Bowater Incorporated 2004 Annual Report
Pocket Wilderness Area

Bowater's Pocket Wilderness areas in Tennessee offer thousands of outdoor enthusiasts opportunities to hike, camp, picnic and enjoy the splendor nature has to offer. These areas are off-limits to harvesting, and instead are protected and maintained for public use. In June 2004, Bowater publicly announced a joint initiative with the state of Tennessee to establish permanent protective measures on several of these areas, which will become part of Tennessee's Cumberland Trail system.

Sustainability

Bowater is mindful of the use of its natural resources - trees, air and water - and places a high priority on protecting and enhancing those assets. Some of our lands have particular aesthetic value, so we have set them aside for purposes other than providing wood fiber for our operations. Recently, we announced our donation involving 3,700 acres of pristine woodlands to the Cumberland Trail State Park in Tennessee.

The donation includes 610 acres and a permanent conservation protection for more than 3,000 acres in our Pocket Wilderness system on the Cumberland Plateau. We are involved in joint studies with Tennessee on ecologically sensitive gulfs, coves and areas where our lands border state parks. In Nova Scotia, over 13% of company land is in our Unique Areas program that includes old growth Acadian forests, wetlands, historical sites, rare and endangered species habitat and wilderness and recreation areas.

In the Province of Ontario, we are conducting one of the largest, most complete forestry-related studies in North America. The 3.5-million-acre Legacy Forest creates a unique opportunity to study the effects of forest management on the environment. The Ontario government, the Living Legacy Trust, Ontario's Lakehead University and other environmental organizations are partnering with us on this project.

All of our company-managed forestlands are enrolled in independently recognized programs that certify their sustainability. All applicable laws are closely observed for harvesting. In addition, Bowater requires contractors working on our forestlands to adhere to forestry Best Management Practices, in the United States and Forest Management Guidelines, in Canada.