<B>Bowater Plans Market Pulp Downtime</B>

Bowater Inc. will curtail production of market pulp during the fourth quarter by at least 25,000 metric tons, or about 10% of quarterly production capacity, to maintain optimal inventory levels. The company's pulp operations are located in Catawba, S.C.; Calhoun, Tenn.; and Thunder Bay, Ont. Softwood pulp is produced at Thunder Bay and Catawba. Hardwood pulp is produced at Bowater's Calhoun and Thunder Bay mills.

The announcement by Bowater follows a number of other decisions by pulp producers throughout North America to remove capacity from the market. Pulp producers have attempted to push through a price increase this fall. By removing a significant amount more capacity there is a hope that pulp prices could once again start strengthening. Pulp prices had been strengthening over the past several quarters. However, it appears there has been some cresting of prices, resulting in slight softening in pulp prices.

Bowater Inc. is a producer of newsprint. In addition, the company makes coated and uncoated groundwood papers, bleached kraft pulp and lumber products. With its pending acquisition of the Sepoong mill in South Korea, the company will have ten pulp and paper mills in the United States, Canada and South Korea. The company also owns and operates a coating operation and three sawmills that produce softwood dimension lumber.