A (TSX) ABY (NYSE) MONTREAL, Nov. 17 /PRNewswire-FirstCall/ -- Abitibi-Consolidated Inc. (TSX:A; NYSE: ABY) today announced that it, and its subsidiaries, Abitibi- Consolidated Company of Canada and Abitibi-Consolidated Finance L.P. (collectively, "Abitibi"), have commenced a cash tender offer for certain series of their outstanding notes listed in the table below (collectively, the "Notes"). The tender offer will expire at 12:00 Midnight, New York City time, on December 15, 2005, unless extended or earlier terminated (the "Expiration Time"). Under the terms of the Offer to Purchase dated as of today, Abitibi is offering to purchase up to a portion of the outstanding aggregate principal amount (the "Principal Purchase Amount") of each series of Notes, subject to certain conditions described below, in each case for total consideration consisting of a purchase price based on the yield to maturity of a specified U.S. Treasury reference security plus a fixed spread. The table below shows, among other things, the series of Notes subject to the tender offer, the Principal Purchase Amount of each series of Notes, the applicable U.S. treasury reference security and the applicable fixed spread: > Holders that tender their Notes on or prior to 5:00 p.m., New York City time, on December 1, 2005, unless extended or earlier terminated (the "Early Tender Time"), will receive the total consideration, which includes an early tender premium of U.S.$20.00 per U.S.$1,000 principal amount of Notes purchased. Holders that tender their Notes after the Early Tender Time but prior to the Expiration Time will receive the total consideration less the early tender premium. In addition, in all cases, Holders will receive accrued and unpaid interest from the last interest payment date for such series of Notes to, but not including, the date the Notes are purchased. Payment for tendered Notes will be made in same day funds as soon as practicable after they are accepted for payment. Abitibi may increase the Principal Purchase Amount for any or all series of Notes (in which case, the term "Principal Purchase Amount" shall mean such amount as so increased with respect to such series of Notes) subject to and in accordance with applicable law, depending on the principal amount of Notes validly tendered and not withdrawn, provided that the aggregate principal amount of the Notes purchased shall not exceed U.S.$600 million. If the aggregate principal amount of Notes of any series validly tendered and not withdrawn at the Expiration Time exceeds the applicable Principal Purchase Amount of such series, the Company (subject to the terms and conditions of the Offer) will accept Notes of such series for purchase on a pro rata basis. Except as set forth in the Offer to Purchase or as required by applicable law, Notes tendered prior to the Early Tender Time may only be withdrawn in writing before the Early Tender Time and Notes tendered after the Early Tender Time and before the Expiration Time may not be withdrawn. The tender offer is conditioned on the satisfaction of certain conditions. If any of the conditions are not satisfied, Abitibi is not obligated to accept for payment, purchase or pay for, and may delay the acceptance for payment of, any tendered Notes, in each event, subject to applicable laws, and may even terminate the tender offer. Full details of the terms and conditions of the tender offer are included in Abitibi's Offer to Purchase dated November 17, 2005. Citigroup Corporate and Investment Banking, Goldman, Sachs & Co. and Credit Suisse First Boston LLC will act as Dealer Managers for the tender offer. Requests for documents may be directed to Global Bondholder Services Corporation, the Information Agent, at 212-430-3774 or 866-470-3700. This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes or any other security. The offer is made only by an Offer to Purchase dated November 17, 2005. Persons with questions regarding the offer should contact the Dealer Managers: (i) Citigroup, toll-free at (800) 558-3745, Goldman, Sachs & Co., toll-free at (800) 828-3182 or Credit Suisse First Boston LLC, toll free at (800) 820-1653, or (ii) the Information Agent, toll-free at 866-470-3700. Abitibi-Consolidated is a leading producer of newsprint and commercial printing papers as well as a major supplier of wood products, serving 70 countries from close to 50 operating facilities. Committed to the sustainable forest management of more than 40 million acres through third- party certification, the Company is the largest recycler of newspapers and magazines in North America. DATASOURCE: ABITIBI-CONSOLIDATED INC. CONTACT: Investors & Financial Media: Allen Dea, Vice President and Treasurer, (514) 394-2375, ; Seth Kursman, Vice President, Communications and Government Affairs, (514) 394-2398,

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