Domtar Inc. announces completion of cash tender offer for Canadian Debentures


    MONTREAL, Jan. 7 /CNW Telbec/ - Domtar Inc., a wholly owned subsidiary of
Domtar Corporation, announced today, following the Expiration Time on
January 3, 2008 at 5:00 p.m. (EST), the completion of its previously announced
Offers to purchase for cash any and all of its outstanding Canadian dollar
denominated 10% Debentures due 2011 and 10.85% Debentures due 2017.
    The depositary, Computershare Investor Services Inc., has advised Domtar
Inc. that a final total of CDN$79,810,000 aggregate principal amount of the
10% Debentures representing approximately 97.33% of those outstanding (which
amount includes CDN$79,795,000 previously accepted for purchase and payment on
December 20, 2007), and CDN$74,387,000 aggregate principal amount of the
10.85% Debentures representing approximately 99.30% of those outstanding
(which amount includes CDN$74,352,000 previously accepted for purchase and
payment on December 20, 2007) were validly tendered pursuant to the Offers.
Domtar Inc. accepted for purchase and payment today CDN$15,000 aggregate
principal amount of the 10% Debentures and CDN$35,000 aggregate principal
amount of the 10.85% Debentures. As previously announced, the supplements to
the respective Indentures governing the Debentures reflecting the requested
amendments thereto were entered into on December 20, 2007 after receipt of
sufficient consents.

    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

    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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