Transcend Subsidiary Cascade Announces New Sales VP

Business Wire, June 4, 2001

Business Editors

ATLANTA--(BUSINESS WIRE)--June 4, 2001

TRANSCEND SERVICES, INC. (TRCR: NASDAQ) announced today that Steven J. Butler has joined Cascade Health Information Software, Inc. ("Cascade"), a wholly-owned subsidiary of Transcend, in the capacity of Vice President of Sales and Marketing. Butler's 16 years of industry experience include similar posts at Codemaster, Inc. and, most recently, QuadraMed Corporation (QMDC: NASDAQ).

Bill Henderson, Cascade's President, commented: "Steve brings a wealth of industry experience and a proven track record of sales to our organization. Cascade is well positioned under Steve's sales leadership to enhance the sales momentum that Cascade demonstrated with its record first quarter revenue of $658,000, which fueled profitable operations for Cascade in the first quarter of 2001. Coupled with the promotion of Todd Tyler to Manager of Client Services, our sales and support teams are poised for even greater accomplishments in the future."

Larry Gerdes, Transcend's President & CEO, added: "Cascade is making important contributions to Transcend's overall progress and improved financial results. Cascade's sales momentum and the market's acceptance of Cascade's products were important factors in Steve Butler's decision to join the Cascade team. We are also excited about the opportunity to expand Cascade's product offering with Transcend's T2K transcription platform coupled with our Internet-based dictation and distribution transcription networks. In addition, Cascade has plans to move its market leading coding and abstracting solutions to an Internet platform."

About Transcend and Cascade

Transcend Services, Inc. (www.transcendservices.com) and subsidiary provide medical transcription services and coding and abstracting software to the healthcare industry. Powered by its web-based voice and data distribution technology, Transcend's home-based medical transcription professionals document patient care by converting physicians' voice recordings into electronic medical record documents. Cascade Health Information Software, Inc. (www.Cascadehq.com ) provides state-of-the-art software for the coding and abstracting of patient medical records.

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.