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                                                                    EXHIBIT 11.1

                       TRANSACT TECHNOLOGIES INCORPORATED
                        Computation of Earnings Per Share
                                   (unaudited)



                                                        THREE MONTHS ENDED                  SIX MONTHS ENDED
                                                             JUNE 30,                           JUNE 30,
(In thousands, except per share data)                 2003              2002              2003             2002
                                                    ---------         ---------        ---------         ---------
                                                                                             
Net income                                          $     787         $     289        $     589         $     160
Dividends and accretion on preferred stock                (89)              (89)            (179)             (179)
                                                    ---------         ---------        ---------         ---------
Net income (loss) available to common
   shareholders                                     $     698         $     200        $     410         $     (19)
                                                    =========         =========        =========         =========

Shares:
   Basic - Weighted average common shares
     outstanding                                        5,737             5,626            5,706             5,615
   Dilutive effect of outstanding options and
     warrants as determined by the treasury
     stock method                                         310                 -              191                 -
                                                    ---------         ---------        ---------         ---------
   Dilutive - Weighted average common and
     common equivalent shares outstanding               6,047             5,626            5,897             5,615
                                                    =========         =========        =========         =========

Net loss per common and common equivalent share:
     Basic                                          $    0.12         $    0.04        $    0.07         $       -
                                                    =========         =========        =========         =========
     Diluted                                        $    0.12         $    0.04        $    0.07         $       -
                                                    =========         =========        =========         =========