Abitibi-Consolidated and Bowater Set Shareholder Vote for Proposed Combination



    MONTREAL and GREENVILLE, SC, June 13 /CNW Telbec/ - Abitibi-Consolidated
Inc. (NYSE:   ABY, TSX: A) and Bowater Incorporated (NYSE:   BOW) announced today
that each company will hold a meeting of its shareholders on July 26, 2007 in
order for shareholders to vote on, among other matters, the companies'
proposed combination. The Québec Superior Court has granted today an interim
order approving the holding of the special meeting of Abitibi-Consolidated
shareholders.
    The special meeting of Abitibi-Consolidated shareholders will be held at
the Windsor, Salon Windsor, 1170 Peel Street, Montréal, Québec, at 10:00 a.m.,
Eastern Time on July 26, 2007. Shareholders of record at the close of business
on June 20, 2007 will be entitled to receive notice of and vote at the
Abitibi-Consolidated meeting.
    The annual meeting of Bowater stockholders will be held in the Peachtree
Auditorium of the Bank of America Plaza, 600 Peachtree Street N.E., Atlanta,
Georgia, at 10:00 a.m., Eastern Time on July 26, 2007. Stockholders of record
at the close of business on June 8, 2007 will be entitled to receive notice of
and vote at the Bowater meeting.
    In connection with the proposed combination of Abitibi-Consolidated and
Bowater, Bowater Canada Inc. (TSX: BWX), an exchangeable share Canadian public
subsidiary of Bowater, will also hold a special meeting of its shareholders in
order to approve certain amendments to Bowater Canada's articles required to
facilitate and implement the combination. The special meeting of Bowater
Canada shareholders will be held on July 25, 2007, at Fairmont The Queen
Elizabeth Hotel, Salon St-Laurent, 900 Boulevard René-Lévesque West, Montréal,
Québec, at 9:30 a.m., Eastern Time. Shareholders of record at the close of
business on June 20, 2007 will be entitled to receive notice of and vote at
the Bowater Canada meeting.
    For Abitibi-Consolidated, the combination requires the affirmative vote
of not less than two-thirds of the votes cast at the Abitibi-Consolidated
special meeting by holders of Abitibi-Consolidated common shares present or
represented by proxy at the special meeting. For Bowater, the combination
requires the affirmative vote of a majority of the total voting power of all
outstanding shares of Bowater common stock and Bowater special voting stock
(representing Bowater Canada exchangeable shares) entitled to vote at the
Bowater meeting, voting together as a single class.
    The combined company, which will be called AbitibiBowater Inc., will be
the 3rd largest publicly traded paper and forest products company in North
America and the 8th largest in the world. AbitibiBowater will own or operate
32 pulp and paper facilities and 35 wood product facilities located mainly in
Eastern Canada and the Southeastern U.S. It will also be among the world's
largest recyclers of newspapers and magazines.

    About Abitibi-Consolidated Inc.

    Abitibi-Consolidated is a global leader in newsprint and commercial
printing papers as well as a major producer of wood products, serving clients
in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is
among the largest recyclers of newspapers and magazines in North America,
diverting annually approximately 1.7 million tonnes of waste paper from
landfills. It also ranks first in Canada in terms of total certified
woodlands.

    About Bowater Incorporated

    Bowater Incorporated is a leading producer of coated and specialty papers
and newsprint. In addition, the company sells bleached market pulp and lumber
products. Bowater has 12 pulp and paper mills in the United States, Canada and
South Korea. In North America, it also operates one converting facility and
owns 10 sawmills. Bowater's operations are supported by approximately
763,000 acres of timberlands owned or leased in the United States and Canada
and 28 million acres of timber cutting rights in Canada. Bowater operates six
recycling plants and is one of the world's largest consumers of recycled
newspapers and magazines.

    Forward-Looking Statements
    --------------------------

    Any statements made regarding the proposed combination between
Abitibi-Consolidated Inc. and Bowater Incorporated, the expected timetable for
completing the combination, 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. These statements may be identified by
the use of forward-looking terminology such as the words "expects,"
"projects," "intends," "believes," "anticipates" and other terms with similar
meaning indicating possible future events or actions or potential impact on
the businesses or shareholders of Abitibi-Consolidated and Bowater. Such
statements include, but are not limited to, statements about future financial
and operating results, Abitibi-Consolidated's and Bowater's plans, objectives,
expectations and intentions, the markets for Abitibi-Consolidated's and
Bowater's products, the future development of Abitibi-Consolidated's and
Bowater's business, and the contingencies and uncertainties to which
Abitibi-Consolidated and Bowater may be subject and other statements that are
not historical facts. This news release also includes information that has not
been reviewed by either company's independent auditors. There is no assurance
the combination contemplated in this news release will be completed at all, or
completed upon the same terms and conditions described. All forward-looking
statements in this news release are expressly qualified by information
contained in each company's filings with regulatory authorities.
    The following factors, among others, could cause actual results to differ
materially from those set forth in the forward-looking statements: the ability
to obtain required governmental or third party approvals of the combination on
the proposed terms and schedule and without material concessions; the failure
of Abitibi-Consolidated or Bowater shareholders to approve the combination;
the exercise by a material percentage of Abitibi-Consolidated shareholders of
their dissent rights; the risk that the businesses will not be integrated
successfully; the risk that the cost savings and other expected synergies from
the combination may not be fully realized or may take longer to realize than
expected; and disruption from the combination making it more difficult to
maintain relationships with customers, employees or suppliers. Additional
factors that could cause Abitibi-Consolidated's and Bowater's results to
differ materially from those described in the forward-looking statements can
be found in the periodic reports filed by Abitibi-Consolidated and Bowater
with the SEC and the Canadian securities regulatory authorities and available
at the SEC's internet site (http://www.sec.gov) and on SEDAR
(http://www.sedar.com). Neither Abitibi-Consolidated nor Bowater undertakes
and each specifically disclaims, any obligation to update or revise any
forward-looking information, whether as a result of new information, future
developments or otherwise.

    Additional Information and Where to Find It
    -------------------------------------------

    In connection with the proposed combination, AbitibiBowater has filed
with the Securities and Exchange Commission (SEC) a registration statement on
Form S-4, which includes a preliminary proxy statement of Bowater, a
preliminary prospectus of AbitibiBowater and a management information circular
of Abitibi-Consolidated. Shareholders are urged to read the preliminary joint
proxy statement/prospectus/management information circular regarding the
proposed combination, and the definitive proxy statement/prospectus/management
information circular when it becomes available, because it contains or will
contain important information. Shareholders will be able to obtain a free copy
of the definitive joint proxy statement/prospectus/management information
circular, as well as other filings containing information about
Abitibi-Consolidated and Bowater, without charge, at the SEC's internet site
(http://www.sec.gov) and on SEDAR (http://www.sedar.com). Copies of the
definitive joint proxy statement/prospectus/management information circular
and the filings with the SEC and the Canadian securities regulatory
authorities that will be incorporated by reference in the definitive joint
proxy statement/prospectus/management information circular can also be
obtained, without charge, by directing a request to Abitibi-Consolidated,
1155 Metcalfe Street, Suite 800, Montréal, Québec, Canada H3B 5H2, Attention:
Investor Relations Department, (514) 875-2160, or to Bowater, 55 E. Camperdown
Way, Greenville, SC, USA, 29602, Attention: Investor Relations Department,
(864) 282-9473.

    Participants in the Solicitation
    --------------------------------

    Abitibi-Consolidated, Bowater and their respective directors and
executive officers and other persons may be deemed to be participants in the
solicitation of proxies in respect of the proposed combination. Information
regarding Abitibi-Consolidated's directors and executive officers is available
in Abitibi-Consolidated's Annual Information Form for the year ended
December 31, 2006 filed on SEDAR by Abitibi-Consolidated on March 15, 2007
(which was filed with the SEC on March 15, 2007 on Form 40-F), and the
management proxy circular with respect to Abitibi-Consolidated's 2007 Annual
Meeting of Shareholders filed by Abitibi-Consolidated on SEDAR on April 5,
2007 (which was filed with the SEC on April 5, 2007 on Form 6-K). Information
regarding Bowater's directors and executive officers is available in the
Annual Report on Form 10-K for the year ended December 31, 2006 filed with the
SEC by Bowater on March 1, 2007, as amended by Amendment No. 1 filed with the
SEC by Bowater on April 30, 2007 and in the preliminary proxy statement with
respect to Bowater's 2007 Annual Meeting of Stockholders which is included in
the preliminary registration statement on Form S-4 filed by AbitibiBowater on
March 20, 2007, as amended on May 8, 2007, May 30, 2007, and June 4, 2007.
Other information regarding the participants in the proxy solicitation and a
description of their direct and indirect interests, by security holdings or
otherwise, is contained in the preliminary proxy
statement/prospectus/management information circular filed with the SEC and
will be contained in the definitive joint proxy
statement/prospectus/management information circular and other relevant
materials to be filed with the SEC and the Canadian securities regulatory
authorities when they become available.




For further information:

For further information: Investors: Abitibi-Consolidated: Francesco
Alessi, (514) 394-2341, falessi@abitibiconsolidated.com; Bowater: Duane A.
Owens, (864) 282-9488; Media: Abitibi-Consolidated: Denis Leclerc, (514)
394-3601, denis_leclerc@abitibiconsolidated.com; Bowater: Jim Barron/Dan
Gagnier/Kara Findlay, Sard Verbinnen & Co, (212) 687-8080

Organization Profile

ABITIBI-CONSOLIDATED INC.

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BOWATER INCORPORATED

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