Cambridge, MA — August 16, 2005 — Pageflex (NASDAQ: BITS, www.pageflex.com), the leading provider of Web-to-print technology, today announced that ICS Diversified, Inc. (www.icsdiversified.com), one of the largest direct mail production companies in the Midwest, has purchased Pageflex StorefrontT software to help the company expand and enhance its literature fulfillment services to include Web-to-print document customization and online ordering.

For 20 years ICS Diversified has leveraged its technology expertise to provide direct mail services to companies with dealer networks and other large dispersed sales networks. Today, many of the company's customers are advertising agencies and Fortune 1000 companies with dispersed sales forces and large dealer networks. Pageflex Storefront will enable ICS Diversified to expand the literature fulfillment options it offers its customers beyond traditional pick-n-pack and kitting. The company plans to use Storefront to enable sales people and dealers to customize brochures, product literature, and sell sheets simply by using their Web browsers.

"Storefront will give a sales person in the field extensive freedom in designing a piece tailored to each specific customer or prospect, while at the same time maintaining brand control at the corporate communications level," explains ICS Diversified President and CEO Mike Peterson. "We are getting very positive feedback about Storefront from our agency customers."

In June ICS Diversified became the first facility in the St. Louis , Missouri area to install a Xerox iGen3 digital press. While the company has previously taken orders for pick-n-pack through their Web site and provided some print on demand and variable data capabilities, the combination of Pageflex Storefront with the iGen3 will enable the company to provide its customers with a new level of document customization, rapid turn around of orders, and quality output.

"We looked for about 18 months for a product that would integrate custom literature generation capabilities with our traditional fulfillment services. We turned to Xerox for assistance, and they did a great job evaluating our requirements and recommending Pageflex Storefront," recalls Peterson . "We needed a feature-rich product that we could seamlessly integrate with our existing fulfillment system, but didn't want an overly complex and powerful system. Pageflex Storefront is definitely the best fit for us."

Pageflex Storefront enables quick and easy definition, auto-generation, and management of attractive Web-to-print document customization sites, through an easy-to-use Web-based interface. Included in the package is user account, shopping cart and order management, as well as personalization and customization technology for online document editing. At the core of the solution, is patented Pageflex Web-to-print composition technology, including flexible templates that enable document layouts to "flex," accommodating variable content within sophisticated designer-specified guidelines. Pageflex Storefront recently won the 2005 PIA/GATF InterTech Technology Award for excellence in innovation.

"I am delighted that Xerox recommended Pageflex Storefront to ICS Diversified," said Anna Chagnon, Pageflex CEO. "ICS Diversified has a history of using technology to their customers' benefit, and we are proud to have Storefront join that legacy and enable them to add Web-to-print document customization to their fulfillment services."

About

Pageflex
Pageflex, a division of Bitstream Inc., (www.pageflex.com) is the technology of choice for Web-to-print applications and sophisticated personalized communications based on customer information. Pageflex smart templates ensure that design integrity and brand identity standards are rigorously maintained, while empowering local users on a brand-controlled publishing portal to customize and localize collateral and campaigns. With Pageflex-powered sites, global control with local empowerment is a reality.

Pageflex pioneered flexible variable data software with its debut in 1997 and has been a technology innovator in the Web-to-print customization arena ever since.

Pageflex powers online document customization portals for printers, advertising agencies, marketing services companies and corporate marketing departments worldwide.

Bitstream
Bitstream Inc. (NASDAQ: BITS) is a software development company that makes communications compelling. Bitstream enables customers worldwide to render high-quality text, browse the Web on wireless devices, select from the largest collection of fonts online, and customize documents over the Internet. Its core competencies include font technology, browsing technology, e-commerce technology, and publishing technology.

ICS Diversified, Inc.
Founded in 1978, ICS has evolved into a direct marketing production company, specializing in data management, digital print, literature and promotional fulfillment, inventory management, kit assembly, and direct mail.

Consistently ranked in the Top 10 Direct Mail Companies in St. Louis by the St. Louis Business Journal, ICS has greatly expanded its fulfillment and digital print applications over the past 10 years. With the recent acquisitions of the Xerox iGen3 digital color printer, as well as expanded software capabilities, ICS is able to assist its clients by producing the highest quality 1:1 communications available anywhere.

For more information please visit www.icsdiversified.com.

Pageflex, Pageflex Storefront, and the Pageflex logo are trademarks of Pageflex, a division of Bitstream Inc. All other trademarks are for identification purposes only and remain the property of their respective owners.

Contact

Alice Fackre
Director of Product Marketing
Pageflex, a division of Bitstream Inc.
617.520.8575

Arlene E. Karsh
Kismet Marketing & PR
617.489.1235

Michael Peterson
President and CEO
ICS Diversified, Inc.
314.997.6767