Edgar Filing: BITSTREAM INC

Ownership Submission

FORM 4

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

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person ^*

LUBRANO DAVID

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

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

__X__ Director	_____ 10% Owner
_____ Officer (give title below)	_____ Other (specify below)

(Last)

(First)

(Middle)

C/O BITSTREAM INC., 245 FIRST STREET, 17TH FLOOR

3. Date of Earliest Transaction (Month/Day/Year)
08/03/2006

(Street)

CAMBRIDGE, MA 02142-1270

4. If Amendment, Date 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

(City)

(State)

(Zip)

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)
			Code	V	Amount	(A) or (D)	Price

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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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 Underlying Securities
(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 of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)

11. Nature of Indirect Beneficial Ownership
(Instr. 4)

Code

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Stock Option

$ 4.45

08/03/2006

10,000

⁽¹⁾⁽²⁾

08/03/2016

Class A Common Stock

10,000

$ 4.45

294,000 ⁽¹⁾ ⁽²⁾

Reporting Owners

Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
LUBRANO DAVID C/O BITSTREAM INC. 245 FIRST STREET, 17TH FLOOR CAMBRIDGE, MA 02142-1270	X

Signatures

David Lubrano		08/07/2006
^**Signature of Reporting Person		Date

Explanation of Responses:

*	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).
(1)	The reporting person beneficially owns the following derivatives to purchase Class A Common Stock of the Company (i) a warrant granted on 03/10/1997 to purchase 20,000 shares at $4.94, which warrant expires on 03/10/2007 and is fully vested;(ii) an option granted on 01/23/1998 to purchase 50,000 shares at $2.00 per share, which option expires on 01/23/2008 and is fully vested; (iii) an option granted on 04/22/1998 to purchase 14,000 shares at $1.875 per share, which option expires on 04/28/2008 and is fully vested; (iv)an option granted on 01/25/1999 to purchase 150,000 shares at $1.59 per share, which option expires on 01/25/2009 and is fully vested; (v)an option granted on 02/05/2002 to purchase 20,000 shares at $4.75 per share, which option expires on 02/05/2012 and is fully vested;
(2)	(vi) an option granted on 02/13/2003 to purchase 20,000 shares at $1.79, which option expires 02/13/2013 and is fully vested;(vii)an option granted on 09/29/2004 to purchase 10,000 shares at $1.61 per share, which option expires on 09/29/2014 and of which 3,333 is vested, 3,333 vest on 09/29/2006, and 3,334 vest on 09/29/2007; and (viii)an option granted on 08/03/2006 to purchase 10,000 shares at $4.45 per share, which expires on 08/03/2016 and of which 2,500 each vest on 08/03/2007, 08/03/2008, 08/03/2009 and 08/03/2010.

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