ABH (TSX, NYSE)
    US$

    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
requirements.
    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
information.