SEC Completes Review of Proxy Materials for Proposed Abitibi-Consolidated and Bowater Combination



    MONTREAL and GREENVILLE, SC, June 22 /CNW Telbec/ -
Abitibi-Consolidated Inc. (NYSE:   ABY, TSX: A) and Bowater Incorporated
(NYSE:   BOW) announced today that the U.S. Securities and Exchange Commission
(SEC) has completed its review of the joint proxy
statement/prospectus/management information circular in connection with their
proposed business combination. As a result, the definitive joint proxy
statement/prospectus/management information circular and related materials
will be mailed to shareholders of both companies and to shareholders of
Bowater Canada Inc. (TSX: BWX) early during the week of June 25, 2007.
    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. As previously announced, 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. As previously announced,
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 - 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. As previously announced, 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.
    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 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. Abitibi-Consolidated shares are traded on the Toronto Stock
Exchange (TSX: A) and on the New York Stock Exchange (NYSE:   ABY).

    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 and
the Securities and Exchange Commission (SEC) has declared effective a
registration statement on Form S-4, which includes a definitive proxy
statement of Bowater, a prospectus of AbitibiBowater and a management
information circular of Abitibi-Consolidated. Shareholders are urged to read
the joint proxy statement/prospectus/management information circular regarding
the proposed combination, and any other relevant documents filed or to be
filed by Abitibi or Bowater because they contain or will contain important
information. Shareholders may 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 definitive proxy statement with respect
to Bowater's 2007 Annual Meeting of Stockholders which is included in the
registration statement on Form S-4 filed by AbitibiBowater on March 20, 2007,
as amended, and will be filed with the SEC on Schedule 14A. 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 definitive proxy statement/prospectus/management information
circular and other relevant materials filed or to be filed with the SEC and
the Canadian securities regulatory authorities.




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: Kathleen M. Bennett,
(864) 282-9452

Organization Profile

ABITIBI-CONSOLIDATED INC.

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BOWATER INCORPORATED

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