EXHIBIT 1
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                                [GRAPHIC OMITTED
                          [LOGO - ABITIBI CONSOLIDATED]

                         1155 Metcalfe Street, Suite 800
                                Montreal, Quebec
                                     H3B 5H2






                         ANNUAL INFORMATION FORM FOR THE
                       FISCAL YEAR ENDED DECEMBER 31, 2003







                                  MAY 17, 2004



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                                TABLE OF CONTENTS

DOCUMENTS INCORPORATED BY REFERENCE............................................3
GLOSSARY OF TERMS..............................................................3
ITEM 1:  DATE OF ANNUAL INFORMATION FORM.......................................4
ITEM 2:  CORPORATE STRUCTURE...................................................4
   FORMATION OF ISSUER.........................................................4
   SUBSIDIARIES................................................................4
ITEM 3:  GENERAL DEVELOPMENT OF THE BUSINESS...................................4
   INDEFINITE IDLING & CAPACITY REDUCTION PROGRAM..............................5
   MARKET RELATED DOWNTIME.....................................................5
   INVESTMENT IN CHINA.........................................................5
   U.S. DEBT FINANCING AND AMENDMENT OF CREDIT FACILITIES......................5
   THIRD PARTY CERTIFICATION...................................................6
   OPERATIONAL IMPROVEMENTS....................................................6
   CAPITAL EXPENDITURE.........................................................6
   CREDIT RATING...............................................................7
   DIVIDENDS...................................................................7
   ALMA MILL...................................................................7
   CREATION OF A JOINT VENTURE TO PRODUCE ENGINEERED WOOD......................7
   SALE OF SAINT-FELICIEN PULP MILL............................................7
   THOROLD MILL................................................................7
   EXPLOITS RIVER HYDRO........................................................7
   PANASIA JOINT VENTURE.......................................................8
   SALE OF THE WAYAGAMACK MILL.................................................8
   BAIE-COMEAU MILL............................................................8
   TRENDS......................................................................8
      NEWSPRINT MARKET.........................................................8
      VALUE-ADDED GROUNDWOOD PAPERS MARKET.....................................8
      LUMBER MARKET............................................................8
ITEM 4:  DESCRIPTION OF THE BUSINESS...........................................9
   PAPER AND WOOD PRODUCTS SALES DISTRIBUTION..................................9
   PRINCIPAL PRODUCTION FACILITIES.............................................9
   COMPETITION.................................................................9
   EFFECTS OF ENVIRONMENTAL REGULATION ON CAPITAL EXPENDITURES.................9
   HUMAN RESOURCES............................................................10
   FIBRE SUPPLY...............................................................10
   ENERGY SUPPLY..............................................................10
   FOREIGN EXCHANGE...........................................................10
   LITIGATION.................................................................11
      UNITED STATES CUSTOMS INVESTIGATION RELATED TO SOFTWOOD LUMBER PRODUCTS.11
      SOFTWOOD LUMBER DISPUTE.................................................11
ITEM 5:  SELECTED CONSOLIDATED FINANCIAL INFORMATION..........................12
   ANNUAL FINANCIAL INFORMATION FOR THE PREVIOUS THREE YEARS..................12
   DIVIDENDS..................................................................12
ITEM 6:  MANAGEMENT'S DISCUSSION AND ANALYSIS.................................13
ITEM 7:  MARKET FOR SECURITIES................................................13
ITEM 8:  DIRECTORS AND OFFICERS...............................................13
ITEM 9:  ADDITIONAL INFORMATION...............................................14
ITEM 10: SUBSEQUENT EVENTS....................................................14
   AMENDMENT BY THE COMPANY OF ITS REVOLVING CREDIT FACILITY..................14
   LABOUR NEGOTIATIONS........................................................15
   SOFTWOOD LUMBER DISPUTE....................................................15
   SALE BY THE COMPANY OF ITS REMAINING INTEREST IN SFK PULP FUND.............15
   CREDIT RATING..............................................................16
   Sale of Voyageur Panel.....................................................16


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ABITIBI-CONSOLIDATED INC.
2003 ANNUAL INFORMATION FORM
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                       DOCUMENTS INCORPORATED BY REFERENCE

Certain specifically identified pages of the 2003 Annual Report of
Abitibi-Consolidated Inc., including the audited consolidated financial
statements for the fiscal year ended December 31, 2003, the report of the
auditors thereon dated January 26, 2004 and management's discussion and analysis
thereon (the "2003 Annual Report"), and certain specifically identified pages of
the Management Proxy Circular dated February 24, 2004 prepared in connection
with the April 29, 2004 annual meeting of the shareholders of
Abitibi-Consolidated Inc. (the "2003 Proxy Circular"), filed with the securities
commission or similar authority in each of the provinces of Canada and the U.S.
Securities and Exchange Commission, are incorporated by reference into and form
an integral part of this Annual Information Form.

                                GLOSSARY OF TERMS

Unless otherwise noted or the context otherwise indicates, references to the
"Company" are to Abitibi-Consolidated Inc., its subsidiaries and its interests
in joint ventures and other entities.

A Glossary of Terms is included on pages 108 and 109 of the Company's 2003
Annual Report and is incorporated herein by reference.


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FORWARD-LOOKING STATEMENTS

Certain statements contained in this Annual Information Form and under the
heading "MANAGEMENT'S DISCUSSION AND ANALYSIS" on pages 38 to 56 of the
Company's 2003 Annual Report and in other sections of such 2003 Annual Report,
including statements which may contain words such as "anticipate", "could",
"expect", "seek", "may", "intend", "will", "believe" and similar expressions,
statements that are based on current expectations and estimates about the
markets in which the Company operates and statements of the Company's belief,
intentions and expectations about developments, results and events which will or
may occur in the future, including statements relating to trends, expected
operating cost savings and expected capital expenditures, constitute
"forward-looking statements" within the meaning of the "safe harbour" provision
of the United States Private Securities Litigation Reform Act of 1995, and are
based on certain assumptions and analysis made by the Company derived from its
experience and perceptions. In addition, other written or oral statements, which
constitute forward-looking statements may be made from time to time by or on
behalf of the Company. Such forward-looking statements are subject to important
risks, uncertainties, and assumptions which are difficult to predict and which
affect the Company's operations, including but not limited to: the impact of
general economic conditions in the United States and Canada and in other
countries in which the Company currently does business; impact of new duties
imposed on lumber exported to the United States; industry conditions, including
the adoption of new environmental laws and regulations and changes in how they
are interpreted and enforced; fluctuations in the availability or costs of raw
materials or electrical power; changes in existing forestry regulations or
changes in how they are administered which could result in the loss of certain
contractual or other rights or permits which are material to the Company's
businesses; increased competition; lack of availability of qualified personnel
or management; the outcome of certain litigation; labour unrest; fluctuation in
foreign exchange or interest rates; stock market volatility; obtaining required
approvals of regulatory authorities; opportunities available to or pursued by
the Company; ability to successfully integrate companies or businesses acquired
and other factors, many of which are beyond the control of the Company. The
Company's actual results, performance or achievement could differ materially
from those expressed in, or implied by, these forward-looking statements and,
accordingly, no assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of them do so,
what benefits, including the amount of proceeds, the Company will derive
therefrom. The Company disclaims any intention or obligation to update or revise
any forward-looking statements, whether as a result of new information, future
events or otherwise.
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ABITIBI-CONSOLIDATED INC.
2003 ANNUAL INFORMATION FORM
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                            ABITIBI-CONSOLIDATED INC.
                             ANNUAL INFORMATION FORM


ITEM 1:  DATE OF ANNUAL INFORMATION FORM

This Annual Information Form is dated as of May 17, 2004. Except as otherwise
indicated, the information contained in this Annual Information Form is stated
as at December 31, 2003 and all dollar amounts are expressed in Canadian
dollars.


ITEM 2:  CORPORATE STRUCTURE

FORMATION OF ISSUER

The Company continued from the amalgamation of Abitibi-Price Inc. ("API") and
Stone-Consolidated Corporation ("SCC") under the CANADA BUSINESS CORPORATIONS
ACT, pursuant to a certificate and articles of amalgamation dated May 30, 1997.

API was incorporated under the laws of Canada on February 9, 1914. SCC continued
from the amalgamation of Stone-Consolidated Corporation (the "Former SCC") and
Rainy River Forest Products Inc. ("RR"), pursuant to a plan of arrangement
effective as at November 1, 1995. The Former SCC was incorporated under the laws
of Canada on June 22, 1993 and acquired its operating assets on December 17,
1993 from its sole shareholder at that time, Stone Container (Canada) Inc., a
wholly-owned subsidiary of Stone Container Corporation (now a subsidiary of
Smurfit-Stone Container Corporation). Prior to that date, SCC had no history as
a separate operating entity. RR was incorporated under the laws of Ontario on
April 28, 1941. The principal executive office and the registered office of the
Company are located at 1155 Metcalfe Street, Suite 800, Montreal, Quebec, Canada
H3B 5H2.

SUBSIDIARIES

The following lists the principal subsidiaries of the Company as at December 31,
2003, as well as their respective jurisdictions of incorporation.
Parent-subsidiary relationships are denoted by indentations. Unless otherwise
indicated, 100 percent of the shares of each subsidiary is owned by the
immediate parent company.

      Abitibi-Consolidated Inc.                                         Canada
           Abitibi-Consolidated Company of Canada(1) ("ACCC")           Quebec
                Donohue Corp.                                           Delaware
                     Abitibi-Consolidated Corp.(2)                      Delaware
                     Abitibi Consolidated Sales Corporation(3)          Delaware
                Bridgewater Paper Co. Ltd.                              England

ITEM 3:  GENERAL DEVELOPMENT OF THE BUSINESS

The Company is a global leader in newsprint and uncoated groundwood (value-added
groundwood) papers as well as a major producer of wood products, generating
sales of $4.8 billion in 2003. The Company does business in more than 70
countries. Responsible for the forest management of 18 million hectares, the
Company is committed to the sustainability of the natural resources in its care.
The Company is also the world's largest recycler of newspapers and magazines,
serving 17 metropolitan areas with more than 11,200 Paper Retriever(R)
collection points and 14 recycling


--------
1   ACCC holds most of the Canadian operating assets of the Company, as well as
    a 50% interest in Pan Asia Paper Co. Pte Ltd. Pan Asia Paper Co. Pte Ltd has
    an interest in four mills producing mainly newsprint located in South Korea,
    China and Thailand and a newsprint mill under construction in China.

2   Abitibi-Consolidated Corp. was formerly known as Donohue Industries Inc.

3   Abitibi Consolidated Sales Corporation holds a 50% ownership interest in a
    newsprint joint venture in Augusta, Georgia and a 100% interest in
    Abitibi-Price Alabama Recycling Corporation and Abitibi-Price Alabama
    Corporation, which in turn respectively hold a 50% ownership interest in
    Alabama River Recycling Company and Alabama River Newsprint Company.


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centres in Canada, the United States and the United Kingdom. The Company has
ownership interests in 27 paper mills, 21 sawmills, 4 remanufacturing facilities
and 1 engineered wood facility located in Canada, the U.S., the U.K., South
Korea, China and Thailand. As of December 31, 2003, the Company had
approximately 16,000 employees, excluding Pan Asia Paper Co. Pte Ltd
("PanAsia").

INDEFINITE IDLING & CAPACITY REDUCTION PROGRAM

On December 10, 2003, the Company announced the continuation of its focused
downtime strategy by indefinitely idling the Company's Lufkin, Texas and
Port-Alfred, Quebec paper mills, as of December 14, 2003, representing an
additional combined annual capacity of 432,000 tonnes of newsprint and 270,000
tonnes of other paper grades. This announcement affected 580 employees at the
Lufkin mill and 640 employees at the Port-Alfred mill.

The Company also announced the permanent closure of two previously idled paper
machines, one at the Port-Alfred mill and one at the Sheldon, Texas newsprint
mill, representing a combined annual newsprint capacity of 230,000 tonnes. These
actions, combined with improved operating efficiencies, should reduce annual
operating costs by at least $125 million.

In December 2002, the Company had indefinitely idled its operations at the
Sheldon newsprint mill. Since 2002, the Company has therefore indefinitely idled
760,000 tonnes and permanently removed 230,000 tonnes of high-cost newsprint
capacity, thereby improving its overall cost structure and better adjusting
production to its order book for 2004.

In addition, the conversion to Equal Offset(R) of the newsprint machine at the
Alma, Quebec mill will allow the Company to permanently convert 170,000 tonnes
of annual newsprint capacity.

In 2001, the Company completed its previous capacity reduction program of
high-cost newsprint through the shutdown of approximately 130,000 tonnes at its
West Tacoma, Washington mill, 180,000 tonnes of shutdown and conversion to
value-added paper at its Kenora, Ontario mill, and the conversion of
approximately 45,000 tonnes to value-added groundwood paper capacity at other
mills. These reductions were in addition to the reduction, in 1999, of the
Company's high-cost newsprint production capacity by approximately 353,000
tonnes.

MARKET RELATED DOWNTIME

The Company begins 2004 with approximately one million tonnes of annual focused
downtime. In spite of this reduced capacity, the Company anticipates selling as
much, if not more, products in 2004 than in 2003.

In 2003, excluding PanAsia, the Company took 977,000 tonnes of market-related
downtime in order to adjust production according to its order book. The downtime
was mainly taken from the idling of the Sheldon mill and one machine at the
Port-Alfred mill. The remaining downtime was taken through temporary shutdowns
at all locations. This compares to 887,000 tonnes of downtime taken in 2002 and
796,000 tonnes of downtime taken in 2001.

INVESTMENT IN CHINA

On September 10, 2003, PanAsia announced the creation of a 65-35 percent joint
venture with Hebei Longteng Paper Corporation of China to build and operate a
newsprint mill in the industrially developed Hebei Province of China, 280 km
southwest of Beijing. Construction of the mill began during the first quarter of
2004 and production is expected to start during the third quarter of 2005, with
a rated capacity of 330,000 tonnes per year. The newsprint will be produced from
100 percent recycled fibre. The project represents an investment of
approximately US$300 million without any direct cash contribution from PanAsia's
joint venture partners.

U.S. DEBT FINANCING AND AMENDMENT OF CREDIT FACILITIES

On June 18, 2003, Abitibi-Consolidated Company of Canada issued in the United
States US$150 million of 5.25% Notes due 2008 and US$350 million of 6.00% Notes
due 2013, unconditionally guaranteed by the Company. The net


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proceeds from the offering were used to repay outstanding debt under existing
credit facilities. As a result, the total debt of the Company remained at the
same level. In connection with the offering, the Company and its lenders have
agreed to merge the Company's $500 million 364-day and $300 million multi-year
revolving credit facilities and to reset the maturity dates to June 30, 2005,
from December 17, 2003, and December 30, 2005 respectively. The new revolving
credit facility has substantially the same terms and conditions as the prior
agreement, except for certain amendments which provide the Company with
increased financial flexibility. These amendments became effective upon
completion of the offering. The amended terms of the revolving credit facility
require the Company to maintain the following ratios, calculated at the end of
each quarterly period: o a ratio of net funded debt to total capitalization not
exceeding 70%; and o a ratio of EBITDA to net interest expense of at least: (i)
1.25x for the second quarter of 2003, (ii) 1.00x for the third and fourth
quarters of 2003, (iii) 1.25x for the first and second quarters of 2004, (iv)
1.50x for the third and fourth quarters of 2004 and (v) 2.00x for 2005.

In calculating these ratios, and subject to certain adjustments: (i) net funded
debt is essentially equivalent to short-term and long-term debt plus the amount
outstanding under any accounts receivable securitization programs minus cash and
cash equivalents; (ii) total capitalization is essentially defined as net funded
debt plus shareholders' equity; (iii) EBITDA is essentially equivalent to
earnings before interest, taxes, depreciation and amortization on a trailing
12-month basis; and (iv) net interest expense essentially represents interest
expense minus interest income. As discussed on page 14, the company's interest
coverage ratios were further amended in February 2004.

THIRD PARTY CERTIFICATION

In 2002, the Company achieved its goal of having all of the Company's 18 million
hectares of its total managed land base in Canada associated with certified
management systems. The Company's five-year program of having all its
manufacturing operations (pulp and paper mills, sawmills and power generating
facilities) certified to the ISO 14001 standard by the end of 2003 was
essentially completed on schedule. Remaining registrations include the La Tuque,
Quebec sawmill, which was audited in March, 2004, as well as the ISO
certification of the Alma mill, which has been rescheduled to year-end 2004 due
to major capital projects. The Company plans to obtain sustainable forest
management ("SFM") certification for all its publicly and privately owned
forestlands by the end of 2005. The Company chose to certify publicly owned
lands under the Canadian Standards Association's SFM standard. For all private
holdings in Canada and the United States, the Company chose to implement a
system based on the Sustainable Forestry Initiative Standard. See page 25 of the
Company's 2003 Annual Report for more information.

OPERATIONAL IMPROVEMENTS

Synergy cost savings from the Donohue acquisition reached an annualised run rate
of $294 million in the fourth quarter of 2001, surpassing the $250 million
target set by the Company after the acquisition of Donohue Inc.

In 2002, the Company set a target of reducing its costs by $100 million compared
to 2001. All of the Company's locations implemented cost improvement initiatives
to reduce material usage and/or increase machine productivity. At the end of the
year 2002, the Company had realized $89 million in annualised cost reductions.
Lower productivity caused by market-related downtime was the main factor for the
Company not achieving its original goal.

In 2004, the Company expects to reduce its operating costs by at least $125
million.

CAPITAL EXPENDITURE

The Company intends to limit its capital expenditure program in 2004 to below
$300 million, excluding its portion of the capital expenditures of the PanAsia
joint venture. The Company intends to continue maintaining a disciplined capital
expenditure program and to apply free cash flows towards the reduction of debt.


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CREDIT RATING

Three rating agencies rate the Company's debt instruments, namely Moody's
Investors Service ("Moody's"), Standard & Poor's Rating Services ("Standard &
Poor's") and Dominion Bond Rating Service Limited ("DBRS"). On November 18,
2002, Moody's assigned a Ba1 (with a stable outlook) rating to the Company's
debentures down from a Baa3 (negative outlook). Interest payments under the
Company's current debt rose by approximately $3 million annually as a result of
this rating change. On February 18, 2003, Standard & Poor's lowered its rating
from BBB-with negative outlook to BB+ with a stable outlook. The same rating
agency revised the outlook to negative from stable on October 27, 2003. On
October 17, 2003, Moody's placed the Ba1 debt rating of the Company under review
for possible downgrade. On November 4, 2003, DBRS downgraded the debt rating of
the Company to BB (high) from BBB (low). The trend changed to stable from
negative.

DIVIDENDS

In the second quarter of 2003, the Company's board of directors made the
decision to reduce the quarterly dividend from $0.10 per share to $0.025 in
light of market and currency exchange conditions.

ALMA MILL

In December 2002, the Company announced it would convert the newsprint machine
at its mill in Alma to produce the Company-developed groundwood paper known as
Equal Offset(R). The total cost of the project is now estimated at approximately
$195 million, including capitalized interest. The machine is scheduled to start
up in the second quarter of 2004, ramping up to Equal Offset(R) paper in the
second half of 2004. Once converted, this Alma machine will have an annual
production capacity of 230,000 tonnes of Equal Offset(R) paper.

CREATION OF A JOINT VENTURE TO PRODUCE ENGINEERED WOOD

In November 2002, the Company and Louisiana-Pacific Canada Ltd.
("Louisiana-Pacific") formed a joint venture to produce I-joists, used mainly in
residential and commercial floor construction. The new mill, with an annual
production capacity of 70 million linear feet, is located in Larouche, in the
Lac-St-Jean region of Quebec. The Company and Louisiana-Pacific each own 50% of
the joint venture and together invested a total of $15 million. The joint
venture began production in May 2003 and reached commercial production in the
third quarter as expected.

SALE OF SAINT-FELICIEN PULP MILL

In August 2002, the Company sold its northern bleached softwood kraft ("NBSK")
pulp mill located in Saint-Felicien, Quebec, to a member of a group of entities
controlled by SFK Pulp Fund (collectively, "SFK") for a total consideration
valued at $693 million. The consideration consisted of $544 million in cash and
a 25% interest through a holding of class "B" exchangeable units. The Company's
interest in SFK was subordinated, until December 31, 2003, to the SFK units
offered to the public in respect of monthly cash distributions. Of the cash
proceeds, $16 million was reserved to maintain, until December 31, 2003, the
level of monthly distributions that would have been payable on all publicly-held
SFK units had the Company held and retained an indirect economic interest of
41%. Excluding the subordination, the Company realized a pre-tax gain of $364
million on disposal of 75% of the pulp mill. The net proceeds from the sale were
used to reduce outstanding indebtedness of the Company by $370 million.

THOROLD MILL

In the third quarter of 2002, the Company completed the conversion of its
Thorold, Ontario mill to produce newsprint with 100% recycled content, thereby
reducing production costs. The project was completed on time and below the
original $50 million budget.

EXPLOITS RIVER HYDRO

On September 19, 2001, the Company entered into a partnership with Central
Newfoundland Energy Inc., a non-regulated subsidiary of Fortis Inc., to further
develop the hydroelectric potential in Newfoundland. The Company


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holds a 49% interest in the partnership. The project has been completed,
commissioned and received final approval from Newfoundland and Labrador Hydro in
the fourth quarter of 2003. Exploits River Hydro Partnership is supplying power
to the provincial grid under a long-term contract with the utility.

PANASIA JOINT VENTURE

In August 2001, the Company increased its interest in PanAsia from one-third to
one-half under an agreement with Norske Skogindustrier ASA of Norway ("Norske").
Together they jointly acquired the one-third interest previously owned by Hansol
Paper Co., Ltd. of South Korea for a total of US$350 million (the Company's
share was US$175 million). In May 2002, the Company and Norske amended the
Shareholder's Agreement of PanAsia to better suit a dual ownership.

PanAsia paid to each of its two shareholders dividends of US$25 million in May
2002 and US$30 million in May 2003.

SALE OF THE WAYAGAMACK MILL

On May 8, 2001, the Company sold to Kruger Wayagamack Inc., a majority-owned
subsidiary of Kruger Inc., substantially all of the assets of the Wayagamack
mill located in Trois-Rivieres, Quebec. Kruger Wayagamack Inc. has announced its
intention to transform the mill over the next few years into a manufacturing
facility for certain coated groundwood grades that are not currently part of the
Company's core products.

BAIE-COMEAU MILL

In the first quarter of 2003, the Company completed the upgrade of the
thermomechanical process of the Baie-Comeau, Quebec mill, thereby increasing
paper quality and reducing production costs. The project was completed within
the original $42 million budget.

TRENDS

         NEWSPRINT MARKET

The Company expects newsprint consumption to grow in line with stronger economic
growth in North America. Consumption is expected to be flat in the first half of
the year, with approximately 2% gain in the second half. The key risk factors to
a consumption recovery relate to the strength of the U.S. economy, specifically
with respect to job creation, and consequently in help wanted advertising, as
well as continued general strength in advertising expenditures. Management
expects 2004 consumption in Europe to be flat or slightly up. The main risk
factor remains the extent of an economic recovery in continental Europe,
particularly in Germany. The Company believes that capacity reductions in North
America should lead to more balanced supply/demand conditions on this continent,
while conditions in Europe should remain under pressure due to recent capacity
increases.

         VALUE-ADDED GROUNDWOOD PAPERS MARKET

The Company expects uncoated groundwood demand to continue to grow in 2004 along
with an improved economy. Uncoated groundwood grades are expected to benefit
from improvement in advertising markets and continued grade substitution.
Industry forecasters are predicting demand growth for 2004 to be approximately
three to four percent. Regarding supply, recent reduction in uncoated groundwood
capacity should lead to more supply/demand balance in North America. Imports
from Europe continue to be a significant risk factor, but recent increase in
imports may be tempered by the weak US dollar and any improvement in European
markets.

         LUMBER MARKET

The Company expects housing starts in the U.S. to remain high in 2004 but to be
slightly lower than the previous year due to the historically high levels of
2003. The Company expects demand in lumber to be high in the first half of the
year and slightly lower in the second half.


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ITEM 4:  DESCRIPTION OF THE BUSINESS

The Company's principal operations produce and market newsprint and value-added
groundwood papers. The Company's operations also include the manufacturing and
marketing of wood products.

These businesses are described in the "Management's Discussion and Analysis", on
the following pages of the Company's 2003 Annual Report:


      Newsprint                                             Pages 43 and 44;

      Value-Added Groundwood Papers                         Pages 44; and

      Wood Products                                         Pages 44, 45 and 46

The segmented results for these businesses are shown in the Company's
Consolidated Financial Statements for the three years ended December 31, 2003,
on page 63 of the Company's 2003 Annual Report.

The principal market for the Company's products is the United States, with the
remainder marketed worldwide. See "Consolidated Geographic Segments" on page 64
of the Company's 2003 Annual Report for a breakdown of sales of the Company's
products by geographic areas.

PAPER AND WOOD PRODUCTS SALES DISTRIBUTION

In North America, the Company distributes paper products primarily through its
own sales force, directed from Montreal, Quebec, a customer service centre in
White Plains, New York and sales offices in Atlanta, Georgia, Chicago, Illinois,
Dallas, Texas, and Scottsdale, Arizona. Internationally, the Company has sales
offices in Ellesmere Port, U.K. and supplements its sales force efforts with
independent commissioned sales agents and distributors.

The Company distributes wood products primarily through its own sales force
based in Montreal, Quebec and a sales office in Vancouver, British Columbia.

PRINCIPAL PRODUCTION FACILITIES

The location and capacity of each of the Company's paper manufacturing and
sawmill operations are listed on pages 34 to 37 of the Company's 2003 Annual
Report.

COMPETITION

Competition is present in all markets for the Company's products. The Company's
main competitors are North American and Western European paper manufacturers and
North American lumber producers. While selling prices, quality and customer
service are generally the principal factors influencing competition, other
factors such as risks related to foreign exchange, cost of fibre supply, as well
as the ongoing dispute between the United States and Canada regarding the sale
of softwood lumber exports to the United States, can also have an impact on the
Company's competitive position. See "Management's Discussion and Analysis; Risk
and Uncertainties" on pages 50 and 51 of the Company's 2003 Annual Report for a
more detailed discussion of the foregoing.

EFFECTS OF ENVIRONMENTAL REGULATION ON CAPITAL EXPENDITURES

The financial and operational effects of environmental protection requirements
on capital expenditures are described under the heading "Management's Discussion
and Analysis; Environment" on page 51 of the Company's 2003 Annual Report.


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HUMAN RESOURCES

As of December 31, 2003, the Company employed approximately 16,000 employees,
about the same number as were employed at the end of 2002. Approximately 85% of
the Company's employees are under collective agreements. Six collective
agreements which expired before December 31, 2003 still have to be renewed. The
facilities covered by these collective agreements are the Sheldon mill, which is
currently idled, and sawmills and woodlands facilities. While the Company does
not anticipate any labour disruptions at these facilities, as is the case with
any negotiation, the possibility that disruptions will arise exists. On April
30, 2004, collective bargaining agreements covering approximately 4,800
employees in 12 mills of the Company's newsprint and value-added divisions will
expire.

FIBRE SUPPLY

Virgin wood, virgin wood fibre and waste paper constitute the basic raw
materials for the Company's newsprint, value-added groundwood papers and lumber.
The Company's Canadian mills obtain a majority of their virgin wood and virgin
wood fibre requirements from rights to cut timber on public lands pursuant to
agreements with the applicable provincial government. The volume of timber
allocated to the Company under these agreements varies depending on, among other
things, changes in the requirements of the mill, availability of alternate fibre
sources, the level of forest management activities carried out by the Company to
maintain a sustainable wood fibre yield, and adjustments to the volume of timber
allocated to the Company, as provided for in the legislation of each
jurisdiction from time to time. The Company's fibre resources are obtained
mostly from harvesting rights on public lands in Quebec, Ontario, Newfoundland
and British Columbia. The Province of Quebec is currently reviewing its forest
management practices. Some reduction in harvesting rights allocation and
increases in costs of forest management may occur as a result. See "Management's
Discussion and Analysis; Risk and Uncertainties - Fibre Supply" on page 50 of
the Company's 2003 Annual Report for additional information on the sources,
pricing and availability of the Company's raw fibre requirements.

ENERGY SUPPLY

As is generally the case for paper manufacturers, electric power is one of the
largest cost components for the Company. Excluding PanAsia, in 2003 the Company
internally generated, from hydroelectric and cogeneration sources, approximately
23% of the electric power it used. The Company's ability to continue to
internally generate hydroelectric power is conditional on the Company's ability
to renew its rights to utilize and manage provincial waterways for the
generation of electric power. The renewals of these rights are subject to
provincial government discretion and certain conditions, including the operation
of the paper mills to which the electrical generating capacity relates. The
Company burns biomass to generate a significant proportion of its steam
requirements. The Company's remaining energy needs are met through agreements
with local electric utilities and oil, coal and natural gas suppliers on
standard market terms. The major suppliers of the Company's external electric
power needs include Hydro-Quebec and Ontario Power Generation. See "Management's
Discussion and Analysis; Risk and Uncertainties - Energy" on page 51 of the
Company's 2003 Annual Report for additional information on the pricing of the
Company's energy requirements.

FOREIGN EXCHANGE

The Company's foreign exchange risk and foreign exchange management policy are
described in the "Management's Discussion and Analysis; Risk and Uncertainties -
Foreign Exchange", on pages 50 and 51 of the Company's 2003 Annual Report.


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<PAGE>

LITIGATION

         UNITED STATES CUSTOMS INVESTIGATION RELATED TO SOFTWOOD LUMBER PRODUCTS

On June 30, 1999, the Company and Produits Forestiers Petit Paris Inc. (one of
the Company's joint venture sawmills for which the Company acts as exclusive
sales agent) were sent notices by the United States Customs Services ("Customs")
stating that a civil Customs investigation had been initiated. Customs has
alleged that the Company has fraudulently described certain softwood lumber
imports into the United States as "truss components" and classified them
accordingly, when in fact they were not. The Company denies the fraud
allegations and is also disputing Customs' views on the underlying
classification questions.

In February 2001, Customs issued a ruling that the lumber products at issue
should be classified as softwood lumber and not as "truss components" as claimed
by the Company. The Company has appealed this classification ruling in the U.S.
courts. Because the proceedings are still at an early stage, it is not possible
to predict the outcome of this appeal.

In 1999, Customs also opened a civil investigation related to imports of lumber
for "truss components" by Donohue Forest Products Inc., now known as ACCC.
Customs also referred the matter to the U.S. Justice Department as a possible
criminal fraud case. Both investigations claimed that ACCC fraudulently
classified regular softwood lumber as "truss components". In late 2003, the
Justice Department decided not to pursue a criminal action, leaving the civil
investigation pending. ACCC denies the claims of fraud and has been cooperating
with the U.S. authorities. At this stage, it is not possible to predict the
investigation's outcome.

         SOFTWOOD LUMBER DISPUTE

Following the expiration in March 2001 of the softwood lumber agreement between
Canada and the United States, and in response to complaints from U.S. based
competitors, the United States Department of Commerce (the "USDOC") and the
United States International Trade Commission (the "USITC") conducted
investigations into whether the Canadian softwood lumber was subsidized and/or
sold at less than fair value and causing injury to the softwood lumber industry
in the United States. On April 2, 2002, the USDOC published a company-specific
antidumping margin ("AD") for the Company of 14.60%. It also found an
industry-wide countervailing duty rate ("CVD") for certain provinces, including
those in which the Company operates, of 19.34%. On May 22, 2002, the USDOC
published an amended determination in the antidumping investigation, and lowered
the Company's AD to 12.44% and the CVD to 18.79%. Also in May of 2002, the USITC
determined that imports of Canadian softwood lumber threatened future injury to
the softwood lumber industry in the United States. As a result of these
determinations, from May 22, 2002, the Company has been required to post cash
deposits on its softwood lumber exports to the United States, in the amount of
12.44% for estimated AD and 18.79% for estimated CVD. The Company has no
potential liability for antidumping or countervailing duties on its U.S. exports
occurring before that time.

These AD and CVD rates are deposit rates for estimated duties. Actual duty
assessment rates are determined in annual retrospective review proceedings
conducted by the USDOC. The annual review proceedings for 2002 commenced in
mid-2003. The USDOC is expected to issue preliminary results around June 1,
2004, and final results by the fourth quarter of 2004. Based on normal shipment
patterns, the impact of every 1% increase or decrease in CVD or AD represents a
change of approximately $1.8 million to net earnings annually. The Company has
paid and expensed in 2003, on a contingent basis, an amount of $77 million for
CVD/AD deposits, compared to $44 million for the period from May 22, 2002 to
December 31, 2002.

For the future, the impact of AD and CVD duties on the profitability of the
Company's lumber operations will depend not only on the actual assessment rates,
which cannot be predicted at this time, but also on the impact of duties on
lumber prices in both the United States and Canada.

The Company and other parties to the investigations have appealed from the final
determinations of both the USDOC and the USITC to bi-national panels pursuant to
the North American Free Trade Agreement (the "NAFTA"), which appeals will result
in further changes to these rates and may result in the elimination of such
duties. The Government of Canada also has brought dispute settlement proceedings
before the World Trade Organization (the "WTO").


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<PAGE>

         i)       NAFTA APPEALS

On July 17, 2003, a NAFTA panel issued its decision on the AD case, ordering the
USDOC to recalculate its determination of duties on individual Canadian
companies. The USDOC issued a revised determination on October 15, 2003, which,
once the appeal process is concluded, will lower the Company's AD deposit rate
from 12.44 % to 11.85 %. The NAFTA panel subsequently upheld challenges by
several other companies to their recalculated rates, and the USDOC is due to
issue a further revised determination by April 20, 2004. The Company's revised
cash deposit rate thus will likely take effect later in the second quarter of
2004, provided there are no further NAFTA challenges in the AD case.

On August 13, 2003, a NAFTA panel issued its decision on the CVD case, ruling
that the method used by the USDOC to measure the benefit of the alleged
subsidies was contrary to law.

On September 5, 2003, a NAFTA panel rejected all major arguments brought by the
USITC to justify the "threat of injury to a U.S. industry". On December 15,
2003, the USITC issued a revised threat of injury determination, upholding its
original conclusion. The Canadian parties have challenged the revised
determination. The NAFTA panel is expected to issue a decision on that challenge
by April 30, 2004. If the "threat of injury to a U.S. industry" is not proven,
there is no justification to impose CVD or AD.

         ii)      WTO APPEALS

On August 29, 2003, a WTO panel issued its final report on the CVD issue,
largely in Canada's favour and against the methodology the USDOC used to measure
the alleged subsidy.

         iii)     SETTLEMENT DISCUSSIONS

On December 6, 2003, Canadian and United States government negotiators came up
with a framework to settle the softwood lumber dispute. The proposal, which was
not accepted, could have terminated both CVD and AD cases and returned the
Canadian industry to a quota allocation system for shipments of lumber to the
United States. The Company continues to believe that stability will only return
to the lumber market once the dispute is resolved.


ITEM 5:  SELECTED CONSOLIDATED FINANCIAL INFORMATION

ANNUAL FINANCIAL INFORMATION FOR THE PREVIOUS THREE YEARS

Selected financial information for the Company's last three years is included in
"Historical Review", on pages 92 to 95 of the Company's 2003 Annual Report.

This information should be read in conjunction with the Company's "Management's
Discussion and Analysis" and audited consolidated financial statements for the
three years ended December 31, 2003, on pages 38 to 89 of the Company's 2003
Annual Report.


DIVIDENDS

The Company is not subject to restrictions on payment of dividends under loan
agreements. Pursuant to the CANADA BUSINESS CORPORATIONS ACT, the Company is
prohibited to declare or pay a dividend if there are reasonable grounds for
believing that it is, or would after the payment be, unable to pay its
liabilities as they become due or the realizable value of the Company's assets
would thereby be less than the aggregate of its liabilities and stated capital
of all classes. Dividends on common shares are declared by the Company on a
quarterly basis and the amount may vary from quarter to quarter.


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<PAGE>

ITEM 6:  MANAGEMENT'S DISCUSSION AND ANALYSIS

The Company's "Management's Discussion and Analysis" is included on pages 38 to
56 of the Company's 2003 Annual Report.


ITEM 7:  MARKET FOR SECURITIES

Information on the Company's market for securities is included on page 110 of
the Company's 2003 Annual Report.


ITEM 8:  DIRECTORS AND OFFICERS

The names of the directors of the Company, as well as their respective principal
occupations within the five preceding years, and municipality of residence, are
provided on pages 106 and 107 of the Company's 2003 Annual Report and on pages 3
to 6 of the Company's 2003 Proxy Circular.

Each director holds office until the earlier of the next annual shareholders
meeting of the Company or the appointment or nomination of such director's
successor. See "Election of Directors" on pages 3 to 7 of the Company's 2003
Proxy Circular for information on the periods during which each director has
served on the board of directors of the Company and the identity of the members
of committees of the board of directors of the Company.

The name, municipality of residence and offices of each executive officer of the
Company as of December 31, 2003 are set forth below:

<TABLE>
<CAPTION>
    ------------------------------------------------------------------------------------------------
    NAME AND MUNICIPALITY OF RESIDENCE           OFFICES
    ------------------------------------------------------------------------------------------------
    <S>                                          <C>
    RICHARD DROUIN, Q.C., c.r.                   Chairman of the Board
    Quebec, Quebec
    ------------------------------------------------------------------------------------------------
    JOHN W. WEAVER                               President and Chief Executive Officer
    Montreal, Quebec
    ------------------------------------------------------------------------------------------------
    LOUIS-MARIE BOUCHARD                         Senior Vice-President, Woodlands & Sawmill
    Quebec, Quebec                               Operations
    ------------------------------------------------------------------------------------------------
    ALAIN GRANDMONT                              Senior Vice-President, Value-Added Paper Operations
    St-Sauveur, Quebec
    ------------------------------------------------------------------------------------------------
    COLIN KEELER                                 Senior Vice-President, North American Newsprint
    Montreal, Quebec                             Sales
    ------------------------------------------------------------------------------------------------
    PAUL PLANET                                  Senior Vice-President, International Sales &
    Montreal, Quebec                             Operations
    ------------------------------------------------------------------------------------------------
    PIERRE ROUGEAU                               Senior Vice-President, Corporate Development and
    Montreal, Quebec                             Chief Financial Officer
    ------------------------------------------------------------------------------------------------
    DAVID SCHIRMER                               Senior Vice-President, Value-Added Paper Sales
    Darien, Connecticut
    ------------------------------------------------------------------------------------------------
    THOR THORSTEINSON                            Senior Vice-President, North American Newsprint
    Montreal, Quebec                             Operations
    ------------------------------------------------------------------------------------------------
    BRUNO TREMBLAY                               Senior Vice-President, Technology Services
    Notre-Dame de l'Ile Perrot, Quebec
    ------------------------------------------------------------------------------------------------
    JACQUES P. VACHON                            Senior Vice-President, Corporate Affairs and
    Montreal, Quebec                             Secretary
    ------------------------------------------------------------------------------------------------
</TABLE>

All executive officers have been employed by the Company, API or SCC for the
past five years, with the following exceptions: Mr. Rougeau was Managing
Director at UBS Bunting Warburg Inc. from March 1998 until September 2001, when
he joined the Company. Prior to such time he was Managing Director of Scotia
Capital Markets Inc.; and


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ABITIBI-CONSOLIDATED INC.
2003 ANNUAL INFORMATION FORM
<PAGE>

Mr. Bouchard was Senior Vice-President, Woodlands and Sawmills of Donohue prior
to joining the Company in May 2000 following the acquisition of Donohue by the
Company.

As at December 31, 2003, directors and executive officers of the Company held
315,187 of the Company's common shares, representing 0.0716% of the Company's
outstanding common shares, 280,687 deferred share units, and 5,508,732 options
to purchase common shares of the Company.


ITEM 9:  ADDITIONAL INFORMATION

When securities of the Company are in the course of a distribution pursuant to a
short form prospectus, or when a preliminary short form prospectus has been
filed in respect of a distribution of the Company's securities, (i) copies of
this Annual Information Form, together with copies of any document or the
relevant pages of any document incorporated by reference in this Annual
Information Form, (ii) copies of the comparative consolidated financial
statements of the Company for its most recently completed financial year
together with the accompanying report of the auditors and copies of any interim
financial statements of the Company subsequent to the financial statements for
its most recently completed financial year, (iii) copies of the information
circular of the Company in respect of its most recent annual meeting of
shareholders that involved the election of directors, and (iv) copies of any
other documents that are incorporated by reference into the prospectus, may be
obtained from the Secretary of the Company on request. At any other time, copies
of the documents referred to in (i) to (iii) above, may be obtained from the
Secretary of the Company, provided that the Company may require the payment of a
reasonable charge if the request is made by a person or company who is not a
security holder of the Company.

Additional information including Directors' and Officers' remuneration, their
indebtedness to the Company, the principal holders of the Company's securities,
the options to purchase securities and the interests of insiders in material
transactions, where applicable, is contained in the Company's 2003 Proxy
Circular. Additional financial information is provided in the Company's
consolidated financial statements contained in its annual report for its most
recently completed financial year.


ITEM 10:  SUBSEQUENT EVENTS

The information set forth below is stated as at May 17, 2004.

AMENDMENT BY THE COMPANY OF ITS REVOLVING CREDIT FACILITY

In February 2004, the Company, in order to increase its financial flexibility on
its revolving credit facility and manage its liquidity prudently, requested and
obtained an amendment to its interest coverage ratios. The amended terms of the
revolving credit facility require the Company to maintain the following ratios,
calculated at the end of each quarterly period:

         o        a ratio of net funded debt to total capitalization not
                  exceeding 70%; and

         o        a ratio of EBITDA to net interest expense of at least: (i)
                  1.00x for the first and second quarters of 2004; (ii) 1.25x
                  for the third and fourth quarters of 2004; and (iii) 1.50x for
                  the first and second quarters of 2005.

In calculating these ratios, and subject to certain adjustments: (i) net funded
debt is essentially equivalent to short-term and long-term debt plus the amount
outstanding under any accounts receivable securitization programs minus cash and
cash equivalents; (ii) total capitalization is essentially defined as net funded
debt plus shareholders' equity; (iii) EBITDA is essentially equivalent to
earnings before interest, taxes, depreciation and amortization on a trailing
12-month basis; and (iv) net interest expense essentially represents interest
expense minus interest income.

The Company is currently in compliance with the terms and conditions prescribed
under the agreement governing its revolving credit facility.


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<PAGE>

LABOUR NEGOTIATIONS

As stated above, on April 30, 2004, collective bargaining agreements covering
approximately 4,800 employees in 12 mills of the Company's newsprint and
value-added papers divisions expired. On January 22, 2004, the Communications,
Energy and Paperworkers Union of Canada (the "CEP"), which represents
approximately 4,100 of these employees, has selected the Company as the
pattern-setting employer for negotiations in Eastern Canada, giving the Company
the opportunity to establish a framework agreement with the CEP that will serve
as a model for other companies in the industry that must also negotiate with
CEP. As announced by the CEP, the major issues to be negotiated include the
duration of the collective agreement, wages, benefits, pension plan and job
security. Significant progress has been realized since the start of the
negotiation. All local issues and contract language have been agreed upon and
both sides are presently negotiating at the national and executive level on the
issues of the duration of the collective agreement, wages, benefits, pension
plan and job security. The Company believes that its labour relations are good
and does not anticipate labour disruptions in its operations. However, as is the
case with any negotiation, the possibility that disruptions will arise exists.

SOFTWOOD LUMBER DISPUTE

On January 13, 2004, the USDOC, following the NAFTA panel order of August 13,
2003, released a revised determination adopting a new methodology which, if
confirmed by the NAFTA panel, would lower the Canada-wide CVD deposit rate from
18.79 % to 13.23 %. This determination, however, has been challenged by both the
Canadian and U.S. parties, and is under review by the NAFTA panel. If the NAFTA
panel rejects these challenges, the revised rate will not likely go into effect
until late in the second quarter of 2004 at the earliest.

On January 19, 2004, the WTO Appellate Body ruled that the USDOC's benefit
measurement methodology could be used in certain limited circumstances, but said
it did not have sufficient information to rule on the appropriateness or
specifics of USDOC's calculations in this case.

The WTO panel reviewing the AD issue issued its report to Canada and the United
States on February 27, 2004. The panel upheld Canada's challenge to the USDOC
practice of not counting "negative" dumping margins in determining overall AD
rates, but rejected other claims. Appellate Body review is expected.

On March 22, 2004, a WTO panel issued its final report on the injury issue,
finding fault with the ITC's original threat of injury determination. The U.S.
may appeal this report and/or further WTO proceedings may be required regarding
its implementation.

On April 13, 2004, the USDOC issued a further revised AD determination. The
Company's revised cash deposit rate of 11.85% will likely take effect later in
the second quarter of 2004, provided there are no further NAFTA challenges in
the AD case.

On April 29, the NAFTA panel ruled for a second time that the USITC's
determination that U.S. lumber producers were threatened by Canadian imports is
not supported by substantial evidence. The NAFTA panel remanded the injury
decision to the USITC, giving it 21 days to submit new information to the panel.


SALE BY THE COMPANY OF ITS REMAINING INTEREST IN SFK PULP FUND

On February 10, 2004, SFK Pulp Fund (the "Fund") and the Company announced the
Fund's offering of 14,812,500 units for gross proceeds of $118.5 million. The
net proceeds from such offering of approximately $112 million were used by the
Fund to purchase the Company's remaining interest in SFK Pulp General
Partnership ("SFK GP"). The Company has used these proceeds for the repayment of
outstanding debt and for general corporate purposes. The transaction closed on
February 27, 2004. As a result of this transaction, the Company no longer has a
continuing interest in SFK GP.


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ABITIBI-CONSOLIDATED INC.
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<PAGE>

CREDIT RATING

On February 20, 2004, Moody's lowered its rating of the Company's debt
instrument from Ba1 with a stable outlook to Ba2 with a negative outlook. On
March 4, 2004, Standard & Poor's also lowered its rating from BB+ with a
negative outlook to BB with a negative outlook. Interest payments under the
Company's current debt are expected to rise by approximately $2 million annually
as a result of these rating changes.

SALE OF VOYAGEUR PANEL

On April 15, 2004, Boise Cascade Corporation ("Boise") and its joint-venture
partners announced that they had reached an agreement with Ainsworth Lumber Co.
Ltd. for its purchase of Voyageur Panel Ltd for US$193 million, plus as much as
US$10 million based on oriented strand board (OSB) prices between closing and
year-end. Voyageur Panel is a joint venture owned by the Company (21%), Boise
(47%), Northwestern Mutual Life Insurance Company (17%), and Allstate Insurance
Company (15%). The transaction is expected to close in the second quarter of
2004.




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