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Domtar Sells its Woodland, Maine, Market Pulp Mill

Montreal, Quebec, Canada, 01 October 2010 -- /PRNewswire/ -- Domtar Corporation (NYSE/TSX: UFS) announced today that it has sold its Woodland hardwood market pulp mill, hydro electric assets, and related assets, located in Baileyville, Maine, USA, and New Brunswick, Canada, to International Grand Investment Corporation (IGIC). The purchase price is for an aggregate value of USD 60 million plus net working capital of USD 4 million. All customary closing conditions have been met.

"The sale of the Woodland mill is part of our strategy to reduce our exposure to hardwood pulp markets; the majority of our market pulp activities are in softwood and fluff pulp grades," said John D. Williams, president and chief executive officer. "Woodland, an early adopter of FSC certification as well as ISO 9000 and 14000, has been responsibly manufacturing quality pulp for several decades. We concluded that this transaction was in the best interest of the company, in terms of strategy, and for the mill as it continues the employment of its dedicated workforce."

Woodland was Domtar's only nonintegrated hardwood market pulp mill. It has an annual production capacity of 395,000 metric tons and currently employs approximately 300 people.

IGIC is a U.S.-based Delaware registered company that represents international, individual investors in pulp trade and imports. This is IGIC's second pulp mill acquisition in the United States this year. IGIC is committed to maintaining and enhancing the Woodland mill's Programme for the Edorsement of Forest Certification (PEFC) and Forest Stewardship Council (FSC) certifications, to ensure sustainable and responsible fiber sourcing.

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, and is also a manufacturer of 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.


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