2006 marked a year of dynamic transition for Bowater. A change in leadership and a new focus are invigorating our manufacturing locations, sales and support staff. We are building on past success and thinking forward, with a renewed commitment to operational excellence.

Across Bowater, we are improving our manufacturing processes with the goal of increased cash flow and enhanced margins. Aggressive steps to realign and strengthen the organization are the beginnings of a new dynamic for our company.

By more closely aligning our employees' focus with our stakeholder interests, and establishing a clear line of sight to our customers' needs, we are taking the steps necessary to succeed in the face of increased global competition and industry cyclicality.

Bowater is a leading North American forest products manufacturer, employing 7,400 people at 30 locations around the world. The company owns, leases or has cutting rights on approximately 29 million acres of timberlands in North America. Bowater operates SIX recycling plants and is one of the world's largest consumers of recycled newspapers and magazines.