UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 5
ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP
( ) Check box if no longer subject to Section 16.
Form 4 or Form 5 obligations may continue. See Instructions 1(b).
( ) Form 3 Holdings Reported
( ) Form 4 Transactions Reported
1. Name and Address of Reporting Person
Grimes, Jon C.
c/o TELLABS OPERATIONS, INC.
4951 Indiana Avenue
Lisle, IL 60532
USA
2. Issuer Name and Ticker or Trading Symbol
Tellabs, Inc.
(TLAB)
3. IRS or Social Security Number of Reporting Person (Voluntary)
4. Statement for Month/Year
December 27, 1996
5. If Amendment, Date of Original (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
( ) Director ( ) 10% Owner (X) Officer (give title below) ( ) Other
(specify below)
Vice President, Network Access Division, Tellabs Operations, Inc. (Subsidiary
of Issuer)
7. Individual or Joint/Group Reporting (Check Applicable Line)
(X) Form filed by One Reporting Person
( ) Form filed by More than One Reporting Person
<TABLE>
<CAPTION>
___________________________________________________________________________________________________________________________________
Table I -- Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1. Title of Security |2. |3. |4.Securities Acquired (A) |5.Amount of |6.Dir |7.Nature of Indirect |
|Transaction| or Disposed of (D) | Securities |ect | Beneficial Ownership |
|Date |Code| | Beneficially |(D)or | |
| | | | A/| | Owned at |Indir | |
| | | Amount | D | Price | End of Year |ect(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock |(1) |T |722.897 |A |(1) |3,298.219 (2) |I |(1) |
- -----------------------------------------------------------------------------------------------------------------------------------|
Common Stock | | | | | |(3) | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
<CAPTION>
___________________________________________________________________________________________________________________________________
Table II -- Derivative Securitites Acquired, Disposed of, or Beneficially Owned |
___________________________________________________________________________________________________________________________________|
1.Title of Derivative |2.Con |3. |4. |5.Number of De |6.Date Exer|7.Title and Amount |8.Price|9.Number |10.|11.Nature of|
Security |version |Transaction rivative Secu |cisable and| of Underlying |of Deri|of Deriva |Dir|Indirect |
|or Exer |Date |Code| rities Acqui |Expiration | Securities |vative |tive |ect|Beneficial |
|cise Pr | | | red(A) or Dis |Date(Month/| |Secu |Securities |(D)|Ownership |
|ice of | | | posed of(D) |Day/Year) | |rity |Benefi |or | |
|Deriva | | | |Date |Expir| | |ficially |Ind| |
|tive | | | | A/|Exer-|ation| Title and Number | |Owned at |ire| |
|Secu | | | | D |cisa-|Date | of Shares | |End of |ct | |
|rity | | | Amount | |ble | | | |Year |(I)| |
___________________________________________________________________________________________________________________________________|
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Employee Stock Options |$ 28.625|7/22/|J (|20,000 |A |(5) |7/22/|Common Stock|20,000 | | | | |
(Rights to Buy) |0 |96 |4) | | | |06 | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Employee Stock Options |$ 1.531| | | | | | |Common Stock|30,000 | | | | |
(Rights to Buy) (6) |3 | | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Employee Stock Options |$ 5.000| | | | | | |Common Stock|60,000 | | | | |
(Rights to Buy) (6) |0 | | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
Employee Stock Options |$ 16.687| | | | | | |Common Stock|20,000 | |130,000 (2)|D | |
(Rights to Buy) (6) |5 | | | | | | | | | | | | |
- -----------------------------------------------------------------------------------------------------------------------------------|
___________________________________________________________________________________________________________________________________|
</TABLE>
Explanation of Responses:
(1) These shares are held for the benefit of the reporting person in the
Tellabs Advantage Plan. 722.897 shares
were acquired during the fiscal year at prices ranging from $15.25 (post-split)
to $45.25 (post-split). The
information reported herein is based on a plan statement as of December 27,
1996.
(2) These holdings have been modified to reflect the effect of the 2-for-1
stock split effective November 15, 1996.
(3) The reporting person no longer has reportable beneficial interest in 120
shares (as adjusted for the 2-for-1
stock split effective November 15, 1996) owned by his daughter and included in
the reporting person's prior
ownership
reports.
(4) 10,000 options at a per share exercise price of $57.250 were originally
granted under a Tellabs, Inc. Employee
Stock Option Plan in a transaction exempt under old Rule 16b-3. The stock
options have been adjusted to reflect the
2-for-1 stock split effective November 15,
1996.
(5) All options become exercisable in cumulative annual installments of 25% on
each of the 1st, 2nd, 3rd and 4th
anniversaries of the grant
date.
(6) These stock options were previously reported as options for 15,000, 30,000
and 10,000 shares respectively, at
per share exercise prices of $3.0626, $10.0000 and $33.3750, respectively, each
as adjusted for all prior stock
splits and other transactions and have been further adjusted to reflect the
2-for-1 stock split effective November
15, 1996.
SIGNATURE OF REPORTING PERSON
Jon C. Grimes
