Transcend and M*Modal Sign New Speech Understanding™ Technology Agreement

TRANSCEND SERVICES, INC. TRCR today announced that it has entered into a new agreement with Multimodal Technologies, Inc. (“M*Modal”) under which M*Modal will continue to provide Speech Understanding technology to Transcend. The new agreement, which amends a 2006 agreement, has an initial term ending on December 31, 2012, followed by four one year renewal terms through December 31, 2016, unless Transcend (at its sole option) elects not to renew for any such one-year renewal term. After the fourth renewal term, the agreement automatically renews for successive one year terms unless terminated by either party with proper notice. Pricing remains unchanged based on current volume levels. “Since we entered into our partnership in 2004, M*Modal's technology has been integrated into our clinical documentation workflow platform, which has allowed us to dramatically improve the productivity of our medical transcriptionists, improve turnaround times for our customers and reduce our cost per document,” stated Larry Gerdes, Transcend's Chief Executive Officer. “With our new EncoreTM clinical documentation platform, customers with in-house transcription departments can now take advantage of M*Modal's Speech Understanding technology and our workflow expertise to drive the same types of improvements at their hospitals.”