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      &amp;#160; &lt;b&gt;Nature of Operations and Basis of

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;ExamWorks

      Group, Inc. (&amp;#8220;ExamWorks&amp;#8221; or the

      &amp;#8220;Company&amp;#8221;) is a leading provider of independent

      medical examinations (&amp;#8220;IMEs&amp;#8221;), peer and bill

      reviews and related services (&amp;#8220;IME services&amp;#8221; or

      the &amp;#8220;IME industry&amp;#8221;). ExamWorks, Inc. was

      incorporated as a Delaware corporation on April 27, 2007. In

      2008, ExamWorks, Inc. acquired three companies operating in

      the IME industry. In 2009, ExamWorks, Inc. acquired 11 other

      IME companies, including a provider of software solutions to

      the IME industry. In 2010, ExamWorks, Inc. acquired 14

      additional IME companies. In 2011, ExamWorks, Inc. acquired

      nine additional IME companies.&amp;#160;&amp;#160;In 2012, ExamWorks,

      Inc. acquired three additional IME companies. To date, the

      Company has acquired 40 IME companies. As of June 30, 2013,

      ExamWorks, Inc. operates out of 57 service centers serving

      all 50 United States, Canada, the United Kingdom and

      Australia. In June 2010, ExamWorks, Inc. effected a corporate

      reorganization creating a holding company, ExamWorks Group,

      Inc., with ExamWorks, Inc. becoming a 100%

      owned&amp;#160;subsidiary of ExamWorks Group, Inc. In the fourth

      quarter of 2010, the Company completed an Initial Public

      Offering (&amp;#8220;IPO&amp;#8221;) of 9.3 million shares of common

      stock.&amp;#160;&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      consolidated financial statements of the Company as of June

      30, 2013 and for the periods ended June 30, 2012 and 2013

      included herein have been prepared pursuant to the rules and

      regulations of the Securities and Exchange Commission

      (&amp;#8220;SEC&amp;#8221;) and have not been audited by its

      independent registered public accounting firm. In the opinion

      of management, all adjustments of a normal and recurring

      nature necessary to present fairly the financial position and

      results of operations and cash flows for all periods

      presented have been made. Pursuant to SEC rules and

      regulations, certain information and footnote disclosures

      normally included in financial statements prepared in

      accordance with U.S. generally accepted accounting principles

      (&amp;#8220;U.S. GAAP&amp;#8221;) have been condensed or omitted from

      these statements unless significant changes have taken place

      since the end of the Company's most recent fiscal year. The

      Company's December 31, 2012 Consolidated Balance Sheet was

      derived from audited consolidated financial statements and

      notes included in the Company's Annual Report on Form 10-K

      for the year ended December 31, 2012, but does not include

      all disclosures required by U.S. GAAP. It is suggested that

      these consolidated financial statements be read in

      conjunction with the consolidated financial statements and

      notes included in the aforementioned Form 10-K. The results

      of operations for the three and six months ended June 30,

      2013 are not necessarily indicative of the results that may

      be expected for the year ending December 31, 2013.&lt;/font&gt;

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      &lt;font style="FONT-FAMILY: Times New Roman, Times, serif; FONT-SIZE: 10pt"&gt;The

      consolidated financial statements include the accounts of

      ExamWorks and&amp;#160;its 100% owned subsidiaries. Significant

      intercompany accounts and transactions have been eliminated

      in consolidation.&lt;/font&gt;

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