<b>Bowater Board Approves Mill Conversion</B>

Bowater’s board of directors approved plans to convert its Catawba, S.C., newsprint mill to coated groundwood paper.

The board also approved the construction of two additional Nuway sites, which will convert newsprint to coated groundwood. After completion Bowater’s coated groundwood production will reach around 1 million tons. The two converting operations will be completed by the middle of 2002. Each of the plants will have an annual production capacity of close to 100,000 tons.

Conversion of the machine is scheduled to be complete by the middle of 2002, and will have an annual production capacity of 330,000 tons of lightweight coated groundwood paper. The conversion will replace 260,000 tons of newsprint produced at the facility. After completion the mill will have an annual coated paper capacity of around 700,000 tons. The company will maintain its annual market pulp capacity of 270,000 tons per month.