/FIRST AND FINAL ADD - MO268 - ABITIBI-CONSOLIDATED INC./

  5. Financial expenses
                                    Three months ended    Six months ended
                                               June 30             June 30
                                        2007      2006      2007      2006
                                           $         $         $         $
  -------------------------------------------------------------------------
  Interest on long-term debt              84        78       168       156
  Amortization of deferred
   financing fees                          -         4         -         6
  Interest income                         (4)       (1)       (7)       (2)
  Other                                    7         3        11         7
  -------------------------------------------------------------------------
                                          87        84       172       167
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------


  6. Income tax recovery



In the second quarter of 2007, favourable tax adjustments of $22 million are included in income tax recovery, due to realized losses and to prospective reductions in income tax rates ($63 million in the three months ended June 30, 2006, which is related to the prospective reduction in the Canadian federal income tax rate).

In the six months ended June 30, 2007, favourable income tax adjustments of $30 million are included in income tax recovery, due to the revision of prior-period tax provisions, to realized losses and to prospective reductions in income tax rates ($85 million in the six months ended June 30, 2006, which is related to the settlement of prior-year income tax issues and to the prospective reduction in the Canadian federal income tax rate).

7. Mill closure elements provision

The following table provides a reconciliation of the mill closure elements provision, which comprises, in most part, severance and other labour-related costs and contractual obligations, for the periods:

                                    Three months ended    Six months ended
                                               June 30             June 30
                                        2007      2006      2007      2006
                                           $         $         $         $
  -------------------------------------------------------------------------
  Mill closure elements provision,
   beginning of period                    13        22         7        38
  Mill closure elements incurred
   during the period                      12         -        20         -
  Payments                               (13)       (2)      (15)      (18)
  -------------------------------------------------------------------------
  Mill closure elements provision,
   end of period                          12        20        12        20
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------




The Company expects to pay most of the balance of the provision for mill closure elements within the next twelve months.

8. Employee future benefits

The following table provides total employee future benefit costs for the periods:

                                    Three months ended    Six months ended
                                               June 30             June 30
                                        2007      2006      2007      2006
                                           $         $         $         $
  -------------------------------------------------------------------------
  Defined contribution pension plans       3         3         7         7
  Defined benefit pension plans and
   other benefits                         40        36        77        73
  -------------------------------------------------------------------------
                                          43        39        84        80
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------


  9. Accumulated other comprehensive loss



The following table provides the components of "Accumulated other comprehensive loss" in the consolidated balance sheets as at:

                                                     June 30   December 31
                                                        2007          2006
                                                           $             $
  -------------------------------------------------------------------------
  Foreign currency translation adjustment               (375)         (264)
  Unrealized gains on derivative instruments
   designated as cash flow hedges, net of taxes           20             -
  -------------------------------------------------------------------------
                                                        (355)         (264)
  -------------------------------------------------------------------------
  -------------------------------------------------------------------------


  10. Comparative figures



Certain comparative figures presented in the consolidated financial statements have been reclassified to conform to the current period presentation.

  Contacts
  --------

  Investors:
  Francesco Alessi
  514 394-2341
  

  Media and Others:
  Denis Leclerc
  514 394-3601
  

DATASOURCE: ABITIBI-CONSOLIDATED INC.



CONTACT: PRNewswire - - 07/24/2007

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