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ABITIBI-PRICE TO EXIT LUMBER MANUFACTURING BUSINESS

 ABITIBI-PRICE TO EXIT LUMBER MANUFACTURING BUSINESS
 TORONTO, Nov. 5 /PRNewswire/ -- Abitibi-Price no longer sees the


production of lumber as part of its future plans and intends to sell its Pribonca Sawmill in L'Ascension, Quebec, by Dec. 31, 1993. Abitibi- Price's lumber marketing group will continue to sell both Pribonca and third party lumber to a wide range of customers.
 "This decision is consistent with the company's strategy of focusing on its core operations, newsprint and groundwood papers. Moreover, we are convinced that the sawmill's best chance of survival rests with the involvement of its employees and the community," said Allan Vatcher, vice-president and manager of the Knogami Mill.
 The Pribonca Sawmill was built in 1975 at a cost of $16 million. Over the years, further investments of more than $3 million were made to maintain the facilities in operating condition. In spite of this, only its first five years of operation were profitable.
 "Although the mill has had its problems, Abitibi-Price believes that the involvement of employees and of local partners who have already shown interest in the operation are most likely to result in a turnaround at L'Ascension," Mr. Vatcher added.
 In the coming months, every effort will be made to improve the mill's viability in order to better the chances of reaching an agreement with another organization.
 The mill will be closed from the end of 1992 until the spring of 1993. When reopened, it will be expected to be self-financing and to meet pre-established performance criteria. During that period it also intends to maintain its wood drive.
 In announcing its decision to exit the lumber manufacturing business, Abitibi-Price hopes to be able to avoid a permanent closure, which would result in 104 lost jobs.
 The company is offering its full cooperation and support to the mill's survival plan. However, if a new organization is not in place by Dec. 31, 1993, the company will be forced to close the sawmill. The mill assets will be written down in the company's books at the end of 1992.
 "I am convinced that the Pribonca Sawmill will not only survive, but that it can build a solid future for its employees, its new owner(s) and the local community," said Gilbert Goulet, sawmill manager.
 Abitibi-Price, a major competitor in the global forest products industry, is a producer of newsprint, uncoated groundwood papers and coated papers. The company is a prominent distributor of office and information-processing products, as well as a converter of industrial goods and products for home, school and office use.
 -0- 11/05/92
 /CONTACT: Robert J. Tait, manager-investor relations, 416-369-6789; or Allan Vatcher, vice-president-commercial business, 418-695-9100, both of Abitibi-Price Inc./
 (ABY) CO: Abitibi-Price Inc. ST: Ontario IN: PAP SU:


AH -- NY133 -- 7949 11/05/92 17:06 EST
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Publication:PR Newswire
Date:Nov 5, 1992
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