-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 V+QeWuGVi8CE1J74qKIJpTZnUuSmGoxVSe1GtCCJZYo3u2keLKebOd5fffZ28Bij
 eeajB46Wlbb3tFsVOVj0lw==

<SEC-DOCUMENT>0001181431-03-018911.txt : 20030815
<SEC-HEADER>0001181431-03-018911.hdr.sgml : 20030815
<ACCEPTANCE-DATETIME>20030815144956
ACCESSION NUMBER:		0001181431-03-018911
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030813
FILED AS OF DATE:		20030815

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			COLLINS JOHN S
		CENTRAL INDEX KEY:			0001259817

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21541
		FILM NUMBER:		03850498

	BUSINESS ADDRESS:	
		STREET 1:		9 HAWTHORNE PLACE
		STREET 2:		9E
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02114
		BUSINESS PHONE:		6175208401

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BITSTREAM INC
		CENTRAL INDEX KEY:			0000818813
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER PROGRAMMING SERVICES [7371]
		IRS NUMBER:				042744890
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		215 FIRST ST
		CITY:			CAMBRIDGE
		STATE:			MA
		ZIP:			02142
		BUSINESS PHONE:		6174976222

	MAIL ADDRESS:	
		STREET 1:		215 FIRST ST
		CITY:			CAMBRIDGE
		STATE:			MA
		ZIP:			02142
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd16144.xml
<DESCRIPTION>FORM 4 OPTION EXERICISE AND STOCK SALE
<TEXT>
<XML>
<?xml version="1.0"?><ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType><periodOfReport>2003-08-13</periodOfReport><notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000818813</issuerCik>
        <issuerName>BITSTREAM INC</issuerName>
        <issuerTradingSymbol>BITS</issuerTradingSymbol></issuer><reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001259817</rptOwnerCik>
            <rptOwnerName>COLLINS JOHN S</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>215 FIRST STREET</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CAMBRIDGE</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02142-1270</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>0</isDirector><isOfficer>1</isOfficer><isTenPercentOwner>0</isTenPercentOwner><isOther>0</isOther><officerTitle>VP  &amp; Chief Technology Officer</officerTitle></reportingOwnerRelationship></reportingOwner><nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Class A Common Stock</value></securityTitle><transactionDate><value>2003-08-11</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>X</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>35000</value></transactionShares><transactionPricePerShare><value>0.90</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>A</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>65718</value><footnoteId id="F1"/></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value
></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction><nonDerivativeTransaction><securityTitle><value>Class A Common Stock</value></securityTitle><transactionDate><value>2003-08-13</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>S</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>13000</value></transactionShares><transactionPricePerShare><value>3.97</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>52718</value><footnoteId id="F1"/></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction><nonDerivativeTransaction><securityTitle><value>Class A Common Stock</value></securityTitle
><transactionDate><value>2003-08-13</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>S</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>8000</value></transactionShares><transactionPricePerShare><value>4.00</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>44718</value><footnoteId id="F1"/></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction><nonDerivativeTransaction><securityTitle><value>Class A Common Stock</value></securityTitle><transactionDate><value>2003-08-13</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>S</transactionCode><equit
ySwapInvolved>0</equitySwapInvolved></transactionCoding><transactionAmounts><transactionShares><value>4000</value></transactionShares><transactionPricePerShare><value>4.00</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><postTransactionAmounts><sharesOwnedFollowingTransaction><value>40718</value><footnoteId id="F1"/></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></nonDerivativeTransaction></nonDerivativeTable><derivativeTable><derivativeTransaction><securityTitle><value>Incentive Stock option</value></securityTitle><conversionOrExercisePrice><value>0.90</value></conversionOrExercisePrice><transactionDate><value>2003-08-11</value></transactionDate><transactionCoding><transactionFormType>4</transactionFormType><transactionCode>X</transactionCode><equitySwapInvolved>0</equitySwapInvolved></transactionCoding
><transactionAmounts><transactionShares><value>35000</value></transactionShares><transactionPricePerShare><value>0.90</value></transactionPricePerShare><transactionAcquiredDisposedCode><value>D</value></transactionAcquiredDisposedCode></transactionAmounts><exerciseDate><value>1994-11-30</value></exerciseDate><expirationDate><value>2004-11-30</value></expirationDate><underlyingSecurity><underlyingSecurityTitle><value>Class A Common Stock</value></underlyingSecurityTitle><underlyingSecurityShares><value>35000</value></underlyingSecurityShares></underlyingSecurity><postTransactionAmounts><sharesOwnedFollowingTransaction><value>100000</value><footnoteId id="F2"/></sharesOwnedFollowingTransaction></postTransactionAmounts><ownershipNature><directOrIndirectOwnership><value>D</value></directOrIndirectOwnership></ownershipNature></derivativeTransaction></derivativeTable><footnotes><footnote id="F1">All shares are held jointly with spouse, Nichola Collins.</footnote><footnote id="F2">The reporting person beneficially 
owns the following options to purchase Class A Common Stock of the Company (i) an option granted on 11/30/94 to purchase 40,000 shares at $0.90 per share, which option expires on 11/30/04 and is fully vested; (ii) an option granted on 3/10/97 to purchase 30,000 shares at $4.94 per share, which option expires on 3/10/07 and is fully vested; (iii)an option granted on 12/11/00 to purchase 10,000 shares at $2.0312 per share, which option expires on 12/11/10, 6,666 of which are vested and 3,334 of which vest on 12/11/03; and (iv) an option granted on 11/05/01 to purchase 20,000 shares at $3.96 of which 6,666 are vested, 6,667 vest on 11/05/03 and 6,667 vest on 11/5/04.</footnote></footnotes><ownerSignature><signatureName>/s/ John S. Collins</signatureName><signatureDate>2003-08-15</signatureDate></ownerSignature></ownershipDocument>



</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----