EXHIBIT 10.4.8


                   AMENDED AND RESTATED REVOLVING CREDIT NOTE
                   ------------------------------------------

$2,000,000.00                                              Boston, Massachusetts
                                                                 August 29, 1997

         FOR  VALUE  RECEIVED,  the  undersigned,  BITSTREAM  INC.,  a  Delaware
corporation  (the  "Borrower")  promises to pay to BANKBOSTON,  N.A., a national
banking  association  (the "Bank") the principal  amount of Two Million  Dollars
($2,000,000.00)  or such lesser  principal  amount as shall represent the unpaid
principal balance of all revolving credit loans made by the Bank to the Borrower
pursuant to the Credit Agreement  (hereinafter defined) and noted on the records
of the Bank,  such payment to be made as  hereinafter  provided,  together  with
interest  (computed  on the basis of the actual  number of days  elapsed  over a
360-day year) on the unpaid principal amount hereof until paid in full.

         The entire  unpaid  principal  (not at the time  overdue)  of this Note
shall bear  interest at the rate or rates from time to time in effect  under the
Credit Agreement. Accrued interest on the unpaid principal under this Note shall
be payable on the dates specified in the Credit Agreement.

         In no event shall the  aggregate  outstanding  principal  amount of the
revolving credit loans at any time exceed the Maximum Available Revolving Credit
Funds (as defined in the Credit  Agreement),  as the amount of Maximum Available
Revolving Credit Funds is reduced from time to time pursuant to the terms hereof
or pursuant  to the terms of the Credit  Agreement.  Accordingly,  upon any such
reduction in the Maximum  Available  Revolving Credit Funds, the Borrower agrees
to repay so much of the  revolving  credit loans as may be necessary so that the
aggregate  outstanding  principal  amount of the revolving credit loans will not
exceed the Maximum  Available  Revolving  Credit  Funds,  as so reduced.  On the
earlier of (a) July 15, 1998,  the date of the final  maturity of this Note,  or
(b) upon demand of the Bank,  there shall become  absolutely  due and payable by
the Borrower  hereunder,  and the Borrower  hereby promises to pay to the holder
hereof,  the  outstanding  principal  balance of this Note plus all  accrued but
unpaid  interest  hereon and all (if any) other amounts payable on or in respect
of this Note or the indebtedness evidenced hereby.

         All  payments  under this Note shall be made to the Bank at 100 Federal
Street,  Boston,  Massachusetts  02110 (or at such  other  place as the Bank may
designate  from time to time 


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in  writing)  in lawful  money of the United  States of  America in  immediately
available  funds.  The  Borrower may prepay this Note in whole or in part at any
time  without  premium  or  penalty.  Amounts so paid and other  amounts  may be
borrowed and reborrowed by the Borrower  hereunder from time to time as provided
in the Credit Agreement.

         This Note is issued pursuant to, is entitled to the benefits of, and is
subject to the  provisions of a certain  Credit  Agreement  dated as of July 14,
1995, as amended by a certain First  Amendment to Credit  Agreement dated August
29, 1997 by and between the Borrower and the Bank (herein,  as the same may from
time to  time  be  further  amended  or  extended,  referred  to as the  "Credit
Agreement").  Neither this  reference to the Credit  Agreement nor any provision
thereof shall affect or impair the absolute and unconditional  obligation of the
Borrower to pay the principal of and interest on this Note as herein provided.

         Upon an Event of  Default,  as  defined in the  Credit  Agreement,  the
aggregate unpaid balance of principal plus accrued interest may become or may be
declared  due and  payable in the manner  and with the  effect  provided  in the
Credit Agreement.

         The Borrower  hereby waives  presentment,  demand,  notice of dishonor,
protest and all demands and notices in connection with the delivery, acceptance,
performance  and  enforcement  of this  Note and  assents  to any  extension  or
postponement of the time of payment or any other indulgence without notice.


         This Note is governed by and construed in  accordance  with the laws of
the Commonwealth of Massachusetts  and is executed as a sealed  instrument as of
the date first above written.

WITNESS:                                    BITSTREAM INC.


                                            By: /s/ John Collins
                                               ------------------

                                            Name: John Collins
                                                 --------------

                                            Title: V.P. Engineering
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