<b>Bowater Announces Newsprint Price Hike</B>

Bowater Inc. plans on implementing a $50/metric ton increase on standard newsprint, effective Sept. 1, according to one of Bowater's customers. The increase, if successful, would raise the price for 30-lb newsprint in the U.S. East Coast to $605/ton -- the highest price for U.S. newsprint in four years.

North American newsprint producers have almost completely implemented a $50/ton price increase for Apr. 1.

P>In May, the average transaction price of standard 30-lb newsprint was at $555/ton on the East Coast and $560/ton on the West Coast. The East Coast price reflects implementation of $45 of the $50/ton Apr. 1 increase. Sources reported the remaining $5/ton will be in place by the end of June. The planned increase would raise newsprint prices to just over $600/ton in both the East and West Coast markets.