                                                                    EXHIBIT 99.1


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

                                                  Analyst Contact:
                                                  Duane A. Owens
                                                  864-282-9488


FOR IMMEDIATE RELEASE
Wednesday, October 27, 2004

                      BOWATER ANNOUNCES THIRD QUARTER 2004
                                FINANCIAL RESULTS

GREENVILLE, SC - Bowater Incorporated (NYSE: BOW) reported a net loss of $18.1
million or $0.32 per diluted share, on sales of $834.0 million for the third
quarter of 2004. These results compare with a net loss of $56.7 million, or
$1.00 per diluted share, on sales of $690.9 million in the third quarter of
2003. Before special items, the net loss for the third quarter of 2004 was $1.8
million, or $0.03 per diluted share, compared with the 2003 third quarter net
loss before special items of $51.7 million, or $0.91 per diluted share. Third
quarter 2004 special items, net of tax, consisted of a $0.9 million gain related
to asset sales, and a $17.2 million loss resulting from foreign currency
changes.

                              FINANCIAL HIGHLIGHTS
                     (In millions, except per-share amounts)
<TABLE>
<CAPTION>

                                                               Three Months Ended               Nine Months Ended
                                                                  September 30,                   September 30,
                                                         ------------------------------- --------------------------------
                                                               2004            2003             2004           2003
                                                         ------------------------------- --------------------------------
<S>                                                      <C>            <C>              <C>            <C>
 Sales                                                   $     834.0    $     690.9      $   2,367.3    $   1,985.5
 Net loss                                                $     (18.1)   $     (56.7)     $     (51.9)   $    (154.1)

 Loss per diluted share (in accordance with GAAP)        $     (0.32)   $     (1.00)     $    (0.91)    $    (2.71)
 Special items, net of tax (per diluted share):
    Sale of assets (gain) loss                           $     (0.01)   $     (0.04)     $    (0.07)    $    (1.30)
    Foreign exchange (gain) loss                                0.30           0.04            0.13           0.89
    Severance charge                                            -              0.05            -              0.36
    Adoption of new accounting standards                        -              0.04            -              0.08
                                                         ------------------------------- --------------------------------
 Loss per share excluding special items                  $     (0.03)   $     (0.91)     $    (0.85)    $    (2.68)
                                                         ------------------------------- --------------------------------

</TABLE>

                                     (more)

<PAGE>

     "All segments of our business improved in the third quarter,  and we expect
this  trend to  continue  into the  fourth  quarter  for  newsprint,  coated and
specialty  papers,"  said  Arnold  M.  Nemirow,  Chairman,  President  and Chief
Executive Officer. "We expect, however, that our pulp and lumber results will be
weaker in the fourth  quarter  due to recent  pricing  pressures  and  scheduled
maintenance downtime."

     The company's  average  transaction  price for newsprint rose $8 per metric
ton while operating costs decreased by $7 per metric ton and shipments increased
2% compared to the second quarter of 2004.  Shipments were higher in the quarter
as a result of less maintenance downtime.  During the third quarter, the company
curtailed 36,000 metric tons of newsprint  production and took 7,000 metric tons
of maintenance related downtime.

     Bowater's  average  transaction  price  for  coated  and  specialty  papers
increased  $34 per  short ton  compared  to the  second  quarter  of 2004  while
shipments rose 3%. The company's  average operating cost per short ton increased
$13 per ton primarily due to higher chemical and fiber costs.

     Bowater's average transaction price for market pulp decreased $7 per metric
ton, compared to the second quarter of 2004, while shipments decreased 1% due to
planned  maintenance  outages  at  two  facilities.  As a  result,  market  pulp
production was reduced by 8,000 metric tons.  Average operating costs per metric
ton  decreased 5% compared to the second  quarter.  In the fourth  quarter,  the
company expects to incur  approximately $7 million of maintenance  expense for a
planned 15 day outage at the  Thunder  Bay  facility.  The outage is expected to
reduce market pulp production by approximately 15,000 metric tons.

     The  company's  average  transaction  price for  lumber  increased  $30 per
thousand board feet and shipments increased 3% compared to the second quarter of
2004. During the quarter, the company paid countervailing and antidumping duties
of $12 million.

     Bowater will hold a management  conference  call to discuss these financial
results at 9:00 a.m. EDT, today, October 27, 2004. The conference call number is
800-762-4758  or 480-629-9027  (international).  The call will also be broadcast
via the  Internet.  Interested  parties may  connect to the  Bowater  website 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.
EDT on October 27 through November 3, on the website or by dialing  800-475-6701
or 320-365-3844 (international) and using the access code 750463.

     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 12 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 30 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).


                                     (more)


<PAGE>






         All amounts are in U.S. dollars.

     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  annual report on Form 10-K for the year ended  December 31, 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                  Nine Months Ended
                                                                       September 30,                       September 30,
                                                           -----------------------------------      -------------------------------
                                                                   2004              2003              2004             2003
                                                           -----------------    --------------      -------------   ---------------
<S>                                                           <C>               <C>                 <C>              <C>
Sales                                                         $ 834.0           $ 690.9             $ 2,367.3        $ 1,985.5
Cost of sales, excluding depreciation, amortization
    and cost of timber harvested                                586.9             556.3               1,731.7          1,626.9
Depreciation, amortization and cost of timber harvested          83.0              84.5                 254.1            253.0
Distribution costs                                               85.2              69.2                 241.6            193.7
Selling and administrative expense                               39.9              36.9                 108.7            107.7
Net gain on fixed assets and land sales(1)                        1.7               4.1                   5.9            119.2
                                                           -----------------    --------------      --------------  ---------------
       Operating income (loss)                                   40.7             (51.9)                 37.1            (76.6)

Other expense (income):
    Interest income                                              (1.1)             (1.1)                 (3.2)            (3.5)
    Interest expense, net of capitalized interest                48.4              45.8                 146.5            127.9
    Foreign exchange loss (gain)                                  1.2               2.1                  (0.1)            15.9
    Other, net                                                   (2.5)             (2.4)                 (6.3)            (5.4)
                                                           -----------------    --------------     ---------------   --------------
                                                                 46.0              44.4                 136.9            134.9
                                                           -----------------    --------------     ---------------   --------------
Loss before income taxes, minority interests
and cumulative effect of accounting changes                      (5.3)            (96.3)                (99.8)          (211.5)

Provision for income tax expense (benefit)                       12.0             (39.7)                (44.7)           (52.4)
Minority interests in the net income (loss) of subsidiaries       0.8              (2.3)                 (3.2)            (9.5)
                                                           -----------------    --------------     ---------------    -------------
Loss before cumulative effect of accounting changes             (18.1)            (54.3)                (51.9)          (149.6)
Cumulative effect of accounting changes (2)                       -                (2.4)                   -              (4.5)
                                                           -----------------    --------------     ---------------    -------------

Net loss                                                     $  (18.1)          $ (56.7)             $  (51.9)        $ (154.1)
                                                            ==============      ===============    ==============    ==============



Basic loss per common share: (3)
   Loss before cumulative effect of accounting changes       $  (0.32)          $  (0.96)            $  (0.91)       $   (2.63)
   Cumulative effect of accounting changes                         -               (0.04)                  -             (0.08)
                                                           ---------------      ---------------     -------------    --------------

    Net loss                                                 $  (0.32)           $ (1.00)            $  (0.91)         $ (2.71)
                                                            ==============      ===============     ==============   ==============

Average common shares outstanding (3)                           57.2               56.9                 57.2             56.9
                                                            ==============      ===============     ==============   ==============


Diluted loss per common share: (3)
  Loss before cumulative effect of accounting changes        $  (0.32)          $  (0.96)             $ (0.91)         $ (2.63)
  Cumulative effect of accounting changes                          -               (0.04)                  -             (0.08)
                                                            --------------      ---------------     --------------   --------------

    Net loss                                                  $ (0.32)          $  (1.00)             $ (0.91)         $ (2.71)
                                                            ==============      ===============     ==============   ==============

Average common and common equivalent shares outstanding (3)     57.2               56.9                 57.2             56.9
                                                            ==============      ===============     ==============   ==============
</TABLE>
<PAGE>

                                         BOWATER INCORPORATED AND SUBSIDIARIES
                                        (Unaudited, in millions of US dollars)
<TABLE>
<CAPTION>

Consolidated Balance Sheet                                          September 30,                  December 31,
                                                                         2004                            2003
                                                                   --------------------        ----------------------
<S>     <C>    <C>    <C>    <C>                                         <C>                            <C>
Current assets:
    Cash and cash equivalents                                           $ 15.1                         $ 19.4
    Accounts receivable, net                                             421.5                          360.9
    Inventories                                                          308.6                          293.1
    Other current assets                                                 144.3                          169.6
                                                                  ---------------------         ----------------------
        Total current assets                                             889.5                          843.0
                                                                  ---------------------         ----------------------
Timber and timberlands                                                   185.1                          184.1
Fixed assets, net                                                      3,358.7                        3,557.3
Goodwill                                                                 828.2                          828.2
Other assets                                                             197.2                          203.2
                                                                  --------------------          --------------------
                                                                     $ 5,458.7                      $ 5,615.8
                                                                  ====================          ====================
Current liabilities:
    Current installments of long-term debt                           $    13.0                        $ 13.4
    Short-term bank debt                                                  63.0                         200.5
    Accounts payable and accrued liabilities                             465.9                         434.1
    Dividends payable                                                     11.1                          11.7
                                                                  --------------------         ---------------------
      Total current liabilities                                          553.0                         659.7
                                                                  --------------------         ---------------------
Long-term debt, net of current installments                            2,425.0                       2,292.4
Pension, other postretirement benefits and other long-term liabilities   499.6                         481.4
Deferred income taxes                                                    419.4                         500.3
Minority interests in subsidiaries                                        67.6                          69.3
Shareholders' equity                                                   1,494.1                       1,612.7
                                                                  --------------------          --------------------
                                                                     $ 5,458.7                     $ 5,615.8
                                                                  ====================          ====================

                                                                                   Nine Months Ended
Consolidated Cash Flow                                                              September 30,
                                                                       -----------------------------------------
                                                                         2004                            2003
                                                                  --------------------          ---------------------
Cash flows from operating activities                                    $ 85.3                       $ 24.5
Cash flows from (used for) investing activities:
  Cash invested in fixed assets, timber and timberlands                  (60.3)                      (186.5)
  Disposition of fixed, including timber and timberlands                  10.3                        146.1
                                                                  --------------------         ---------------------
                                                                         (50.0)                       (40.4)
                                                                  --------------------         ---------------------
Cash flows from (used for) financing activities:
    Cash dividends, including minority interests                         (34.6)                       (33.8)
    Financing activities, net                                            (10.1)                        31.2
    Stock options exercised                                                5.1                          0.7
                                                                  ---------------------        ---------------------
                                                                         (39.6)                        (1.9)
                                                                  ---------------------         --------------------
Net decrease in cash and cash equivalents                               $ (4.3)                      $ (17.8)
                                                                  ====================          ====================
</TABLE>
<PAGE>
    BOWATER INCORPORATED AND SUBSIDIARIES
    Notes to the Press Release and Unaudited Consolidated Financial Statements


     (1)During  the three and nine months  ended  September  30,  2004,  Bowater
recorded a net pre-tax gain of $1.7  million,  or $0.01 per diluted  share after
tax and $5.9  million,  or $0.07 per  diluted  share  after  tax,  respectively,
related to land sales and gains or losses on fixed assets.  During the three and
nine months ended  September  30, 2003,  Bowater  recorded a net pre-tax gain of
$4.1 million, or $0.04 per diluted share after tax, and $119.2 million, or $1.30
per diluted  share after tax,  respectively,  related to land sales and gains or
losses on fixed assets.  In the second  quarter of 2003,  Bowater  completed the
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.

     (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."  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 of
approximately $49.4 million 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 finalized its adoption of FIN No. 46R in the first
quarter of 2004. The  finalization of adoption of FIN No. 46R did not impact 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  loss per share for the three
and nine month periods ended  September 30, 2004 and 2003, no adjustments to net
loss are  necessary.  The effect of dilutive  securities  is not included in the
computation  for the three and nine month periods  ended  September 30, 2004 and
2003 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.

<PAGE>

                      Three Months Ended September 30, 2004
                (unaudited, in millions except per share amounts)

<TABLE>
<CAPTION>
                                                                          Adjustment for Special Items
                                                                                                         Adoption of
                                                                         Land sales                          new          GAAP
                                                               GAAP as    & fixed    Foreign              accounting  adjusted for
                                                              reported    assets    exchange  Severance   standards   special items
                                                              ---------------------------------------------------------------------
<S>                                                              <C>       <C>            <C>      <C>         <C>        <C>

    Operating income (loss)                                      $ 40.7    $ (1.7)        $ -       $ -        $ -        $ 39.0
    Other expense (income)
     Interest income                                               (1.1)        -           -         -          -          (1.1)
     Interest expense, net of capitalized interest                 48.4         -           -         -          -          48.4
     Foreign exchange loss (gain)                                   1.2         -        (1.2)        -          -            -
     Other, net                                                    (2.5)        -           -         -          -          (2.5)
                                                              ------------------------------------------------------------------
                                                                   46.0         -        (1.2)        -          -          44.8
                                                              ------------------------------------------------------------------
    Loss before income taxes, minority interests and cumulative
      effect of accounting changes                                 (5.3)     (1.7)        1.2         -          -          (5.8)
    Provision for income tax expense (benefit)                     12.0      (0.8)      (15.8)        -          -          (4.6)
    Minority interests in the net income (loss) of subsidiaries     0.8         -        (0.2)        -          -           0.6
                                                              -----------------------------------------------------------------
    Income (loss) before cumulative effect of accounting changes  (18.1)     (0.9)       17.2         -          -          (1.8)
    Cumulative effect of accounting changes                           -         -           -         -          -            -
                                                              -----------------------------------------------------------------
    Net income (loss)                                            $(18.1)   $ (0.9)     $ 17.2       $ -        $ -        $ (1.8)
                                                              -------------------------------------------------------------------

    Shares                                                         57.2      57.2        57.2         -          -          57.2
                                                              -------------------------------------------------------------------

     EPS                                                        $ (0.32)  $ (0.01)     $ 0.30       $ -        $ -       $ (0.03)
                                                              -------------------------------------------------------------------

    Effective tax rate                                          -226.4%     47.1%    -1316.7%         -          -         79.3%
                                                              -------------------------------------------------------------------
</TABLE>

<TABLE>

 <CAPTION>
                                                                          Three Months Ended September 30, 2003
                                                                      (unaudited, in millions except per share amounts)

                                                                                 Adjustment for Special Items
                                                                                                         Adoption of
                                                                         Land sales                          new          GAAP
                                                               GAAP as    & fixed    Foreign              accounting  adjusted for
                                                              reported    assets     exchange  Severance   standards  special items
                                                              ---------------------------------------------------------------------
<S>                                                             <C>        <C>           <C>      <C>      <C>           <C>

    Operating income (loss)                                     $ (51.9)   $ (4.1)        $ -     $ 4.7        $ -       $ (51.3)
    Other expense (income)
     Interest income                                               (1.1)        -           -         -          -          (1.1)
     Interest expense, net of capitalized interest                 45.8         -           -         -          -          45.8
     Foreign exchange loss (gain)                                   2.1         -        (2.1)        -          -            -
     Other, net                                                    (2.4)        -           -         -          -          (2.4)
                                                                -----------------------------------------------------------------
                                                                   44.4         -        (2.1)        -          -          42.3
                                                                -----------------------------------------------------------------
    Loss before income taxes, minority interests and cumulative
     effect of accounting changes                                 (96.3)     (4.1)        2.1       4.7          -         (93.6)
    Provision for income tax expense (benefit)                    (39.7)     (1.5)        0.1       1.6          -         (39.5)
    Minority interests in the net income (loss) of subsidiaries    (2.3)                 (0.1)        -          -          (2.4)
                                                                -----------------------------------------------------------------
    Income (loss) before cumulative effect of accounting changes  (54.3)     (2.6)        2.1       3.1          -         (51.7)
    Cumulative effect of accounting changes                        (2.4)        -           -         -        2.4            -
                                                                -----------------------------------------------------------------
    Net income (loss)                                           $ (56.7)   $ (2.6)      $ 2.1     $ 3.1      $ 2.4       $ (51.7)
                                                                -----------------------------------------------------------------

    Shares                                                         56.9      56.9        56.9      56.9          -          56.9
                                                                ------------------------------------------------------------------

     EPS                                                        $ (1.00)  $ (0.04)     $ 0.04    $ 0.05     $ 0.04       $  (0.91)
                                                                -----------------------------------------------------------------

    Effective tax rate                                            41.2%     36.6%        4.8%     34.0%          -          42.2%
                                                                -----------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>


                                                                             Nine Months Ended September 30, 2004
                                                                      (unaudited, in millions except per share amounts)

                                                                                 Adjustment for Special Items
                                                                                                         Adoption of
                                                                         Land sales                           new          GAAP
                                                               GAAP as    & fixed    Foreign              accounting   adjusted for
                                                              reported    assets     exchange  Severance   standards  special items
                                                              ----------------------------------------------------------------------
<S>                                                             <C>      <C>            <C>      <C>            <C>       <C>

    Operating income (loss)                                      $ 37.1    $ (5.9)        $ -       $ -        $ -        $ 31.2
    Other expense (income)
     Interest income                                               (3.2)        -           -         -          -          (3.2)
     Interest expense, net of capitalized interest                146.5         -           -         -          -         146.5
     Foreign exchange loss (gain)                                  (0.1)        -         0.1         -          -            -
     Other, net                                                    (6.3)        -           -         -          -          (6.3)
                                                                 -----------------------------------------------------------------
                                                                  136.9         -         0.1         -          -         137.0
                                                                 -----------------------------------------------------------------
    Loss before income taxes, minority interests and cumulative
    effect of accounting changes                                  (99.8)     (5.9)       (0.1)        -          -        (105.8)
    Provision for income tax expense (benefit)                    (44.7)     (2.1)       (7.4)                             (54.2)
    Minority interests in the net income (loss) of subsidiaries    (3.2)        -         0.1         -          -          (3.1)
                                                                ------------------------------------------------------------------
    Income (loss) before cumulative effect of accounting changes  (51.9)     (3.8)        7.2         -          -         (48.5)
    Cumulative effect of accounting changes                           -         -           -         -          -            -
                                                                -----------------------------------------------------------------
    Net income (loss)                                            $(51.9)   $ (3.8)      $ 7.2       $ -        $ -       $ (48.5)
                                                                ------------------------------------------------------------------

    Shares                                                         57.2      57.2        57.2         -          -          57.2
                                                                -----------------------------------------------------------------

     EPS                                                         $(0.91)  $ (0.07)     $ 0.13       $ -        $ -       $  (0.85)
                                                                -----------------------------------------------------------------

    Effective tax rate                                            44.8%     35.6%     7400.0%         -          -          51.2%
                                                                ------------------------------------------------------------------


</TABLE>
<TABLE>
<CAPTION>
                                                                             Nine Months Ended September 30, 2003
                                                                      (unaudited, in millions except per share amounts)

                                                                                 Adjustment for Special Items
                                                                                                         Adoption of
                                                                          Land sales                         new          GAAP
                                                               GAAP as    & fixed    Foreign              accounting  adjusted for
                                                              reported    assets     exchange  Severance   standards  special items
                                                              -------------------------------------------------------------------
<S>                                                              <C>     <C>         <C>        <C>             <C>    <C>

    Operating income (loss)                                     $ (76.6) $ (119.2)        $ -    $ 32.2        $ -      $ (163.6)
    Other expense (income)
     Interest income                                               (3.5)        -           -         -          -          (3.5)
     Interest expense, net of capitalized interest                127.9         -           -         -          -         127.9
     Foreign exchange loss (gain)                                  15.9         -       (15.9)        -          -            -
     Other, net                                                    (5.4)        -           -         -          -          (5.4)
                                                               ------------------------------------------------------------------
                                                                  134.9         -       (15.9)        -          -         119.0
                                                               ------------------------------------------------------------------
    Loss before income taxes, minority interests and cumulative
    effect of accounting changes                                 (211.5)   (119.2)       15.9      32.2          -        (282.6)
    Provision for income tax expense (benefit)                    (52.4)    (45.3)      (33.4)     11.5          -        (119.6)
    Minority interests in the net income (loss) of subsidiaries    (9.5)                 (1.4)        -          -         (10.9)
                                                               ------------------------------------------------------------------
    Income (loss) before cumulative effect of accounting changes (149.6)    (73.9)       50.7      20.7          -        (152.1)
    Cumulative effect of accounting changes                        (4.5)        -           -         -        4.5            -
                                                               ------------------------------------------------------------------
    Net income (loss)                                          $ (154.1)  $ (73.9)     $ 50.7    $ 20.7      $ 4.5      $ (152.1)
                                                               -------------------------------------------------------------------

    Shares                                                         56.9      56.9        56.9      56.9       56.9          56.9
                                                               -------------------------------------------------------------------

     EPS                                                        $ (2.71)  $ (1.30)     $ 0.89    $ 0.36     $ 0.08       $ (2.68)
                                                               -------------------------------------------------------------------

    Effective tax rate                                            24.8%     38.0%     -210.1%     35.7%          -         42.3%
                                                               -------------------------------------------------------------------
</TABLE>

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

