Cambridge, MA— August 05, 2002 — Bitstream Inc. (Nasdaq: BITS), announced today that David Frenkel has been named General Manager of Pageflex, Inc., a wholly-owned subsidiary of Bitstream Inc.

David Frenkel is best known in the U.S. newspaper and publishing industry as the Founder and CEO of Pentawave, Inc., which develops print and Internet classified and display ad systems for the automotive, real estate and employment industries. He also founded other companies that pioneered the automation of classified ads, catalogs and directories. In addition, his media industry experience includes senior positions held with hardware, software and consulting firms, including being the Director of Sales and Marketing for the Optronics Division of Intergraph, with responsibility for newspapers and magazines.

Mr. Frenkel was most recently COO of Media Command Americas, which just merged with Atex. Media Command is a supplier of newspaper pre-press systems.

"We are very pleased that David Frenkel is joining us as General Manager of Pageflex," said Charles Ying, Chief Executive Officer of Bitstream and President of Pageflex. "A Fortune 500 executive, David brings relevant experience in the newspaper and publishing industry to our company. With the addition of David Frenkel to our executive staff, we expect Pageflex to continue to grow, based on the solid foundation established by former Vice-President Sang Lee."

Bitstream Inc. (Nasdaq: BITS) is the leading developer of font technology, digital fonts, and custom font designs. Bitstream licenses its award-winning TrueDoc and Font Fusion technologies to Web and application developers, and to manufacturers of information appliances, wireless and handheld devices, set-top boxes, embedded systems, and printers. Setting the standard for excellence in font technology, Bitstream holds numerous key patents in the U.S. that cover the creation of portable fonts for the Internet. Building on this experience, Bitstream has released ThunderHawk, a breakthrough technology for the wireless Web.

Founded in 1981, Bitstream is the first digital font foundry. In 1999, Bitstream created MyFonts.com, Inc. (http://www.myfonts.com), the Web site for finding, trying, and buying fonts on line. Bitstream is headquartered in Cambridge, Massachusetts. Find out more about Bitstream at http://www.bitstream.com.

Pageflex, Inc. (http://www.pageflexinc.com) is the leading developer of dynamic page composition technologies for a wide variety of markets including Web-to-print, cross-media publishing, document and on-demand marketing. Pageflex licenses its award-winning products worldwide to Web-to-print companies, application service providers, customer relationship management (CRM) companies, print service providers, and corporations.

The Company was established in 1999 as a wholly-owned subsidiary of Bitstream Inc.

Bitstream and TrueDoc are registered trademarks, and Font Fusion and ThunderHawk are trademarks of Bitstream Inc. Pageflex is a trademark of Pageflex, Inc. Other technologies and brand names are trademarks or registered trademarks of their respective companies.