Domtar Announces Redemption of Certain Outstanding Notes


Montreal, Quebec, Canada, 19 October 2010 -- /CNW Telbec/ -- Domtar Corporation (NYSE/TSX: UFS) today announced that it will redeem approximately USD 135 million in aggregate principal amount of its 7.875% notes due 2011, representing all of the notes outstanding of this series.

The notes will be redeemed at a redemption price of 100% of the principal amount, plus accrued and unpaid interest, as well as a make-whole premium. The accrued interest will be paid for the period from 15 October 2010 up to, but excluding, the redemption date of November 19, 2010. The make-whole premium will be calculated three days before redemption in accordance with the terms of the indenture governing the notes.

The terms of the redemption are described in the notice of redemption to be sent to registered holders on or about 19 October 2010.

Notes are to be surrendered to The Bank of New York Mellon, as trustee and paying agent, in exchange for the payment of the redemption price. Holders, who hold their notes through The Depository Trust Company, or DTC, will receive payment through DTC.

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. The company also manufactures papergrade, fluff, and specialty pulp. The company designs, manufactures, markets, and distributes a wide range of business, commercial printing, publishing, converting, and specialty papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. The company employs more than 8700 people. To learn more, visit www.domtar.com.