 2006. The Third Amended Complaint expands the claims made beyond issues arising from contracts based on AAMT line billing and beyond customers billed based on an AAMT line, alleging that the Company engaged in a scheme to inflate customers' invoices without regard to the terms of individual contracts and even in the absence of any written contract. The Third Amended Complaint also limits plaintiffs' claim for fraud in the inducement of the agreement to arbitrate to the three named plaintiffs whose contracts contain an arbitration provision and a subclass of similarly situated customers. On January 20, 2006 the Company and individual defendants filed motions to dismiss the Third Amended Complaint for failure to state a claim and a motion to compel arbitration of all claims by the arbitration subclass and to stay the case in its entirety pending arbitration. On March 8, 2006 the Court held a hearing on these motions, and took the matter under submission. The Court has not yet ruled on the motions. The Company believes that the claims asserted have no merit and intends to vigorously defend the putative action. Medical Transcriptionist Litigation Hoffmann Putative Class Action As previously announced, a putative class action lawsuit was filed against the Company in the United States District Court Northern District of Georgia. The action, entitled Brigitte Hoffmann, et al. v. MedQuist, Inc., et al., Case No. 1:04-CV-3452, was filed with the Court on November 29, 2004 against the Company and certain current and former Company officials, purportedly on behalf of an alleged class of current and former employees and statutory workers of MedQuist, who are or were compensated on a per line basis for medical transcription services (the Class Members) from January 1, 1998 to the time of the filing of the complaint (the Class Period). The complaint specifically alleged that defendants systematically and wrongfully underpaid the Class Members during the Class Period. The complaint asserted the following causes of action: fraud, breach of contract, demand for accounting, quantum meruit, unjust enrichment, conversion, negligence, negligent supervision, and Racketeer Influenced and Corrupt Organizations Act violations. Plaintiffs sought unspecified compensatory damages, punitive damages, disgorgement and restitution. On December 1, 2005, the Hoffmann matter was transferred to the United States District Court District of New Jersey. As discussed immediately below under the heading Myers Putative Class Action, the Company believes that the claims presently asserted have no merit and intends to vigorously defend the putative action. Myers Putative Class Action As previously announced, a putative class action entitled, Myers, et al. v. MedQuist Inc. and MedQuist Transcriptions, Ltd., Case No. 05CV 4608 (JBS), was filed against the Company on September 22, 2005 in the United States District Court District of New Jersey. The action was brought on behalf of a putative class of MedQuist's employee and independent contractor transcriptionists who claim that they contracted with the Company to be paid per AAMT line, but were allegedly underpaid due to intentional miscounting of the number of characters and lines transcribed. The named plaintiffs asserted claims for breach of contract, unjust enrichment, and request an accounting. The allegations contained in the Myers case are substantially similar to those contained in the Hoffmann putative class action and the two actions have now been consolidated. A consolidated amended complaint was filed on January 31, 2006. The named plaintiffs assert claims for breach of contract, breach of the covenant of good faith and fair dealing, unjust enrichment and demand an accounting. On March 7, 2006 the Company filed a motion to dismiss all claims in the consolidated amended complaint. The motion has now been fully briefed. The Court has not set a hearing date on the motion. The Company believes that the claims asserted in the consolidated actions have no merit and intends to vigorously defend the suit. Derivative Litigation On October 4, 2005, the Company announced the dismissal with prejudice of a shareholder derivative action filed in United States District Court District of New Jersey. The suit, Rhoda Kanter (Plaintiff) v. Hans M. Barella et al. (Defendants), was filed on November 12, 2004 against Philips and ten current and former members of MedQuist's Board of Directors. MedQuist was named as a nominal defendant. In a ruling dated September 21, 2005, the Court found Plaintiff's allegations that MedQuist's Board members breached their fiduciary duties to the Company to be insufficient. The Plaintiff had alleged that for a period from 2001 through 2004, the Defendants violated their fiduciary duties by permitting artificial inflation of billing figures; failing to adequately ensure accurate and lawful billing practices; and failing to accurately report the Company's true financial condition in its published financial statements. To the contrary, the Court concluded: Far from alleging facts supporting a substantial likelihood of liability, Plaintiff here has painted a picture of a board of directors that acted responsively given the circumstances . . . . On October 3, 2005, plaintiffs filed a motion for reconsideration of the Court's order dismissing the action with prejudice. On November 16, 2005, the Court denied Plaintiffs' motion for reconsideration. On December 13, 2005, Plaintiffs filed a Notice of Appeal with the United States Court of Appeals for the Third Circuit. On March 21, 2006, Plaintiff filed her opening brief on appeal. On April 20, 2006, MedQuist and the other defendants filed their opposition briefs. The appeal will be fully briefed by May 4, 2006. The Court of Appeals has not set a hearing date for the appeal. Customer Accommodations As previously disclosed, the primary allegations in a number of the litigation matters relate to how the Company interpreted the AAMT line billing unit of measure. The AAMT line billing unit of measure was developed in 1993 through a collaboration among several industry organizations with the intent of providing standardization in industry billing practices. However, due to inherent ambiguities in the definition of this unit of measure not fully anticipated at the time of its introduction, AAMT line-based billing was applied inconsistently throughout the medical transcription industry and eventually renounced by the groups initially responsible for its development. Despite these issues, a number of companies in the industry have continued to use AAMT line-based billing, and some customers still request proposals and contracts based on the AAMT line. Like many medical transcription service providers, MedQuist once used the AAMT line unit of measure to calculate invoices for many of its medical transcription clients. It has been widely recognized and well documented throughout the industry, however, that the AAMT definition of a line is inherently ambiguous and subject to a wide variety of interpretations. In fact, no single set of AAMT characters was ever defined for this unit of measure. Accordingly, MedQuist began the process in 2004 of transitioning its AAMT line-based customers off the AAMT line unit of measure and, in April 2005, the Company completely eliminated the use of the AAMT line for billing and called on other industry transcription providers to follow its lead. Due to these AAMT line unit of measure ambiguities, and the disparity in its interpretation, health care providers have raised concerns regarding charges for transcription services by their respective transcription providers, including the Company. In response to those concerns, and to foster ongoing business relationships with its customers, the Company has approached certain customers and offered to resolve any issues related to their prior AAMT line and other billing related issues. As previously disclosed, the Company's Board of Directors has authorized Company management to make accommodation offers, up to an aggregate amount of $65.0 million, to certain customers to resolve any concerns over AAMT and other billing related issues. As of March 31, 2006, (i) the Company has entered into agreements with certain customers who have accepted accommodation offers to resolve concerns over AAMT and other billing related issues, and paid or credited an aggregate amount of $31.3 million as an accommodation to those customers and (ii) additional accommodation offers have been made by the Company to certain other customers in the aggregate amount of $11.9 million. From April 1, 2006 through the date of this release, the Company has entered into agreements with additional customers and paid or credited an aggregate amount of $2.9 million and has extended accommodation offers to additional customers in the aggregate amount of $1.1 million. Company management currently intends to make additional accommodation offers in the future, consistent with the Board's authorization described above, although the timing and amount of such offers have not yet been determined and the Company's plans may change in the future. The accommodation offers do not represent an estimate of potential liability, if any, in any of the previously disclosed litigation or investigatory matters pending against the Company. The Company is unable to predict how many customers, if any, will accept the outstanding accommodation offers on the terms proposed by the Company, nor is the Company able to predict the timing of the acceptance (or rejection) of any of these outstanding accommodation offers. Until such offers are accepted, the Company may withdraw or modify the terms of the accommodation offers at any time. In addition, the Company is unable to predict how many of the future offers, if made, will be accepted on the terms proposed by the Company. The Company believes that its existing cash resources and cash flows from operations are sufficient to fund all of the customer accommodation offers it may make. By accepting the Company's accommodation offers, the customer must agree, among other things, to release the Company from any and all claims and liability regarding prior AAMT and other billing related issues. The accommodation offers made to date, and those offers which may be made in the future, are not an admission of liability by the Company of any wrongdoing or an admission or acknowledgement that its billing practices with respect to such customers were or are incorrect. MedQuist Inc. -- Preliminary and Unaudited Financial Information (in millions) ---------------------------------------------------------------------- Three months ended ---------------------------------------- March 31, 2006 March 31, 2005 ------------------ ------------------ Revenues $ 97 $ 108 Operating loss $ (8) $ (2) ---------------------------------------------------------------------- As of As of March 31, 2006 December 31, 2005 ------------------ ------------------ Cash $ 164 $ 178 Debt $ - $ - Three Months Ended March 31, 2006 Revenues: Preliminary, unaudited results indicate that the Company's revenues decreased $11 million to $97 million for the three months ended March 31, 2006 from approximately $108 million for the comparable 2005 period. This decline in revenues is largely due to decreases in transcription outsourcing services and product sales of $9 million or 10%, and $2 million or 27%, respectively. The decline in transcription outsourcing revenues is largely due to a decrease in the volume of lines transcribed primarily related to clients for whom we no longer provide transcription services. Additionally, pricing pressures continued on the base transcription business during the first quarter 2006, but revenues were impacted far less by pricing pressures than in the comparable 2005 period. Management expects that pricing pressures will continue for the foreseeable future but that the introduction of several new sales initiatives and improved customer service programs should cause transcription volume to stabilize or improve throughout the duration of 2006. Operating Loss: Preliminary, unaudited results indicate that our operating loss increased $6 million to a loss of approximately $8 million for the three months ended March 31, 2006 from an operating loss of $2 million for the comparable 2005 period. The operating loss of $8 million was primarily attributable to $9 million of costs associated with the following: (1) costs related to the ongoing billing review including (i) legal fees incurred in connection with governmental investigations and proceedings and defense of the class action matters and (ii) non-legal professional fees; and (2) increased expenses related to prior years' accounting reviews and audit. Operating loss was also impacted by the $11 million decline in revenues over the same period. Balance Sheet Highlights: As of March 31, 2006, the Company had $164 million in cash and cash equivalents and no debt. The $14 million decrease in cash as of March 31, 2006 compared with December 31, 2005 was primarily attributable to accommodation payments ($10 million) and capital expenditures ($4 million). There were no issuances of capital stock or other securities for the three months ended March 31, 2006. The Company expects to incur significant costs and expenses in the future relating to the ongoing billing review, defense of the class action matters and governmental investigations and proceedings, and accommodation agreements. These costs and expenses include (i) legal fees relating to the SEC and Department of Justice investigations and proceedings, (ii) legal fees relating to defense and resolution of the litigation matters described above, (iii) customer accommodation payments and credits, and (iv) non-legal professional fees. The timing and level of these costs and expenses is, in many cases, not within the Company's control. While the Company is unable to predict the timing and level of these costs and expenses, the Company currently believes that it has sufficient resources, including cash on hand and cash flow from operations to fund these costs and expenses. However, there cannot be any assurance that unanticipated changes in the level of these costs will not exceed the Company's available cash resources, nor can there be any assurance that sufficient financing from external sources will be available to the Company on acceptable terms, if at all. In the event that the Company's cash requirements exceed its available cash resources, or if the timing of such costs and expenses requires the Company to divert cash resources away from operations, the Company may not be able to execute its operating plan, which could have a material adverse effect on the Company's business and results of operations. Other Developments Restructuring: As previously disclosed, in conjunction with the Company's movement to a single national service and support organization, a restructuring plan was developed in 2005 to consolidate approximately forty-eight (48) operating facilities and centralize certain components of the business in order to improve operating efficiencies. The Company is expecting to incur total restructuring costs of up to $8.5 million associated with this plan through the end of the fourth quarter of 2006. The Company incurred $1 million of restructuring costs for the three months ended March 31, 2006. This restructuring is expected to generate annualized savings of approximately $18.5 million. The Company realized approximately $1.9 million in savings during the three months ended March 31, 2006. Specifically, the Company has shifted resources to a single national service delivery and support organization for all of the Company's services and products and is in the process of eliminating local service centers. The plan does not contemplate reductions of, and the Company has no current intentions to reduce, its medical transcription workforce. Rather, the Company will continue in its efforts to hire additional qualified transcriptionists. Further, although the Company is consolidating its local service centers as described above, customer-facing teams, led by account managers, will continue to coordinate customer support on the local level. The customer-facing teams will continue to work with and be supported by the Company's centrally managed customer service organization.

Brown & Meyers, Inc Announces Acquistion of Typewrights, Inc [2006-04-20]
Brown & Meyers, Inc., a leading national provider of medical transcription and court reporting services since 1997, located at 536 Washington Avenue in Portland, is pleased to announce the acquisition of Typewrights, Inc. This transition will be effective April 17, 2006. Typewrights is a legend in the medical and legal transcription marketplace, having been in business for 26 years. Kate Meyers-Coyne, President of Brown Typewrights has an excellent reputation and it is a great honor for us to acquire them. We are very pleased to have these loyal Maine and New Hampshire customers joining our family, and plan to make this transition as quick and easy as possible for everyone. In an effort to make the transition as seamless as possible, Patricia Burrows, the owner of Typewrights, along with Mrs. Meyers-Coyne, are working closely with customers.

Results [2006-02-07]
So, do right by your employees, those of us here in the U.S. that is.

MedQuist Announces Preliminary, Partial and Unaudited [2006-01-19]
MT. LAUREL, N.J. --(Business Wire)-- Jan. 19, 2006 -- Medquist Inc. (Pink Sheets: MEDQ.PK) announced today certain preliminary, partial and unaudited financial results, and provided updated information regarding previously-announced litigation and governmental investigations and proceedings. Once the Company completes the financial assessment and review of its billing practices disclosed in the Company's previous filings with the SEC, the Company expects that KPMG LLP, its independent registered public accounting firm, will review and/or audit the Company's financial statements, as appropriate. The Company is continuing the process of working toward becoming current in its periodic reports pursuant to the Securities Exchange Act of 1934. The Company's review of its current and prior period unaudited financial statements, as well as KPMG LLP's audits for those periods, may identify adjustments or reclassifications which may be reflected in the periods to which they relate. At this time, the Company cannot estimate the total costs of (i) the billing review, (ii) defense of the class action matters, (iii) the SEC investigation, and (iv) compliance with the Department of Justice investigation, all of which have been previously disclosed in either the Company's filings with the SEC or the Company's press releases. Accordingly, the only costs related to the defense of these matters that have been included in the results below are actual costs incurred through December 31, 2005 by the Company. As described in the Customer Accommodations discussion under the heading Legal Proceedings, an accrual has been made in an amount up to which the Company's Board of Directors has authorized the Company to make accommodation offers to certain of its customers. Because the completion of the billing review and resolution of the litigation and governmental investigatory matters are pending, the Company is not certain whether any changes to the accounting treatment of any component of its consolidated financial statements will be required and, if any changes are necessary, whether any such changes would have a material impact on its current or prior period consolidated financial statements. Accordingly, the financial information set forth below is preliminary, unaudited, and subject to change based on the completion of the financial assessment and review of the Company's billing practices, resolution of the class action matters and governmental investigations and proceedings, and the completion of the review and/or audit of its financial statements, as appropriate. The financial information and related narrative discussion set forth below is derived from the Company's internal books and records. The Company cautions investors not to place undue reliance on the financial information presented below. As a result of the developments described above and in the Company's previous SEC filings, the Company's financial statements have not been audited or reviewed by KPMG LLP, its independent registered public accounting firm. The financial information contained in this press release also has not been audited or reviewed by an independent registered public accounting firm. Such information is not a substitute for the information required to be reported in the Company's Forms 10-K and Forms 10-Q that have not yet been filed. There can be no assurance that the results of the billing review, and resolution of the litigation and governmental investigatory matters will not have a material adverse effect on the Company's revenue, results of operations and financial condition. Legal Proceedings Investigations and Proceedings Commenced by the SEC and the Department of Justice As previously announced, the Securities and Exchange Commission (the SEC) is currently conducting a formal investigation of the Company. The Company will continue to fully cooperate with the SEC. As previously announced, the Company received an administrative HIPAA subpoena for documents from the United States Attorney's Office for the District of Massachusetts on December 17, 2004. The subpoena sought information primarily about the Company's provision of medical transcription services to governmental and non-governmental customers. The information was requested in connection with a government investigation into whether MedQuist and others violated federal laws in connection with the provision of medical transcription services. MedQuist continues to cooperate fully with the Department of Justice. Shareholder Securities Litigation As previously announced, a shareholder putative class action lawsuit was filed against the Company in the United States District Court District of New Jersey on November 8, 2004. The action, entitled William Steiner v. MedQuist, Inc., et al., Case No. 1:04-cv-05487-FLW (the Shareholder Putative Action), was filed against the Company and certain former Company officials, purportedly on behalf of an alleged class of all persons who purchased MedQuist common stock during the period from April 23, 2002 through November 2, 2004, inclusive (the Class Period). The complaint specifically alleged that defendants violated federal securities laws by purportedly issuing a series of false and misleading statements to the market throughout the Class Period, which statements allegedly had the effect of artificially inflating the market price of the Company's securities. The complaint asserts claims under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, thereunder. Named as defendants, in addition to the Company, were its former president and chief executive officer and its former executive vice president and chief financial officer. On August 16, 2005, a First Amended Complaint in the Shareholder Putative Class Action was filed against the Company in the United States District Court District of New Jersey. The First Amended Complaint named additional defendants, including certain current and former directors, certain former Company officers, the Company's former and current external auditors and Koninklijke Philips Electronics N.V. (Philips). Like the original complaint, the First Amended Complaint asserted claims under Sections 10b and 20(a) of the Securities and Exchange Act of 1934 (the Act) and Rule 10b5 of the Act. The Class Period of the original complaint was expanded 20 months and now includes the period from March 29, 2000 through June 14, 2004. Pursuant to an October 17, 2005 consent order approved by the Court, Lead Plaintiff Greater Pennsylvania Pension Fund filed a Second Amended Complaint on November 15, 2005. The Second Amended Complaint dropped Philips as a defendant, but alleges the same claims and the same purported class period as the First Amended Complaint. Plaintiffs seek unspecified damages. Pursuant to the provisions of the Private Securities Litigation Reform Act, discovery in the action is stayed pending the filing and resolution of the defendants' motions to dismiss, which were filed on January 17, 2006, and will be fully briefed by May 1, 2006. The Company believes that the claims asserted in the Second Amended Complaint are without merit, and is vigorously defending the action. Customer Litigation As previously announced, a putative class action was filed in the United States District Court Central District of California. The action, entitled South Broward Hospital District, dba Memorial Regional Hospital, et al. v. MedQuist, Inc. et al., Case No. CV-04-7520-TJH-VBKx, was filed on September 9, 2004 against the Company and certain present and former Company officials, purportedly on behalf of an alleged class of non-Federal governmental hospitals and medical centers that the complaint claims were wrongfully and fraudulently overcharged for transcription services by defendants based primarily on the Company's use of the AAMT line billing unit of measure discussed below. The complaint charges fraud, violation of the California Business and Professions Code, unjust enrichment, conversion, negligent supervision and violation of the Racketeer Influenced and Corrupt Organizations Act. Plaintiffs seek damages in an unspecified amount, plus costs and interest, an injunction against alleged continuing illegal activities, an accounting, punitive damages and attorneys' fees. Named as defendants, in addition to the Company, were a senior vice president, its former executive vice president of marketing and new business development, its former executive vice president and chief legal officer, and its former executive vice president and chief financial officer. On December 20, 2004, the Company and individual defendants filed motions to dismiss for lack of personal jurisdiction and improper venue, or in the alternative, to transfer the putative action to the United States District Court District of New Jersey. On February 2, 2005, plaintiffs filed a Second Amended Complaint both adding and deleting named plaintiffs in an attempt to keep the putative action in the United States District Court Central District of California. On March 30, 2005, the United States District Court Central District of California issued an order transferring the putative action to the United States District Court District of New Jersey. On August 1, 2005, the Company and the individual defendants filed their respective Answers denying the material allegations contained in the Second Amended Complaint. On August 31, 2005, the Company and individual defendants filed motions to dismiss the Second Amended Complaint for failure to state a claim and a motion to dismiss in favor of arbitration, or in the alternative, to stay pending arbitration. On December 12, 2005, the plaintiffs filed an Amendment to the Second Amended Complaint. On December 13, 2005, the Court issued an order requiring plaintiffs to file a Third Amended Complaint and set forth a briefing schedule for the filing of anticipated motions to dismiss the Third Amended Complaint, which have been set for hearing on March 8, 2006. Plaintiffs filed the Third Amended Complaint on January 4, 2006. The Third Amended Complaint expands the claims made beyond issues arising from contracts based on AAMT line billing and beyond customers billed based on an AAMT line, alleging that the Company engaged in a scheme to inflate customers' invoices without regard to the terms of individual contracts and even in the absence of any written contract. The Third Amended Complaint also limits plaintiffs' claim for fraud in the inducement of the agreement to arbitrate to the three named plaintiffs whose contracts contain an arbitration provision and a subclass of similarly situated customers. The Company believes that the claims asserted have no merit and intends to vigorously defend the putative action. Medical Transcriptionist Litigation Hoffmann Putative Class Action As previously announced, a putative class action lawsuit was filed against the Company in the United States District Court Northern District of Georgia. The action, entitled Brigitte Hoffmann, et al. v. MedQuist, Inc., et al., Case No. 1:04-CV-3452, was filed with the Court on November 29, 2004 against the Company and certain current and former Company officials, purportedly on behalf of an alleged class of current and former employees and statutory workers of MedQuist, who are or were compensated on a per line basis for medical transcription services (the Class Members) from January 1, 1998 to the time of the filing of the complaint (the Class Period). The complaint specifically alleged that defendants systematically and wrongfully underpaid the Class Members during the Class Period. The complaint asserted the following causes of action: fraud, breach of contract, demand for accounting, quantum meruit, unjust enrichment, conversion, negligence, negligent supervision, and Racketeer Influenced and Corrupt Organizations Act violations. Plaintiffs seek unspecified compensatory damages, punitive damages, disgorgement and restitution. On December 1, 2005, the Hoffmann matter was transferred to the United States District Court District of New Jersey. The Company believes that the claims presently asserted have no merit and intends to vigorously defend the putative action. Myers Putative Class Action As previously announced, a putative class action entitled, Myers, et al. v. MedQuist Inc. and MedQuist Transcriptions, Ltd., Case No. 05CV 4608 (JBS), was filed against the Company on September 22, 2005 in the United States District Court District of New Jersey. The action was brought on behalf of a putative class of MedQuist's employee and independent contractor transcriptionists who claim that they contracted with the Company to be paid per AAMT line, but were allegedly underpaid due to intentional miscounting of the number of characters and lines transcribed. The named plaintiffs assert claims for breach of contract, unjust enrichment, and request an accounting. The allegations contained in the Myers case are substantially similar to those contained in the Hoffmann putative class action and the two actions have now been consolidated. On January 3, 2006, a consent order was executed pursuant to which the Hoffmann and Myers plaintiffs will file a single, consolidated class action complaint on or before January 31, 2006. As with the Hoffmann putative class action, the Company believes that the claims presently asserted in the Myers action have no merit and intends to vigorously defend the consolidated actions. Derivative Litigation On October 4, 2005, the Company announced the dismissal with prejudice of a shareholder derivative action filed in United States District Court District of New Jersey. The suit, Rhoda Kanter (Plaintiff) v. Hans M. Barella et al. (Defendants), was filed on November 12, 2004 against Philips and ten current and former members of MedQuist's Board of Directors. MedQuist was named as a nominal defendant. In a ruling dated September 21, 2005, the Court found Plaintiff's allegations that MedQuist's Board members breached their fiduciary duties to the Company to be insufficient. The Plaintiff had alleged that for a period from 2001 through 2004, the Defendants violated their fiduciary duties by permitting artificial inflation of billing figures; failing to adequately ensure accurate and lawful billing practices; and failing to accurately report the Company's true financial condition in its published financial statements. To the contrary, the Court concluded: Far from alleging facts supporting a substantial likelihood of liability, Plaintiff here has painted a picture of a board of directors that acted responsively given the circumstances . . . . On October 3, 2005, plaintiffs filed a motion for reconsideration of the Court's order dismissing the action with prejudice. On November 16, 2005, the Court denied Plaintiffs' motion for reconsideration. On December 13, 2005, Plaintiffs filed a Notice of Appeal with the United States Court of Appeals for the Third Circuit. Customer Accommodations The primary allegations in a number of the litigation matters relate to how the Company interpreted the AAMT line billing unit of measure. The AAMT line billing unit of measure was developed in 1993 through a collaboration among several industry organizations with the intent of providing standardization in industry billing practices. However, due to inherent ambiguities in the definition of this unit of measure not fully anticipated at the time of its introduction, AAMT line-based billing was applied inconsistently throughout the medical transcription industry and eventually renounced by the groups initially responsible for its development. Despite these issues, a number of companies in the industry have continued to use AAMT line-based billing, and some customers still request proposals and contracts based on the AAMT line. Like many medical transcription service providers, MedQuist once used the AAMT line unit of measure to calculate invoices for many of its medical transcription clients. It has been widely recognized and well documented throughout the industry, however, that the AAMT definition of a line is inherently ambiguous and subject to a wide variety of interpretations. In fact, no single set of AAMT characters was ever defined for this unit of measure. Accordingly, MedQuist began the process in 2004 of transitioning its AAMT line-based customers off the AAMT line unit of measure and, in April 2005, the Company completely eliminated the use of the AAMT line for billing and called on other industry transcription providers to follow its lead. Due to these AAMT line unit of measure ambiguities, and the disparity in its interpretation, health care providers have raised concerns regarding charges for transcription services by their respective transcription providers, including the Company. In response to those concerns, and to foster ongoing business relationships with its customers, the Company has approached certain customers and offered to resolve any issues related to their prior AAMT line and other billing related issues. The Company's Board of Directors has authorized Company management to make accommodation offers, up to an aggregate amount of $65.0 million, to certain customers to resolve concerns over AAMT and other billing related issues. As of December 31, 2005, (i) the Company has entered into agreements with certain customers who have accepted accommodation offers to resolve concerns over AAMT and other billing related issues, and paid or credited an aggregate amount of $20.5 million as an accommodation to those customers and (ii) additional accommodation offers have been made by the Company to certain other customers in the aggregate amount of $13.8 million. From January 1, 2006 through the date of this release, accommodation offers have been made to additional customers in the aggregate amount of $1.7 million. Subject to the previously mentioned authorization of the Company's Board of Directors, Company management currently intends to make additional accommodation offers in the future, although the timing and amount of such offers have not yet been determined and the Company's plans may change in the future. The accommodation offers do not represent in any way the Company's estimate of potential liability, if any, in any of the previously disclosed litigation or investigatory matters pending against the Company. The Company is unable to predict how many customers, if any, will accept the outstanding accommodation offers on the terms proposed by the Company, nor is the Company able to predict the timing of the acceptance (or rejection) of any of these outstanding accommodation offers. Until such offers are accepted, the Company may withdraw or modify the terms of the accommodation offers at any time. In addition, the Company is unable to predict how many of the future offers, if made, will be accepted on the terms proposed by the Company. The Company believes that its existing cash resources and cash flows from operations are sufficient to fund all of the customer accommodation offers it may make. By accepting the Company's accommodation offers, the customer must agree, among other things, to release the Company from any and all claims and liability regarding prior AAMT and other billing related issues. The accommodation offers made to date, and those offers which may be made in the future, are not an admission of liability by the Company of any wrongdoing or an admission or acknowledgement that its billing practices with respect to such customers were or are incorrect. -0- *T MedQuist Inc. - Preliminary and Unaudited Financial Information (in millions) ---------------------------------------------------------------------- Three months ended ----------------------------------- 12/31/2005 12/31/2004 ---------------- ---------------- Revenues (1) $ 96 $ 112 Operating loss (1) $ (78) $ 0 Cash (2) $ 178 $ 196 Debt (2) - Current $ 0 $ 25 - Long term $ 0 $ 0 Twelve months ended ----------------------------------- 12/31/2005 12/31/2004 ---------------- ---------------- Revenues (3) $ 411 $ 456 Operating (loss)income (3) $ (98) $ 25 Cash (2) $ 178 $ 196 Debt (2) - Current $ 0 $ 25 - Long term $ 0 $ 0 ---------------------------------------------------------------------- Notes: (1) Information presented for the three months ended (2) Information presented as of the date noted above (3) Information presented for the twelve months ended *T Three months ended December 31, 2005 Revenues: Preliminary, unaudited results indicate that the Company's revenues decreased from approximately $112 million for the three months ended December 31, 2004 to approximately $96 million for the comparable 2005 period. The decline in revenues is largely due to a decrease in the volume of lines transcribed primarily related to clients for whom we no longer provide transcription services. Additionally, while pricing pressures continue on the base transcription business, the pricing pressure has not had as great an impact on revenues during the second half of 2005 as it did in the first half. Management expects that pricing pressure will continue for the foreseeable future but that the introduction of several new sales and improved customer service initiatives will cause transcription volume to stabilize or improve in 2006. Operating Income: Preliminary results indicate that operating income declined $78 million from approximately $0 million for the three months ended December 31, 2004 to an operating loss of approximately $78 million for the comparable 2005 period. The operating loss was attributable to the following: restructuring charges ($4 million), audit fees in connection with the Company's 2003, 2004 and 2005 fiscal years ($4 million), asset impairments ($2 million) and $69 million in costs incurred during the three months ended December 31, 2005 related to the ongoing billing review, including: (i) customer accommodation payments and accruals ($60 million), (ii) legal fees incurred in connection with governmental investigations and proceedings and defense of the class action matters, and (iii) non-legal professional fees. Operating income in 2005 was also impacted by the $16 million decline in revenues over the same period. Fiscal 2004 results reflect $6 million in costs related to the ongoing billing review. Twelve Months ended December 31, 2005 Revenues: Preliminary, unaudited results indicate that the Company's revenues decreased from approximately $456 million for the twelve months ended December 31, 2004 to approximately $411 million for the comparable 2005 period. The decline in revenues is due to (i) a decrease in the volume of lines transcribed primarily related to clients for whom we no longer provide transcription services and (ii) reductions in transcription service rates due to pricing pressure in the medical transcription industry. Management expects that pricing pressure will continue for the foreseeable future but that the introduction of several new sales and improved customer service initiatives will cause transcription volume to stabilize or improve in 2006. Operating Income: Preliminary, unaudited results indicate that operating income declined $123 million from an operating income of approximately $25 million for the twelve months ended December 31, 2004 to an operating loss of approximately $98 million for 2005. The operating loss was attributable to the following: restructuring charges ($4 million), audit fees in connection with the Company's 2003, 2004 and 2005 fiscal years ($4 million), asset impairments ($2 million) and $101 million in costs incurred in 2005 related to the ongoing billing review, including: (i) customer accommodation payments and accruals ($65 million), (ii) legal fees incurred in connection with governmental investigations and proceedings and defense of the class action matters, (iii) non-legal professional fees, and (iv) costs associated with separation and replacement of the Company's management team, including members at the executive level. Operating income in 2005 was also impacted by the $44 million decline in revenues over the comparable period, which represents the impact of both the pricing pressures experienced most strongly in the first six months of 2005 and of volume declines throughout the twelve months ended December 31, 2005. Fiscal 2004 results reflect $15 million in costs related to the ongoing billing review. Balance Sheet Highlights: At December 31, 2005, the Company had $178 million in cash and cash equivalents and no debt. There were no additional issuances of capital stock or other securities for the twelve months ended December 31, 2005. The Company expects to incur significant costs and expenses in the future relating to the ongoing billing review, defense of the class action matters and governmental investigations and proceedings, and accommodation agreements. These costs and expenses include (i) legal fees relating to the SEC and Department of Justice investigations and proceedings, (ii) legal fees relating to defense and resolution of the litigation matters described above, (iii) customer accommodation payments and credits, and (iv) non-legal professional fees. The timing and level of these costs and expenses is, in many cases, not within the Company's control. While the Company is unable to predict the timing and level of these costs and expenses, the Company currently believes that it has sufficient resources, including cash on hand and cash flow from operations to fund these costs and expenses. However, there can be no assurance that unanticipated changes in the level of these costs will not exceed the Company's available cash resources, nor can there be any assurance that sufficient financing from external sources will be available to the Company on acceptable terms, if at all. In the event that the Company's cash requirements exceed its available cash resources, or if the timing of such costs and expenses requires the Company to divert cash resources away from operations, the Company may not be able to execute its operating plan, which could have a material adverse effect on the Company's business and results of operations. Other Developments Restructuring: As previously disclosed, in conjunction with the Company's movement to a single national service and support organization, a restructuring plan has been developed which consolidates approximately forty-eight (48) facilities and centralizes certain components of the business. The Company is expecting to incur restructure costs associated with this restructuring plan of up to $8.5 million and the restructuring is expected to generate annualized savings of approximately $18.5 million. Specifically, MedQuist has shifted resources to a single national service delivery and support organization for all of the Company's services and products, eliminating local service centers. This transition has resulted in the consolidation of approximately thirty-eight (38) facilities as of December 31, 2005, with ten (10) more scheduled over the next six months. The plan does not contemplate reductions of, and the Company has no current intentions to reduce, its medical transcription workforce. Rather, the Company will continue in its efforts to hire additional qualified transcriptionists. Further, although the Company is consolidating its local service centers as described above, customer-facing teams, led by account managers, will continue to coordinate customer support on the local level. The customer-facing teams will work with and be supported by the Company's centrally managed customer service organization.

MedQuist Shortens Radiology Report [2005-11-23]
MedQuist Shortens Radiology Report Turnaround TimeTuesday November 22, 2:01 pm ET MOUNT LAUREL, N.J., Nov. 22 /PRNewswire-FirstCall/ -- Northeast Regional Medical Center, located in Kirksville, Missouri, recently purchased and completed their implementation of MedQuist's (Pink Sheets: MEDQ - News) SpeechQ for Radiology(TM) system. Licensed for 109 beds, the staff at Northeast Regional takes great pride in providing the highest quality care for the residents of northeastern Missouri, right in their own backyard. Ron Leazer, the hospital's chief financial officer, is always looking for new processes and technology that allow the hospital to better meet the needs of its patients, medical staff and caregivers. Northeast Regional's radiologists now use SpeechQ for Radiology's front-end speech recognition capability to dictate, edit and authenticate (electronically sign) a report in one session. Flexible workflow choices also allow review and correction by medical editors. Editing the recognized text automatically updates each physician's speech recognition profile, improving speech recognition accuracy. Our radiologists can now dictate a case, immediately review it and then electronically sign the report in a single step which significantly reduces our radiology reporting turnaround time, says Leazer. Our referring physicians and the hospital caregivers now receive a finalized report within minutes after the exam has been reviewed and interpreted by the radiologist, instead of the hours -- or even a day later -- that was the case before SpeechQ for Radiology. And we have been able to redirect our transcriptionists to other departments, to provide better service to other staff members. Northeast Regional Medical Center radiologist, P.M. Williams, D.O. states, The system was very easy to learn and use. After only 30 minutes of training, which included the voice enrollment process, I was comfortably using the system. In addition, the referring physicians are pleased with how quickly they receive my final reports with SpeechQ for Radiology as I have all my reports complete when I leave the hospital at the end of the day.

MedQuist pays the price for inconsistent billing [2005-11-13]
MedQuist pays the price for inconsistent billing Last year, Mt. Laurel, NJ-based transcription vendor MedQuist, Inc., admitted to longstanding billing irregularity. Preliminary financial results from 2005 are showing the damage. In 2004, Medquist announced that 2002 and 2003 financial results were inaccurate. The company, faced with lawsuits from customers, transcriptionists, and shareholders, replaced leadership; consolidated offices and cut staff; lost its NASDAQ stock listing; and instituted new billing and corporate-ethics policies. Medquist brought in $214 million in the first six months of 2005, compared with $232 million during the same period last year, and expects revenue in the second half of 2005 to fall from first half levels. The company reported a preliminary $8 million operating loss for the first half of 2005, when the company incurred $16 million in costs related to the ongoing internal investigation and litigation. The company gave no indication when the internal investigation will end or when official financial reports will be filed. It has about $100,000 in debt.

TRANSCEND: appointment of Lance Cornell as Chief Financial Officer [2005-11-02]
TRANSCEND SERVICES, INC. today announced the appointment of Lance Cornell as Chief Financial Officer. Mr. Cornell replaces Mr. Mark D. Meersman, who has decided to return to the position of partner-in-charge of inProcess Consulting, a management consulting firm that he left six months ago to join Transcend. Mr. Cornell is a Certified Public Accountant with over 18 years of experience in accounting, finance and financial management, including controller and chief financial officer positions with publicly traded companies. Prior to joining Transcend, Mr. Cornell was Chief Financial Officer for nearly five years at Facility Resources, Inc., a private consulting firm specializing in facility-related project management, systems implementation and outsourcing for large corporations. Prior to that experience, Mr. Cornell served in chief financial officer and controller positions in two separate publicly traded companies in the healthcare information systems industry. Mr. Cornell received a B.S. degree in Finance with highest honors from the University of Colorado. Larry Gerdes, the Company's President and Chief Executive Officer, commented on the announcement: We welcome Lance's financial executive experience to our executive management team and thank Mark for his many and varied contributions to our Company. Mark has assisted the company in the automation and analysis of financial data that will prove helpful as we focus on improving our overall profitability. Lance not only understands the challenges facing the Company, but also sees the opportunities for the Company to grow and prosper in the $6 billion market for medical transcription services in the United States. We are particularly excited about his experience in planning and financing growth strategies, including acquisitions. Mr. Cornell commented: I am excited about the potential effects that the Company's BeyondTXT speech recognition functionality and its strategic acquisition initiative should have upon the Company's financial performance. I look forward to helping the Company achieve its growth and profitability objectives. About Transcend Services, Inc. Transcend believes that accurate, reliable and timely transcription creates the foundation for the patient medical record. To this end, the Company has created Internet-based, speech recognition-enabled voice-to-text systems that allow its skilled medical language specialists to securely and quickly produce the highest quality medical documents. The Company's wide range of transcription services encompass everything needed to securely receive, transcribe, edit, format and distribute electronic copies of physician-dictated medical documents, from overflow projects to complete transcription outsourcing. For more information, visit http://www.transcendservices.com.

MedQuist Names Scott Bennett as Senior Vice President [2005-11-01]
MedQuist Inc.(Pink Sheets: MEDQ) today announced the appointment of Scott Bennett as itsnew senior vice president of Sales and Marketing. He will join Medquist onNovember 1. Bennett comes to the company with more than 20 years ofexperience in the healthcare technology sales and marketing field, including aproven track record in developing and leading high performing sales andmarketing organizations. Bennett will lead a newly integrated sales andmarketing function, which MedQuist unveiled earlier this month. Bennett was most recently the senior vice president of Sales and Marketingat Scheduling.com d/b/a SCI Solutions, Inc., where he rebuilt the company'smarketing, sales and sales support infrastructure and processes, as well ashelped lead the company to record revenue and profit growth. Prior to holdingthat position, Bennett was the vice president, Corporate Sales, at SiemensMedical Solutions, USA. During his tenure at Siemens, he led the regionalsales teams to win and close the company's largest transactions, includingnegotiating the company's first Information Technology strategic allianceagreement. Bennett also spent 17 years with Shared Medical Systems in avariety of increasingly responsible sales and marketing leadership positions. I am excited to be joining the MedQuist team, says Bennett. MedQuistis already the world leader of outsourced transcription services, and ispositioned to play an even larger role in assisting health providers as theypopulate, safeguard and digitally transport patients' Electronic HealthRecords where and when they are needed. MedQuist is right at the forefront ofthe future of healthcare technology.

MTBC Announces the First Annual New Jersey Medical Malpractice Forum [2005-10-27]
Oct. 26, 2005--Medical Transcription Billing, Corp. (MTBC), the 4% medical billing and free EMR company, together with Commerce Bank, the region's fastest growing financial services organization, and NJPure, the not-for profit New Jersey medical malpractice insurer, sponsor the First Annual New Jersey Medical Malpractice Forum. This informative session will highlight the specific actions a healthcare provider should take to manage medical malpractice costs and exposure. The forum features a panel comprised of State Senator Diane B. Allen, Assemblyman Upendra J. Chivukula, plaintiffs' attorney Rosemary Pinto, of Feldman Pinto, and medical malpractice insurance expert Eric S. Poe, of NJPure. This forum comes at a time when New Jersey physicians continue to face increasing pressures from insurance carriers as well as rising expenses, most notably rising medical malpractice premiums. David Rosenblum, president of MTBC, addressed the importance of hosting this forum, There are tangible actions physicians can take to address the mounting concerns of malpractice; this forum will give them the opportunity to hear from and discuss these issues with people who are actively addressing them. We invite physicians to hear from political representatives, industry leaders, and experts who are taking the necessary steps to help protect them, their colleagues, and their patients. We are excited to host this forum with Commerce and NJPure, two organizations that share our passion for helping physicians lower their cost of doing business by providing better alternatives and excellent support, said David Rosenblum. The forum features dinner, discussion and a question and answer session with this distinguished panel. It will be held at 6:00 PM on Wednesday, November 16, 2005, at the Ramada Inn Conference Center in North Brunswick, New Jersey. Attendance at the forum is free of charge. Physicians are invited to reserve a seat by visiting www.MTBC.com.

MedQuist Moving to Centralized, National Service Delivery Model [2005-10-11]
MedQuist Moving to Centralized, National Service Delivery Model 10/10/2005 9:00:00 AM EST Shift Will Streamline Operations, Drive Improved Service Standards and Technology MedQuist Inc. (Pink Sheets: MEDQ.PK) today announced that management, in accordance with direction received from the company's board of directors, adopted a plan on October 6, 2005 to centralize and streamline the company's organizational and operational structure to better serve its customers. The plan is expected to improve operating performance and increase customer satisfaction. The move toward a new structure and delivery model will be supported by the following actions: -- Medquist will shift resources to a single national service delivery and support organization for all of the company's services and products, eliminating local service centers. This new centrally managed structure will enhance workflow management, with the result being dramatically improved levels of service and quality for our customers. The company expects this transition to result in the consolidation of approximately forty facilities over the next twelve months. -- In conjunction with the shift to centralized customer service delivery, the company's national service delivery and support organization will, in the fourth quarter of this year, begin to implement its Qtinuum of Care initiative. The Qtinuum of Care initiative is focused specifically on driving increased levels of customer satisfaction through a new centralized and integrated customer service and support model. -- To drive greater customer focus, the company's product management group will be moving under the direction of the Chief Technology Officer. Additionally, new products in the area of voice capture, speech recognition and on-premise transcription solutions will be introduced within the next twelve months. -- The company's Sales and Marketing organizations will be combined, which will improve communication between MedQuist's direct sales group and its marketing support organization. As a result of this combination, the Senior Vice President - Marketing and Business Development and the Senior Vice President - Sales have separated from the company. MedQuist is currently engaged in the process of selecting the combined organization's leadership. The company anticipates that all of the foregoing actions will be complete by the end of the third quarter of 2006, and that it will record restructuring charges in the range of $6.5 million to $8.5 million pre-tax, largely representing facility exit costs and employee severance payments. As a result of the plan, the company also expects to realize annualized savings of approximately $18.5 million. About MedQuist: MedQuist, a member of the Philips Group of Companies, is a leading provider of electronic medical transcription, health information and document management products and services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services. Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: Some of the statements in this Press Release constitute forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 including, but not limited to, statements relating to the Company's expected results of operations and financial condition, scheduled actions under plan to improve the company's organizational and operational structure, restructuring charges expected to be recorded in connection with the plan, expected cost benefits resulting from the plan, expected reductions in location, and consolidation and reorganization of technologies and business units. These statements are not historical facts but rather are based on the Company's current expectations, estimates and projections regarding the Company's business, operations and other factors relating thereto. Words such as may, will, could, would, should, anticipate, predict, potential, continue, expects, intends, plans, projects, believes, estimates and similar expressions are used to identify these forward-looking statements. These statements are only predictions and as such are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. As a result, these statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The Company's actual results may differ from the forward-looking statements for many reasons, including unanticipated expenditures in connection with the effectuation of the plan to improve the company's organizational and operational structure; unanticipated difficulties in connection with reductions in location, or the consolidation and reorganization of technologies and business units; customer reaction to the plan; any direct or indirect impact of the matters disclosed in the Form 12b-25 filed by the Company on August 19, 2005 on the Company's operating results or financial condition; any continuation of pricing pressures and declining billing rates; difficulties relating to the implementation of management changes throughout the Company; and the outcome of pending and future legal and regulatory proceedings and investigations.

Medquist counts on the very VOLUME of their work to hide their billing *inaccuracies*. [2005-10-11]
They have some large hospitals.You take an 800 bed hospital getting a bill once a month that is 8 inches thick! Daily logs, sans LINE COUNTS, with just a total. Who is going to take the time to investigate that? These large services count on the overwhelming time it would take to verify billing. I have seen it done time and time again.

MedQuist Shareholder Derivative Suit Dismissed [2005-10-05]
MedQuist Shareholder Derivative Suit Dismissed 10/4/2005 8:44:00 AM EST MedQuist Inc. (Pink Sheets: MEDQ.PK) today announced the dismissal with prejudice of a shareholder derivative action filed in U.S. District Court in New Jersey. The suit, Rhoda Kanter (Plaintiff) v. Hans M. Barella et al. (Defendants), was filed November 12, 2004 against Koninklijke Philips Electronic N.V. (Philips) and ten current and former members of MedQuist's Board of Directors. Medquist was named as a nominal defendant. In a ruling dated September 21, 2005, the Court, the Honorable Jerome B. Simandle presiding, found Plaintiff's allegations that MedQuist's Board members breached their fiduciary duties to the Company to be insufficient. The Plaintiff had alleged that for a period from 2001 through 2004, the Defendants violated their fiduciary duties by permitting artificial inflation of billing figures; failing to adequately ensure accurate and lawful billing practices; and failing to accurately report the Company's true financial condition in its published financial statements. To the contrary, the Court concluded: Far from alleging facts supporting a substantial likelihood of liability, Plaintiff here has painted a picture of a board of directors that acted responsively given the circumstances.... Howard S. Hoffmann, MedQuist CEO, was confident of the outcome. It is the right decision, and certainly supports the actions of MedQuist's Directors in fulfilling their responsibilities to the Company. About MedQuist: MedQuist, a member of the Philips Group of Companies, is a leading provider of electronic medical transcription, health information and document management products and services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services. Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: Statements in this press release regarding MedQuist's business which are not historical facts are forward-looking statements that involve risks and uncertainties. Such risks and uncertainties, which could cause actual results to differ from those contained in forward-looking statements include, but are not limited to: (1) our ability to recruit and retain qualified transcriptionists and other employees; (2) the impact of new services or products on the demand for our existing services; (3) our current dependence on medical transcription for substantially all of our business; (4) our ability to expand our customer base; (5) changes in law, including, without limitation, the impact the Health Information Portability and Accountability Act (HIPAA) will have on our business; (6) infringement on the proprietary rights of others; (7) risks inherent in diversifying into other businesses; (8) any continuation of pricing pressures and declining billing rates; (9) difficulties relating to the implementation of management changes throughout the Company; (10) the outcome of pending and future legal and regulatory proceedings and investigations; and (11) any direct or indirect impact of the matters disclosed in the Form 12b-25 filed by the Company on August 19, 2005. Actual outcomes and results may differ materially from what is expressed or forecasted in forward-looking statements. As a result, forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

MedQuist [2005-09-26]
I have heard nothing but negative comments about MedQuist, how DO they stay in business?

MedQuist Launches DocQsign(TM) [2005-09-20]
MOUNT LAUREL, N.J., Sept. 19 /PRNewswire-FirstCall/ -- Medquist Inc.(Pink Sheets: MEDQ) today announces the release of DocQsign, a Web-basedelectronic signature module of DocQment(TM) Enterprise Platform, an Internet-hosted document workflow management solution. Available as an optionalservice, DocQsign integrates the requirement of electronic signature with theprocess of document workflow and ensures a seamless transition fromtranscribed document to authenticated document, facilitating patient care andthe reimbursement process. MedQuist understands the value of the healthcare providers' time and theurgency to gain quick access to patient medical records. With DocQsign,physicians no longer need to visit the Medical Records department to signcharts or view a patient medical record, says Terry Cameron, MedQuist'ssenior vice president of Marketing. Not only does DocQsign make the processfaster and easier for the healthcare provider, it ultimately reduces theturnaround time for quicker reimbursement and enhanced patient care. Physicians are provided access via the Internet to documents withinseconds of completed transcription, from anywhere, at anytime. Using aWeb-based user account and an array of electronic review and signature tools,physicians can authenticate patient documents that they originated, or withappropriate permission, documents that were originated by other physicians.Physicians can access, listen, review, edit, reject and sign patientdocuments, all through a Web-based interface. Physicians and healthcare providers get a list of documents to be signedin their inbox, says Dori Dunn, DocQsign product manager. From one screen,they can either listen, edit, reject or sign the document, all from thecomforts of home or from any location with Internet access. Attending andresident signatures and a delegate role are available to support the needs ofthe healthcare industry. And once the document is signed, it is automaticallyrouted to the appropriate location, reducing turnaround times and concernsabout incomplete reports.

MedQuist Relief for Katrina Victims [2005-09-15]
MOUNT LAUREL, N.J., Sept. 14 /PRNewswire-FirstCall/ -- Today, MedQuistInc. (Pink Sheets: MEDQ), with nearly 10,000 people spread across the UnitedStates, announced the immediate actions that the company took in response tothe aftermath of Hurricane Katrina, including aid from the company to itspeople in the areas hardest hit by the hurricane. The Company's firstpriority in the days after the storm was to identify the Medquist employeesand statutory workers who were in Katrina's path, determine their status andset aside funds to provide financial assistance to those who lost their homes.We have been concentrating first on finding our people - many of whom workfrom home - to provide them with personal financial assistance if they havelost their home, and, if necessary, with new computers to help them return towork from wherever they are staying, says Frank W. Lavelle, MedQuist'spresident. Company employees and statutory workers who have been affected byHurricane Katrina are encouraged to contact MedQuist's toll-free technicalsupport line, 1-800-DICTATE. We're encouraging everyone in the MedQuist family who has been affectedby Katrina to call in, even if they have already been in touch with someonefrom the company, says Lavelle. And we want them to keep us updated ontheir location if they move again in the next few weeks. In addition,MedQuist's clients who need any kind of assistance due to damage from Katrinashould call MedQuist's toll-free technical support line for clients,1-888-DICTATE. Ensuring that our clients have the ability to continue toprovide medical care is of the highest priority to everyone at MedQuist, addsLavelle. In addition to providing personal financial assistance to MedQuist'semployees and statutory workers who have lost their homes to the storm,MedQuist has also made a donation of $20,000 to the American Red Cross forHurricane Katrina disaster relief. The company is committed to matching thedonations of its employees and statutory workers as well, up to an additional$30,000. Since the storm, MedQuist people have been calling and asking what theycan do to help, says Lavelle. They have offered everything from places forpeople to stay to giving some of their paid time off to our employees who areout of work because of Katrina. In response to that generosity, MedQuist hasset up a bank for paid time off hours so that employees can donate time thatwill be used for other employees who have been victims of the storm. Theoutpouring of offers doesn't surprise me a bit, adds Lavelle. We arefortunate at MedQuist that we have such wonderful caring people affiliatedwith the company who have been looking for ways to help each other and othersin the region affected by Hurricane Katrina. MedQuist, a member of the Philips Group of Companies, is a leadingprovider of electronic medical transcription, health information and documentmanagement products and services. MedQuist provides document workflowmanagement, digital dictation, speech recognition, mobile dictation devices,Web-based transcription, electronic signature, medical coding products andoutsourcing services. Safe Harbor Statement under the Private Securities Litigation Reform Actof 1995: Statements in this press release regarding MedQuist's business whichare not historical facts are forward-looking statements that involve risksand uncertainties. For a discussion of such risks and uncertainties, whichcould cause actual results to differ from those contained in the forward-looking statements, see Risk Factors in the Company's Annual Report or Form10-K for the fiscal year ending December 31, 2002.

Medquist Partners with Voiceguard for [2005-09-02]
Mount Laurel, NJ (OPENPRESS) September 1, 2005 -- Medquist announced a partnership with VoiceGard, the leader in developing and implementing business solutions for today�s business communication recovery needs, to provide critical backup for telecommunications continuity in the event of an emergency.The strategic partnership will enable MedQuist, a leading provider of electronic medical transcription, health information and document management services, to continue offering clients access to technical support when the support center cannot receive phone calls, by utilizing VoiceGard�s services. VoiceGard implemented an IP centric solution for reaching MedQuist�s client support ensuring their availability 24 hours a day and seven days a week. If and when an emergency is declared, VoiceGard simply re-routes MedQuist client calls to the appropriate Agent based on their predetermined recovery plan.�Our clients are extremely important to us,� said Mark Blood, MedQuist�s vice president of technical support. �Many of them are hospitals and health care providers with mission critical networks that depend on the support we provide. With VoiceGard�s product, we now have the capability to effectively continue availability of our call center services, no matter what the situation. �Once activated, the voice disaster recovery plan is available for as long as it is needed. A MedQuist Business Continuity Planner can manage and update the plan, or print it at any time. The plan is stored online and readily accessible. It is also continually updated and tested once a year.�Voice disaster discovery is a growing trend - it�s the next step up from data recovery solutions,� said Jim McFadden, Director of Sales at VoiceGard. �MedQuist is a cutting edge company that is consistently evolving and adapting for their clients. With our telecommunication continuity and restoration services, MedQuist will always be available for their clients, without interruption, in the event of any disaster.�FOR MORE INFORMATION:Leeann Essai, MedQuistDirector, Marketing CommunicationPhone: 856.206.4700Private Fax: 856.206.4701Cell: 215.852.8281lessai@medquist.com

MedQuist Announces Preliminary, Partial and Unaudited [2005-08-20]
MT. LAUREL, N.J., Aug. 19 /PRNewswire-FirstCall/ -- Medquist Inc.(Pink Sheets: MEDQ) announced today certain preliminary, partial and unauditedfinancial results. Once the Company completes the financial assessment andreview of its billing practices disclosed in the Company's previous filingswith the SEC, the Company expects that an independent registered publicaccounting firm will review and/or audit the Company's financial statements,as appropriate. While, at this time, the Company cannot estimate the totalcosts of (i) the billing review, (ii) defense of the class action matters,(iii) the SEC investigation, and (iv) compliance with the Department ofJustice investigation, all of which have been previously disclosed in eitherthe Company's filings with the SEC or the Company's press releases, the costsincurred to date by the Company in connection with the foregoing have beenincluded in the results set forth below. Because the completion of thebilling review and resolution of the litigation and governmental investigatorymatters are pending, the Company is not certain whether any changes to theaccounting treatment of any component of its consolidated financial statementswill be required and, if any changes are necessary, whether any such changeswould have a material impact on its consolidated financial statements.Accordingly, the financial information set forth below is preliminary,unaudited, and subject to change based on the completion of the financialassessment and review of the Company's billing practices and the completion ofthe review and/or audit of its financial statements, as appropriate. The information set forth below is derived from the Company's internalbooks and records. The Company cautions investors not to place undue relianceon the information presented below. As a result of the developments describedabove and in the Company's previous SEC filings, the Company's financialstatements have not been audited or reviewed by an independent registeredaccounting firm. The information contained in this press release also has notbeen audited or reviewed by an independent registered accounting firm. Suchinformation is not a substitute for the information required to be reported inthe Company's Forms 10-K and Forms 10-Q that have not yet been filed. Therecan be no assurance that the results of the billing review, and resolution ofthe litigation and governmental investigatory matters will not have a materialadverse effect on the Company's revenue, results of operations and financialcondition. MedQuist Inc. - Preliminary and Unaudited Financial Information (inmillions) Years Ended 12/31/2002 12/31/2003 12/31/2004 Revenue (1) $486 $490 $456 Operating income (1) 71 61 23 Cash (3) 103 162 196 Debt (3) 0.1 0.1 0.1 Quarters Ended 12/31/03 3/31/04 6/30/04 9/30/04 12/31/04 3/31/05 6/30/05 Revenue (2) $121 $118 $114 $113 $112 $108 $106 Operating income (2) 13 13 7 6 (3) (2) (6) Cash (3) 162 180 183 192 196 199 198 Debt (3) 0.1 0.1 0.1 0.1 0.1 0.1 - Notes: (1) Information presented for the twelve months ended (2) Information presented for the three months ended (3) Information presented as of the date Twelve months ended December 31, 2003 Revenues: Preliminary, unaudited results indicate that the Company's revenueincreased from approximately $486 million for the twelve months endedDecember 31, 2002 to approximately $490 million for the comparable 2003period. The increase was largely the result of twelve months of Lanieroperations being reflected in 2003 results as compared to six months of Lanieroperations being reflected in 2002 results, as the acquisition of LanierHealthcare LLC took place on July 1, 2002, largely offset by transcriptionservice volume declines as well as declining pricing from both new andexisting transcription clients. Operating Income: Preliminary, unaudited results indicate that operating income declinedfrom approximately $71 million, for the twelve months ended December 31, 2002to approximately $61 million for the comparable 2003 period. The decline inoperating income is largely the result of transcription service volume andrate declines, partially offset by the result of twelve months of Lanieroperations being reflected in 2003 results as compared to six months of Lanieroperations being reflected in 2002 results, as the acquisition of LanierHealthcare LLC took place on July 1, 2002. Balance Sheet Highlights: At December 31, 2003 the Company had $162 million in cash and cashequivalents. At December 31, 2003, the Company had less than $100 thousand intotal debt. Other than minimal exercises of stock options, there were noadditional issuances of capital stock or other securities for the twelve monthperiod ended December 31, 2003. Twelve months ended December 31, 2004 Revenues: Preliminary, unaudited results indicate that the Company's revenuedecreased from approximately $490 million for the twelve months ended December31, 2003 to approximately $456 million for the comparable 2004 period. Thedecline in revenues includes the impact of decreasing transcription servicevolume from existing and lost clients, partially offset by new clients, aswell as the impact of pricing declines attributable to a competitive pricingenvironment. Additionally, the Company has recognized declines in revenue fromits front-end speech recognition products as it transitioned from TalkStationto SpeechQ for Radiology. Operating Income: Preliminary, unaudited results indicate that operating income declinedfrom approximately $61 million, for the twelve months ended December 31, 2003to approximately $23 million for the comparable 2004 period. The decline inoperating income includes: 1) the impact of approximately $11 million in costsincurred in 2004 related to the ongoing billing investigation and associatedlitigation, 2) approximately $4 million in costs associated with separationand replacement of the Company's management team, including members at theexecutive level and 3) approximately $3 million associated with the write-offof intangible assets associated with products no longer being offered. Inaddition, the base business, as described above in the Revenues section,experienced a decline in transcription service volume from existing and lostclients and a decline in transcription service rates charged to customers.The impact of the revenue decline was partially offset by several cost savinginitiatives including reductions in telecommunications costs, officeconsolidations and associated staff reductions. Balance Sheet Highlights: At December 31, 2004 the Company had $196 million in cash and cashequivalents. At December 31, 2004, the Company had less than $100 thousand intotal debt. Other than minimal exercises of stock options, there were noadditional issuances of capital stock or other securities for the twelve monthperiod ended December 31, 2004. Six Months ended June 30, 2005 Revenues: Preliminary, unaudited results indicate that the Company's revenuedecreased from approximately $232 million for the six months ended June 30,2004 to approximately $213 million for the comparable 2005 period. Thedecline in revenues includes the impact of the result of reductions incontracted transcription service rates from existing clients, further affectedby new transcription business service volume replacing lost transcriptionservice volume at a lower average price. Management expects these pricingpressures to continue and for revenue in the second half of 2005 to declinefrom first half levels. Operating Income: Preliminary, unaudited results indicate that operating income declinedfrom approximately $20 million for the six months ended June 30, 2004 to anoperating loss of approximately $8 million for the comparable 2005 period.Operating income includes 1) approximately $16 million in costs incurred in2005 related to the ongoing billing investigation and associated litigation,which represents an increase of approximately $11 million over similar costsincurred for the comparable time period in 2004 and 2) approximately $3million in costs associated with separation and replacement of the Company'smanagement team, including members at the executive level, which representsand increase of approximately $2 million over similar costs incurred for thecomparable time period in 2004. In addition, the base business, as describedabove in the Revenues section experienced a decline in transcription servicerates charged to customers. The impact of the revenue decline was partiallyoffset by several cost saving initiatives including reductions intelecommunications costs, office consolidations and associated staffreductions. The Company continues to strive for improved profitabilitythrough service and technology enhancement initiatives, along with other costreductions. Three months ended June 30, 2005 Revenues: Preliminary, unaudited results indicate that the Company's revenuedecreased from approximately $114 million for the three months ended June 30,2004 to approximately $106 million for the comparable 2005 period. The declinein revenues includes the impact of the result of reductions in contractedtranscription service rates from existing clients, further affected by newtranscription business service volume replacing lost transcription servicevolume at a lower average price. As noted above, management expects thesepricing pressures to continue and for revenue in the second half of 2005 todecline from first half levels. Operating Income: Preliminary results indicate that operating income declined fromapproximately $7 million for the three months ended June 30, 2004 to anoperating loss of approximately $6 million for the comparable 2005 period.Operating income includes 1) approximately $9.5 million in costs incurred in2005 related to the ongoing billing investigation and associated litigation,which represents an increase of approximately $5.5 million over similar costsincurred for the comparable time period in 2004 and 2) $1 million in costsassociated with separation and replacement of the Company's management team,including members at the executive level. In addition, the base business, asdescribed above in the Revenues section experienced a decline in transcriptionservice rates charged to customers. The impact of the revenue decline waspartially offset by several cost saving initiatives including reductions intelecommunications costs, office consolidations and associated staffreductions. The Company continues to strive for improved profitabilitythrough service and technology enhancement initiatives, along with other costreductions. Balance Sheet Highlights: At June 30, 2005, the Company had $198 million in cash and cashequivalents and no debt. There were no additional issuances of capital stockor other securities for the six month period ended June 30, 2005. About MedQuist: MedQuist, a member of the Philips Group of Companies, is a leadingprovider of electronic medical transcription, health information and documentmanagement products and services. MedQuist provides document workflowmanagement, digital dictation, speech recognition, mobile dictation devices,Web-based transcription, electronic signature, medical coding products andoutsourcing services. Disclosure Regarding Forward-Looking Statements: Some of the statements in this Press Release constitute forward-lookingstatements within the meaning of the U.S. Private Securities LitigationReform Act of 1995. These statements are not historical facts but rather arebased on the Company's current expectations, estimates and projectionsregarding the Company's business, operations and other factors relatingthereto. Words such as may, will, could, would, should,anticipate, predict, potential, continue, expects, intends,plans, projects, believes, estimates and similar expressions are usedto identify these forward-looking statements. The forward-looking statementscontained in this Press Release include, without limitation, statements aboutthe Company's results of operations and financial condition. These statementsare only predictions and as such are not guarantees of future performance andinvolve risks, uncertainties and assumptions that are difficult to predict.Forward-looking statements are based upon assumptions as to future events ofthe Company's future financial performance that may not prove to be accurate.Actual outcomes and results may differ materially from what is expressed orforecast in these forward-looking statements. As a result, these statementsspeak only as of the date they were made, and the Company undertakes noobligation to publicly update or revise any forward-looking statements,whether as a result of new information, future events or otherwise. TheCompany's actual results may differ from the forward-looking statements formany reasons, including any direct or indirect impact of the matters disclosedin the Form 12b-25 filed by the Company on August 19, 2005 on the Company'soperating results or financial condition; any continuation of pricingpressures and declining billing rates; difficulties relating to theimplementation of management changes throughout the Company; and the outcomeof pending and future legal and regulatory proceedings and investigations.

MedQuist [2005-08-13]
It says they have continued to be able to attract and retain clients - Not UNC! They lost that account years ago due to (big surprise) billing inconsistencies that they couldn't explain. That's a big account to lose, too.

Dictaphone Announces Significant Growth in Its iChart [2005-08-09]
Dictaphone Announces Significant Growth in Its iChart(R) Managed Services Program; Responds to Increasing Demand for Low-cost, High-accuracy Transcription, Leveraging Speech Recognition and Dedicated Network of Service Partners Aug. 8, 2005--Dictaphone announced today that its iChart(R) Managed Services program experienced substantial growth in the first half of 2005. iChart Managed Services uses an ASP model to combine the power of Dictaphone's industry-leading speech recognition technology with a proven network of outsourced transcription service providers to deliver low-cost, high-accuracy transcription with rapid turn-around. The second quarter brought several milestones for the iChart ASP business: -- Overall number of lines invoiced per month surpassed 30 million -- Monthly invoiced line volume for outsourced services doubled from the end of 2004 -- Number of billable sites for iChart topped 300 -- Several significant new contracts were secured during the first half including Adventist Health System, Sarasota Memorial Hospital, and Guthrie Clinic. Other major iChart Managed Services customers include Allina Medical Clinics, Lifemark, and Massachusetts General Hospital. iChart Managed Services is seeing tremendous demand from a market that has been searching for new ways to lower transcription costs without compromising on accuracy, said Don Fallati, senior VP of marketing for Dictaphone. The success of the program is also a testament to the power of our underlying technology. Whether customers choose to use our software themselves or outsource the report editing process to our network of service partners, they still get the ROI that our speech recognition platform ensures. About Dictaphone's iChart Managed Services Dictaphone's iChart Managed Services offering aims to meet the needs of organizations currently relying heavily on outsourced transcription but who are attracted to the savings that can be generated by speech recognition. The program blends Dictaphone technology with labor provided by several major transcription service companies who have been trained to edit on the company's speech recognition platform. Customers receive a line rate covering work that is transcribed traditionally as well as documents edited from speech recognition. Frequently, significant savings can be achieved by healthcare organizations over current line charges. About Dictaphone Healthcare Solutions Group Dictaphone, ranked 31st in Healthcare Informatics ranking of top 100 companies by healthcare revenue, currently deploys dictation, transcription and speech recognition systems in some of the world's premier healthcare organizations. Its solutions automate and integrate critical elements in the creation and management of health information, helping healthcare organizations improve productivity and the quality of patient care. Dictaphone's flagship Enterprise Express(R) dictation, transcription and report management system is an integral part of the creation and flow of patient information in a substantial number of U.S. hospitals. It is estimated that it currently supports several hundred thousand physicians who use Dictaphone systems to generate an estimated two million reports a day. Dictaphone is also actively deploying its EXSpeech(R) and PowerScribe(R) speech recognition solutions, designed to dramatically reduce transcription costs and speed report turnaround. Dictaphone has also introduced the iChart(R) family of Internet subscription-based applications services provider (ASP) solutions that offer dictation, transcription, and speech recognition access, as well as the ability to integrate existing systems with new coding, natural language and data mining technologies, which can significantly reduce the costs of managing patient information. For sales and product information, visit Dictaphone at www.dictaphone.com or call 1-888-350-4836.

MedQuist Announces Key Findings of Independent Review [2005-08-05]
MedQuist Announces Key Findings of Independent Review of Client Billing MT. LAUREL, N.J., July 30 /PRNewswire-FirstCall/ -- MedQuist Inc. (MEDQ.PK), a leading provider of electronic medical transcription, health information and document management services, today announced the key findings of an independent review of the company's billing methods. The findings were presented to the company's Board of Directors, which initiated a broad program of changes and reforms to the company's business practices. The Board of Directors also took disciplinary action against certain company employees. The Board of Directors announced today changes in its senior management. Howard S. Hoffmann, an experienced and accomplished interim manager, has been appointed as MedQuist's interim CEO with a clear mission to implement the changes and reforms to the company's business practices, including its billing practices, and to bring the company current in its SEC filings. Steve Rusckowski, who had temporarily assumed the CEO position in December 2003 in addition to his Board position and led the company through the difficult period of the independent review, will continue as a member of the MedQuist Board. The Board also announced that it has accepted the resignations of its Chief Financial Officer, Brian Kearns, and its Chief Legal Officer, John Suender. This was an extremely thorough and comprehensive review that has clearly identified areas in which we must make changes and improvements, said Scott Weisenhoff, the lead Director on the review. Added Howard S. Hoffmann, who is also a principal and partner at Nightingale Associates, LLC, of Stamford, CT.: Our priority mission now is to work with our customers to clarify and, where appropriate, rectify any problems, make the needed changes and reforms internally, and become current in our SEC filings. The changes we are making address a pressing industry challenge and our goal is to ensure that billing methods are reliable, accurate, measurable and verifiable to customers using transcription services. We hope that our actions will encourage other medical transcription companies to address the challenge presented by AAMT line-based billing methods. Review Findings The review, conducted for the Board of Directors by Debevoise Plimpton LLP and PricewaterhouseCoopers LLP, identified a number of issues regarding the company's billing practices. The review found that with respect to its contracts that called for billing based on the AAMT line, the company used ratios and formulas to determine the number of AAMT transcription lines for which clients were billed rather than counting the number of relevant characters to determine a billable line as provided for in the contracts. With respect to these contracts, the company's use of ratios and formulas as a surrogate for counting was generally not disclosed to the clients. In addition, a company employee explained inaccurately to KPMG LLP (KPMG), the company's outside auditors, the computation of AAMT lines on one of the company's major transcription platforms. The use of ratios and formulas caused some clients to be billed more and some to be billed less than if the counting method provided for in the contracts had been used. In addition, the ratios and formulas for certain client accounts were changed by the company, generally without disclosure to clients, in order to affect profit margins. Due to the ambiguities inherent in the AAMT line definition and the limited extent of the information available to the company for earlier periods, the company is unable at this time to determine with any reasonable certainty the aggregate amount of overbilling. The AAMT line definition was originally developed in the early 1990s by three major medical transcription industry groups, including The American Association for Medical Transcription (AAMT). They defined a line as 65 characters and also defined the term character to include such things as macros and function keys. However, these definitions turned out to be inherently ambiguous and difficult to apply in practice. AAMT itself withdrew its endorsement of these units of measure in 1998. However, many buyers of transcription services have continued to purchase transcription services and issue requests-for-proposals that ask for quotes in AAMT line units. The review concluded that the rationale for using the ratios and formulas was to adopt a consistent and commercially reasonable billing method, given the lack of common standards in the industry and the ambiguities inherent in the AAMT definition. The review found no evidence that the amounts MedQuist billed clients, in general, were commercially unfair or inconsistent with what competitors would have charged. Moreover, MedQuist has been able to attract and retain clients in a competitive market. The next step for the company is to assess the financial impact on customers and on MedQuist. When the financial assessment has been finished and KPMG has completed its consideration of the review findings, and pending any additional work KPMG may believe appropriate to do as a result of the findings, MedQuist anticipates that KPMG will then be able to complete its audit of the company's 2003 financial statements and its review of MedQuist's interim quarterly results. Until KPMG's audit and review have been completed, MedQuist will be unable to finalize its financial statements and file its Form 10-K for the year ended December 31, 2003 and its Form 10-Q for the quarter ended March 31, 2004. The company also will likely not be able to file its Form 10-Q for the quarter ended June 30, 2004 in a timely manner. Because the company has not yet completed its financial assessment and the results have not been reviewed by KPMG, MedQuist is unable at this time to estimate with any reasonable certainty the effect that the review of its billing practices may have on its reported revenues, results of operations and financial position. MedQuist has also been informed by the staff of the Securities and Exchange Commission that the SEC has opened a formal investigation of the company. The company will continue its efforts to cooperate with the SEC, as it has since it voluntarily advised the SEC of the company's review of its billing methods. Business Practice Reforms and Management Changes The Board of Directors has outlined a broad program of business practice changes and reforms that will be instituted beginning immediately. Highlights include: * Enhance a mandatory and formal ethics training program that was recently instituted. * Accelerate an existing program that is migrating clients from several disparate legacy billing platforms to the company's new platform, DocQment Enterprise Platform, or DEP. The company intends to utilize only consistent, client-verifiable billing units of measure. Additionally, the company will meet with clients currently billed on the basis of an AAMT line definition to determine an alternate and verifiable unit of measure acceptable to the client pending their agreement to convert to the new platform. MedQuist has succeeded in converting approximately 35% of its transcription revenue to DEP. * Develop definitive and clear protocols for count methodology and billing, institute periodic internal audits and new reporting mechanisms to make sure all billing systems are in accordance with client contracts. * Reform the contract review and administration process to clarify any ambiguous terms with respect to units of billing, and develop a centralized contracts administration database to track compliance with client contracts. * Expand the customer feedback system to allow entry, by any employee, of customer comments and complaints. * Assign a Chief Compliance Officer to develop, maintain and enforce compliance with all company policies and procedures. The Board also took disciplinary action against five MedQuist employees. Said Gregory Sebasky, MedQuist's President: We believe that we have done what is necessary and appropriate in light of the results of the review. We will continue to build a strong and motivated organization and continue MedQuist's commitment to a high standard of ethics and customer satisfaction. Statements in this press release that are not historical facts are forward-looking statements within the meaning of the securities laws and regulations. These include statements regarding becoming current in SEC filings, solidifying relationships with our customers and any other expectations or anticipated events. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially.

clearly explains billing problem and why financial statements were not able to be filed. [2005-08-05]
x

VBC obscures line counting [2007-06-25]
VBC is an invention by Medquist to further obscure the line counting mess they created. MedQuist and Spheris dominated the committees that recommended this awful concept.

VBC- just another way to rip us off. Dowetypereportslikethisnottomentionalltheworkwedonotgetpaidfor! [2007-05-26]
Do we get paid when the doctor changes his mind and redictates? No. Do we get paid extra when the doctor does not dictate the date of exam or the correct one, and we have to dig through 100 patient sheets? No. Do we get paid for looking up the spellings of doctors' names and addresses? No. Does the amount we are now getting paid cover software expenses, AAMT dues, business license, tax accountant, reference books, computers, car expenses for those accounts that insist on tapes that only put 1-2 reports on the tape that do not even cover gas or time spent driving/getting dressed, IT techs, phone lines, template setups, training other MTs, call-in systems, transcribers, foot pedals, office rent, medical expenses related to work injuries, paid time of when seeing a doctor for these injuries, surgeries, etc.? Not hardly. I have 7 years of experience working over 120 hours a week, 7 days a week and make less per line than the first 2 weeks I was interning in college. Jeesh, we have to hit the space bar to separate words. If you have radiculopathies as bad as I do, each keystroke hurts like heck, and I should get paid for it. Unfortunately, I cannot say space to my computer, and it magically puts it in. Just for once, instead of the doctors cutting our paycheck, why not going after the overpaid HIM department who came up with this hairbrain idea!!! They are on salary. It does not cost them money to go to the bathroom, yet everytime we take our hands off the keyboard, we pay! How would the HIM department like to read their reports like this? Laboratorydata:Completebloodcountstodayevealawhitebloodcellcountof,000/mm3,hemoglobin of2.3gm/dL,andaplateletcountof93,000/mm3. I say they can pick up my medical bills, which in the last 2 years were over $3 million with us paying over $90,000. Did I remember to include all the money it costs in lost work to apply for a job only to get ripped off on your paychecks or have them pay so late that after late fees, there is nothing left. Oh yeah, advertising, websites, e-mail accounts, FTP, cell phone, fax lines, equipment, equipment, equipment.

Medware [2007-01-30]
Hi I applied to Medware, still waiting to get my results. How long does it take? I did the tests a couple of weeks ago now.

DocQment(TM) Ovation - MedQuist Launches Next-Generation [2006-07-07]
MOUNT LAUREL, N.J., June 29 /PRNewswire-FirstCall/ -- Today's healthcare providers face what appear to be several conflicting challenges in the area of dictation. Pressures to decrease costs and improve productivity must be weighed against the need to demonstrate compliance and increase physician choice and satisfaction. To help its customers meet these challenges, Medquist Inc. (Pink Sheets: MEDQ) has introduced DocQment(TM) Ovation, a Web-based, enterprise digital voice capture and transport solution. Studies by the Healthcare Information and Management Systems Society (http://www.himss.org/) have shown that when considering the purchase of a new dictation system, providers value HIPAA compliance most highly, followed by Web-based, centralized administration and automatic document routing. Because Ovation is Web-based, it offers easy-to-use tools to manage documents, users and workflow from any computer with Internet access, creating numerous opportunities for productivity improvement. Physicians can select from a variety of options for capturing their dictation, including telephones, PDAs, and desktop computer-based dictation devices. DocQment Ovation is our newest technology innovation developed in direct response to industry feedback and providers' interest in replacing previous- generation dictation systems, says Scott Bennett, MedQuist senior vice president of Sales and Marketing. An integral component of our growing technology portfolio, Ovation helps to provide an end-to-end solution from dictation to billing, including front-end and back-end speech recognition. Document Ovation was specifically engineered to be compatible with MedQuist's previous-generation dictation stations, thus facilitating the retention and recruitment of transcriptionists, and making it easy for providers to upgrade with little or no physician retraining required. Deployed at the customer's location, Ovation provides an enterprise view that allows transcription supervisors to easily manage users, documents and voice files from a single dashboard instead of using multiple systems. Ovation's sophisticated configuration options enable administrators to easily track work and share resources in order to get the right document to the right Transcriptionist at the right time. According to Emmy Weber, MedQuist vice president of Product Management, Breakthrough capabilities engineered into DocQment Ovation, like the ability to define the date that begins the aging process for documents (including admit date and date of discharge), give users better information at the point of dictation to improve workflow, accuracy and report routing. With MedQuist's help, we configured DocQment Ovation around the way we do business, says Wanda Newton, HIM director at Maury Regional Healthcare System, a three-hospital system located in Tennessee. With Ovation, we are now managing our hospitals and departments more efficiently. We saw a 34 percent increase in productivity in the first two months of use of Ovation, a positive trend that we expect will continue. Ovation is available for immediate installation. For more information, contact a local MedQuist representative or dial 1-877-489-1500 for sales assistance. MedQuist, a member of the Philips Group of Companies, is a leading provider of clinical documentation workflow solutions in support of the electronic health record. MedQuist provides electronic medical transcription, health information and document management products and services, including digital dictation, speech recognition, Web-based transcription, electronic signature, medical coding, mobile dictation devices, and outsourcing services.

Spheris Completes Acquisition of Vianeta Communications [2006-05-11]
FRANKLIN, Tenn., May 8 /PRNewswire-FirstCall/ -- Spheris, a leadingglobal provider of medical transcription technology and services, todayannounced the completion of its acquisition of Vianeta Communications, aleading developer and supplier of enterprise-wide clinical documentationtechnology for hospitals, health systems and group practices. The acquisition further expands Spheris' ability to deploy technologyand service solutions for healthcare providers of any size and complexity.Virtually all healthcare specialties, including radiology, will be able tobenefit from Spheris' enhanced clinical documentation technology andservice options. Customers are telling us they want an integrated technology andservice solution that is flexible enough to be combined and deployedeffectively across their health information management and radiology ITsystems, said Steven E. Simpson, Spheris president and chief executiveofficer. The acquisition of Vianeta significantly expands Spheris'technological capabilities, including speech recognition and XML datatagging for use with electronic health records, and thereby enhances ourabil