AbitibiBowater Responds To Proposed $100 Million Investissement Quebec Guarantee

US$

Company to negotiate terms with bank

MONTREAL, April 17 /PRNewswire-FirstCall/ - AbitibiBowater Inc. ("AbitibiBowater") and its Abitibi-Consolidated Inc. ("Abitibi") subsidiary today responded to the announcement by Investissement Quebec regarding its intention to guarantee a maximum amount of $100 million of supplemental funding to Abitibi through a credit facility to be put in place by a Canadian bank (the "Lender"). The proposed financing and guarantee is subject to the approval of the Courts in Canada as well as negotiation of specific terms with the Lender and Investissement Quebec and execution of definitive agreements.

"AbitibiBowater and its employees appreciate the confidence in our restructuring initiatives and the ongoing demonstration of support and collaboration shown by Investissement Quebec and the Quebec government," stated David J. Paterson, President and Chief Executive Officer. "The supplemental funds proposed to be guaranteed by Investissement Quebec will support AbitibiBowater's business continuity by providing additional short-term liquidity while we continue to address our restructuring program and support our business continuity."

Additionally, the Company confirmed its intention to continue working towards a rapid conclusion of the previously announced sale of AbitibiBowater's 60 percent interest in its Manicouagan Hydroelectric Facility for gross proceeds of C$615 million.

"The Quebec government's commitment to the MPCo transaction is a key step in AbitibiBowater's overall plan to ensure greater liquidity and financial flexibility," added David J. Paterson.

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 23 pulp and paper facilities and 30 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 third-party certified 100% of its managed woodlands to sustainable forest management standards.

Forward-Looking Statements

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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 proposed financing by Investissement Quebec, business continuity, the conclusion of the sale of the 60% interest in Manicouagan Hydroelectric Facility, as well as our overall restructuring plans. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "will," "intend," "may," "believe," 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 negotiate definitive agreements for the proposed financing arrangements under terms and conditions acceptable to the Company, the ability to obtain additional financing, the ability to obtain court approval for the financing, the ability to continue to meet the needs of our customers, the ability to meet all current operating needs, including wages, benefits and other operating expenses, the ability to ensure business continuity, the ability to protect the value of the business, the ability to make the necessary changes to ensure the long-term viability of the Company, the ability to conclude the sale of our 60% interest in Manicouagan Hydroelectric Facility and the condition of the U.S. credit and capital markets generally.

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 and Current Report on Form 8-K dated February 9, 2009, 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.

SOURCE ABITIBIBOWATER INC. - ENGLISH