US$
    ABWTQ (OTC)
    ABH (TSX)

    MONTREAL, May 7 /CNW Telbec/ - AbitibiBowater Inc. ("AbitibiBowater" or
the "Company") and its Abitibi-Consolidated Inc. ("Abitibi") subsidiary today
announced that an order from the Québec Superior Court in Canada has been
obtained authorizing Abitibi to enter into a loan agreement with Bank of
Montreal for debtor-in-possession financing which will be guaranteed by
Investissement Québec (the "Abitibi DIP Agreement"). The Abitibi DIP Agreement
will support AbitibiBowater's business continuity by providing additional
short-term liquidity while the Company continues to develop its restructuring
plan.
    The Abitibi DIP Agreement will be among Abitibi, as borrower, and Bank of
Montreal, as lender, and will be guaranteed by Investissement Québec, as
sponsor. The Abitibi DIP Agreement will provide for borrowings in an aggregate
principal amount of up to $100 million for Abitibi (the "DIP Facility"), of
which a minimum undrawn availability of $12.5 million must be maintained at
all times.
    The outstanding principal amount of loans under the DIP Facility, plus
accrued and unpaid interest, will be payable in full at the earliest of: (i)
November 1, 2009; (ii) the effective date of a plan of reorganization under
the Companies' Creditors Arrangement Act in Canada or Chapter 11 of the United
States Bankruptcy Code in the U.S.; and (iii) certain other events.
    More information about AbitibiBowater's restructuring process can be
found at www.abitibibowater.com or by calling toll-free 888-266-9280.
International callers should dial 503-597-7698.
    AbitibiBowater produces a wide range of newsprint, commercial printing
papers, market pulp and wood products. It is the eighth largest publicly
traded pulp and paper manufacturer in the world. AbitibiBowater owns or
operates 23 pulp and paper facilities and 30 wood products facilities located
in the United States, Canada, the United Kingdom and South Korea. Marketing
its products in more than 90 countries, the Company is also among the world's
largest recyclers of old newspapers and magazines, and has third-party
certified 100% of its managed woodlands to sustainable forest management
standards. AbitibiBowater's shares trade over-the-counter on the Pink Sheets
under the stock symbol ABWTQ.

    Forward-Looking Statements
    --------------------------

    Statements in this press release that are not reported financial results
or other historical information are "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. They include,
for example, statements about the long-term interest of the Company, business
continuity and long-term viability, the protection of the value of the
business, the proposed financing commitment, as well as the overall
restructuring plans. Forward-looking statements may be identified by the use
of forward-looking terminology such as the words "expect", "ensure",
"believe", "will", and other terms with similar meaning indicating possible
future events or potential impact on the business or other stakeholders of
AbitibiBowater and its subsidiaries.
    The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future performance.
These statements are based on management's current assumptions, beliefs and
expectations, all of which involve a number of business risks and
uncertainties that could cause actual results to differ materially. These
risks and uncertainties include, but are not limited to, the ability to
conclude definitive documentation in connection with the proposed ACI DIP
Agreement and guarantee from IQ, the ability to obtain additional financing,
the ability to continue to meet the needs of our customers, the ability to
meet all current operating needs, including wages, benefits and other
operating expenses, the ability to ensure business continuity, the ability to
protect the value of the business, the ability to make the necessary changes
to ensure the long-term viability and the condition of the U.S. credit and
capital markets generally. Additional factors are detailed from time to time
in AbitibiBowater's and Abitibi-Consolidated's filings with the Securities and
Exchange Commission (SEC), including those factors contained in
AbitibiBowater's Annual Report on Form 10-K for the year ended December 31,
2008, filed with the SEC on April 30, 2009, under the caption "Risk factors".
All forward-looking statements in this news release are expressly qualified by
information contained in AbitibiBowater's and Abitibi-Consolidated's filings
with the SEC. AbitibiBowater disclaims any obligation to update or revise any
forward-looking information except as required by law.