Bowater Declares Quarterly Dividend and Announces Results of 2006 Annual Meeting

The Board of Directors of Bowater Incorporated
(NYSE: BOW) today declared a quarterly cash dividend of $0.20 per
common share payable on July 3, 2006 to holders of record at the close
of business on June 12, 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 additionally announced the results of the vote taken at
its 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 Stock
Option and Restricted Stock Plan.
   KPMG LLP was ratified as Bowater's independent registered public
accounting firm for the 2006 fiscal year.
   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 10 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 1.1 million acres of timberlands owned or
leased in the United States and Canada and 28 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).