News Releases

    • AbitibiBowater announces amendments to subsidiaries' credit facilities
          ABH (NYSE, TSX)
          MONTREAL, Nov. 14 /CNW Telbec/ - AbitibiBowater Inc. today announced that
      its subsidiaries Bowater Canadian Forest Products Inc. ("BCFPI") and Bowater
      Incorporated ("Bowater") as well as the other parties to Bowater's U.S. and
      Canadian credit facilities, had entered into amendments to those facilities
      which, among other things: (1) waive the requirement that Bowater and BCFPI
      are required to comply immediately with the more restrictive borrowing base
      requirements by November 15, 2008 and providing instead for phased-in
      implementation through March 31, 2009 (extending to April 29, 2009 under
      certain circumstances) and waive compliance with certain financial covenant
      requirements for the third quarter of 2008; (2) amend certain covenants,
      including the leverage ratio, for the fourth quarter of 2008; (3) increase the
      interest rate under each facility by 125 basis points; (4) provide a lien on
      substantially all Canadian fixed assets and the shares of BCFPI's South Korean
      subsidiary (which operates BCFPI's Mokpo mill) to Canadian lenders, as
      security for indebtedness in a principal amount not to exceed 10% of the
      shareholders' equity of BCFPI as of September 30, 2008; (5) add a provision
      requiring that 75% of the proceeds of asset sales by Bowater or its
      subsidiaries, including BCFPI, be used to reduce amounts outstanding under
      both facilities on a pro rata basis; (6) reduce, pro rata, the aggregate
      amount of the commitment under both facilities by US$10 million; and (7)
      require that Bowater and certain of its affiliates (including BCFPI) maintain
      no more than $70 million of cash on hand on a combined consolidated basis,
      with any excess to be used to reduce amounts outstanding under the credit
          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 25 pulp and paper facilities and 34 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 more third-party
      certified sustainable forest land than any other company in the world.
      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 continued strength 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. 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
      and Investor Relations, (864) 282-9488; Media and Others: Seth Kursman, Vice
      President, Communications and Government Affairs, (514) 394-2398,