Abitibi-Bowater merger now complete

The press release states that with pro forma revenues of approximately US$8-billion in 2006, AbitibiBowater is the third largest publicly traded paper and forest products company in North America and the eighth largest in the world.

AbitibiBowater is a U.S. reporting company, reporting in U.S. GAAP, with headquarters and executive offices located in Montréal, Québec.

The Company expects to achieve annualized synergies of at least US$250-million within two years from improved efficiencies in such areas as production, selling, general and administrative (SG&A) costs, distribution, and procurement.

The company recently announced 49 positions would be lost at the Brooklyn plant. A spokesperson for the company stated the pending lay-offs have nothing to do with the merger. Union and company executives are now discussing how to deal with the issue.

According to John W. Weaver, Executive Chairman of AbitibiBowater, "By combining Abitibi-Consolidated and Bowater, we have created a global leader that is well positioned to compete in an increasingly challenging global market. We look forward to drawing on the best practices from both organizations and on the strengths of a proven management team to deliver greater value to our stockholders, customers, employees and other stakeholders.

"This transaction marks a new and important chapter in our collective history," said David J. Paterson, President and Chief Executive Officer of AbitibiBowater. "Through this combination, AbitibiBowater will be a more dynamic and competitive organization that will create long-term value for our stockholders and the communities in which we operate. Our plan to achieve US$250-million in annual synergies is just the first step toward this goal."

As previously announced and as part of the closing of the combination of Abitibi-Consolidated and Bowater to form AbitibiBowater, Bowater Canada Inc., an exchangeable share public company subsidiary of Bowater, amended its articles in order to, among other matters, change its name to AbitibiBowater Canada Inc. and change each of its issued and outstanding exchangeable shares for 0.52 of a new exchangeable share.

AbitibiBowater produces a wide range of newsprint and commercial printing papers, market pulp and wood products. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 31 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 80 countries, the company is 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.

Any statements made regarding the combination between Abitibi-Consolidated Inc. and Bowater Incorporated, benefits or synergies of the combination, and other statements contained in this news release that are not historical fact are forward-looking statements that are based on management's beliefs, certain assumptions and current expectations.

With files from Mark Roberts