BW20030617002101  20030617T121332Z UTC


( BW)(BOWATER)(BOW) Bowater Announces Notes Offering

    Business Editors
    UK REGULATORY NEWS

    GREENVILLE, S.C.--(BUSINESS WIRE)--June 17, 2003--

Bowater Incorporated (NYSE: BOW) today announced that it has entered
into a definitive agreement with underwriters to sell an aggregate of
$400 million of 6.5 percent coupon notes due 2013. Bowater intends to
use the net proceeds from the offering to repay amounts outstanding
under its revolving credit facilities and a portion of its three-year
term loan and for general corporate purposes. The closing of the
transaction is scheduled for June 19, 2003, subject to customary
closing conditions.

The offering is to be made in an unregistered offering pursuant to
Rule 144A and Regulation S under the Securities Act of 1933. The notes
will not be registered under the Securities Act of 1933 or the
securities laws of any state, and may not be offered or sold in the
United States or outside the United States absent registration or an
applicable exemption from registration requirements under the
Securities Act and any applicable state securities laws. Bowater
intends to offer to exchange the unregistered notes for substantially
identical registered notes within six months of the completion of the
offering.

This news release contains forward-looking statements concerning
Bowater's proposed offering and subsequent exchange offer. The
forward-looking statements are subject to these and other risks and
uncertainties that could cause actual results to differ materially
from future results expressed or implied by such forward-looking
statements.

This news release does not constitute an offer to sell or the
solicitation of an offer to buy any security and shall not constitute
an offer, solicitation or sale in any jurisdiction in which such
offering would be unlawful.

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.

   Short Name: Bowater Inc
   Category Code: MSC
   Sequence Number: 00006024
   Time of Receipt (offset from UTC): 20030617T121722+0100

    --30--SL/ch* KO/uk

    CONTACT: Bowater Inc.

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

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