Bowater Makes Organizational Realignment

Aug. 14, 2006--Bowater Inc. today announced key leadership changes and promotions reflecting new organizational alignment within the company.

"We are taking steps to change Bowater from a division-based organization to one organized by function that supports and focuses on Bowater's increasingly multi-line manufacturing and sales across our mill base," said David J. Paterson, the company's President and Chief Executive Officer. "Importantly, we're realigning our leadership team to reflect this new organizational focus."

Effective immediately, new assignments and promotions include:

R. Donald Newman remains Chief Operating Officer and will become Executive Vice President of Manufacturing for Bowater, reporting to Paterson. Reporting to Newman is Gaynor L. "Bud" Nash, who has been promoted to Senior Vice President of Manufacturing for Catawba, Calhoun and Coosa Pines operations.

Also reporting to Newman is David A. Spraley, who joins Bowater as Senior Vice President of Manufacturing for the company's Mokpo, Thunder Bay, Mersey, Grenada and Ponderay sites. A 28-year veteran of the paper industry, Spraley most recently was senior vice president, manufacturing for the North American retail consumer products group of Georgia-Pacific Corp. In that capacity, he was responsible for operations at six integrated manufacturing operations producing tissue, pulp and fine paper, and oversaw manufacturing site leaders in the areas of safety, environmental compliance, quality, production, costs and employee involvement.

Spraley also previously worked for Mead Corp. He holds a Bachelor of Science in Chemical Engineering from the University of Dayton in Ohio.

Also reporting to Newman are Luc Lachapelle, who has been promoted to Senior Vice President of Manufacturing for the company's Donnacona, Dolbeau, Dalhousie and Gatineau sites; and Vic Bilodeau, who has been promoted to Vice President of Manufacturing Services.

Reporting to Paterson in the newly aligned Bowater organization are Pierre Monahan, who has been promoted to Executive Vice President - Building Products; Randy Ellington, who has been promoted to Senior Vice President - Newsprint Sales; and William Morris, who has been promoted to Senior Vice President for Coated and Specialty Papers Sales and Marketing.

In addition, W. Eric Streed joins Bowater as Executive Vice President of Operations and Process Improvement, reporting to Paterson. Streed will lead the functions of Information Technology, Purchasing, Logistics, and Customer Services and Planning as well as functional leadership for Wood Procurement and Nuway.

A 26-year paper industry veteran, Streed most recently was vice president of supply chain projects and information technology for Domtar Inc. He also served as vice president, U.S. operations for Domtar and previously held positions in engineering and mill management with Georgia-Pacific. Streed holds a bachelor of science in mechanical engineering from the University of Mississippi.

Other promotions announced include Ronald T. Lindsay, Executive Vice President, General Counsel and Corporate Secretary; William G. Harvey, Executive Vice President and Chief Financial Officer; and James T. Wright, Executive Vice President - Human Resources.

"We are working each day to strengthen Bowater and increase shareholder returns," Paterson said. "Changes to our organizational alignment are among the many steps we are taking to improve our focus, eliminate redundancy and increase our overall efficiencies."

SOURCE: Bowater Inc.

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