<B>Abitibi Reports Strong Quarterly Earnings</B>

Abitibi-Consolidated reported fourth quarter earnings of $147 million, a 36 percent improvement from the previous quarter, as well as a $64 million increase from the fourth quarter of last year.

The results include a gain of $29 million on the sale of its Chandler, Que. newsprint mill and a charge of $12 million for the write-off of deferred financing fees and early debt repayment costs. These non- recurring items in the fourth quarter resulted in an after-tax gain of $11 million dollars.

For the year net earnings were $367 million, a $151 million improvement over 1999 net earnings of $216 million.

The positive results in 2000 are due to higher sales volumes as a result of the combination with Donohue, higher selling prices for all its pulp and paper products as well as various cost-cutting initiatives taken by A-C over the last 18 months, including manning reductions, permanent closures or conversions of high-cost excess newsprint capacity and the successful integration of Donohue. ``The year 2000 was undoubtedly a landmark year for Abitibi-Consolidated. Our improved profitability and cost position stems from our efficient and timely integration of Donohue and ongoing cost-reduction programs,'' said President and CEO, John Weaver. ``Despite a slowing economy and higher energy prices, market conditions remain healthy for most of our products and that should ensure continued success into 2001.''

During the fourth quarter of 2000, the company permanently removed around 245,000 metric tons of newsprint and value-added paper capacity and expects to complete the balance of its planned 400,000 metric ton newsprint capacity reduction by the end of this year.