Montreal, Quebec, Canada, 05 May 2010 -- /PRNewswire/ --Domtar Corporation today announced that its board of directors has approved a quarterly dividend to holders of its common stock (NYSE/TSX: UFS) and to holders of exchangeable shares of Domtar (Canada) Paper Inc. (TSX: UFX). The first quarterly dividend of USD 0.25 per share will be paid on 15 July 2010 to shareholders of record on 15 June 2010.

In addition, Domtar's board of directors has authorized a share buyback program of up to $150 million of Domtar Corporation's common stock.

Under the share buyback program, the company is authorized to repurchase from time to time shares of its outstanding common stock on the open market or in privately negotiated transactions in the United States. The timing and amount of stock repurchases will depend on a variety of factors, including the market conditions as well as corporate and regulatory considerations. The share repurchase program may be suspended, modified, or discontinued at any time and the company has no obligation to repurchase any amount of its common stock under the program. The repurchase program has no set expiration date. The company intends to make all repurchases in compliance with applicable regulatory guidelines and to administer the plan in accordance with applicable laws, including Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The company had a total combined number of common stock and exchangeable shares issued and outstanding of 43,091,494 shares at 31 March 2010.

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. Domtar 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. Domtar also produces lumber and other specialty and industrial wood products. The company employs more than 10,000 people. To learn more, visit www.domtar.com.