<B>Bowater Reports Strong Quarter; Cites Newsprint Prices</B>

Bowater Inc. reported its net profit nearly tripled in the fourth quarter due to higher prices for its pulp and paper products and lower costs.

The company said earnings including a one-time gain were $58.5 million, up from $20.4 million in the year-earlier period.

Bowater's net sales climbed to $618.5 million in the quarter from $525.0 million in the year-earlier period.

"2000 was an excellent year for Bowater," said Arnold Nemirow, Bowater's chairman, president and CEO. "Our improved results, compared with the fourth quarter and the full year of 1999, were due to higher pricing in all pulp and paper products and lower operating costs."

During the fourth quarter, Bowater took approximately 25,000 metric tons of downtime in market pulp, which lowered pre-tax earnings by approximately $9 million. Downtime in the wood products industry is a way to reduce inventory by reducing work shifts and running equipment in mills and factories at below peak.

For the full year, Bowater had net income of $159.4 million. This compares with net income of $78.7 million in 1999, which includes gains on the sale of assets, net of impairment charges, of $72.8 million after-tax. Net sales in 2000 totaled $2.3 billion, compared with $2.1 billion in 1999.