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Anna M. Chagnon
President and Chief Financial Officer
Bitstream
Inc.
(617) 497-6222 | | | | Bitstream
selects Bentley Associates L.P. to seek funding for Pageflex subsidiary |
| | | CAMBRIDGE, MA
- August 2, 2000 - Bitstream Inc. (NASDAQ: BITS) announced today that Bitstream's
Board of Directors has decided to seek a minimum of $10MM in outside funding for
its wholly-owned subsidiary, Pageflex, Inc. Bitstream has selected Bentley Associates
L.P. as its investment banker to help raise the funding. Bitstream's Board envisions
that existing qualified shareholders of Bitstream will be given an opportunity
to co-invest in this round of financing for Pageflex in the form of a rights offering.
Depending upon the level of interest in the proposed offering, Bitstream may elect
to sell some of its Pageflex holdings. | | |
| In connection with the anticipated funding of Pageflex,
its Board of Directors approved the Pageflex 2000 Stock Plan under which the company
may grant options to purchase up to 3,000,000 shares of Pageflex Common Stock
(which would represent approximately 17% of the 18,000,000 outstanding shares
of Pageflex Common Stock on a fully-diluted basis). Options to purchase 2,183,000
shares have been approved for grant to current employees of the subsidiary as
well as to certain Bitstream employees and directors to motivate them to help
Pageflex achieve its potential and maximize shareholder value. These options have
an exercise price of $0.40 per share and vest in three equal annual installments
beginning one year from the date of grant. | | |
| "While we are very pleased with the revenue growth of
our Pageflex subsidiary in Q2 2000, we believe that for Pageflex to realize its
potential, it needs additional funding beyond the current resources of Bitstream,"
said Charles Ying, Chairman of the Board and Chief Executive Officer of Bitstream.
"Obtaining outside additional funding for Pageflex will also allow Bitstream to
conserve its cash and to invest in developing key technologies for the wireless
and wired Internet appliance, PDA and settop box markets." | | |
| About Bitstream, the Internet Font Technology Company
| | Bitstream Inc. (Nasdaq:BITS) is the leading
developer of font technology, digital fonts, and custom font designs for a wide
variety of markets. Setting the standard for excellence in font technology, Bitstream
holds numerous key patents that cover the creation of portable fonts for the Internet.
Bitstream licenses its award-winning TrueDoc®, WebFont™, and Font Fusion™ technology
to Web and application developers, and to manufacturers of Internet appliances,
wireless devices, set-top boxes, embedded systems, printers, and personal digital
assistants. | | | | 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. | | |
| About Pageflex, Inc. | | Pageflex,
Inc. develops, markets, and supports Web-based on-demand marketing solutions and
related technology. Operating from a Web browser, marketing on demand involves
the dynamic creation of highly personalized and customized marketing documents
such as brochures and datasheets. Innovative flexible page template technology
assembles XML text and image content into output PostScript or PDF pages based
on customer profile information. Pageflex's template technology is based on the
NuDoc XML composition engine. The Company was established in 1999 as a wholly-owned
subsidiary of Bitstream. For more information on Pageflex and its products, visit
the company on the Web at http://www.pageflexinc.com. | | |
| ©2000 Bitstream Inc. Bitstream and TrueDoc are registered
trademarks, and Font Fusion, NuDoc, and WebFont 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. |
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