Bangalore, Feb 05, 2010: CBaySystems Holdings, one of the leading providers of technology-enabled medical transcription and related healthcare revenue cycle solutions, announces that two of its subsidiaries have agreed to purchase Spheris, a global provider of clinical documentation technology and services that recently filed for Chapter 11 bankruptcy protection. The proposed transaction will take place pursuant to Section 363 of the United States Bankruptcy Code and will be governed by a court-directed bidding process, subject to applicable regulatory, company, and court approvals. CBay's subsidiaries - MedQuist and CBay - have entered into a 'stalking horse' purchase agreement with Spheris, whereby, subject to court approval, MedQuist will acquire the company's North American business, and CBay will acquire the stock of Spheris India, a subsidiary of Spheris.

Spheris is based in Franklin, Tennessee, and has operations in North America and India. The transaction is expected to allow Spheris' customers to benefit both from an industry-leading technology platform offered by CBay's group company MedQuist and the integration of Spheris India with CBay's Indian subsidiary, CBay Systems (India) (CBay India), one of India's largest healthcare business processing outsourcing (BPO) companies.

If the CBay purchase agreement is approved and the conditions therein satisfied, it is expected that the transaction will be completed in the first half of 2010.