Threshold Broadcast Encryption (TBE) is a promising extension of threshold cryptography with its advantages over traditional threshold cryptosystems, such as eliminating the need of a trusted party, the ability of setting up the system by individual users independently and the ability of choosing the threshold parameter and the group of privileged receivers at the time of encryption. An ElGamal-based solution for TBE was proposed by Ghodosi et al. In this paper, we propose an improved ElGamal-based TBE scheme with reduced transmission cost. ©2007 IEEE.