Open Enterprise Manager, right-click on the database, select properties
Go to the Options tab and make sure that Simple Recovery is selected for Recovery Models. (If Full Recovery is selected, then it would not be possible to truncate the file which is the next step)
Then right-click on the database again and select Shrink Database. On the "Shrink Database" window, Click on FILES button
Select the transactional log from DATABASE FILE, and select the option TRUNCATE FREE SPACE FROM THE END OF THE FILE on the SHRINK ACTION choices. After shrinking, the Current Size and Space Used should decrease significantly.
H. M.