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Abitibi-Consolidated and Bowater announce executive team for AbitibiBowater

Press release from the issuing company

7/18/07 -- Abitibi-Consolidated Inc. and Bowater Incorporated today announced the proposed executive team to lead AbitibiBowater Inc., pending approval of the proposed combination and appointment by the Board of AbitibiBowater.

As previously announced, John W. Weaver, currently President and Chief Executive Officer of Abitibi-Consolidated, will be Executive Chairman of the new company, responsible for all corporate functions. David J. Paterson, currently Chairman, President and Chief Executive Officer of Bowater, will serve as President and Chief Executive Officer of AbitibiBowater, with primary responsibility for operations and sales.

"We're creating a stronger global leader better able to succeed in a competitive market, and this is the team that will lead that effort," said Mr. Weaver. "Our first priority is to deliver at least US$250 million in synergies, which will create significant value for investors. We are confident that this executive team will deliver on the synergy commitment."

"We've chosen a talented group of seasoned professionals with diverse and impressive backgrounds to lead the new company. This team will work across the organization to engage all employees, collectively building a successful future," added Mr. Paterson. "The team will work in partnership with our customers to ensure a dependable source for a range of forest products and best-in-class customer service. Furthermore, we believe the new executive team of a larger combined company will create significant value for our investors. We expect to have enhanced financial flexibility, increased cash flow and a better opportunity to unlock future value."

AbitibiBowater will be organized into four primary businesses: North American Newsprint, International, Commercial Printing and Coated Papers, and Wood Products. Each business will have bottom-line responsibility for all aspects of operations and sales.