Domtar announces expiration of tender offer

Domtar Corporation rcently announced that its tender offer for its outstanding 5.375% Notes due 2013 (the "First Priority Notes"), 7 1/8% Notes due 2015 (the "Second Priority Notes"), 7.875% Notes due 2011 (the "Third Priority Notes") and 10.75% Notes due 2017 (the "Fourth Priority Notes" and together with the First Priority Notes, Second Priority Notes and Third Priority Notes, the "Notes") expired at 12:00 midnight, New York City time, on Friday, June 18, 2010 (the "Expiration Time"). The aggregate principal amount of each series of Notes that has been validly tendered and the aggregate principal amount of each series of Notes that has been accepted for purchase by the Company are set forth in the table below. In accordance with the terms of the tender offer, the Company has accepted for purchase all $238,271,000 of the validly tendered First Priority Notes (representing 76.75% of the First Priority Notes outstanding prior to the tender offer). Because the aggregate principal amount of Notes validly tendered has exceeded the maximum payment amount of $450 million, the Company has accepted for purchase $186,922,000 of the validly tendered Second Priority Notes (representing 46.76% of the Second Priority Notes outstanding prior to the tender offer) on a pro rata basis among tendering holders using a proration factor of 74.971722%. The Company will not accept for purchase any Third Priority Notes or Fourth Priority Notes and such Notes will be returned to holders. The Company expects to make payment for the notes accepted for purchase (other than the First Priority Notes accepted for payment on the early payment date of June 4, 2010) June 21, 2010.