AbitibiBowater Plans to Invest in its Iroquois Falls Paper Mill

The reconfiguration follows consultation with both the Town of Iroquois Falls and the employees at the mill and their union representatives.

The increase in chip receiving and handling capability and the closure of the woodroom and wood yard will occur during the first half of 2012. The reconfiguration will result in a workforce reduction of approximately 60 positions, although the Company hopes the mill demographics will significantly reduce the number of employees who will be laid off given retirement eligibility over the next couple of years. The pulp mill and paper machine investments will be made over the next 12 to 18 months.