BOW Bowater Inc

The Board of Directors of Bowater Incorporated (NYSE: BOW) today declared a quarterly cash dividend of $0.20 per common share payable on April 3, 2006, to holders of record at the close of business on March 10, 2006. Simultaneously, Bowater's subsidiary, Bowater Canada Inc., declared a quarterly cash dividend to holders of its exchangeable shares (TSX: BWX) in the same amount with the same record and payable dates. Bowater Incorporated, headquartered in Greenville, SC, is a leading producer of newsprint, coated mechanical and specialty papers. In addition, the company makes 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 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 and the Pacific Exchange. A special class of stock exchangeable into Bowater common stock is listed on the Toronto Stock Exchange (TSX: BWX). All amounts are in U.S. dollars.