Government of Saskatchewan withdraws from memorandum of understanding with Domtar



    TICKER SYMBOL
    UFS (NYSE, TSX)

    MONTREAL, Nov. 30 /CNW Telbec/ - Domtar was informed today that the
Government of the Province of Saskatchewan is not prepared to participate in
the financing of the redevelopment of the Prince Albert pulp mill as set forth
in a Memorandum of Understanding (MOU) signed on September 12, 2007.
    Although Domtar recognizes that the Saskatchewan Government remains
committed to ensuring the future of northern Saskatchewan's forest resource,
the Government's decision to withdraw its support narrows down Domtar's
options regarding the Prince Albert facilities.
    Consequently, Domtar will terminate all work being done on this project.

    Domtar Corporation (NYSE/TSX: UFS) is the largest integrated producer of
uncoated freesheet paper in North America and the second largest in the world
based on production capacity, and is also a manufacturer of papergrade pulp.
The Company designs, manufactures, markets and distributes a wide range of
business, commercial printing, publication as well as technical and specialty
papers with recognized brands such as First Choice(R), Domtar Microprint(R),
Windsor Offset(R), Cougar(R) as well as its full line of environmentally and
socially responsible papers, Domtar EarthChoice(R). Domtar owns and operates
Domtar Distribution Group, an extensive network of strategically-located paper
distribution facilities. Domtar also produces lumber and other specialty and
industrial wood products. The Company employs nearly 14,000 people. To learn
more, visit www.domtar.com

    All statements in this press release that are not based on historical
fact are "forward-looking statements". While management has based any
forward-looking statements contained herein on its current expectations, the
information on which such expectations were based may change. These
forward-looking statements rely on a number of assumptions concerning future
events and are subject to a number of risks, uncertainties, and other factors,
many of which are outside of our control that could cause actual results to
materially differ from such statements. Such risks, uncertainties, and other
factors include, but are not necessarily limited to, those set forth under the
captions "Forward-Looking Statements" and "Risk Factors" of the prospectuses
contained in the registration statement on Form S-4 filed with the SEC. We
disclaim any intention to, and undertake no obligation to, update or revise
any forward-looking statements contained in this press release.




For further information:

For further information: Media Relations: Michel A. Rathier, (514)
848-5103; Investor Relations: Pascal Bossé, (514) 848-5938

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Domtar Corporation

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