MedQuist Announces Notice Of Transcriptionist Class Action Lawsuit

MT. LAUREL, N.J., Dec. 10 /PRNewswire-FirstCall/ -- MedQuist Inc. (MEDQ.PK), a leading provider of electronic medical transcription, health information and document management services, today announced that it has received notice of a putative class action lawsuit filed against the company in the United States District Court for the Northern District of Georgia. The action, entitled Brigitte Hoffman, 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, from January 1, 1998 to present (the "Class Period"), who are or were compensated on a "per line" basis for medical transcription services (the "Class Members"). The complaint specifically alleges that defendants systematically and wrongfully underpaid the Class Members during the Class Period. The complaint asserts 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 ("RICO") Act violations. Plaintiffs seek unspecified compensatory damages, punitive damages, disgorgement and restitution.

MedQuist has retained the law firm of Winston & Strawn LLP to represent it in the matter.

"MedQuist takes all allegations concerning its payroll practices seriously", MedQuist Chief Executive Officer Howard S. Hoffmann said. "We are diligently addressing this matter while continuing to deliver the highest levels of service to our customers. Once we've completed a review of the allegations MedQuist will respond to the suit appropriately, according to the best interests of our employees, customers and shareholders."

About MedQuist

MedQuist is a leading provider of electronic medical transcription, health information and document management services. MedQuist provides document workflow management, digital dictation, speech recognition, mobile dictation devices, Web-based transcription, electronic signature, medical coding products and outsourcing services. MedQuist is a member of the Philips Group of Companies.

"Safe Harbor" Statement under the 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. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward- looking statements, see "Forward Looking Statements" in the Company's Annual Report or Form 10-K for the fiscal year ended 2002.

Contact: Craig Martin Ruder Finn D.C. 202.974.5045 martinc@RuderFinn.com

CONTACT: Craig Martin, Ruder Finn D.C., +1-202-974-5045,martinc@RuderFinn.com, for MedQuist Inc.