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Domtar Sells Former Paper Mill Site

Montreal, Quebec, Canada 05 December 2013 -- Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced the signing by its wholly-owned subsidiary, Domtar Inc., of a Definitive Agreement of Purchase and Sale ("Agreement") with Ottawa-based developer Windmill Development Group Ltd. ("Windmill") for the proposed sale of the former Domtar paper mill site in Ottawa, Ontario and Gatineau, Quebec.

The Agreement is subject to customary closing conditions and may take until the first quarter of 2015 to complete. The proposed transaction comprises approximately 14 hectares of waterfront lands in downtown Gatineau as well as the Chaudière and Albert Islands in Ottawa.

"Ezra Butler Eddy started manufacturing match sticks on part of this property back in 1851, then later acquired the competing JR Booth paper mill on the Ottawa side of the river and over the years the logging and pulp and papermaking activities at this site grew to the point that it was, by the mid-20th century, one of Canada's most significant industrial engines," noted Stewart Marcoux, Vice President Asset Redeployment for Domtar. "Windmill's team and track record in successfully revitalizing former industrial and brownfield properties is impressive, and we are confident that they will be able to successfully re-develop this prime property at the very heart of the National Capital Region."

Domtar acquired the former E.B. Eddy mills in Ottawa and Gatineau in 1998 and due to declining market demand for paper announced the permanent closure of the Ottawa mill in 2005 and then the Gatineau mill in 2007. The site's hydro-electric assets were sold in 2012 to Energy Ottawa Inc.'s affiliate, Chaudière Hydro L.P., the same year the site's last paper machine was dismantled. Domtar has been actively looking for a suitable buyer for the property since 2008, in recognition of the site's rich past and future potential.

About Domtar

Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a broad line of incontinence care products marketed primarily under the Attends® brand name as well as baby diapers. In 2012, Domtar had sales of US$5.5 billion from some 50 countries. The Company employs approximately 9,500 people. To learn more, visit www.domtar.com.


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