AbitibiBowater announces preliminary results of private debt exchange offer

ABH (TSX, NYSE) US$

MONTREAL, March 27 /PRNewswire-FirstCall/ -- AbitibiBowater Inc. announced today that the withdrawal rights of noteholders in the exchange offers by Abitibi-Consolidated Company of Canada ("ACCC"), an indirect subsidiary of AbitibiBowater, expired at 5:00 p.m. New York City time, on March 27, 2008. These exchange offers are for the 6.95% Senior Notes due 2008, 5.25% Senior Notes due 2008 and 7.875% Senior Notes due 2009. As of the withdraw deadline, approximately 89.3% of the outstanding 6.95% Senior Notes, 91.8% of the outstanding 5.25% Senior Notes and 93.2% of the outstanding 7.875% Senior Notes had been validly tendered in the exchange offers. Based on these preliminary results, ACCC has elected to waive the minimum tender condition with respect to the exchange offers. The exchange offers expire at 12:00 midnight, New York City time, on April 4, 2008.

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.

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
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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
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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 Company's timetable for the exchange offer. Forward-looking statements may be identified by the use of forward-looking terminology such as the words "will" 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 satisfy the conditions of the exchange offers, the ability to obtain additional new financing on terms satisfactory to the Company and Abitibi-Consolidated or at all, the condition of the U.S. credit and capital markets generally, worsening industry conditions and the ability to meet the required closing conditions.

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, 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

CONTACT: For Investors: Duane Owens, Vice President and Treasurer, (864)
282-9488; For Media: Seth Kursman, Vice President, Communications and
Government Affairs, (514) 394-2398, seth.kursman@abitibibowater.com

2008-03-27 22:02:19 0321858 PRNEWSWIRE