Domtar announces reopening of Woodland pulp mill

TICKER SYMBOL
UFS (NYSE, TSX)

MONTREAL, June 10 /PRNewswire-FirstCall/ - Domtar Corporation (NYSE/TSX: UFS)
announced today that it will be reopening its Woodland pulp mill in
Baileyville, Maine. Approximately 300 employees will be called back for the
restart of pulp production, which is targeted to resume the week of June 22,
2009. The mill has an annual hardwood pulp production capacity of 398,000 air
dry metric tons.
Domtar announced the closure of the Woodland pulp mill for an undetermined
period on March 5, 2009, due to weak global pulp demand, historically high
inventory levels and depressed prices. Domtar pulp inventory levels have since
been substantially reduced. The timely benefits from the refundable tax
credits for the production and use of alternative bio fuel mixtures, and other
important conditions, such as stronger global demand, improving prices and
favorable currency exchange rates have made the reopening possible. Domtar
will closely monitor the mill's profitability, which is critical to
maintaining operations.

About Domtar

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 and
publication as well as converting and specialty papers including recognized
brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R) and
Domtar EarthChoice(R) 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
wood products. The Company employs nearly 11,000 people. To learn more, visit
www.domtar.com.

Forward-Looking Statements

All statements in this press release that are not based on historical fact are
"forward-looking statements." While management has based any forward-looking
statements contained herein on its current expectations, the information on
which such expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events and are
subject to a number of risks, uncertainties, and other factors, many of which
are outside of our control that could cause actual results to materially
differ from such statements. Such risks, uncertainties, and other factors
include, but are not necessarily limited to, those set forth under the
captions "Forward-Looking Statements" and "Risk Factors" of the latest Form
10-K filed with the SEC as periodically updated by subsequently filed Form
10-Q's. Unless specifically required by law, we assume no obligation to update
or revise these forward-looking statements to reflect new events or
circumstances.
SOURCE DOMTAR CORPORATION

Pascal Bosse, Vice-President, Corporate Communications and Investor Relations,
(514) 848-5938