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<span class="page_title">Domtar Corporation</span>
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<div style="text-align: justify;">Montreal, Quebec, Canada, 04 June 2010 -- /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today announced that it had raised the maximum aggregate consideration, excluding accrued and unpaid interest, from CAD 350 million to CAD 450 million (the maximum payment amount) with respect to its previously announced tender offer for its outstanding 5.375% notes due 2013 (the first priority notes), 7 1/8% notes due 2015 (the second priority notes), 7.875% notes due 2011 (the third priority notes), and 10.75% notes due 2017 (the fourth priority notes, and together with the first, second,&nbsp;and&nbsp;third priority notes, the notes). In addition, the company announced that the early tender deadline and the withdrawal deadline for the tender offer expired at 5:00 p.m., Eastern Time, on 04 June&nbsp;2010.&nbsp;</div>
<p style="text-align: justify;">The aggregate principal amount of each series of notes that has been validly tendered and not withdrawn as of the early tender time is set forth in the table below. In accordance with the terms of the tender offer, the company has accepted for purchase all CAD 238,221,000 principal amount of the first priority notes validly tendered and not validly withdrawn pursuant to the tender offer on or before the early tender time (representing approximately 76.74% of the first priority notes outstanding before the tender offer). The company expects to make payment for such first priority notes on 07 June 2010. To the extent outstanding notes are tendered in excess of the maximum payment amount, the company will purchase notes that are validly tendered in accordance with the acceptance priority levels set forth below and subject to the terms and conditions of the tender offer, including a limitation on the maximum aggregate consideration, excluding accrued and unpaid interest, payable for fourth priority notes accepted for purchase, if any, of CAD 75 million. The tender offer is scheduled to expire at 12:00 midnight, Eastern Time, on 18 June 2010, unless extended or earlier terminated. The company will accept other notes for purchase promptly after the expiration time, subject to the terms and conditions of the tender offer as described in the offer to purchase, dated 21 May&nbsp;2010, as amended hereby, and in the related letter of transmittal.</p>
<pre style="text-align: justify;">
    &lt;&lt;
                              Accep-                              Percentage
                              tance     Aggregate      Aggregate          of
                               Prio-    Principal      Principal   Outstandi
    CUSIP           Title of   rity        Amount         Amount       Notes
    Number          Security  Level   Outstanding       Tendered    Tendered
    -------------------------------------------------------------------------
    257559 AB0  5.375% Notes      1   $310,431,000  $238,221,000       76.74%
                due 2013
    257559 AC8  7 1/8% Notes      2   $399,723,000  $244,335,000       61.13%
                due 2015
    257559 AA2  7.875% Notes      3   $134,752,000  $ 34,300,000       25.45%
                due 2011
    257559 AG9  10.75% Notes      4   $400,000,000  $149,763,000       37.44%
                due 2017
    &gt;&gt;
</pre>
<p style="text-align: justify;">The complete terms and conditions of the tender offer are described in the offer to purchase, as amended hereby, and the related letter of transmittal. The company has engaged Banc of America Securities LLC and Goldman, Sachs &amp; Co. to act as dealer managers in connection with the tender offer. Questions regarding the tender offer may be directed to Banc of America at (646) 855-3401 (collect) or (888) 292-0070 (U.S. toll-free) or to Goldman Sachs at (212) 902-5183 (collect) or (800) 828-3182 (U.S. toll-free). Requests for documentation may be directed to Global Bondholder Services Corporation, the information agent and depositary for the tender offer, at (212) 430-3774 (for banks and brokers) or (866) 470-3700 (U.S. toll-free).</p>
<p style="text-align: justify;">The tender offer is being made only by the offer to purchase, as amended hereby, and the related letter of transmittal. The tender offer is not being made to noteholders in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky, or other laws of such jurisdiction. In any jurisdiction in which the tender offer is required to be made by a licensed broker or dealer, it shall be deemed to be made on behalf of the company by the dealer managers or one or more registered brokers or dealers licensed under the laws of such jurisdiction.</p>
<p style="text-align: justify;">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&nbsp;also&nbsp;manufactures papergrade, fluff, and specialty pulp. The company designs, manufactures, markets, and distributes a wide range of business, commercial printing and 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.</p>
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