Domtar Increases Maximum Payment for Share Tender Offer

MONTREAL—June 4, 2010—Domtar Corp. (NYSE/TSX: UFS) today announced that it had raised the maximum aggregate consideration (excluding accrued and unpaid interest) from $350 million to $450 million with respect to its previously announced tender offer for its outstanding 5.375% Notes due 2013, 7-1/8% Notes due 2015, 7.875% Notes due 2011, and 10.75% Notes due 2017.

In addition, the company announced that the early tender deadline and the withdrawal deadline for the tender offer expired at 5:00 p.m., New York City time, on June 4, 2010.

The aggregate principal amount of each series of Notes that has been validly tendered and not withdrawn as of the Early Tender Time is set forth in the table below. In accordance with the terms of the tender offer, the Company has accepted for purchase all $238,221,000 principal amount of the First Priority Notes validly tendered and not validly withdrawn pursuant to the tender offer on or prior to the Early Tender Time (representing approximately 76.74% of the First Priority Notes outstanding prior to the tender offer). The Company expects to make payment for such First Priority Notes on Monday, June 7, 2010.

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.

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