Domtar Completes Reorganization; Consequences to George Weston Limited's Exchangeable Debentures


    TORONTO, March 9 /CNW/ - George Weston Limited ("Weston" TSX:wn)
announces the consequences to the holders of its 3% exchangeable debentures
(the "Debentures") of the reorganization of Domtar Inc. ("Domtar") whereby
Domtar was combined with the fine paper business of Weyerhauser Inc. that was
completed on March 7, 2007. Pursuant to the reorganization, holders of Domtar
common shares were exchanged for an equal number of either non-voting
exchangeable shares of Domtar (Canada) Paper Inc. or common shares of Domtar
Corporation, a Delaware corporation.
    Weston has outstanding approximately $217,750,000 principal amount of
Debentures. Among other things, the Debentures entitle the holders to exchange
their Debentures for common shares of Domtar on the basis of 95.2381 common
shares of Domtar for each $1000 principal amount of Debentures. The directors
of Weston have determined that the Domtar reorganization constitutes a
"Reclassification" under the terms of the trust indenture pursuant to which
the Debentures were issued. As a result, henceforth all provisions of the
trust indenture shall be interpreted so that the consideration to be received
by the Debentureholders upon exercise of their right to exchange, upon the
right of Weston to redeem, on maturity or on acceleration shall be an equal
number of common shares of Domtar Corporation (if the Debentureholder would
otherwise have been entitled to the delivery of common shares of Domtar Inc.)
and shall be the value of the common shares of Domtar Corporation as
determined under the trust indenture (if the Debentureholder would otherwise
have been entitled to cash). Formal notice to this effect is being sent to the

    George Weston Limited is one of North America's largest food processing
and distribution groups operating in two segments: baking and dairy through
Weston Foods, and food and general merchandise distribution through Loblaw
Companies Limited.

For further information:

For further information: Geoffrey. H Wilson, Senior Vice President,
Financial Services and Investor Relations, (416) 922-2500

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