Expected next investor conference call information:
Conference Call Date: 10/28/2009
Conference Call Time (ET): 11:00 AM
Conference Call URL: http://www.transcendservices.com/investors.asp

Transcend has entered into a definitive agreement to acquire Medical Dictation Services for a consideration of $16.20 million.

The total consideration comprises $10.2 million in cash payable at closing, $2 million in cash payable after receipt of interim financial statements and audited financial statements for the last two fiscal years, $2 million note payable to the selling shareholder due one year after closing, and $2 million through the issue of 119,940 shares of Transcend common stock.

The initial cash portion of the purchase price is expected to be funded using a combination of cash on hand and up to $7 million in bank term debt.

The transaction is expected to close by August 31, 2009.

KPMG Corporate Finance, LLC and Suender M&A Advisors, LLC are acting as financial advisors to Medical Dictation Services.

Deal Type    Acquisition
Sub-Category Majority Acquisition
Deal Status  Completed: 2009-08-31

Deal Participants

Target (Company)   Medical Dictation Services, Inc.
Acquirer (Company) Transcend Services, Inc.

Deal Rationale

The acquisition will expand Transcend's national footprint with Medical Dictation Services' strong presence in the mid-Atlantic region.