Domtar Increases Maximum Payment for Share Tender Offer

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 $75 million. The tender offer is scheduled to expire at 12:00 midnight, New York City time, on June 18, 2010, unless extended or earlier terminated (such date and time, as the same may be extended, the "Expiration Time"). 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 May 21, 2010 (the "Offer to Purchase"), as amended hereby, and in the related letter of transmittal.