<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
+--------+ +---------------------------+
| FORM 4 | U.S. SECURITIES AND EXCHANGE COMMISSION | OMB APPROVAL |
+--------+ WASHINGTON, D.C. 20549 |---------------------------|
[_] Check this box if |CMB Number: 3235-0287|
no longer subject STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP |Expires: September 30,1998|
to Section 16. |Estimated average burden |
Form 4 or Form 5 Filed pursuant to Section 16(a) of the Securities |hours per response......0.5|
obligations may Exchange Act of 1934, Section 17(a) of the +---------------------------+
continue. See Public Utility Holding Company Act of 1935 or
Instruction 1(b). Section 30(f) of the Investment Company Act of 1940
</TABLE>
(Print or Type Responses)
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1. Name and Address of Reporting Person*
Gerdes Larry G.
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(Last) (First) (Middle)
3353 Peachtree Road, Suite 1000
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(Street)
Atlanta, GA 30325
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(City) (State) (Zip)
2. Issuer Name and Ticker or Trading Symbol Transcend Services, Inc. (TRCR)
-----------------------------------
3. IRS or Social Security Number of Reporting Person (Voluntary) ###-##-####
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4. Statement for Month/Year December 1997
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5. If Amendment, Date of Original (Month/Year) 1-16-98
---------------------------------
6. Relationship of Reporting Person to Issuer (Check all applicable)
[x] Director [x] Officer [x] 10% Owner [ ] Other
(give title below) (specify below)
Chief Executive Officer
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7. Individual or Joint/Group Filing (Check applicable Line)
x Form filed by One Reporting Person
--
Form filed by More than One Reporting Person
--
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TABLE I--NON-DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
1. Title 2. Trans- 3. Trans- 4. Securities Acquired (A) 5. Amount of 6. Owner- 7. Nature
of action action or Disposed of (D) Securities ship of In-
Security Date Code (Instr. 3, 4 and 5) Beneficially Form: direct
(Instr. 3) (Month/ (Instr. 8) Owned at Direct Bene-
Day/ ----------------------------------------------- End of (D) or ficial
Year) Month Indirect Owner-
Code V Amount (A) or Price (Instr. 3 and 4) (I) ship
(D) (Instr. 4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Common Stock 12/08/97 M 100,000.000 A $1.938 777,849.000 D
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Common Stock 93,600.000 I by Spouse
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Common Stock 94,155.000 I by Daughter
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Common Stock 3,500,001.000 I by Partnership
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</TABLE>
Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
*If the form filed by more than one reporting person, see Instruction 4(b)(v).
Page 1
SEC 1474 (7-96)
<PAGE>
FORM 4 (continued)
TABLE II--DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
(e.g., puts, calls, warrants, options, convertible securities)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
1. Title of Derivative 2. Conver- 3. Trans- 4. Transac- 5. Number of Deriv-
Security (Instr. 3) sion or action tion Code ative Securities
Exercise Date (Instr. 8) Acquired (A) or
Price of (Month/ Disposed of (D)
Deriv- Day/ (Instr. 3, 4, and 5)
ative Year)
Security
---------------------------------------------------
Code V (A) (D)
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<S> <C> <C> <C> <C> <C> <C>
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Non-Qualified Stock Option
(right to buy) $3.750
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Incentive Stock Option (right
to buy) $1.938
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Non-Qualified Stock Option
(right to buy) $1.938 12/08/97 M 100,000.00
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Series A Convertible Preferred
Stock $3.375
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</TABLE>
TABLE II--DERIVATIVE SECURITIES ACQUIRED, DISPOSED OF, OR BENEFICIALLY OWNED
(e.g., puts, calls, warrants, options, convertible securities)--CONTINUED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
1. Title of Derivative 6. Date Exer- 7. Title and Amount of 8. Price 9. Number 10. Owner- 11. Na-
Security (Instr. 3) cisable and Underlying Securities of of Deriv- ship ture
Expiration (Instr. 3 and 4) Deriv- ative Form of In-
Date ative Secur- of De- direct
(Month/Day/ Secur- ities rivative Bene-
Year) ity Bene- Secu- ficial
(Instr. ficially rity: Owner-
-------------------------------------------- 5) Owned Direct ship
Date Expira- Amount or at End (D) or (Instr.
Exer- tion Title Number of of Indi- 4)
cisable Date Shares Month rect (1)
(Instr. 4) (Instr. 4)
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Non-Qualified Stock Option Common
(right to buy) 10/14/02 Stock 16,000.000 16,000.000 D
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Incentive Stock Option (right Common
to buy) 05/26/03 Stock 206,396.000 206,396.000 D
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Non-Qualified Stock Option Common
(right to buy) 05/26/96 05/26/03 Stock 100,000.000 0.000 D
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Series A Convertible Preferred Common
Stock 11/14/97 Stock 88,888.000 88,888.000 D
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</TABLE>
Explanation of Responses:
**Intentional misstatements or omissions of facts constitute Federal Criminal
Violations.
See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed.
If space provided is insufficient, see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained
in this form are not required to respond unless the form displays a currently
valid OMB Number.
/s/ Larry G. Gerdes 1/16/98
------------------------------- -----------------
**Signature of Reporting Person Date
Page 2
SEC 1474 (7-96)
