Bitstream enters into plan of agreement and merger with Archetype

Business Wire, March 31, 1997

CAMBRIDGE, Mass.--(BUSINESS WIRE)--March 31, 1997-- Bitstream Inc. (Nasdaq: BITS), a leading developer of software products and technologies for the enhancement, creation, transport, viewing and printing of electronic text based information, today announced that it has entered into a plan of agreement and merger with Archetype, Inc., a privately-held developer of server-based information management software for the graphic arts industry. The agreement is pursuant to which Bitstream will acquire Archetype for a certain amount of cash and common stock. The acquisition will be accomplished by merging Archetype into a newly-formed wholly-owned subsidiary of Bitstream that would continue to operate under the Archetype name. Consummation of the merger is subject to various conditions.

"We are extremely pleased to enter into this agreement with Archetype," said Ray Boelig, Bitstream's president and chairman. "Archetype's innovative and cutting-edge technologies, such as MediaBank and NuDoc, are great and synergistic additions to Bitstream's product offerings. In addition, this acquisition will allow Bitstream to enter into new sales channels and enhances our ability to grow revenues and earnings and to provide value to our customers and shareholders."

Archetype develops and markets server-based information management and Internet publishing software for the graphic communications industry. The company focuses on providing innovative Value Added Reseller (VAR) solutions for "Flexible Publishing"_accelerating prepress and Internet publishing through advanced information object management. Archetype has an installed base of over 3,000 servers and a VAR distribution channel of more than 60 system integrators worldwide.

Archetype's popular MediaBank is a sophisticated publishing and document management database application. MediaBank is a workgroup-based digital asset management system that also includes workflow management. With both Windows and Macintosh client software, and a Web interface, MediaBank facilitates systemwide searches and retrievals of any file format: images, text, fonts, video, etc. In addition, MediaBank provides tools for managing online, nearline, and offline media while allowing users to monitor their workflows through its uniquely adaptive approach to publishing and prepress production. MediaBank is the central building block in the Archetype Flexible Publishing solution because it functions as the warehouse for digital assets that can be re-used for either print or Web applications.

Other products from Archetype include InterSep, industrial strength OPI and print output management, and NuDoc, which redefines the static proprietary documents used today with flexible templates for both print and the Internet. NuDoc's unique approach to publishing and formatting documents combined with MediaBank's strength in serving up digital assets give customers long-term sustainable advantages.

"Bitstream's strengths in typographic technology and document imaging complement our strengths in document servers and composition perfectly," said Paul Trevithick, president of Archetype. "Together, we will be able to provide comprehensive solutions that will make the management, distribution and imaging of electronic documents easier, faster and more reliable than ever."

About Bitstream Inc.

Headquartered in Cambridge Massachusetts USA, Bitstream is traded on the National Market System under the NASDAQ symbol "BITS." Bitstream Inc. develops and sells software solutions for the creation, enhancement, transport, viewing and printing of electronic information. Bitstream licenses type libraries and font technology to hundreds of hardware and software developers worldwide. The Company licenses its products and technologies directly and through its subsidiaries, business agents and distributors in North America, Europe and the Pacific Rim. For more information on Bitstream or its products, visit the company's home page on the World Wide Web at http://www.bitstream.com . -0-

InterSep, MediaBank and NuDoc are trademarks of Archetype, Inc. All other names are the property of their respective owners.

CONTACT: Colleen Cronin

Bitstream Inc.

617-520-8329

ccronin@bitstream.com