Exhibit 99.1

Bitstream Inc. Reports Fourth Quarter Results for 2008

The Company reported fourth quarter revenue of $5,638,000 and net income of $709,000 or $0.07 diluted earnings per share.

CAMBRIDGE, MA—(Business Wire) — March 9, 2009—Bitstream Inc. (Nasdaq: BITS) today reported revenue for the three months ended December 31, 2008 of $5,638,000, a decrease of $645,000 or 10% as compared to $6,283,000 for the three months ended December 31, 2007 but an increase of $155,000 or approximately 3% as compared to revenue of $5,483,000 for the three months ended September 30, 2008. Revenue of $24,008,000 for the year ended December 31, 2008 is our highest full year revenue since becoming a publicly traded company, increasing $390,000 or approximately 2% as compared to revenue of $23,618,000 for the year ended December 31, 2008. The Company’s cash and cash equivalents at December 31, 2008 totaled $16,162,000, an increase of $962,000 from its cash and cash equivalents of $15,200,000 at September 30, 2008.

“While the challenging economic environment affected our revenue for the quarter ended December 31, 2008, we are pleased that we have been able to maintain profitability and that we have been able to continue to generate positive cash flow. With our strong balance sheet and no debt, we remain well positioned to take advantage of potential growth opportunities.” said Anna M. Chagnon, President and Chief Executive Officer. “We continue to conservatively manage our business through these uncertain economic times while investing in key strategic areas. During the quarter ended December 31, 2008 we reduced our operating expenses compared to the quarters ended December 31, 2007 and September 30, 2008 by $248,000 and $221,000, respectively. Such reductions contributed to our positive cash flow and net income for the quarter ended December 31, 2008.”

GAAP Results

Our income from operations decreased $284,000 or approximately 28% to $744,000 for the three months ended December 31, 2008 as compared to $1,028,000 for the three months ended December 31, 2007, while net income decreased $465,000 or approximately 40% to $709,000 or $0.07 per diluted share for the three months ended December 31, 2008 as compared to net income of $1,174,000 or $0.11 per diluted share for the three months ended December 31, 2007.

Non-GAAP Results

Our income from operations not including the effect of stock-based compensation expense decreased $245,000 or approximately 21% to $911,000 for the three months ended December 31, 2008 as compared to $1,156,000 for the three months ended December 31, 2007. Net income decreased $426,000 or approximately 33% to $876,000 or $0.09 per diluted share for the three months ended December 31, 2008 as compared to net income of $1,302,000 or $0.12 per diluted share for the three months ended December 31, 2007.

A reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

CONFERENCE CALL REMINDER

Today, March 9, 2009, at 4:30 p.m. EST, Bitstream will host a conference call with the financial

community to discuss its results for the quarter ended December 31, 2008:

• Domestic Dial-in number: 1-866-793-1301

• International Dial-in number: 1-703-639-1307

Call into the conference number 5-10 minutes prior to the start time. An operator will request that you provide your name and organization and ask you to wait until the call begins. If you have any difficulty connecting with the conference call number, please contact at Bitstream: (617) 497-6222.

A replay of the conference call will be available through March 19, 2009 (access code): 1339162

• Domestic Replay number: 1-888-266-2081

• International Replay number: 1-703-925-2533

Forward Looking Statements Disclosure

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations. Actual performance and results of operations may differ materially from those projected or suggested in the forward-looking statements due to certain risks and uncertainties, including, without limitation, market acceptance of the Company’s products, competition and the timely introduction of new products. Additional information concerning certain risks and uncertainties that would cause actual results to differ materially from those projected or suggested in the forward-looking statements is contained in the Company’s filings with the Securities and Exchange Commission, including Bitstream’s Annual Report on Form 10-K for the year ended December 31, 2007.

About Bitstream

Bitstream Inc. (NASDAQ: BITS) is a software development company that makes communications compelling. Bitstream enables customers worldwide to render high-quality text, browse the Web on wireless devices, select from the largest collection of fonts online, and customize documents over the Internet. Its core competencies include fonts and font technology, browsing technology, and publishing technology. For more information about Bitstream please visit www.bitstream.com.

Bitstream and MyFonts.com are registered trademarks, and Pageflex, the Bitstream logo and ThunderHawk are trademarks, of the Company. Other technologies and brand names are used for information only and remain trademarks or registered trademarks of their respective companies.

Bitstream Inc.

Consolidated Statements of Operations

(In Thousands, Except Per Share Data)

(unaudited)

	Three Months Ended December 31,				Year Ended December 31,
	2008		2007		2008		2007
Revenue:
Software license	$	4,305	$	5,040	$	18,868	$	19,229
Services		1,333		1,243		5,140		4,389
Total revenue		5,638		6,283		24,008		23,618
Cost of revenue:
Software license		1,463		1,749		7,018		6,939
Services		626		453		2,408		1,863
Total cost of revenue		2,089		2,202		9,426		8,802
Gross profit		3,549		4,081		14,582		14,816
Operating expenses:
Marketing and selling		1,031		1,012		4,389		3,949
Research and development		1,133		1,225		5,181		4,739
General and administrative		641		816		2,713		2,686
Total operating expenses		2,805		3,053		12,283		11,374
Operating profit		744		1,028		2,299		3,442
Other income and expense
Interest income, net		17		146		177		570
Total other income and expense		17		146		177		570
Income before provision for income taxes		761		1,174		2,476		4,012
Provision for income taxes		52		—		108		21
Net income	$	709	$	1,174	$	2,368	$	3,991
Basic net earnings per share	$	0.07	$	0.12	$	0.25	$	0.41
Diluted net earnings per share	$	0.07	$	0.11	$	0.23	$	0.36
Basic weighted average shares outstanding		9,522		10,027		9,596		9,824
Diluted weighted average shares outstanding		10,003		10,904		10,254		10,975

Bitstream Inc.

Consolidated Balance Sheets

(In Thousands)

(unaudited)

	December 31, 2008		December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	16,162	$	16,420
Accounts receivable, net		1,827		2,245
Prepaid expenses		404		364
Other current assets		273		101
Total current assets		18,666		19,130
Property and equipment, net		427		569
Other assets:
Restricted cash		—		150
Goodwill		727		727
Intangible assets		81		67
Total other assets		808		944
Total assets	$	19,901	$	20,643
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	832	$	1,137
Accrued payroll and other compensation		1,057		1,232
Other accrued expenses		583		527
Deferred revenue		1,937		1,720
Total current liabilities		4,409		4,616
Long-term liabilities		—		40
Total liabilities		4,409		4,656
Total stockholders’ equity		15,492		15,987
Total liabilities and stockholders’ equity	$	19,901	$	20,643

Bitstream Inc.

Non-GAAP Results

(In Thousands, Except Per Share Data)

(unaudited)

The following table shows Bitstream’s non-GAAP results reconciled to GAAP results included in this release.

	Three Months Ended December 31,
	2008		2007
GAAP operating income	$	744	$	1,028
SFAS 123R stock-based compensation		167		128
Non-GAAP operating income	$	911	$	1,156
GAAP net income	$	709	$	1,174
SFAS 123R stock-based compensation		167		128
Non-GAAP net income	$	876	$	1,302
Diluted net income per share:
GAAP net income	$	0.07	$	0.11
SFAS 123R stock-based compensation		0.02		0.01
Non-GAAP net income	$	0.09	$	0.12
Shares used computing diluted net income per share		10,003		10,904

Contact:

Anna M. Chagnon, President and Chief Executive Officer

Bitstream Inc.

or

James P. Dore, Vice President and Chief Financial Officer

Bitstream Inc.