Strategic Review
In November 2007, AbitibiBowater announced the results of a Phase 1 comprehensive strategic review, which resulted in the removal of approximately 1 million metric tons of unprofitable newsprint and commercial printing paper capacity and 500 million board feet of wood products from the marketplace.

The Phase 1 announcement also: increased the Company's annual synergy target to $375 million from the $250 million target announced at the time of the Company's merger; identified $500 million in asset sales through the sale of the Snowflake (Arizona) newsprint mill as well as non-core assets; suspended the dividend; and committed to a further review of all aspects of the business in Eastern Canada in light of inherent competitive disadvantages. AbitibiBowater confirmed today that the announced closures were completed early in the first quarter of 2008 and other commitments are on track to be met or exceeded.

"When the merger closed, we began a strategic review of all aspects of the new company and committed to take decisive action to be a stronger, more sustainable organization," said John W. Weaver, Executive Chairman. "We are making good progress and are beginning to benefit from improving business conditions. AbitibiBowater remains focused on continued cost reductions, improvement of our manufacturing platform and better positioning the Company in the global marketplace."