<b>Abitibi-Consolidated Sees Jump in Earnings</b>

Abitibi-Consolidated reported first quarter net earnings of $132 million, an improvement from last year’s earnings of $81 million. Net sales in the quarter reached $1.7 billion compared with $656 million in the same quarter last year.

Net earnings in the fourth quarter of 2000 were $148 million on sales of $1.8 billion, but included a $12 million gain for non-recurring events. When compared to the previous quarter, operating profit remained at $360 million with modest improvements in the newsprint segment being offset by a decrease in the value-added paper and pulp segment.

When compared to last quarter, the results for the quarter reflect lower paper shipments due to capacity closures, offset by higher selling prices for the company's paper grades. The reduction in lumber and pulp prices and rising energy costs also impacted the quarterly results negatively.

During the quarter, Abitibi-Consolidated permanently shuttered about 160,000 metric tons of value-added paper capacity. These closures will allow the company to replace about 70,000 metric tons of newsprint production at the Company's Kenora, Ontario facility by value-added paper production.

The Company announced that, given current economic conditions and pressures placed on its customers, the recently implemented price increase for newsprint would be adjusted to $25 per metric ton effective May 1.