Domtar helps create new model for responsible forest management with group FSC certification

Partnership approach will provide market with more socially,
environmentally and economically sustainable paper options

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(NYSE: UFS) (TSX: UFS)

ASHDOWN, AR, Dec. 10, 2012 /PRNewswire/ – Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced the culmination of a precedent-setting
two-year partnership process that saw 55 landowners in the Texarkana
area achieve Forest Stewardship Council(TM) (FSC(®)) group certification.  With the Ashdown Mill’s strong support, the Four
States Timberland Owners Association (FSTOA) was successful in
receiving FSC Forest Management Certification on 70,000 acres of
forestland.

Since Domtar’s first FSC certification of forestland in upper New York
State in 2000 and the subsequent formalizing of a collaboration with
Rainforest Alliance in 2005, the company has maintained an
industry-leading position that now sees it offer North America`s
broadest range of FSC certified paper through the EarthChoice(® )line of papers.  In addition, Domtar has set an ambitious goal of
eventually procuring 100% of its fiber from sources that are certified
to the FSC standard.

“Working together, we have achieved ‘gold standard’ certification from
the ‘gold standard’ certifier, the Rainforest Alliance,” stated Bob
Grygotis, General Manager of the Ashdown Mill.  “This is not the end
but in fact the beginning for us in continuing to expand the
availability of FSC wood for Ashdown and FSC certified paper for our
customers.”

“We have raised the bar for private land certification in the south, and
we look forward to seeing the model built in Ashdown being replicated
and expanded on throughout our mill system,”  added Lewis Fix, Domtar’s
Vice-President of Pulp Sales and until recently, the company’s
Vice-President of Sustainable Business and Brand Management.  “This is
a perfect example of how our longstanding collaboration with the
Rainforest Alliance continues to help us deliver on our promise of
socially and environmentally responsible paper manufacturing.”

“We applaud Domtar and the Four States Timberland Owners Association for
their hard work over the past two years as they strove towards
certification,” said Tensie Whelan, president of the Rainforest
Alliance. “This achievement reflects the Association’s true commitment
to responsible forest management and we look forward to helping them
expand on their efforts.”

FSC(®) C001844

FSC(®) C107626

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About Domtar

Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets
and distributes a wide variety of fiber-based products including
communication papers, specialty and packaging papers and adult
incontinence products. The foundation of its business is a network of
world class wood fiber converting assets that produce papergrade, fluff
and specialty pulps. The majority of its pulp production is consumed
internally to manufacture paper and consumer products. Domtar is the
largest integrated marketer of uncoated freesheet paper in North
America with recognized brands such as Cougar(®), Lynx(® )Opaque Ultra, Husky(®) Opaque Offset, First Choice(®) and Domtar EarthChoice(®). Domtar is also a leading marketer and producer of a complete line of
incontinence care products marketed primarily under the Attends(®) brand name. Domtar owns and operates Ariva(®), an extensive network of strategically located paper and printing
supplies distribution facilities. In 2011, Domtar had sales of US$5.6
billion from nearly 50 countries. The Company employs approximately
9,300 people. To learn more, visit www.domtar.com.

About Rainforest Alliance

The Rainforest Alliance works with people whose livelihoods depend on the land, helping them
transform the way they grow food, harvest wood and host travelers. From
large multinational corporations to small, community-based
cooperatives, businesses and consumers worldwide are involved in the
Rainforest Alliance’s efforts to bring responsibly produced goods and
services to a global marketplace where the demand for sustainability is
growing steadily. For more information, visit www.rainforest-alliance.org.

SOURCE DOMTAR CORPORATION