Jul 18, 2007. /Lesprom Network/. Abitibi-Consolidated Inc. (NYSE: ABY, TSX: A) and Bowater Incorporated (NYSE: BOW, TSX: BWX) today announced the proposed executive team to lead AbitibiBowater Inc., pending approval of the proposed combination and appointment by the Board of AbitibiBowater. As previously announced, John W. Weaver, currently President and Chief Executive Officer of Abitibi-Consolidated, will be Executive Chairman of the new company, responsible for all corporate functions. David J. Paterson, currently Chairman, President and Chief Executive Officer of Bowater, will serve as President and Chief Executive Officer of AbitibiBowater, with primary responsibility for operations and sales. "We're creating a stronger global leader better able to succeed in a competitive market, and this is the team that will lead that effort," said Mr. Weaver. "Our first priority is to deliver at least US$250 million in synergies, which will create significant value for investors. We are confident that this executive team will deliver on the synergy commitment." "We've chosen a talented group of seasoned professionals with diverse and impressive backgrounds to lead the new company. This team will work across the organization to engage all employees, collectively building a successful future," added Mr. Paterson. "The team will work in partnership with our customers to ensure a dependable source for a range of forest products and best-in-class customer service. Furthermore, we believe the new executive team of a larger combined company will create significant value for our investors. We expect to have enhanced financial flexibility, increased cash flow and a better opportunity to unlock future value." AbitibiBowater will be organized into four primary businesses: North American Newsprint, International, Commercial Printing and Coated Papers, and Wood Products. Each business will have bottom-line responsibility for all aspects of operations and sales. In addition to Messrs. Weaver and Paterson, AbitibiBowater's executive team is expected to include the following nine executives: Alain Grandmont, Senior Vice President, Commercial Printing and Coated Papers Business. Mr. Grandmont is currently Senior Vice President, Commercial Printing Papers, for Abitibi-Consolidated. William G. Harvey, Senior Vice President and Chief Financial Officer. Mr. Harvey is currently Bowater's Executive Vice President and Chief Financial Officer. Yves Laflamme, Senior Vice President, Wood Products Business. Mr. Laflamme is currently Abitibi-Consolidated's Senior Vice President, Woodlands and Sawmills. Jon Melkerson, Senior Vice President, Business and Corporate Development - inclusive of the growing Recycling and Energy businesses, as well as Marketing, Strategic Planning and Manufacturing Excellence. Mr. Melkerson is currently Abitibi-Consolidated's Vice President, International Newsprint Sales. Pierre Rougeau, Senior Vice President, North American Newsprint Business. Mr. Rougeau is currently Abitibi-Consolidated's Senior Vice President, Corporate Development and Chief Financial Officer. W. Eric Streed, Senior Vice President, Supply Chain - comprised of Information Technology, Customer Service, Logistics and Procurement. Mr. Streed is currently Bowater's Executive Vice President, Operations and Process Improvement. Thor Thorsteinson, Senior Vice President, International Business - inclusive of international newsprint and pulp. Mr. Thorsteinson is currently Abitibi-Consolidated's Senior Vice President, Newsprint. Jacques P. Vachon, Senior Vice President, Corporate Affairs and Chief Legal Officer, will have responsibility for overseeing the combined company's Legal, Communications & Government Affairs, Internal Audit and Environment & Sustainability functions. Mr. Vachon currently holds a similar position within Abitibi-Consolidated. James T. Wright, Senior Vice President, Human Resources. Mr. Wright currently holds similar responsibilities at Bowater. >> The executive team has been proposed by Abitibi-Consolidated and Bowater. The team's appointment is subject to the approval of the Board of AbitibiBowater. As previously announced, Institutional Shareholder Services Inc. (ISS) and Glass Lewis & Co., two leading independent proxy advisory firms, have recommended that Abitibi-Consolidated shareholders and Bowater stockholders vote in favor of the proposed combination. AbitibiBowater 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, and a global leader in sustainable forest management through independent third-party certification. 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 1.9 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 employs approximately 7,000 people and 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 ten 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.