Montreal, Quebec, Canada, 16 December 2010 – Domtar Corporation (NYSE/TSX: UFS) today announced that it has sold its 48,070,712 common shares of EACOM Timber Corporation (TSX-V: ETR) by way of a block trade through Canaccord Genuity Corporation for CAD 0.51 per common share for a net proceed of CAD 24,035,356 on 15 December 2010.

This sale includes all of Domtar Inc.’s 11.74% ownership interest in EACOM common shares. Domtar acquired these shares from EACOM on 01 July 2010 as partial consideration for the sale of its Forest Products Business, by Domtar Inc. and Domtar Pulp and Paper Products Inc., both 100% owned subsidiaries of Domtar Corporation.

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 approximately 8500 people. To learn more, visit www.domtar.com.