News Releases

    • AbitibiBowater Announces Amendments to Subsidiaries' Credit Facilities
          ABH (NYSE, TSX)
          MONTREAL, March 2 /CNW Telbec/ - AbitibiBowater Inc. today announced that
      Bowater Incorporated ("Bowater"), a subsidiary of AbitibiBowater, Bowater
      Newsprint South LLC ("Newsprint South"), a subsidiary of AbitibiBowater, and
      certain of Bowater's subsidiaries and affiliates, entered into amendments to
      Bowater's U.S. and Canadian credit agreements. The amendment to the U.S.
      credit agreement was entered into among AbitibiBowater, Bowater, Newsprint
      South and certain subsidiaries and affiliates of Bowater and Newsprint South,
      certain lenders party thereto and Wachovia Bank, National Association, as
      Administrative Agent for the various lenders under that credit agreement. The
      amendment to the Canadian credit agreement was entered into among
      AbitibiBowater, Bowater, Bowater Newsprint South, Bowater Canadian Forest
      Products Inc. ("BCFPI"), an indirect subsidiary of Bowater, and certain
      subsidiaries and affiliates of Bowater, Newsprint South and BCFPI, certain
      lenders party thereto and The Bank of Nova Scotia, as Administrative Agent for
      the lenders party to that credit agreement.
          The amendments to the credit agreements provide for lender consent to
      $12,000,000 of additional liquidity previously provided to BCFPI by Fairfax
      Financial Holdings Limited (the "Additional Liquidity") and amend and modify
      each of Bowater's U.S. and Canadian credit agreements to, among other things,
      (i) increase the commitment under the Canadian credit agreement in an
      aggregate amount of $30,000,000 in order to add two additional tranches of
      loans (the "Additional Loans"), one tranche in the principal amount of
      $12,000,000, representing the Additional Liquidity previously funded, and the
      other in the principal amount of $18,000,000, representing loans funded upon
      the closing of the amendments, (ii) provide that the Additional Loans are not
      subject to the borrowing base requirements contained in the Canadian credit
      agreement, (iii) allow the collateral securing the Canadian credit agreement
      (other than certain fixed assets of Newsprint South and certain of its
      subsidiaries) to secure the Additional Loans on a last-out basis, (iv)
      temporarily increase the limit on the amount of foreign accounts receivable
      that may be included in the borrowing base, (v) modify the scheduled
      reductions to the commitment amounts under each agreement and (vi) increase
      the interest rate under each agreement by 1.00%.
          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 our ability to comply with the terms of
      Bowater's credit facility, 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," "anticipate," 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, industry conditions
      generally and further growth in alternative media, our ability to realize
      announced price increases, the impact of the global credit crisis on our
      ability to refinance or amend the terms of our current indebtedness, our
      ability to obtain timely contributions to our cost-reduction initiatives from
      our unionized and salaried employees, the prices and terms under which we
      would be able to sell targeted assets, the volatility of the U.S. dollar
      against the Canadian dollar, the costs of raw materials such as energy,
      chemicals and fiber, the success of our post-merger integration activities,
      including the rollout of information technology platforms and billing and
      procurement systems as well as the impact of our liquidity position on the
      relationship with our customers, vendors and trade creditors. 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, as well as those factors
      contained in AbitibiBowater's Current Report on Form 8-K filed on February 9,
      2009. 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: Seth Kursman, Vice President,
      Communications and Government Affairs, (514) 394-2398,