<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0303</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-12-12</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000818813</issuerCik>
        <issuerName>BITSTREAM INC</issuerName>
        <issuerTradingSymbol>BITS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429608</rptOwnerCik>
            <rptOwnerName>Stedman Trent</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429618</rptOwnerCik>
            <rptOwnerName>NV North American Opportunity Fund</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001363688</rptOwnerCik>
            <rptOwnerName>Millennium Group LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 350</rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND PARK</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429610</rptOwnerCik>
            <rptOwnerName>HPP GP LLC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001429609</rptOwnerCik>
            <rptOwnerName>Highland Park Partners Fund LP</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>799 CENTRAL AVE, SUITE 350</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HIGHLAND</rptOwnerCity>
            <rptOwnerState>IL</rptOwnerState>
            <rptOwnerZipCode>60035</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock, par value $.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2008-12-12</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>3500</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.30</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1223562</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Class A Common Stock, par value $.01 per share</value>
            </securityTitle>
            <transactionDate>
                <value>2008-12-15</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>4400</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>4.30</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1227962</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">On December 12, 2008 and December 15, 2008, NV North American Opportunity Fund acquired an additional 3,500
 and 4,400 shares, respectively, of Class A Common Stock.  Millennium Group LLC, Highland Park Partners Fund, L.P., HPP GP
 LLC, and Trent Stedman each disclaim ownership in such acquisitions by NV North American Opportunity Fund, except to the
 extent of any pecuniary interest therein. Millennium Group LLC, HPP GP LLC, and Trent Stedman also disclaim beneficial
 ownership of all other securities reported on this Form 4, except to the extent of any pecuniary interest therein.</footnote>
    </footnotes>

    <remarks>(1) NV North American Opportunity Fund directly beneficially owns 1,016,862 shares of Class A Common Stock. Millennium Group
 LLC is the investment manager of NV North American Opportunity Fund. Highland Park Partners Fund LP  directly beneficially
 owns 208,900 shares of Class A Common Stock. HPP GP LLC is the general partner of Highland Park Partners Fund LP. Trent
 Stedman directly beneficially owns 2,200 shares of Class A Common Stock in a personal trading account.  Trent Stedman is a
 member of Millennium Group LLC and is also the sole member of HPP GP LLC.  Trent Stedman, by virtue of his relationship to
 NV North American Opportunity Fund, Millennium Group LLC, Highland Park Partners Fund LP, and HPP GP LLC, may be deemed to
 indirectly beneficially own (as that term is defined in Rule 13d-3 under the Act) the shares of Class A Common Stock subject
 to this filing.  The  percentage of beneficial ownership of 12.9% (or 1,227,962 shares of Class A Common Stock) is based on
 9,522,005 shares of  Class A Common Stock that were outstanding as of November 12, 2008 (as set forth on the Issuer's
 Form 10-Q, filed on November 14, 2008 with the Securities and Exchange  Commission).</remarks>

    <ownerSignature>
        <signatureName>/s/ Trent Stedman</signatureName>
        <signatureDate>2008-12-16</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>NV North American Opportunity Fund By:  Millennium Group LLC /s/ Trent Stedman, Member</signatureName>
        <signatureDate>2008-12-16</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Millennium Group LLC /s/ Trent Stedman, Member</signatureName>
        <signatureDate>2008-12-16</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>Highland Park Partners Fund LP By: HPP GP LLC  /s/ Trent Stedman, Sole Member</signatureName>
        <signatureDate>2008-12-16</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>HPP GP LLC /s/ Trent Stedman, Sole Member</signatureName>
        <signatureDate>2008-12-16</signatureDate>
    </ownerSignature>
</ownershipDocument>
