<b>Bowater Reports Quarterly Figures</B>

Bowater Inc. reported financial results for the third quarter of 2000. Net income for the third quarter was $50.0 million after deducting unusual charges totaling $9.8 million.

Net sales for the quarter were $628.0 million, compared with $511.0 million for the third quarter of 1999. Bowater implemented a $50 per metric ton price increase for newsprint and a $30 per metric ton increase for market pulp during the quarter. Net income for the first nine months was $100.9 million on sales of $1.72 billion. This compares with net income of $58.3 million on sales of $1.61 billion. The improvement over the company's performance last year was due to higher prices for pulp and paper, combined with significantly lower operating costs. The company is setting a new goal to improve profitability by approximately $100 million per year, through cost reductions and productivity gains, to be implemented by the end of 2001.