DOMTAR CORPORATION SELLS OWNERSHIP INTEREST IN EACOM TIMBER CORPORATION

MONTREAL, Dec. 16 /PRNewswire/ - 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.  

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About Domtar
Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publishing as well as converting and specialty papers including recognized brands such as Cougar^®, Lynx^® Opaque Ultra, Husky^® Opaque Offset, First Choice^® and Domtar EarthChoice^® Office Paper, part of a family of environmentally and socially responsible papers. Domtar owns and operates Domtar Distribution Group, an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,500 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this press 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 Annual Report on Form 10-K filed with the SEC as updated by the Company's latest Quarterly Report on Form 10-Q. 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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