FEBRUARY 2010

Texas recycling facilities sold by AbitibiBowater

AbitibiBowater announced the closing of the sale of its recycling division’s material recycling facilities located in Arlington, Houston and San Antonio, Texas to Waste Management Recycle America for $12 million.

The Company will continue operating its recycling programs in Arlington, Houston and San Antonio, as well as in 20 other major metropolitan areas across North America. With this transaction, AbitibiBowater will refocus its recycling efforts on its innovative community recycling Paper Retriever program, as well as on the EcoRewards recycling initiative for commercial customers. The Company will ensure a smooth transition and remains committed to delivering top-quality service to its recycling customers.

As part of the sale, the Company’s recycling division has also reached an agreement where Waste Management Recycle America will process the materials generated by the Paper Retriever and EcoRewards programs in Arlington, Houston and San Antonio.

These transactions are part of AbitibiBowater’s ongoing restructuring efforts to streamline its businesses and work through its creditor protection filings.