Montreal, Quebec, Canada, 07 January 2008 -- /PRNewswire/ -- Domtar Inc., a wholly owned subsidiary of Domtar Corporation, announced today, following the expiration time on 03 January 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 CAD 79,810,000 aggregate principal amount of the 10% Debentures representing approximately 97.33% of those outstanding (which amount includes CAD 79,795,000 previously accepted for purchase and payment on 20 December 2007), and CAD 74,387,000 aggregate principal amount of the 10.85% Debentures representing approximately 99.30% of those outstanding (which amount includes CAD 74,352,000 previously accepted for purchase and payment on 20 December 2007) were validly tendered pursuant to the Offers. Domtar Inc. accepted for purchase and payment today CAD 15,000 aggregate principal amount of the 10% Debentures and CAD 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 20 December 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, technical, and specialty papers, as well as its full line 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 14,000 people. To learn more, visit www.domtar.com.

Source: Domtar Corporation