Ownership Submission
FORM 3
 UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF 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 *
  SALLEE MARGUERITE
 2. Date of Event Requiring Statement (Month/Day/Year)
12/01/2011		 3. Issuer Name and Ticker or Trading Symbol
ROSETTA STONE INC [RST]
(Last)
(First)
(Middle)
C/O ROSETTA STONE INC., 1919 NORTH LYNN STREET, 7TH FLOOR		 4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

ARLINGTON, VA 22209		 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 Beneficially Owned
1.Title of Security
(Instr. 4)		 2. Amount of Securities Beneficially Owned
(Instr. 4)		 3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)		 4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)		 2. Date Exercisable and Expiration Date
(Month/Day/Year)		 3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)		 4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)		 6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option   (1) 12/01/2021 Common Stock 3,759 $ 6.88 (3) D (4) (5)  
Restricted Stock Unit   (2) 12/01/2021 Common Stock 2,180 $ 0 D (4) (5)  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
SALLEE MARGUERITE
C/O ROSETTA STONE INC.
1919 NORTH LYNN STREET, 7TH FLOOR
ARLINGTON, VA 22209		   X      

Signatures

Michael C. Wu, Attorney-in-fact 12/12/2011
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(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) Pursuant to the Rosetta Stone Inc. 2009 Omnibus Incentive Plan, 1/4 of the stock options shall be vested and exercisable on the last day of the third month after the date of grant and 1/4 of the shares subject to the option shall become vested each quarter thereafter.
(2) The restricted stock units are fully vested. Delivery of the shares to the reporting person will be made after the date of the reporting person's separation from service to the Board of Directors.
(3) The exercise price is equal to the closing price of the common stock of the Corporation on the New York Stock Exchange on December 1, 2011, the date of grant.
(4) Due to marriage, the reporting person is also known as Marguerite Kondracke.
(5) In accordance with a December 1, 2011 Resolution of the Rosetta Stone Board of Directors, Ms. Kondracke was elected to serve on the Rosetta Stone Board Directors as a Class III Director until her successor is duly elected or appointed or qualified.

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