Bowater Rededicates No. 3 Coated Paper Machine at Catawba.

Business Editors

CATAWBA, S.C.--(BUSINESS WIRE)--April 21, 2003

Bowater Incorporated (NYSE: BOW) has announced the successful conversion and start up of its No. 3 machine at its Catawba mill. It is the largest coated groundwood machine in North America, and the fifth largest in the world with a design capacity of 330,000 tons per year. Previously the machine produced newsprint.

Rededication ceremonies for the No. 3 machine are scheduled for Thursday, April 24. South Carolina Governor, Mark Sanford, Bowater Chairman, President and Chief Executive Officer, Arnold Nemirow and Catawba Vice President and Resident Manager, Bud Nash will speak at the celebration.

"Bowater is a fine example of how industry in South Carolina continues to grow and thrive on the cutting edge of technology," said Gov. Mark Sanford. He added, "The No. 3 paper machine rebuild and fiberline capital projects certify Bowater's industry-leading status."

Bowater is now the second-largest coated groundwood paper producer in North America with the conversion of the machine. The $106 million conversion enables the rebuilt machine to produce various publication papers, used in magazines, catalogs and retail inserts.

Nicknamed "Ol'Blue", the machine was built in 1969. It is capable of achieving speeds of 4,200 feet per minute and producing a paper width of nearly 30 feet.

The machine's press section was rebuilt in 2001 to improve quality and efficiency. The latest conversion features on-machine coating and finishing equipment, including the latest technology in roll coating systems. Other new equipment includes a new roll handling system and state-of-the-art on-line scanners for process control.

In addition, the Catawba mill is constructing a $175 million fiberline to be completed by the end of 2003. The fiberline project will produce chlorine-free bleached kraft pulp with superior strength and brightness properties. Over the past three years, Bowater has invested in excess of $440 million at the facility.

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 12 North American sawmills that produce softwood and hardwood lumber. Bowater also operates two facilities that convert a groundwood base sheet to coated products. Bowater's operations are supported by approximately 1.5 million acres of timberlands owned or leased in the United States and Canada and 32 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 (TSE: BWX).