<SUBMISSION>
<ACCESSION-NUMBER>0000950144-04-000591
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20040129
<ITEMS>12
<ITEMS>7
<FILING-DATE>20040129
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>BOWATER INC
<CIK>0000743368
<ASSIGNED-SIC>2621
<IRS-NUMBER>620721803
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-08712
<FILM-NUMBER>04550942
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>55 EAST CAMPERDOWN WAY
<STREET2>P O BOX 1028
<CITY>GREENVILLE
<STATE>SC
<ZIP>29601
<PHONE>8642717733
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>55 EAST CAMPERDOWN WAY
<STREET2>P O BOX 1028
<CITY>GREENVILLE
<STATE>SC
<ZIP>29602
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g86907e8vk.txt
<DESCRIPTION>BOWATER INCORPORATED
<TEXT>
<PAGE>
                            SECURITIES AND EXCHANGE
                                   COMMISSION
                             WASHINGTON, D.C. 20549


                                    FORM 8-K


                                 CURRENT REPORT
     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported)   January 29, 2004


                              BOWATER INCORPORATED
             (Exact name of registrant as specified in its charter)


Delaware                              1-8712                    62-0721803
(State or other                     (Commission                (IRS Employer
jurisdiction of                    File Number)               Identification
incorporation)                                                     No.)


                             55 East Camperdown Way
                                  P.O. Box 1028
                        Greenville, South Carolina 29602
               (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code:  (864) 271-7733

(Former name or former address, if changed since last report):  Not applicable





<PAGE>


ITEM 7.  FINANCIAL STATEMENTS AND EXHIBITS

         (c)      Exhibits.

         99.1     Press Release of Bowater Incorporated dated January 29, 2004


ITEM 12.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION

         The information in this Form 8-K and the Exhibit attached hereto shall
not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934,
nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933, except as shall be expressly set forth by specific
reference in such filing.

         On January 29, 2004, Bowater Incorporated issued a press release
announcing financial results for the three months ended December 31, 2003, and
for the year ended December 31, 2003, a copy of which is attached hereto as
Exhibit 99.1.


                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.


                                            BOWATER INCORPORATED
                                            (Registrant)


Date: January 29, 2004              By: /s/David G. Maffucci
                                       ------------------------------------
                                       Name:  David G. Maffucci
                                       Title: Executive Vice President and Chief
                                              Financial Officer


<PAGE>


                                    EXHIBITS

   99.1     Press release issued by Bowater Incorporated on January 29, 2004

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>g86907exv99w1.txt
<DESCRIPTION>EX-99.1 PRESS RELEASE
<TEXT>
<PAGE>
                                                                    EXHIBIT 99.1

                                                                  Media contact:
                                                                Gordon R. Manuel
                                                                    864-282-9448

                                                                Analyst contact:
                                                               William G. Harvey
                                                                    864-282-9413

FOR IMMEDIATE RELEASE
THURSDAY, JANUARY 29, 2004

                   BOWATER ANNOUNCES FOURTH QUARTER AND 2003
                                FINANCIAL RESULTS

GREENVILLE, SC - Bowater Incorporated (NYSE: BOW) reported financial results for
the fourth quarter and the full year 2003. Bowater reported a net loss of $50.9
million or $0.89 per diluted share, on sales of $735.6 million for the fourth
quarter of 2003. These results compare with a net loss of $66.6 million, or
$1.17 per diluted share, on sales of $666.3 million in the fourth quarter of
2002. Before special items, the net loss for the fourth quarter of 2003 was
$39.5 million, or $0.69 per diluted share, compared with the 2002 fourth quarter
net loss before special items of $43.7 million, or $0.77 per diluted share.

         Fourth quarter 2003 special items, net of tax, consisted of a $3.0
million gain related to asset sales, a severance charge of $3.3 million, and an
$11.1 million charge resulting from foreign currency changes. Special items, net
of tax, in the fourth quarter of 2002 consisted of a $3.6 million gain related
to asset sales, a severance charge of $8.1 million, an asset impairment charge
of $19.1 million, and a $0.7 million gain resulting from foreign currency
changes.

         For the full year of 2003, Bowater had a net loss of $205.0 million, or
$3.60 per diluted share. This compares with a net loss of $142.4 million, or
$2.50 per diluted share, in 2002. Sales in 2003 totaled $2.7 billion, compared
with $2.6 billion in 2002. Several unusual events widened the company's loss for
2003: weather-related fiber cost increases, fiber shortages at our Ontario
operations, the closure of a Quebec paper machine, and completion of major
capital programs at our South Carolina mill.

                              FINANCIAL HIGHLIGHTS
                    ($ in millions, except per-share amounts)

<TABLE>
<CAPTION>

                                                                             Three months ended         Twelve months ended
                                                                             December 31,               December 31,
                                                                             2003          2002          2003             2002
                                                                           ---------     ---------     ---------       ---------
<S>                                                                          <C>           <C>          <C>            <C>

SALES                                                                      $   735.6     $   666.3     $ 2,721.1       $ 2,581.1
NET LOSS                                                                   $   (50.9)    $   (66.6)    $  (205.0)      $  (142.4)
LOSS PER DILUTED SHARE (IN ACCORDANCE WITH GAAP)                           $   (0.89)    $   (1.17)    $   (3.60)      $   (2.50)

Special items, net of tax, (per diluted share):
   Sale of assets (gain) loss                                              $   (0.05)    $   (0.06)    $   (1.35)      $   (0.90)
   Foreign exchange (gain) loss*                                           $    0.19     $   (0.01)    $    1.09       $   (0.03)
   Severance charge                                                        $    0.06     $    0.14     $    0.42       $    0.14
   Asset impairment charge                                                               $    0.33                     $    0.33
   Adoption of new accounting standards                                                         --     $    0.08              --
                                                                           ---------     ---------     ---------       ---------
Loss per share excluding special items                                     $   (0.69)    $   (0.77)    $   (3.36)      $   (2.96)
                                                                           ---------     ---------     ---------       ---------
*Primarily balance sheet translation of foreign denominated accounts
</TABLE>

<PAGE>

         Bowater's average newsprint selling price per metric ton increased $15
in the fourth quarter compared to the third quarter. Operating costs per ton of
production improved by 2% during the quarter. In the fourth quarter, Bowater
curtailed approximately 40,000 metric tons of newsprint production. The company
has informed its North American customers of a $50 per metric ton newsprint
price increase effective February 1, 2004.

         Bowater's average transaction price for coated and specialty papers
increased $16 per short ton compared to the third quarter of 2003. Production
and cost improvements at our Catawba, South Carolina facility reduced operating
costs per ton by 4% in the fourth quarter compared to the third quarter.

         Bowater's average transaction price for market pulp increased $3 per
metric ton compared to the third quarter of 2003. During the fourth quarter, the
company incurred $9 million of additional cost and production was reduced by
approximately 14,000 metric tons due primarily to scheduled recovery boiler
maintenance at the Coosa Pines and Thunder Bay facilities. The company has
informed its North American customers of a $20 per metric ton increase on
softwood pulp grades effective February 1, 2004.

         "Our 2003 financial results were very disappointing, as the gradual
improvement in product pricing was offset by a stronger Canadian dollar and the
above described unusual events," said Arnold M. Nemirow, Bowater's Chairman,
President and Chief Executive Officer. "We believe our actions to reduce costs
and improve productivity, and an anticipated recovery in product pricing, should
significantly improve our results in 2004."

         Bowater will hold a management conference call to discuss these
financial results at 11:00 a.m. EST, January 29, 2004. The conference call
number is 888-428-4478 or 651-291-5254 (international). The call will also be
broadcast via the Internet. Interested parties may connect to the Bowater web
site at www.bowater.com, then follow the on-screen instructions for access to
the call and related information. A replay of the call will be available from
1:30 p.m. EST on Thursday, January 29, through Thursday, February 5, on the web
site or by dialing 800-475-6701 or 320-365-3844 (international) and using the
access code 716080.

         Bowater Incorporated, headquartered in Greenville, SC, is a leading
producer of newsprint and coated groundwood papers. In addition, the company
makes uncoated groundwood papers, bleached kraft pulp and lumber products. The
company has 12 pulp and paper mills in the United States, Canada and South Korea
and 13 North American sawmills that produce softwood lumber. Bowater also
operates two facilities that convert a groundwood base sheet to coated products.
Bowater's operations are supported by approximately 1.4 million acres of
timberlands owned or leased in the United States and Canada and 32 million acres
of timber cutting rights in Canada. Bowater is one of the world's largest
consumers of recycled newspapers and magazines. Bowater common stock is listed
on the New York Stock Exchange, the Pacific Exchange and the London Stock
Exchange. A special class of stock exchangeable into Bowater common stock is
listed on the Toronto Stock Exchange (TSE:BWX).

         All amounts are in U.S. dollars.

<PAGE>
         Statements in this news release that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. They include,
for example, statements about our business outlook, assessment of market
conditions, strategies, future plans, future sales, prices for our major
products, inventory levels, capital spending and tax rates. These
forward-looking statements are not guarantees of future performance. They are
based on management's expectations that involve a number of business risks and
uncertainties, any of which could cause actual results to differ materially from
those expressed in or implied by the forward-looking statements. The risks and
uncertainties relating to the forward-looking statements in this news release
include those described under the caption "Cautionary Statement Regarding
Forward-Looking Information" in Bowater's quarterly report on Form 10-Q for the
quarter ended June 30, 2003, and from time to time, in Bowater's other filings
with the Securities and Exchange Commission. Information about industry or
general economic conditions contained in this press release is derived from
third party sources that the company believes are widely accepted and accurate;
however, the company has not independently verified this information and cannot
assure its accuracy.


                                      # # #

<PAGE>
                      BOWATER INCORPORATED AND SUBSIDIARIES
                      CONSOLIDATED STATEMENT OF OPERATIONS
                (UNAUDITED, IN MILLIONS EXCEPT PER SHARE AMOUNTS)


<TABLE>
<CAPTION>
                                                                     Three Months Ended                Twelve Months Ended
                                                                         December 31,                      December 31,
                                                                 ---------------------------       ---------------------------
                                                                    2003             2002             2003             2002
                                                                 ----------       ----------       ----------       ----------
<S>                                                              <C>              <C>              <C>              <C>
Sales                                                            $    735.6       $    666.3       $ 62,721.1       $  2,581.1
Cost of sales, excluding depreciation, amortization
    and cost of timber harvested                                      567.1            525.2          2,194.0          2,020.7
Depreciation, amortization and cost of timber harvested                86.0             83.7            339.0            340.5
Distribution costs                                                     70.7             64.2            264.4            232.6
Selling and administrative expense                                     40.9             41.0            148.6            140.2
Impairment of assets                                                     --             28.5               --             28.5
Net gain on sale of assets (1)                                          4.8              5.9            124.0             85.7
                                                                 ----------       ----------       ----------       ----------
       Operating loss                                                 (24.3)           (70.4)          (100.9)           (95.7)

Other expense (income):
    Interest income                                                    (1.1)            (1.3)            (4.6)            (4.5)
    Interest expense, net of capitalized interest                      46.6             40.2            174.5            163.0
    Foreign exchange loss (gain)                                        1.1             (0.7)            17.0             (6.1)
    Other, net                                                         (1.5)             0.7             (6.9)             2.7
                                                                 ----------       ----------       ----------       ----------
                                                                       45.1             38.9            180.0            155.1
                                                                 ----------       ----------       ----------       ----------
Loss before income taxes, minority interests
and cumulative effect of accounting changes                           (69.4)          (109.3)          (280.9)          (250.8)

Provision for income tax benefit                                      (17.7)           (40.4)           (70.1)          (100.5)
Minority interests in the net loss of subsidiaries                     (0.8)            (2.3)           (10.3)            (7.9)
                                                                 ----------       ----------       ----------       ----------

Loss before cumulative effect of accounting changes                   (50.9)           (66.6)          (200.5)          (142.4)
Cumulative effect of accounting changes (2)                              --               --             (4.5)              --
                                                                 ----------       ----------       ----------       ----------
Net loss                                                         $    (50.9)      $    (66.6)      $   (205.0)      $   (142.4)
                                                                 ==========       ==========       ==========       ==========



Basic loss per common share: (3)
   Loss before cumulative effect of accounting changes           $    (0.89)      $    (1.17)      $    (3.52)      $    (2.50)
   Cumulative effect of accounting changes                               --               --            (0.08)              --
                                                                 ----------       ----------       ----------       ----------

    Net loss                                                     $    (0.89)      $    (1.17)      $    (3.60)      $    (2.50)
                                                                 ==========       ==========       ==========       ==========

Average common shares outstanding (3)                                  57.0             56.9             57.0             56.9
                                                                 ==========       ==========       ==========       ==========


Diluted loss per common share: (3)
  Loss before cumulative effect of accounting changes            $    (0.89)      $    (1.17)      $    (3.52)      $    (2.50)
  Cumulative effect of accounting changes                                --               --            (0.08)              --
                                                                 ----------       ----------       ----------       ----------
    Net loss                                                     $    (0.89)      $    (1.17)      $    (3.60)      $    (2.50)
                                                                 ==========       ==========       ==========       ==========
Average common and common equivalent shares outstanding (3)            57.0             56.9             57.0             56.9
                                                                 ==========       ==========       ==========       ==========
</TABLE>
<PAGE>

                      BOWATER INCORPORATED AND SUBSIDIARIES
                     (UNAUDITED, IN MILLIONS OF US DOLLARS)


<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET                                                           December 31,            December 31,
                                                                                         2003                    2002
                                                                                     -----------             -------------
<S>                                                                                  <C>                     <C>
Current assets:
    Cash and cash equivalents                                                          $   19.4                 $   35.9
    Accounts receivable, net                                                              360.9                    330.6
    Inventories                                                                           293.1                    257.2
    Income tax receivable                                                                    --                     75.6
    Other current assets                                                                  160.8                     35.9
                                                                                       --------                 --------
        Total current assets                                                              834.2                    735.2
                                                                                       --------                 --------
Timber and timberlands                                                                    184.1                    212.0
Fixed assets, net                                                                       3,557.3                  3,645.6
Goodwill                                                                                  828.2                    839.9
Other assets                                                                              211.6                    157.6
                                                                                       --------                 --------
                                                                                       $5,615.4                 $5,590.3
                                                                                       ========                 ========
Current liabilities:
    Current installments of long-term debt                                             $   13.4                 $   84.3
    Short-term bank debt                                                                  200.5                    249.0
    Accounts payable and accrued liabilities                                              404.5                    411.9
    Dividends payable                                                                      11.7                     11.2
                                                                                       --------                 --------
        Total current liabilities                                                         630.1                    756.4
                                                                                       --------                 --------
Long-term debt, net of current installments                                             2,292.4                  2,037.4
Other long-term liabilities                                                               505.4                    450.7
Deferred income taxes                                                                     505.2                    518.2
Minority interests in subsidiaries                                                         69.3                     72.1
Shareholders' equity                                                                    1,613.0                  1,755.5
                                                                                       --------                 --------
                                                                                       $5,615.4                 $5,590.3
                                                                                       ========                 ========

<CAPTION>

                                                                                              Twelve Months Ended
CONSOLIDATED CASH FLOW                                                                            December 31,
                                                                                       ---------------------------------
                                                                                           2003                     2002
                                                                                       --------                 --------
Cash flows from operating activities                                                   $   20.3                 $   41.2
                                                                                       --------                 --------
<S>                                                                                     <C>                     <C>
Cash flows from (used for) investing activities:
    Cash invested in fixed assets, timber and timberlands                                (216.3)                  (238.7)
    Disposition of fixed assets, timber and timberlands                                   154.3                     26.5
    Proceeds from monetization of note receivable (1)                                        --                     88.1
    Cash (invested) maturity of marketable securities, net                                   --                      1.7
                                                                                       --------                 --------
                                                                                          (62.0)                  (122.4)
                                                                                       --------                 --------
Cash flows from (used for) financing activities:
    Cash dividends, including minority interests                                          (45.3)                   (49.6)
    Financing activities, net                                                              68.8                    130.9
    Stock options exercised                                                                 1.7                      7.5
                                                                                       --------                 --------
                                                                                           25.2                     88.8
                                                                                       --------                 --------
Net increase (decrease) in cash and cash equivalents                                   $  (16.5)                $    7.6
                                                                                       ========                 ========
</TABLE>

<PAGE>

BOWATER INCORPORATED AND SUBSIDIARIES
NOTES TO THE PRESS RELEASE AND UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(1)   During the three months and year ended December 31, 2003, Bowater sold
      fixed assets and land resulting in a net pre-tax gain of $4.8 million, or
      $0.05 per diluted share after tax, and $124.0 million, or $1.35 per
      diluted share after tax, respectively. The 2003 pre-tax gain is primarily
      attributable to the second quarter of 2003 sale of 81,768 acres of owned
      and leased timberlands for aggregate consideration of $121.8 million. This
      transaction resulted in a pre-tax gain of approximately $97.5 million.
      During the three months and year ended December 31, 2002, Bowater sold
      fixed assets and land resulting in a net pre-tax gain of $5.9 million, or
      $0.06 per diluted share after tax, and $85.7 million, or $0.90 per diluted
      share after tax, respectively. The 2002 pre-tax gain is primarily
      attributable to the January 2002 sale of approximately 116,000 acres of
      timberland for aggregate consideration of $104.2 million, comprised of
      approximately $5.1 million in cash and $99.1 million in a note receivable.
      In March 2002, we monetized the $99.1 million note receivable for net cash
      proceeds of $88.1 million. These transactions resulted in a pre-tax gain
       of approximately $70.4 million.

(2)   Effective July 1, 2003, Bowater early adopted, on a partial basis,
      Financial Accounting Standards Board's Financial Interpretation (FIN) No.
      46, Consolidation of Variable Interest Entities. In general, a variable
      interest entity is a corporation, partnership, trust, or any other legal
      structure used for business purposes that either (a) does not have equity
      investors with voting rights or (b) has equity investors that do not
      provide sufficient financial resources for the entity to support its
      activities. FIN No. 46 requires a variable interest entity to be
      consolidated by a company if that company is subject to a majority of the
      risk of loss from the variable interest entity's activities or entitled to
      receive a majority of the entity's residual returns or both. Many variable
      interest entities have commonly been referred to as special-purpose
      entities (SPE) or off-balance sheet structures. Bowater operated the
      Covington coating facility under an operating lease with a special purpose
      entity. This special purpose entity was determined to be a VIE and
      required to be consolidated by Bowater in accordance with FIN 46. Bowater
      early adopted FIN No. 46 for the Covington SPE effective July 1, 2003 and
      consolidated assets and debt of approximately $51.8 million and recorded a
      non-cash, after tax cumulative effect charge of $2.4 million, or $0.04 per
      diluted share in the third quarter of 2003. On August 11, 2003, Bowater
      terminated the lease agreement with the SPE and paid approximately $51.8
      million to pay off the debt. Bowater will finalize its adoption of FIN No.
      46 in the first quarter of 2004. The finalization of adoption of FIN No.
      46 is not expected to have a material impact on our consolidated financial
      statements.

      Effective January 1, 2003, Bowater adopted Statement of Financial
      Accounting Standards (SFAS) No. 143, "Accounting for Asset Retirement
      Obligations." SFAS No. 143 requires entities to record the fair value
      of a liability for an asset retirement obligation in the period in
      which it is incurred. The adoption of SFAS No. 143 resulted in
      non-cash, after tax cumulative effect charges of $2.1 million, or $0.04
      per diluted share in the first quarter of 2003.

(3)   For the calculation of basic and diluted earnings per share for the three
      and twelve months ended December 31, 2003 and 2002, no adjustments to net
      income (loss) are necessary. The effect of dilutive securities is not
      included in the computation for the three and twelve months ended December
      31, 2003 and 2002 to prevent antidilution.

(4)   A reconciliation of certain financial statement line items reported under
      generally accepted accounting principles ("GAAP") to earnings reported
      before special items is presented below. We believe that this measure
      allows investors to more easily compare our on-going operations and
      financial performance from period to period. This measure is not as
      complete as GAAP earnings; consequently, investors should rely on GAAP
      earnings. In addition to GAAP earnings, we use the other measures that we
      disclose in order to provide perspective on our financial performance.


<TABLE>
<CAPTION>

                                                                              THREE MONTHS ENDED DECEMBER 31, 2003
                                                                        (UNAUDITED, IN MILLIONS EXCEPT PER SHARE AMOUNTS)

                                                                                   ADJUSTMENT FOR SPECIAL ITEMS

                                                                                                               ADOPTION     GAAP
                                                                                                                OF NEW       AS
                                                                                                                ACCOUNT-  ADJUSTED
                                                                  GAAP    LAND &                                  ING        FOR
                                                                   AS     ASSET     FOREIGN             IMPAIR-  STAN-     SPECIAL
                                                                REPORTED  SALES     EXCHANGE  SEVERANCE   MENT   DARDS      ITEMS
                                                                --------  -----     --------  --------- ------- --------  ---------
<S>                                                             <C>       <C>       <C>       <C>       <C>     <C>       <C>
Operating income (loss)                                         $(24.3)   $ (4.8)    $   --    $  5.0   $   --    $   --   $(24.1)
Other expense (income)
Interest income                                                   (1.1)                                                      (1.1)
Interest expense, net of capitalized interest                     46.6                                                       46.6
Foreign exchange loss (gain)                                       1.1                 (1.1)                                   --
Other, net                                                        (1.5)                                                      (1.5)
                                                                ------    ------     ------    ------   ------    ------   ------
                                                                  45.1        --       (1.1)       --       --        --     44.0
                                                                ------    ------     ------    ------   ------    ------   ------
Loss before income taxes, minority interests
   and cumulative effect of accounting changes                   (69.4)     (4.8)       1.1       5.0                       (68.1)
Provision for income tax expense (benefit)                       (17.7)     (1.8)      (9.8)      1.7                       (27.6)
Minority interests in the net income (loss) of subsidiaries       (0.8)                (0.2)                                 (1.0)
                                                                ------    ------     ------    ------   ------    ------   ------
Income (loss) before cumulative effect of accounting changes     (50.9)     (3.0)      11.1       3.3       --        --    (39.5)
Cumulative effect of accounting changes                             --                                                         --
                                                                ------    ------     ------    ------   ------    ------   ------
Net income (loss)                                               $(50.9)   $ (3.0)    $ 11.1    $  3.3   $   --    $   --   $(39.5)
                                                                ======    ======     ======    ======   ======    ======   ======
Shares                                                            57.0      57.0       57.0      57.0                        57.0
                                                                ======    ======     ======    ======   ======    ======   ======
EPS                                                             $(0.89)   $(0.05)    $ 0.19    $ 0.06   $   --    $   --   $(0.69)
                                                                ======    ======     ======    ======   ======    ======   ======
Effective tax rate                                                25.5%     38.0%    -890.9%     34.0%      --        --     40.5%
                                                                ======    ======     ======    ======   ======    ======   ======
</TABLE>
<PAGE>



<TABLE>
<CAPTION>

                                                                              THREE MONTHS ENDED DECEMBER 31, 2002
                                                                         (UNAUDITED, IN MILLIONS EXCEPT PER SHARE AMOUNTS)

                                                                                    ADJUSTMENT FOR SPECIAL ITEMS


                                                                                                               ADOPTION     GAAP
                                                                                                                OF NEW       AS
                                                                                                                ACCOUNT-  ADJUSTED
                                                                  GAAP    LAND &                                  ING        FOR
                                                                   AS     ASSET     FOREIGN             IMPAIR-  STAN-     SPECIAL
                                                                REPORTED  SALES     EXCHANGE  SEVERANCE   MENT   DARDS      ITEMS
                                                                --------  -----     --------  --------- ------- --------  ---------
<S>                                                             <C>       <C>       <C>       <C>       <C>     <C>       <C>
Operating income (loss)                                         $(70.4)   $ (5.9)   $   --    $ 13.1   $ 28.5   $   --    $(34.7)
Other expense (income)
Interest income                                                   (1.3)                                                     (1.3)
Interest expense, net of capitalized interest                     40.2                                                      40.2
Foreign exchange loss (gain)                                      (0.7)                0.7                                    --
Other, net                                                         0.7                                                       0.7
                                                                ------    ------    ------    ------   ------   ------    ------
                                                                  38.9        --       0.7        --       --       --      39.6
                                                                ------    ------    ------    ------   ------   ------    ------
Loss before income taxes, minority interests and cumulative
  effect of accounting changes                                  (109.3)     (5.9)     (0.7)     13.1     28.5       --     (74.3)
Provision for income tax expense (benefit)                       (40.4)     (2.3)      0.1       5.0      9.4              (28.2)
Minority interests in the net income (loss) of subsidiaries       (2.3)               (0.1)                                 (2.4)
                                                                ------    ------    ------    ------   ------   ------    ------
Income (loss) before cumulative effect of accounting changes     (66.6)     (3.6)     (0.7)      8.1     19.1       --     (43.7)
Cumulative effect of accounting changes                             --                                                       --
                                                                ------    ------    ------    ------   ------   ------    ------
Net income (loss)                                               $(66.6)   $ (3.6)   $ (0.7)   $  8.1   $ 19.1   $   --    $(43.7)
                                                                ======    ======    ======    ======   ======   ======    ======

Shares                                                            56.9      56.9      56.9      56.9     56.9       --      56.9
                                                                ======    ======    ======    ======   ======   ======    ======

EPS                                                             $(1.17)   $(0.06)   $(0.01)   $ 0.14   $ 0.33   $   --    $(0.77)
                                                                ======    ======    ======    ======   ======   ======    ======

Effective tax rate                                                37.0%     39.0%   -14.3%      38.2%    33.0%      --      38.0%
                                                                ======    ======    ======    ======   ======   ======    ======
<CAPTION>


                                                                              TWELVE MONTHS ENDED DECEMBER 31, 2003
                                                                        (UNAUDITED, IN MILLIONS EXCEPT PER SHARE AMOUNTS)

                                                                                     ADJUSTMENT FOR SPECIAL ITEMS

                                                                                                               ADOPTION     GAAP
                                                                                                                OF NEW       AS
                                                                                                                ACCOUNT-  ADJUSTED
                                                                  GAAP    LAND &                                  ING        FOR
                                                                   AS     ASSET     FOREIGN             IMPAIR-  STAN-     SPECIAL
                                                                REPORTED  SALES     EXCHANGE  SEVERANCE   MENT   DARDS      ITEMS
                                                                --------  -----     --------  --------- ------- --------  ---------
<S>                                                             <C>       <C>       <C>       <C>       <C>     <C>       <C>
Operating income (loss)                                         $(100.9)  $(124.0)  $    --   $  37.2   $    --   $    --  $(187.7)
Other expense (income)
Interest income                                                    (4.6)                                                      (4.6)
Interest expense, net of capitalized interest                     174.5                                                      174.5
Foreign exchange loss (gain)                                       17.0               (17.0)                                    --
Other, net                                                         (6.9)                                                      (6.9)
                                                                -------   -------   -------   -------   -------   -------  -------
                                                                  180.0        --     (17.0)       --        --        --    163.0
                                                                -------   -------   -------   -------   -------   -------  -------
Loss before income taxes, minority interests and
  cumulative effect of accounting changes                        (280.9)   (124.0)     17.0      37.2                  --   (350.7)
Provision for income tax expense (benefit)                        (70.1)    (47.1)    (43.4)     13.2                       (147.4)
Minority interests in the net income (loss) of subsidiaries       (10.3)     (1.6)                                           (11.9)
                                                                -------   -------   -------   -------   -------   -------  -------
Income (loss) before cumulative effect of accounting changes     (200.5)    (76.9)     62.0      24.0        --        --   (191.4)
Cumulative effect of accounting changes                            (4.5)      4.5                                               --
                                                                -------   -------   -------   -------   -------   -------  -------
Net income (loss)                                               $(205.0)  $ (76.9)  $  62.0   $  24.0   $    --   $   4.5  $(191.4)
                                                                =======   =======   =======   =======   =======   =======  =======

Shares                                                             57.0      57.0      57.0      57.0        --      57.0     57.0
                                                                =======   =======   =======   =======   =======   =======  =======

 EPS                                                            $ (3.60)  $ (1.35)  $  1.09   $  0.42   $    --   $  0.08  $ (3.36)
                                                                =======   =======   =======   =======   =======   =======  =======

Effective tax rate                                                 25.0%     38.0%  -255.3%      35.5%       --        --     42.0%
                                                                =======   =======   =======   =======   =======   =======  =======

</TABLE>
<PAGE>


<TABLE>
<CAPTION>
                                                                              TWELVE MONTHS ENDED DECEMBER 31, 2002
                                                                        (UNAUDITED, IN MILLIONS EXCEPT PER SHARE AMOUNTS)

                                                                                     ADJUSTMENT FOR SPECIAL ITEMS


                                                                                                               ADOPTION     GAAP
                                                                                                                OF NEW       AS
                                                                                                                ACCOUNT-  ADJUSTED
                                                                  GAAP    LAND &                                  ING        FOR
                                                                   AS     ASSET     FOREIGN             IMPAIR-  STAN-     SPECIAL
                                                                REPORTED  SALES     EXCHANGE  SEVERANCE   MENT   DARDS      ITEMS
                                                                --------  -----     --------  --------- ------- --------  ---------
<S>                                                             <C>       <C>       <C>       <C>       <C>     <C>       <C>
Operating income (loss)                                         $ (95.7)  $ (85.7)  $    --   $  13.1   $  28.5  $    --   $(139.8)
Other expense (income)
Interest income                                                    (4.5)                                                      (4.5)
Interest expense, net of capitalized interest                     163.0                                                      163.0
Foreign exchange loss (gain)                                       (6.1)                6.1                                     --
Other, net                                                          2.7                                                        2.7
                                                                -------   -------   -------   -------   -------  -------   -------
                                                                  155.1        --       6.1        --        --       --     161.2
                                                                -------   -------   -------   -------   -------  -------   -------
Loss before income taxes, minority interests and cumulative
    effect of accounting changes                                 (250.8)    (85.7)     (6.1)     13.1      28.5             (301.0)
Provision for income tax expense (benefit)                       (100.5)    (34.3)     (5.0)      5.0       9.4             (125.4)
Minority interests in the net income (loss) of subsidiaries        (7.9)      0.5                                             (7.4)
Income (loss) before cumulative effect of accounting changes      (142.4)    (51.4)     (1.6)      8.1      19.1       --    (168.2)
Cumulative effect of accounting changes                             --                                                         --
                                                                -------   -------   -------   -------   -------  -------   -------
Net income (loss)                                               $(142.4)  $ (51.4)  $  (1.6)  $   8.1   $  19.1  $    --   $(168.2)
                                                                =======   =======   =======   =======   =======  =======   =======

Shares                                                             56.9      56.9      56.9      56.9      56.9       --      56.9
                                                                =======   =======   =======   =======   =======  =======   =======

 EPS                                                            $ (2.50)  $ (0.90)  $ (0.03)  $  0.14   $  0.33  $    --   $ (2.96)
                                                                =======   =======   =======   =======   =======  =======   =======

Effective tax rate                                                 40.1%     40.0%     82.0%     38.2%     33.0%      --      41.7%
                                                                =======   =======   =======   =======   =======  =======   =======
</TABLE>


A schedule of historical financial and operating statistics is available upon
request and on Bowater's web site (www.bowater.com).

</TEXT>
</DOCUMENT>
</SUBMISSION>
