<B>Abitibi-Consolidated Reaches Settlement, Plans to Sell Mill</B>

Abitibi-Consolidated Inc. announced that a final settlement has been reached with the Canadian Competition Bureau regarding its acquisition of Donohue Inc. The Bureau conducted a review of this transaction and its potential impact on the Eastern Canadian newsprint market. Following extensive negotiations, the Company has agreed to put its Port-Alfred newsprint mill up for sale.

"It wasn't our intention to sell the Port-Alfred mill but, in light of the position adopted by the Bureau and the likelihood of costly and lengthy litigation, we feel this is the best resolution for all our stakeholders," said John Weaver, president and CEO. "Moreover, selling Port-Alfred will provide us with proceeds to consider various alternatives, including other acquisitions elsewhere in North America and an acceleration of our debt reduction program," added Weaver.

The Port-Alfred mill is located in La Baie, Quebec. It has a production capacity of nearly 400,000 metric tons of newsprint annually and employs 670 people.

As part of its mandate, the Competition Bureau may review the likely competitive impact of mergers and acquisitions in Canada for up to three years following substantial completion.