<B>Bowater Completes Newsprint Acquisition</B>

Bowater Inc. completed the acquisition of a paper mill in Grenada, Miss., for $370 million plus $8.9 million in debt. Last month Bowater announced it would buy the Newsprint South Inc. mill from General Electric Co.'s GE Capital Structured Finance Group and shareholders. At that time, Bowater said it anticipated a boost in earnings and cash flow from the deal in the first year.

With the acquisition, Bowater now has nine pulp and paper mills in the United States, Canada and South Korea.

Bowater is the second largest newsprint company in the world after Montreal-based Abitibi-Consolidated Inc. and is one of the world's largest consumers of recycled newspapers and magazines. Bowater also makes coated and uncoated groundwood papers, bleached kraft pulp and lumber products.