Domtar to Sell Text, Cover and Writing Paper Product Lines

MONTREAL—April 9, 2008—Domtar Corp. announced today that it has entered into an agreement for the sale of its text, cover and writing product line of papers to SMART Papers of Hamilton, Ohio, an independent manufacturer and marketer of premium cast-coated, matte-coated and uncoated printing papers. Closing is scheduled for April 21, 2008.

Domtar grades designated by this agreement are Solutions®, Feltweave®, Nekoosa® Linen, Nekoosa® Bond, Nekoosa® 25% Cotton, Proterra® and Skytone®. SMART Papers will begin to process orders for these products as of the scheduled closing date.

“With this latest transaction, Domtar continues to reinforce its focus as the North American market leader in the areas of commercial printing, business and office, as well as converting and other specialty papers,” stated Steve Barker, Senior Vice-President, Pulp and Paper Marketing, Domtar Corporation.

About Domtar
Domtar Corp. (NYSE/TSX: UFS) is the largest integrated manufacturer 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 and publication as well as converting and specialty papers including recognized brands such as Cougar®, Lynx® Opaque, Husky® Offset, First Choice® and Domtar EarthChoice® Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. Domtar also produces lumber and other specialty and industrial