SEC Form 5

FORM 5
[  ] Check this box if no longer
subject to Section 16. Form 4 or Form 5 obligations may continue.
See Instruction 1(b).
[  ] Form 3 Holdings Reported
[  ] Form 4 Transactions Reported UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person^* Thoele, Charles E. (Last)                      (First)                      (Middle) 945 East Paces Ferry Road Suite 1475 (Street) Atlanta,    GA   30326 (City)                      (State)                      (Zip)
2. Issuer Name
and Ticker or Trading Symbol
Transcend Services, Inc.
TRCR 3. I.R.S. Identification
    Number of Reporting
    Person, if an entity
    (voluntary) 4. Statement for
    Month/Year
12/2002
5. If Amendment,
    Date of Original
    (Month/Year)
6. Relationship of Reporting Person(s) to Issuer (Check all applicable)
X Director      10% Owner    Officer (give title below)        Other (specify below)
Description           7. Individual or Joint/Group
    Filing (Check Applicable Line)
X   Form filed by One Reporting Person      Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1. Title of Security     (Instr. 3)	2.Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction     Code     (Instr. 8)	4. Securities Acquired (A) or Disposed Of (D)     (Instr. 3, 4, and 5)         Amount      /         A/D         /         Price	5. Amount of     Securities     Beneficially     Owned at end of     Issuer's Fiscal Year     (Instr. 3 and 4)	6. Owner-     ship     Form:     Direct (D)     or     Indirect (I)     (Instr. 4)	7. Nature of      Indirect      Beneficial      Ownership     (Instr. 4)
Common Stock, par value $0.05				/ / $	9,268	I	(1) Trust
Common Stock, par value $0.05				/ / $	10,000	I	(1) Trust
Series A Preferred Stock				/ / $	2,000	I	(1) Trust

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned

(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security     (Instr. 3)	2. Conver-     sion or     Exercise     Price of     Deri-     vative     Security	3. Transaction Date (Month/ Day/ Year)	3A. Deemed Execution Date, if any (Month/ Day/ Year)	4. Transaction Code     (Instr.8)	5. Number of Derivative     Securities Acquired (A)     or Disposed Of (D)     (Instr. 3, 4 and 5)   A     or     D	6. Date Exercisable(DE) and     Expiration Date(ED)     (Month/Day/Year)   DE     /     ED	7. Title and Amount of     Underlying Securities     (Instr. 3 and 4) Title     /         Amount or Number of Shares	8. Price     of     Derivative     Security     (Instr.5)	9. Number of     Derivative     Securities     Beneficially     Owned     at End of Year     Reported     Transaction(s)     (Instr.4)	10. Owner- ship Form of Deriv- ative Securities: Direct (D) or Indirect (I) (Instr.4)	11. Nature of       Indirect       Beneficial       Ownership       (Instr.4)
Series A Convertible Preferred Stock, convertible into Common Stock, par value $0.05	$16.875	11/14/97		P	2,963 A	11/14/97 / N/A	Common Stock / 2,963	$16.875	2,963	I	(1) Trust

Explanation of Responses:

(1) Held by FBO C. Thoele Lifetime Trust

By:	Date:
/s/ Charles E. Thoele	01/16/2003
** Signature of Reporting Person	SEC 2270 (09-02)
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. * If the form is filed by more than one reporting person, see Instruction 4(b)(v). ** 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 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.