Bitstream, Inc.
(bitstream.com)
Ticker:BITS 215 First Street
Exchange:NASDAQ-National Market Cambridge, Massachusetts 02142
Industry:High-Tech (617) 497-6222

Type of Shares:Class A Common Shares Filing Date:9/6/96
U.S. Shares:2,100,000 Offer Date:10/30/96
Non-U.S. Shares:0 Filing Range:$8.00 - $10.00
Primary Shares:2,100,000 Offer Price:$6.00
Secondary Shares:0 Gross Spread:$0.42
Offering Amount: $18,900,000 Selling:$0.23
Expenses:$950,000 Reallowance:$0.10
Shares Out After:5,783,689

ManagerTierPhone
Volpe, Welty & CompanyLead Manager (415) 956-8120
Advest, Inc.Co-manager (203) 525-1421

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/30/96 6/30/96 6/30/95 6/30/96
Revenue:$8.97$5.41$4.77Assets:$5.96
Net Income:$1.69$1.04$0.85Liabilities:$3.11
EPS:$0.38$0.24Equity:$2.85

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
Bitstream develops and markets software products and technologies to enhance the creation, transport, viewing and printing of electronic documents. The company's products and technologies consist of 1) type products, such as libraries of type designs (fonts) and custom type products; 2) enabling technologies, which deliver typographic capabilities to hardware output devices and software applications; and 3) TrueDoc, a portable type technology providing for the efficient distribution of text, with fidelity, in a highly compressed format. In addition, beginning in the first half of 1997, the company expects to market a family of TrueDoc enhanced portable document products that are based upon Novell, Inc. certain rights to market and distribute Envoy. The company has obtained from Novell, Inc. certain rights to market and distribute Envoy.

Use of Proceeds
The proceeds from the proposed offering will be used for the repayment of indebtedness, working capital and other general corporate purposes., including product development and potential acquisitions.

Last updated: 12/29/96

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