News Releases

    • AbitibiBowater announces private debt exchange offer for $496 million of debt securities
          ABH (TSX, NYSE)
          MONTREAL, March 10 /CNW Telbec/ - AbitibiBowater Inc. ("ABH") announced
      today the commencement of private offers to exchange any and all of the
      following notes (together, the "old notes") in a private placement for a
      combination of cash and new 15.0% Senior Notes due 2010 (the "new notes") to
      be issued by Abitibi-Consolidated Company of Canada ("ACCC").
          Old notes include:- 6.95% Senior Notes due 2008 of Abitibi-Consolidated Inc. ("ACI"), a
            wholly-owned subsidiary of ABH;
          - 5.25% Senior Notes due 2008 of ACCC, a wholly-owned subsidiary of
            ACI; and
          - 7.875% Senior Notes due 2009 of Abitibi-Consolidated Finance L.P.
            ("ACF"), a wholly-owned subsidiary of ACI.
          The exchange offers are being made only to qualified institutional buyers
      and institutional accredited investors inside the United States and to certain
      non-U.S. investors located outside the United States ("eligible holders").
          Each exchange offer will expire at 11:59 p.m., New York City time, on
      April 4, 2008, unless extended. Eligible holders who validly tender and do not
      withdraw their old notes on or prior to 5:00 p.m., New York City time, on
      March 26, unless extended (the "consent payment deadline"), will also receive
      additional cash payments in lieu of a portion of the new notes.
          The cash to be paid and principal amount of new notes to be issued to
      eligible holders for each $1,000 principal amount, or principal amount at
      maturity, as applicable, of old notes accepted in exchange as well as the cash
      to be paid to eligible holders who validly tender their old notes on or prior
      to the consent payment deadline is set forth in the table below.
          The Company is also soliciting consents to amend the supplemental
      indentures governing the old notes and agreement from the holders of the old
      notes not to exercise any remedies under the old notes or their respective
      supplemental indentures until April 8, 2008.
                                          Consideration per $1,000 principal amount
                                                    of old notes exchanged
                                                    If Tendered         If Tendered
                                                 By the Consent   After the Consent
                                               Payment Deadline    Payment Deadline
                                            Principal           Principal
                                               Amount              Amount
          Title of                Aggregate    of new              of new
          old notes               Principal     notes               notes
          to be        CUSIP         Amount     to be      Cash     to be      Cash
          exchanged      No.    Outstanding    Issued   Payment    Issued   Payment
          6.95%    003924AA5   $195,612,000   $500.00   $500.00   $600.00   $400.00
          5.25%    003669AB4   $150,000,000   $500.00   $500.00   $600.00   $400.00
          7.875%   003672AA0   $150,000,000   $750.00   $250.00   $850.00   $150.00
          -------------------------------------------------------------------------The purpose of these private exchange offers is to improve ABH's
      financial flexibility by extending the maturities of its overall indebtedness
      and reducing the amount of its outstanding indebtedness with maturities in
      2008 and 2009.
          Tendered old notes may be validly withdrawn at any time prior to
      5:00 p.m., New York City time, on March 26, 2008. Old notes tendered after the
      consent payment deadline may not be withdrawn.
          Each of the exchange offers is conditioned upon, among other things,
      there being validly tendered and not withdrawn prior to the expiration of the
      exchange offers at least 90% principal amount of each series of old notes
      tendered into the exchange.
          ACCC will enter into a registration rights agreement pursuant to which it
      will agree to file an exchange offer registration statement with the
      Securities and Exchange Commission with respect to the new notes.
          The new notes will be senior unsecured obligations of ACCC, and will be
      guaranteed by ACI and ACF (they will not be guaranteed by ABH), ranking equal
      in right of payment with old notes not tendered in the exchange offers. The
      new notes will mature on July 15, 2010, and will bear interest at a rate per
      annum equal to 15.0%. Interest on the new notes will be payable on July 15 and
      January 15 of each year, beginning on July 15, 2008. The other terms of the
      new notes will be substantially similar to the terms of the 5.25% Senior Notes
      due 2008 of ACCC, except that the new notes will be guaranteed by ACI and
      certain subsidiaries and affiliates of ACI. The new notes have not been and
      will not be registered under the Securities Act or any state securities laws,
      may not be offered or sold in the United States absent registration or an
      applicable exemption from registration requirements, and will therefore be
      subject to substantial restrictions on transfer.
          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 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 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 Quarterly Report on Form 10-Q for
      the quarterly period ended September 30, 2007, and in AbitibiBowater's
      registration statement on Form S-3 filed with the SEC on October 29, 2007,
      each 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: Jean-Philippe Cote, Director, Public
      Affairs and Government Relations, (514) 394-2386,