Bowater Declares Quarterly Dividend and Announces Results of 2006 Annual Meeting

Bowater additionally announced the results of the vote taken atits Annual Meeting of Shareholders held in Greenville, SC, today.Elected to the Board of Directors for three-year terms were:

-- Togo D. West, Jr., Chairman of the Leadership Institute

-- Richard B. Evans, President and Chief Executive Officer of Alcan Inc.

-- Bruce W. Van Saun, Vice Chairman and Chief Financial Officer of The Bank of New York Company, Inc.

-- David J. Paterson, President and Chief Executive Officer of Bowater

Bowater's shareholders also approved the Company's 2006 StockOption and Restricted Stock Plan.

KPMG LLP was ratified as Bowater's independent registered publicaccounting firm for the 2006 fiscal year.

Bowater Incorporated, headquartered in Greenville, SC, is aleading producer of newsprint, coated mechanical and specialty papers.In addition, the company makes bleached kraft pulp and lumberproducts. The company has 12 pulp and paper mills in the UnitedStates, Canada and South Korea and 10 North American sawmills thatproduce softwood lumber. Bowater also operates two facilities thatconvert a base sheet to coated products. Bowater's operations aresupported by approximately 1.1 million acres of timberlands owned orleased in the United States and Canada and 28 million acres of timbercutting rights in Canada. Bowater is one of the world's largestconsumers of recycled newspapers and magazines. Bowater common stockis listed on the New York Stock Exchange and the Pacific Exchange. Aspecial class of stock exchangeable into Bowater common stock islisted on the Toronto Stock Exchange (TSX: BWX).