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DOMTAR CORPORATION SELLS OWNERSHIP INTEREST IN EACOM TIMBER CORPORATION

Friday 17. December 2010 - Domtar Corporation (NYSE/TSX: UFS) today announced that it has sold its 48,070,712 common shares of EACOM Timber Corporation (TSX-V: ETR, "EACOM") by way of a block trade through Canaccord Genuity Corporation for CDN$0.51 per common share for a net proceed of CDN$24,035,356 on December 15, 2010.

This sale includes all of Domtar Inc.’s 11.74% ownership interest in EACOM common shares. Domtar acquired these shares from EACOM on July 1, 2010 as partial consideration for the sale of its Forest Products Business, by Domtar Inc. and Domtar Pulp and Paper Products Inc., both 100% owned subsidiaries of Domtar Corporation.

http://www.domtar.com
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