News Releases

    • AbitibiBowater amends terms of private debt exchange offer
          ABH (TSX, NYSE)
          MONTREAL, March 19 /CNW Telbec/ - AbitibiBowater Inc. announced today
      that its indirect subsidiary Abitibi-Consolidated Company of Canada ("ACCC")
      has amended certain of the terms of its previously announced private exchange
      offers with respect to an aggregate of approximately US$496 million of
      outstanding debt securities issued by ACCC, Abitibi-Consolidated Inc.
      ("Abitibi") or Abitibi-Consolidated Finance L.P. ("ACF"), a wholly owned
      subsidiary of Abitibi (collectively, the "ACI Notes"). An informal group of
      noteholders holding both 2008 notes and 2009 notes, representing approximately
      US$324 million in aggregate principal amount of the total US$496 million,
      negotiated and supports the terms of the revised exchange offer.
      Bracewell & Giuliani LLP and Goodmans LLP, as special US and Canadian counsel
      to the noteholders, will host a conference call for the overall group of 2008
      and 2009 noteholders to discuss the terms of the revised exchange offer on
      Wednesday, March 19, 2008. ACCC is offering as consideration, in exchange for
      the tender of the ACI Notes, a combination of cash and new 15.5% unsecured
      senior notes due 2010 of ACCC (the "Exchange Notes"). ACCC announced today
      that it has instituted a withdrawal deadline of 5:00pm, New York City time, on
      March 26, 2008, unless otherwise extended, and extended the consent payment
      deadline for the exchange offers for the ACI Notes and the concurrent consent
      solicitations. As a result, holders of such notes who wish to receive the
      total consideration offered pursuant to the exchange offers must now validly
      tender and not validly withdraw their ACI Notes on or prior to 5:00 p.m., New
      York City time, on March 31, 2008, unless extended or earlier terminated (the
      "Consent Payment Deadline").
          The ACI Notes consist of US$195,612,000 principal amount of 6.95% Senior
      Notes due April 1, 2008, issued by Abitibi; US$150,000,000 principal amount
      of 5.25% Senior Notes due June 20, 2008, issued by ACCC; and US$150,000,000
      principal amount of 7.875% Senior Notes due August 1, 2009, issued by ACF.
          ACCC announced that, in addition to the extension of the Consent Payment
      Deadline, the terms of the exchange offers have been amended to:
          - increase the consideration to be paid for the exchange of the ACI Notes
          on or prior to the Consent Payment Deadline in accordance with the
          table below;
          - provide that the indenture for the Exchange Notes will include
          covenants substantially similar to those contained in the indenture for
          the new Senior Secured Notes being offered by ACCC in a concurrent
          private offering; and
          - reduce the minimum tender condition with respect to the ACI Notes due
          in 2009 to 75% from 90%.
          The consideration offered by ACCC for the exchange of ACI Notes is as
          For each US$1,000 Principal
          Amount Exchanged
          If Tendered        If Tendered
          By the Consent  After the Consent
          Payment Deadline   Payment Deadline
          Principal          Principal
          Amount of          Amount of
          Outstanding   New Senior         New Senior
          ACI Notes                Principal    Notes Due          Notes Due
          to be Exchanged             Amount         2010   Cash        2010  Cash
          6.95% Senior Notes
          due 2008             $195,612,000         $550   $550        $600  $400
          5.25% Senior Notes
          due 2008             $150,000,000         $550   $550        $600  $400
          7.875% Senior Notes
          due 2009             $150,000,000         $850   $250        $850  $150
          The exchange offers and consent solicitations relating to the ACI Notes
      are being made upon the terms and conditions set forth in the Second Amended
      and Restated Offering Circular and Consent Solicitation Statement dated
      March 18, 2008 (the "Offering Circular"), and the related Letter of
      Transmittal and Consent. Further details about the terms and conditions of the
      exchange offers and consent solicitations relating to the ACI Notes are set
      forth in the Offering Circular.
          The Exchange Notes will not be and have not been registered under the
      Securities Act of 1933, as amended, and may not be offered or sold in the
      United States absent registration or an applicable exemption to the
      registration requirements.
          This press release shall 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 in any jurisdiction in which such offering,
      solicitation or sale would be unlawful.
          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 31 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 press 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 Abitibi-Consolidated's refinancing plans, the
      terms of the exchange offer and the timeframe for its completion.
      Forward-looking statements may be identified by the use of forward-looking
      terminology such as the words "expect," "plans," "intend," "may," "will," and
      other terms with similar meaning indicating possible future events or
      potential impact on the business or other stakeholders of AbitibiBowater 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 AbitibiBowater and
      Abitibi-Consolidated or at all, the condition of the U.S. credit markets
      generally and worsening industry conditions. 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 AbitibiBowater's Annual Report on Form 10-K for the
      year ended December 31, 2007, under the caption "Risk Factors." All
      forward-looking statements in this news release are expressly qualified by
      information contained in AbitibiBowater'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: For Investors: Duane Owens, Vice President and
      Treasurer, (864) 282-9488; For Media: Seth Kursman Vice President,
      Communications and Government Affairs (514) 394-2398;