Federal Way, Washington, USA, 05 February 2007 -- /PRNewswire/ -- Weyerhaeuser Company (NYSE:WY) today announced that it has received a ruling from the Internal Revenue Service (IRS) indicating that the contribution and distribution steps of the combination of Weyerhaeuser and Domtar Inc. (NYSE:DTC), including the exchange offer announced previously, will qualify as tax-free to Weyerhaeuser, Domtar Corporation, and the holders of common shares of Weyerhaeuser for U.S. federal income tax purposes.

Weyerhaeuser's obligation to exchange shares pursuant to the exchange offer is subject to the satisfaction of the conditions to the arrangement by which Domtar Inc. will become a wholly-owned subsidiary of Domtar Corporation, which include the receipt of the IRS ruling, and other conditions.

As previously announced, Weyerhaeuser and Domtar Inc. entered into a definitive agreement on 22 August 2006, to combine Weyerhaeuser's fine paper business and related assets with Domtar Inc. to form Domtar Corporation.

Weyerhaeuser Company, one of the world's largest integrated forest products companies, was incorporated in 1900. In 2005, sales were USD 22.6 billion. It has offices or operations in 18 countries, with customers worldwide. Weyerhaeuser is principally engaged in the growing and harvesting of timber; the manufacture, distribution, and sale of forest products; and real estate construction, development, and related activities. Additional information about Weyerhaeuser's businesses, products, and practices is available at www.weyerhaeuser.com.