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 *
KITSOS COSTAS
   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
(Last)
(First)
(Middle)
C/O BITSTREAM INC., 245 FIRST STREET, 17TH FLOOR		 3. Date of Earliest Transaction (Month/Day/Year)
11/15/2006
(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
Class A Common Stock 11/15/2006   X   2,000 A $ 2.031 2,000 D  
Class A Common Stock 11/15/2006   S   2,000 D $ 9.15 0 D  

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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 V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Incentive Stock Option $ 2.031 11/15/2006   X     2,000 11/04/2002 11/04/2009 Class A Common Stock 2,000 $ 2.031 122,700 (1) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
KITSOS COSTAS
C/O BITSTREAM INC.
245 FIRST STREET, 17TH FLOOR
CAMBRIDGE, MA 02142-1270		       Vice Pres., Engineering  

Signatures

 Costas Kitsos   11/17/2006
**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 options to purchase Class A Common Stock of the Company (i) an option granted on 11/04/1999 to purchase 2,700 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 50,000 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 and (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 08/03/2006 to purchase 25,000 shares at $4.45, which option expires on 08/03/2016 and of which 6,250 vest each on 08/03/07, 08/03/08, 08/03/09 and 08/03/10.

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