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ABITIBIBOWATER ANNOUNCES EXTENSION OF EXPIRATION DATE FOR PRIVATE DEBT EXCHANGE OFFERS, CONSENT SOLICITATION AND CONCURRENT PRIVATE NOTES OFFERING

Tuesday 24. March 2009 - AbitibiBowater Inc. ("AbitibiBowater") announced today that Bowater Finance II LLC, an indirect wholly owned subsidiary of AbitibiBowater, has extended the expiration date for its previously announced private exchange offers (the "Exchange Offers"), consent solicitation (the "Consent Solicitation") and concurrent private notes offering (the "Concurrent Notes Offering") until 11:59 p.m., New York City time, on March 25, 2009, unless further extended.

The Exchange Offers, Consent Solicitation and Concurrent Notes Offering had been scheduled to expire at 11:59 p.m., New York City time, on March 20, 2009. As of March 20, 2009, approximately 60.3% of the outstanding 9.00% Debentures due 2009, 60.8% of the outstanding Floating Rate Senior Notes due 2010, 67.8% of the outstanding 7.95% Notes due 2011, 70.2% of the outstanding 9.50% Debentures due 2012, 80.2% of the outstanding 6.50% Notes due 2013 and 40.4% of the outstanding 9.375% Debentures due 2021 were validly tendered and not validly withdrawn in the Exchange Offers.
The Exchange Offers and Concurrent Notes Offering are being made only to qualified institutional buyers 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.