Market Overview

Domtar Corporation Announces Pulp and Paper Mill Leadership Transitions

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Domtar Corporation (NYSE:UFS) (TSX:UFS) today announced leadership
transitions for two fluff pulp producing mills, in Plymouth, North
Carolina and Ashdown, Arkansas. Both mills are getting new,
exceptionally qualified leaders as 40-year pulp and paper industry
veteran, Bob Grygotis, prepares to retire as the General Manager at
Ashdown on Sept. 1.

Allan Bohn, manager of Domtar's Plymouth Mill, will move to Ashdown,
replacing Gryotis. Everick Spence, who currently works in the Fort Mill
headquarters office as director of Continuous Improvement, is being
promoted to replace Bohn as Plymouth Mill manager. Both Bohn and Spence
will report to Steve Makris, Pulp business vice president, effective
Sept. 1.

"It is hard to say goodbye to a leader who is so highly regarded and
brings so much experience to the operation of Ashdown, our largest mill.
However, after more than 40 years in the pulp and paper industry, Bob
deserves the opportunity to return with his family to their home in
Kingsport, Tennessee," said Domtar CEO and President, John D. Williams.

"We have a deep bench of proven manufacturing leaders, so we are well
equipped to keep the Ashdown and Plymouth mills competitive in their
respective markets today, and prepared to compete in changing markets
tomorrow."

President of Domtar's Pulp & Paper division, Mike Garcia, is charging
Allan with continuing Grygotis' success at ramping up fluff pulp
production at the Ashdown Mill and getting the product qualified with
customers.

According to Garcia, operations at the Plymouth mill will not miss a
beat when Bohn heads to Ashdown, since Spence will be replacing Bohn.

"Everick Spence is going to do a great job as the new General Manager at
Plymouth," Garcia said. "He is both passionate and practical in his
approach to driving continuous improvement in manufacturing operations.
And he brings an interesting breadth of manufacturing experience to the
table, which helps us look at issues in a new light."

About Domtar

Domtar is a leading provider of a wide variety of fiber-based products
including communication, specialty and packaging papers, market pulp and
absorbent hygiene products. With approximately 10,000 employees serving
more than 50 countries around the world, Domtar is driven by a
commitment to turn sustainable wood fiber into useful products that
people rely on every day. Domtar's annual sales are approximately $5.1
billion, and its common stock is traded on the New York and Toronto
Stock Exchanges. Domtar's principal executive office is in Fort Mill,
South Carolina. To learn more, visit www.domtar.com.

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