SEC FORM 4

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person^*

KITSOS COSTAS

(Last)

(First)

(Middle)

C/O BITSTREAM INC.

245 FIRST STREET, 17TH FLOOR

(Street)

CAMBRIDGE

02142-1270

(City)

(State)

(Zip)

2. Issuer Name and Ticker or Trading Symbol
BITSTREAM INC [ BITS ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director	10% Owner
X	Officer (give title below)	Other (specify below)
	Vice Pres., Engineering

3. Date of Earliest Transaction (Month/Day/Year)
05/09/2007

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	Amount	(A) or (D)	Price		6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
Class A Common Stock	05/09/2007		X		1,200	A	$2.031	1,200	D
Class A Common Stock	05/09/2007		S		1,200	D	$8.1	0	D
Class A Common Stock	05/10/2007		X		1,200	A	$2.031	1,200	D
Class A Common Stock	05/10/2007		X		7,600	A	$2.0312	7,600	D
Class A Common Stock	05/10/2007		S		8,800	D	$8.022	0	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares	8. Price of Derivative Security (Instr. 5)		10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
Incentive Stock Option	$2.031	05/09/2007		X			1,200	11/04/2002	11/04/2009	Class A Common Stock	1,200	$2.031	121,500	D
Incentive Stock Option	$2.031	05/10/2007		W			1,200	11/04/2002	11/04/2009	Class A Common Stock	1,200	$2.031	120,300	D
Incentive Stock Option	$2.0312	05/10/2007		X			7,600	12/11/2003	12/11/2003	Class A Common Stock	7,600	$20.312	112,700⁽¹⁾	D

Explanation of Responses:

1. The reporting person beneficially owns the following options to purchase Class A Common Stock of the Company (i) an option granted on 11/04/1999 to purchase 300 shares at $2.031 per share, which option expires on 11/04/2009 and is fully vested; (ii)an option granted on 12/11/2000 to purchase 42,400 shares at $2.0312 per share, which option expires on 12/11/2010 and is fully vested; (iii) an option granted on 11/05/2001 to purchase 20,000 shares at $3.96 of which is fully vested; (iv) an option granted on 08/02/2004 to purchase 25,000 shares at $1.59, which option expires on 08/02/2014 and of which 16,666 is vested and 8,334 vest on 08/02/2007; and (v)an option granted on 08/03/06 to purchase 25,000 shares at $4.45, which option expires 08/03/2016 and of which 6,250 vest each on 08/03/07, 08/03/08, 08/03/09, and 08/03/10.

	Costas Kitsos	05/10/2007
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.