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ABITIBI-PRICE STRENGTHENS FUTURE POSITION THROUGH ASSET SALE

 ABITIBI-PRICE STRENGTHENS FUTURE POSITION THROUGH ASSET SALE
 TORONTO, May 19 /PRNewswire/ -- Abitibi-Price (NYSE: ABY) announced today that its board of directors has approved an agreement to sell its printing and industrial paper products distribution businesses to Alco Standard Corporation of Valley Forge, Pa., for C$340 million.
 The four Abitibi-Price business units involved are Inter City Papers, Barber-Ellis Fine Papers and Price Daxion in Canada, and Whitaker Carpenter Paper Company in the United States.
 Completion of the transaction is expected to occur in mid to late July and is subject to the usual investigations by the purchaser and completion of customary documentation.
 Ron Oberlander, president and CEO of Abitibi-Price, said: "This is part of our announced strategy of selling assets at attractive prices to strengthen our balance sheet. This helps us to take advantage of the opportunities in our groundwood paper manufacturing business which we expect will arise as business recovers."
 The proceeds from the sale will not be used to pay a special dividend.
 "Because Alco Standard does not have a significant presence in Canada, we also see this as a positive development for the 1,800 people in our paper distribution business," Oberlander said. "They will become part of one of the largest and finest independent printing and industrial paper merchants in the world."
 Abitibi-Price, a world class competitor in the forest products industry, is a producer of newsprint, uncoated groundwood papers, coated papers and building products. The company is a major converter and distributor of paper and other information-related products.
 Alco Standard is a publicly owned distribution and services company with annual revenues of US$4.8 billion. Alco's businesses include paper distribution, office products distribution and aviation and industrial services, principally in the United States.
 Abitibi-Price Inc., 207 Queen's Quay West, Suite 680, Box 102, Toronto, Ontario.
 Symbols: A (Toronto, Montreal and Vancouver stock exchanges)
 ABY (New York Stock Exchange)
 -0- 5/19/92
 /CONTACT: Robert J. Tait, 416-369-6789, or William S. Brown, 416-488-3434, both for Abitibi-Price/
 (ABY ASN) CO: Abitibi-Price Inc.; Alco Standard Corporation ST: Ontario, Pennsylvania IN: PAP SU: TNM


CK -- NY114 -- 2120 05/19/92 19:37 EDT
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Publication:PR Newswire
Date:May 19, 1992
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