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ABITIBI-PRICE SUSPENDS COMMON DIVIDEND PAYMENTS TO CONSERVE CASH AND PRESERVE LONG-TERM VALUE

 TORONTO, June 21 /PRNewswire/ -- Abitibi-Price (NYSE: ABY) today announced the suspension of its common share quarterly dividend. "The slower than expected recovery of newsprint prices in the marketplace, together with the impending need to spend capital to upgrade our assets, has necessitated this approach to the dividend," said Mr. Oberlander, president and CEO of Abitibi-Price.
 "In addition, we have not yet been able to offset operating losses this year with sales of our remaining non-core assets, as we did in 1992, when we raised $353 million of cash proceeds from asset sales."
 Sales of non-core assets during 1991 and 1992 has helped the company to focus on its groundwood paper business. The company has clear goals to sell the remaining non-core businesses when appropriate value can be realized.
 "This decision was made by the board in the best long-term interests of our shareholders," added Ron Oberlander.
 Abitibi-Price last changed its common share dividend at the end of 1989 from 25 to 12.5 cents per common share, which it paid quarterly until March 31, 1993. The next dividend would have been payable on July 30, 1993.
 The board declared the regular quarterly dividend of 23.5 cents per Series F preferred share payable June 30, 1993 to shareholders of record on June 23, 1993.
 Abitibi-Price, a Canadian-based forest products company, manufactures newsprint and uncoated groundwood papers at eleven mills in North America and markets these products to customers around the world. The company is also a converter and distributor of paper and other information-related products.
 Abitibi-Price Inc.
 207 Queen's Quay West
 Suite 680, Box 102
 Toronto, Ontario MSJ 2P5
 SYMBOLS: A (Toronto, Montreal and Vancouver stock exchanges) ABY (New York Stock Exchange)
 -0- 6/21/93
 /CONTACT: Eileen A. Mercier, senior vice-president and chief financial officer, 416-369-6718, Robert J. Tait, manager - investor relations, 416-369-6789, both of Abitibi-Price/
 (ABY)


CO: Abitibi-Price ST: Ontario IN: PAP SU:

LD -- NY095 -- 4265 06/21/93 20:32 EDT
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Publication:PR Newswire
Date:Jun 21, 1993
Words:324
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