News Releases

    • AbitibiBowater announces pricing of US$413,000,000 senior secured notes offering and senior secured term loan
          ABH (TSX, NYSE)
          MONTREAL, March 26 /CNW Telbec/ - AbitibiBowater Inc. announced today
      that Abitibi-Consolidated Company of Canada ("ACCC"), an indirect subsidiary
      of AbitibiBowater, has priced a private offering of US$413,000,000 aggregate
      principal amount of 13.75% senior secured notes due April 1, 2011. The notes
      are being sold to qualified institutional buyers in reliance on Rule 144A
      under the Securities Act of 1933, as amended (the "Securities Act"), and to
      non-U.S. persons in reliance on Regulation S under the Securities Act. The
      notes have not been registered under the Securities Act or any state
      securities laws. Therefore, the notes may not be offered or sold in the United
      States absent registration or an applicable exemption from such registration
          ACCC also today priced a US$400,000,000 364-day senior secured term loan
      with a coupon of LIBOR + 800 basis points, with a 3.5% LIBOR floor, at a price
      of 96% of par.
          The closing of both transactions is expected to occur on or about
      April 1, 2008, subject to the concurrent closing of both transactions and two
      other previously announced transactions. All four transactions are subject to
      the satisfaction of various closing conditions, including the receipt of
      various third-party approvals. The net proceeds from all four transactions
      will be used as part of the overall refinancing plan for the Company's
      Abitibi-Consolidated Inc. subsidiary, which is intended to address upcoming
      debt maturities and general liquidity needs.
          This press release does not constitute an offer to sell or the
      solicitation of an offer to buy any security and shall not constitute an
      offer, solicitation or sale of any securities in any jurisdiction in which
      such offering, solicitation or sale would be unlawful. This press release is
      issued pursuant to and in accordance with Rule 135c under the Securities Act.
          About AbitibiBowater
          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. Following the required
      divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will
      own or operate 27 pulp and paper facilities and 35 wood products facilities
      located in the United States, Canada, the United Kingdom and South Korea.
      Marketing its products in more than 90 countries, AbitibiBowater is also among
      the world's largest recyclers of 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 report 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 Company's anticipated timetable for closing
      the transactions and its future plans regarding continued refinancing relating
      to its previously announced refinancing plans. Forward-looking statements may
      be identified by the use of forward-looking terminology such as the words
      "will" and "expect" and other terms with similar meaning indicating possible
      future events or potential impact on the business or other stakeholders of the
      Company 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 obtain additional new financing on terms satisfactory to the
      Company and Abitibi-Consolidated or at all, the condition of the U.S. credit
      and capital markets generally, worsening industry conditions and the ability
      to meet the required closing conditions.
          Additional factors are detailed from time to time in the Company'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, as amended, for year ended December 31,
      2007, each under the caption "Risk Factors." All forward-looking statements in
      this report are expressly qualified by information contained in the Company's
      filings with the SEC and the Canadian securities regulatory authorities. The
      Company disclaims any obligation to update or revise any forward-looking
      For further information:
      For further information: For Investors: Duane Owens, Vice President and
      Treasurer, (864) 282-9488; For Media: Seth Kursman, Vice President,
      Communications and Government Affairs, (514) 394-2398,