Domtar announces expiration of tender offer for its 7.875% notes due 2011


    (All figures in U.S. dollars)

    MONTREAL, June 17 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today
announced that the tender offer for up to $400 million of its outstanding
7.875% Notes due 2011 (CUSIP No. 257559AA2) (the "Notes") expired at 12:00
Midnight, New York City Time, on Tuesday, June 16, 2009 (the "Expiration
Date"). As of the Expiration Date, approximately $431 million aggregate
principal amount of the Notes, representing approximately 80% of the
outstanding Notes, had been validly tendered and not withdrawn. Because the
aggregate principal amount of Notes tendered has exceeded the tender cap of
$400 million, the Company will purchase Notes on a pro rata basis among
tendering holders of Notes. The Company expects to accept Notes for purchase
today with a proration ratio of approximately 93%.
    The complete terms and conditions of the tender offer are described in
the Offer to Purchase, dated May 19, 2009, of the Company (the "Offer to
Purchase"). The Company has engaged J.P. Morgan Securities Inc. and Morgan
Stanley & Co. Incorporated to act as dealer managers in connection with the
tender offer. Questions regarding the tender offer may be directed to J.P.
Morgan at (212) 270-1477 (collect) or (800) 245-8812 (U.S. toll-free) or to
Morgan Stanley at (212) 761-1941 (collect) or (800) 624-1808 (U.S. toll-free).
Requests for documentation may be directed to Global Bondholder Services
Corporation, the information agent and depositary for the tender offer, at
(212) 430-3774 (for banks and brokers) or (866) 470-3700 (U.S. toll-free).
    This press release is neither an offer to purchase nor a solicitation of
an offer to sell the Notes or any other security. The tender offer is being
made only by the Offer to Purchase and the related letter of transmittal. The
offer is not being made to noteholders in any jurisdiction in which the making
or acceptance thereof would not be in compliance with the securities, blue sky
or other laws of such jurisdiction. In any jurisdiction in which the offer is
required to be made by a licensed broker or dealer, it shall be deemed to be
made by the dealer managers on behalf of the Company.

    About Domtar

    Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer
and marketer 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, fluff and specialty pulp. The Company designs, manufactures,
markets and distributes a wide range of business, commercial printing and
publication as well as converting and specialty papers including recognized
brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R) and
Domtar EarthChoice(R) Office Paper, part of a family of environmentally and
socially responsible papers. 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 11,000 people. To learn more, visit

    Forward-Looking Statements

    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 latest Form
10-K filed with the SEC as periodically updated by subsequently filed Form
10-Q's. Unless specifically required by law, we assume no obligation to update
or revise these forward-looking statements to reflect new events or

For further information:

For further information: Media and Investor relations: Pascal Bossé,
Vice-President, Corporate Communications and Investor Relations, (514)

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