News Releases

    • AbitibiBowater Announces Signing of C$615 Million Agreement in Principle for the Sale of Interest in Manicouagan Hydroelectric Facility
          ABH (NYSE, TSX)
          MONTREAL, March 13 /CNW Telbec/ - AbitibiBowater Inc. today announced it
      has signed a non-binding agreement in principle with Hydro-Québec for the sale
      of its 60 percent interest in the hydroelectric facility located on the
      Manicouagan River (the "Facility"), for gross proceeds of C$615 million. Both
      parties have committed to an expedited timeline, consistent with the Company's
      comprehensive recapitalization plan also announced today. Due diligence for
      this transaction is currently under way.
          The Facility, located in Quebec, Canada, was established in 1949 and has
      the capacity to generate approximately 335 MW of electricity. AbitibiBowater,
      through its Abitibi-Consolidated Company of Canada subsidiary, owns a 60
      percent interest in the Facility.
          "This transaction is a key step in AbitibiBowater's overall plan to
      ensure greater liquidity and financial flexibility," stated David J. Paterson,
      President and Chief Executive Officer. "Deleveraging the Company's balance
      sheet is important to all AbitibiBowater stakeholders."
          The non-binding proposal for the sale of AbitibiBowater's 60 percent
      interest in the Facility is subject to certain terms and conditions,
      including, but not limited to, satisfactory due diligence, obtaining the
      required consents and approvals, the execution of definitive agreements
      (including a long-term power supply agreement for AbitibiBowater's
      Baie-Comeau, Quebec paper mill) and other customary conditions. No assurances
      can be provided as to when or if definitive agreements will be executed.
          The proposal does not include the sale of the Baie-Comeau mill, nor does
      it in any way impact other Company hydroelectric facilities. Since last year,
      significant progress has been made in lowering the Baie-Comeau mill's
      operating costs and improving its highly competitive cost position. Given this
      transaction, the Company is committed to undertake new investment
      opportunities at the site. AbitibiBowater has and will continue to keep
      workers and local communities informed about the sale of its interest in the
      Facility as the process advances.
          The Company owns additional hydro assets, including an installed share of
      capacity of 162.5 MW in the province of Quebec.
          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 24 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 under the stock symbol ABH on both
      the New York Stock Exchange and the Toronto Stock Exchange.
          Forward-Looking Statements
          Statements in this news 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 gross proceeds of the transaction for the
      Company, reaching a definitive agreement in the first quarter of 2009, the
      impact of the sale on our operations, our operating costs, new investment
      opportunities, communication with workers and local communities and our
      strategies for achieving our goals generally. Forward-looking statements may
      be identified by the use of forward-looking terminology such as the words
      "should," "would," "could," "may," "expect," "believe," and other terms with
      similar meaning indicating possible future events or potential impact on the
      business or stockholders of AbitibiBowater.
          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
      finalize the proposal on terms satisfactory to the Company within the
      announced time frame, the prices under which the Company would be able to sell
      the assets, the potential impact of the sale of the Company's interest in the
      Facility on mill operations, our ability to decrease operating costs and take
      advantage of new investment opportunities, our ability to continue to keep
      workers and local communities informed about the sale and industry conditions
      generally. Additional factors are detailed from time to time in
      AbitibiBowater's filings with the Securities and Exchange Commission (SEC) and
      the Canadian securities regulatory authorities, including those factors
      contained in the Company's Annual Report on Form 10-K/A for the year ended
      December 31, 2007, filed with the SEC on March 20, 2008, and the Company's
      Quarterly Report on Form 10-Q for the period ended September 30, 2008, filed
      with the SEC on November 14, under the caption "Risk Factors" in each
      respective report. All forward-looking statements in this news release are
      expressly qualified by information contained in the Company's filings with the
      SEC and the Canadian securities regulatory authorities. AbitibiBowater
      disclaims any obligation to update or revise any forward-looking information.
      For further information:
      For further information: Investors: Duane Owens, Vice President,
      Finance, (864) 282-9488; Media and Others: Pierre Choquette, Manager,
      Government Relations and Public Affairs - Québec, (514) 394-2178,