Domtar announces the acquisition of EAM Corporation

TICKER SYMBOL
(NYSE: UFS) (TSX: UFS)

(All financial information is in U.S. dollars, unless otherwise noted.)

MONTREAL, May 11, 2012 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced that it has acquired EAM Corporation, a leading privately-held manufacturer of high quality absorbent composite solutions, from Kinderhook Industries, LLC for $61 million.

"The acquisition of EAM Corporation will give us long term research capabilities to further differentiate our full line of adult incontinence products while integrating the best available technology to grow our existing businesses," said John D. Williams, President and Chief Executive Officer. "EAM's patented airlaid manufacturing process provides the performance, quality, and cost competitiveness that we believe to be keys to success in the personal care market."

EAM Corporation produces airlaid and ultrathin laminated absorbent cores with brands such as NovaThin® and NovaZorb® used in feminine hygiene, adult incontinence, baby diapers and other medical, healthcare and performance packaging solutions. The company serves a diversified customer base and has long-standing relationships including well-known branded and private label consumer products manufacturers throughout North America and abroad. The company operates a 71,000 square foot facility with state-of-the-art research campus and production lines in Jesup, Georgia. EAM Corporation has annual sales of approximately $45 million in more than 50 countries and a total of 53 employees.

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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^TM, 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 9,100 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this news release that are not based on historical fact are "forward-looking statements." While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions "Forward-Looking Statements" and "Risk Factors" of the latest Form 10-K filed with the SEC as periodically updated by subsequently filed Form 10-Q's. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.

SOURCE DOMTAR CORPORATION

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