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AbitibiBowater Launches 30-Day Review of All Businesses

Press release from the issuing company

MONTREAL, Nov. 6 2007 - This morning, Abitibi-Consolidated Inc. and Bowater Incorporated announced their respective third quarter 2007 earnings. Separately, AbitibiBowater Inc. has released the Company's key business priorities. They will be discussed in more detail during the management-hosted quarterly conference call to be held today at 10:00 a.m. (Eastern).
The following specific priorities have been established:
- The Company originally announced its expectation to realize in excess of $250 million in annualized synergies over the next two years. The Company now expects to achieve this targeted run rate by the end of the first quarter of 2009.
- A debt-reduction target of $1 billion over the next three years will enhance the global competitiveness of the Company.
- AbitibiBowater will demonstrate its superior customer focus by providing access to a broad range of forest products and best-in-class customer service, with an unsurpassed commitment to environmental sustainability.
Over the next 30 days, AbitibiBowater's Executive Team will complete a strategic review of each business and develop complete action plans for achieving these business priorities, inclusive of sales and marketing plans.
Combination of Abitibi-Consolidated Inc. and Bowater Incorporated
On January 29, 2007, Abitibi-Consolidated Inc. and Bowater Incorporated announced the execution of a definitive agreement to combine in an all-stock merger of equals. On October 29, 2007, the two companies announced the completion of the transaction.