Bowater's Catawba Operations Named 2004 Manufacturer of the Year.

CATAWBA, S.C. -- The South Carolina Chamber of Commerce and the National Association of Manufacturers (NAM) have named Bowater's Catawba Operations as the state's 2004 Manufacturer of the Year.

"It is such an honor to be recognized as Manufacturer of the Year," said Bud Nash, vice president and mill manager. "Our employees and managers have worked very hard to be deserving of this award."

The honor is designed to recognize exemplary companies that reflect world-class standards in manufacturing, employee programs and involvement, community programs and environmental stewardship. Criteria for the award included six components, including: Quality Improvement of Product; Quality of Life for Employees; Environmental Stewardship; Community and Professional Involvement; Community Partnerships and Overall Effectiveness. The final category includes facility productivity and operating results, as well as employee safety and site security.

"We know that our safety record stands out in the paper industry, and to be recognized for our environmental stewardship, attention to quality and production, and community involvement is a real compliment to our work force," said Kenny Sawyer, director of human resources. Employees recently reached a significant safety milestone by working 4 million hours without a disabling or lost-time injury.

Bowater's Catawba Operations employs approximately 1,000 employees, and is the largest coated paper manufacturing facility in North America. Over the past 18 months the Catawba site has received significant capital improvements, including the construction of a $175 million state-of-the-art kraft-pulping mill, along with a $106 million paper machine conversion. This was accomplished while the mill maintained a full 24-hour production schedule.

Catawba meets strict criteria for environmental performance. The new pulp fiber line is just one of four existing facilities in the U.S. to meet the Environmental Protection Agency's Voluntary Advanced Technology Tier I requirements. Additionally, water consumption at the Catawba operation has been reduced 19% over the past five years. Third party auditors certify that all wood fiber for the mill meets standards of the Sustainable Forestry Initiative (SFI).

Bowater Incorporated, headquartered in Greenville, SC, is a leading producer of newsprint and coated groundwood papers. In addition, the company makes uncoated groundwood papers, bleached kraft pulp and lumber products. The company has 12 pulp and paper mills in the United States, Canada and South Korea and 13 North American sawmills that produce softwood lumber. Bowater also operates two facilities that convert a groundwood base sheet to coated products. Bowater's operations are supported by approximately 1.4 million acres of timberlands owned or leased in the United States and Canada and 30 million acres of timber cutting rights in Canada. Bowater is one of the world's largest consumers of recycled newspapers and magazines. Bowater common stock is listed on the New York Stock Exchange, the Pacific Exchange and the London Stock Exchange. A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange (TSX: BWX).