The Group B tournament began on 6 February 2003 in Sarajevo, Bosnia and Herzegovina. Turkey who finished last in Division III at the 2002 IIHF World U18 Championships returned to compete in this year's Division III tournament, Israel returned to the World Championships having not played since 2001, Iceland made their first appearance in the Division having only previously played in a qualification tournament in 2001, and Bosnia and Herzegovina made their debut appearance at the World Championships. Iceland won the tournament after winning all three of their games and gained promotion to Division II of the 2004 IIHF World U18 Championships. Turkey finished second after beating both Bosnia and Herzegovina and Israel on goal difference and Bosnia and Herzegovina finished in third. Israel who had original won their first two games against Iceland and Bosnia and Herzegovina had the results annulled and scored 5–0 in favour of the opposing teams due to their use of three players who did not meet the International Ice Hockey Federation's eligibility criteria. Israel had originally won the games 9–1 against Bosnia and Herzegovina and 5–4 against Iceland. Birgir Jakob Hansen of Iceland finished as the top scorer of the tournament with ten points including five goals and five assists.