Bowater Provides Notice of Filing Third Quarter Form 10-Q.

GREENVILLE, S.C. -- Bowater Incorporated (NYSE:BOW) today announced it filed a Form 12b-25 with the Securities and Exchange Commission on Monday, November 13, 2006. The company anticipates it will file its third quarter Form 10-Q today.

As previously disclosed in its news release issued October 26, 2006, the company expects to incur a material non-cash goodwill impairment charge in its filed third quarter financial results. The company was required to perform an interim goodwill impairment evaluation due to the changes in reportable segments and other business conditions. The impairment evaluation for the Thunder Bay, Ontario facility has indicated impairment and has resulted in a non-cash charge of $200 million and a corresponding increase in the company's third quarter loss. The net loss for the quarter, excluding special items, remains unchanged from the amount reported in the company's October 26 news release.

"We are working aggressively to address cost competitiveness at our Thunder Bay site," said David J. Paterson, President and Chief Executive Officer. "In addition to cost reductions, we continue to seek investment alternatives to improve our product mix."

Bowater Incorporated, headquartered in Greenville, SC, is a leading producer of coated and specialty papers and newsprint. In addition, the company sells bleached market pulp and lumber products. Bowater employs approximately 7,600 people and has 12 pulp and paper mills in the United States, Canada and South Korea. In North America, it also owns two converting facilities and 10 sawmills. Bowater's operations are supported by approximately 835,000 acres of timberlands owned or leased in the United States and Canada and 28 million acres of timber cutting rights in Canada. Bowater operates six recycling plants and is one of the world's largest consumers of recycled newspapers and magazines. Bowater common stock is listed on the New York Stock Exchange and the Pacific Exchange. A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange (TSX: BWX). To learn more, visit www.bowater.com.

All amounts are in U.S. dollars.

Statements in this news release that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. They include, for example, statements about the company's expectations regarding the filing with the Securities and Exchange Commission of its quarterly report on Form 10-Q for the 2006 third quarter, the company's anticipated goodwill impairment charge for the 2006 third quarter and the company's cost reductions as well investment alternatives sought to improve the company's product mix. These forward-looking statements are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, which could cause actual results to differ materially. These risks and uncertainties include, but are not limited to, the company's finalization of its quarterly report for the 2006 third quarter, the actual realization of the company's cost reduction strategies, the ultimate availability of investment alternatives that will improve the company's product mix and other factors listed from time to time in Bowater's Securities and Exchange Commission filings, including those described in the company's report on Form 10-Q for the quarter ended June 30, 2006 under the caption "Cautionary Statement Regarding Forward-Looking Information and Use of Third Party Data." Bowater disclaims any obligation to update these forward-looking statements.