Exhibit 99.2

                                                  FOR IMMEDIATE RELEASE
                                         Contact: Larry Gerdes, President & CEO
                                                  404-364-8000
                                                  larry.gerdes@trcr.com

June 3, 2002
(BW) (TRANSCEND SERVICES, INC.)(TRCR)

TRANSCEND SELLS CASCADE

Atlanta, Georgia, TRANSCEND SERVICES, INC. (NASDAQ:TRCR), a leading provider of
transcription services to the healthcare community, announced that it sold
certain assets and the operations of Cascade Health Information Software, Inc.
("Cascade"), a wholly owned subsidiary of Transcend Services, Inc.
("Transcend"), to QuadraMed Corporation (NASDAQ: QMDC) for $1.25 million.

Cascade provides software for the coding and abstraction of patient medical
records. Cascade reported revenue of $2.0 million and $345,000 in 2001 and for
the three months ended March 31, 2002, respectively. Transcend reported
consolidated revenue of $13.8 million and $3.3 million for the same periods,
respectively. Since the transaction is effective May 31, 2002, Cascade's
operating results for the five months ended May 31, 2002 will be included in
Transcend's consolidated operating results for the three and six-month periods
ended June 30, 2002.

Larry Gerdes, President & CEO, commented on the sale of Cascade: "This strategic
transaction helps both parties. Transcend can now focus entirely on its core
business of providing transcription services to the healthcare industry under a
relatively predictable recurring revenue business model. QuadraMed can broaden
its market offering and strengthen its market share in the health information
management sector. Both Cascade's customers and its employees will benefit from
this transaction."

Mr. Gerdes further stated: "From a financial perspective, this transaction has
additional advantages to Transcend. The projected gain on the sale of Cascade
enables Transcend to re-achieve compliance with the continued listing
requirements of the Nasdaq SmallCap Market. Further, the cash generated from the
sale of Cascade will bolster Transcend's cash reserves and enhance our overall
financial condition."

Transcend Services, Inc. ( www.transcendservices.com ) provides medical
transcription services to the healthcare industry. Powered by its web-based
voice and data distribution technology, the Company's home-based medical
transcription professionals document patient care by converting physicians'
voice recordings into electronic medical record documents.



This press release contains forward-looking statements that involve a number of
risks and uncertainties. Among the important factors that could cause actual
results to differ materially from those indicated by such forward-looking
statements are competitive pressures, changes in pricing policies, delays in
contract start dates, lower-than-expected demand for Transcend's solutions,
business conditions in the integrated healthcare delivery network market,
general economic conditions and the risk factors detailed from time to time in
Transcend's periodic reports and registration statements filed with the
Securities and Exchange Commission.

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