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( BW)(BOWATER)(BOW) Bowater Announces Temporary Shutdown of Thunder Bay, Ontario Mill

    Business Editors
    UK REGULATORY NEWS

    GREENVILLE, S.C.--(BUSINESS WIRE)--June 12, 2003--

Bowater Incorporated (NYSE: BOW) today announced that it will curtail
newsprint and market pulp production at its Thunder Bay mill due to
temporary wood fiber shortages in northwest Ontario. Production will
cease on June 28th for approximately 9 days. The shutdown will
eliminate 17,000 metric tons of newsprint and 21,000 metric tons of
market pulp production. These curtailments and the additional cost of
wood fiber will reduce the company's pretax operating results by
approximately US$10 million.

The combination of depressed lumber prices, countervailing and
anti-dumping duties imposed by the U.S. government and a stronger
Canadian dollar has caused production curtailments at several
sawmills, thereby creating a shortage of wood chips for the Thunder
Bay mill. The company is taking actions to mitigate the disruption at
its Thunder Bay mill and expects normal wood fiber flows to resume
after this curtailment.

Additionally, the stronger Canadian dollar has increased Bowater's
manufacturing costs. Based on the current level of the Canadian
dollar, Bowater's manufacturing costs will increase in the second
quarter by approximately $9 million over first quarter levels.

Also, on May 27, 2003, Bowater completed the previously announced sale
of 82,000 acres of U.S. timberlands for proceeds of $122 million.

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 and hardwood lumber. Bowater also operates two
facilities that convert a groundwood base sheet to coated products.
Bowater's operations are supported by approximately 1.4 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).

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 our
business outlook, assessment of market conditions, strategies, future
plans, future sales, prices for our major products, inventory levels,
capital spending and tax rates. 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, any of which could cause actual results to differ
materially from those expressed in or implied by the forward-looking
statements. The risks and uncertainties relating to the
forward-looking statements in this news release include those
described under the caption "Cautionary Statement Regarding
Forward-Looking Information" in Bowater's annual report on Form 10-K
for the year ended December 31, 2002, and from time to time, in
Bowater's other filings with the Securities and Exchange Commission.

   Short Name: Bowater Inc
   Category Code: MSC
   Sequence Number: 00005753
   Time of Receipt (offset from UTC): 20030612T122622+0100

    --30--PS/ch* KO/uk

    CONTACT: Bowater Inc.

    KEYWORD: UNITED KINGDOM INTERNATIONAL CANADA EUROPE
    INDUSTRY KEYWORD: FOREST PRODUCTS 
    SOURCE: Bowater Inc

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