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updated 01:13, Sat November 03, 2007

Royal Philips Electronics to Sell MedQuist Stake, Resulting in Loss of About $462.5 Million

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AMSTERDAM, Netherlands (AP) -- Royal Philips Electronics NV said Friday that it will file an amendment to a filing with the Securities and Exchange Commission regarding the sale of a stake in MedQuist Inc.

The sale will result in a loss of about euro320 million (US$462.5 million) to be accounted for in the fourth quarter of 2007, and which will be presented under discontinued operations.

The announcement follows a July announcement, when Philips indicated it was reviewing all of its options with respect to its ownership of MedQuist.

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.

Meanwhile, MedQuist Inc. said it is evaluating whether a sale of the company "is in the best interests of the company and its shareholders

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