MedQuist Holdings Announces Proposed Exchange Offer and Short-Form Merger for Remaining MedQuist Inc. Shares

MedQuist Holdings Inc. (Nasdaq:

) announced its intention to commence an exchange offer during the third quarter of 2011 for all the issued and outstanding shares of MedQuist Inc. common stock that it does not currently own on the same terms as the public exchange offer initiated on February 3, 2011 ("Initial Exchange Offer"). The Company and its affiliates currently own approximately 97% of the outstanding shares of MedQuist Inc. common stock. In the Initial Exchange Offer, each share of MedQuist Inc. common stock tendered and accepted was exchanged for one share of MedQuist Holdings common stock. Immediately following the Second Exchange Offer, the Company plans to conduct a short-form merger to acquire any remaining shares not tendered and accepted in the Second Exchange Offer. The Second Exchange Offer and the short-form merger are expected to be completed by the end of the fourth quarter of 2011.