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Domtar announces expiration of early tender deadline for tender offer for its 7.875% notes due 2011

Tuesday 02. June 2009 - Domtar Corporation (NYSE/TSX: UFS) today announced that the early tender deadline (the "Early Tender Time"), with respect to its previously announced tender offer for its outstanding 7.875% Notes due 2011 (CUSIP # 257559AA2) (the "Notes") expired at 5:00 p.m., New York City Time, on Monday, June 1, 2009.

As of the Early Tender Time, $415,942,000 aggregate principal amount of the Notes, representing approximately 77.03% of the outstanding Notes, had been validly tendered and not withdrawn. The expiration date of the tender offer is 12:00 Midnight, New York City Time, June 16, 2009 (the “Expiration Date”), unless extended or earlier terminated.

The complete terms and conditions of the tender offer are described in the Offer to Purchase, dated May 19, 2009, of the Company (the “Offer to Purchase”). The Company has engaged J.P. Morgan Securities Inc. and Morgan Stanley & Co. Incorporated to act as dealer managers in connection with the tender offer. Questions regarding the tender offer may be directed to J.P. Morgan at (212) 270-1477 (collect) or (800) 245-8812 (U.S. toll-free) or to Morgan Stanley at (212) 761-1941 (collect) or (800) 624-1808 (U.S. toll-free). Requests for documentation may be directed to Global Bondholder Services Corporation, the information agent and depositary for the tender offer, at (212) 430-3774 (for banks and brokers) or (866) 470-3700 (U.S. toll-free).

This press release is neither an offer to purchase nor a solicitation of an offer to sell the Notes or any other security. The tender offer is being made only by the Offer to Purchase and the related letter of transmittal. The offer is not being made to noteholders in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. In any jurisdiction in which the offer is required to be made by a licensed broker or dealer, it shall be deemed to be made by the dealer managers on behalf of the Company.

http://www.domtar.com
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