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Default Loss of formatting when saved as .xls file

I have created a document in Excel 2007 with some normal cell formatting,
such as bold text, merge & center, and border lines. When checked for
compatibility no errors or messages appear. When the file is saved as an .xls
file, closed, then opened again all of the formatting is completely gone and
all that is left is text. I had this problem with another file but it was
fixable becuase it did show compatibility issues that could be fixed. Any
help with this problem would be greatly appreciated.
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