FOR IMMEDIATE RELEASE

CAMBRIDGE, MASS. Dec. 2, 1998 - Bitstream Inc. (Nasdaq: BITS - news) announced today it has acquired all of the outstanding stock of Type Solutions, Inc., a New Hampshire corporation. In addition, Sampo Kaasila, founder and President of Type Solutions, Inc., has agreed to join Bitstream's team as Director of Research and Development, Type Solutions, to join John Collins, Bitstream's Vice President, Engineering and Chief Technology Officer, in leading Bitstream's research and development efforts for its type and technology products.

``We are extremely excited about having Sampo Kaasila, the creator of TrueType and one of the leading experts in the world in font technology, join Bitstream as Director of Research and Development, Type Solutions,'' said Charles Ying, Chief Executive Officer of Bitstream. ``With Sampo's expertise and his exciting T2K technology, we believe we are positioned to be leaders in type technology in 1999 and beyond.''

``Type Solutions, Inc. first began developing font technologies over nine years ago and has been offering T2K(tm), a font renderer which provides an object oriented design, advanced architecture and algorithms, and a clean API resulting in maximum reliability, performance, and easy integration,'' said Sampo Kaasila, founder of Type Solutions, Inc. ``The combination of Bitstream's and Type Solutions' font expertise will prove extremely beneficial to our combined customer base. With the assistance of Bitstream resources, I will now be able to maintain a clear focus as Director of Research & Development for Type Solutions at Bitstream, as we continue on our path of technological excellence into the future.''

``As a result of this transaction, developers considering building TrueDocŪ or T2K into their products can look forward to a broader and more consistent array of features in future releases of these two leading technologies,'' said John Collins, Vice President, Engineering, and Chief Technology Officer of Bitstream. Bitstream's TrueDoc technology allows users to view text with the page author's font formatting intact and helps solve the font fidelity problem by making fonts portable. TrueDoc supports all technical font formats and encodings (such as TrueType, PostScript Type 1 and Unicode), as well as non-Latin typefaces such as Arabic, Chinese, Japanese (Kanji) and Korean.

Bitstream Inc., headquartered in Cambridge, Massachusetts, develops, markets and supports software technologies and applications for the graphics communications industry. Bitstream licenses text imaging and page layout technologies such as TrueDoc, NuDoc(tm), and Bitstream Jet(tm), to hundreds of industry leading independent software vendors and hardware manufacturers. Bitstream is also the developer of PageFlex(tm), an XML-based application for the dynamic publishing of customized documents. Complementing these products, Bitstream markets a multi-lingual library of over 1,400 typefaces and offers customization services. For more information on Bitstream and its products, please visit the company on the World Wide Web at http://www.bitstream.com

Contact:

Paul Trevithick
President
Bitstream Inc.
(617) 520-8428
ptrevithick@bitstream.com
OR
Anna Chagnon
Executive Vice President
Bitstream Inc.
(617) 520-8619
achagnon@bitstream.com

###

Bitstream and TrueDoc are registered trademarks of Bitstream Inc. Type Solutions is a registered trademark of Type Solutions, Inc., a wholly-owned subsidiary of Bitstream. All other trademarks mentioned are for identification purposes only and may be trademarks of their respective owners.