Domtar announces senior notes offering


    MONTREAL, June 3 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS)
announced today a proposed offering of $250 million aggregate principal amount
of senior notes due 2017. The Company intends to use the net proceeds from the
offering to fund any portion of the purchase price of the 7.875% Notes due
2011 tendered and accepted by the Company for purchase pursuant to its
previously announced tender offer not funded with cash on hand and, to the
extent there are remaining proceeds, for general corporate purposes.
    J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated are
acting as the joint book-running managers of the offering.
    The notes are being offered pursuant to the Company's registration
statement on Form S-3 filed with the Securities and Exchange Commission (SEC)
on June 3, 2009. The proposed offering will be made only by means of a
prospectus. The preliminary prospectus may be obtained on the SEC website at Alternatively, a copy of the prospectus for the offering can be
obtained from J.P. Morgan, Syndicate Desk, 270 Park Avenue, 8th floor, New
York, New York 10017, or by telephone at (212) 270-1477 (collect) or (800)
245-8812 (U.S. toll-free); or from Morgan Stanley, Prospectus Department, 180
Varick Street, 2nd floor, New York, New York 10014, or by telephone at (212)
761-1941 (collect) or (800) 624-1808 (U.S. toll-free).

    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any offer or sale of the
senior notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to the registration or qualification under the
securities laws of any jurisdiction. Any offer, solicitation or sale will be
made only by means of the prospectus.

    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. 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.

    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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Domtar Corporation

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