DOMTAR ANNOUNCES START-UP OF NEW FLUFF PULP MACHINE IN PLYMOUTH, NC

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UFS (NYSE, TSX)

MONTREAL, Nov. 17 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today announced the on-schedule start up of its new fluff pulp machine in Plymouth, North Carolina. The mill will have an annual production capacity of approximately 444,000 metric tons.

"This is another successful step in our strategic roadmap of pursuing growth opportunities that capitalize on our existing strengths and core competencies," said John D. Williams, President and Chief Executive Officer of Domtar. "The reconfiguration of the Plymouth mill to 100% fluff pulp production provides Domtar with a stronger presence in a growing global market and positions us as a leading fluff pulp manufacturer."

Mr. Williams also added, "The Plymouth mill is a competitive, world-class asset and I am confident that this will bring a renewed sense of purpose to its workforce and stability to the community. I would like to congratulate my colleagues at the mill for delivering this project on schedule and with an excellent safety record."

The Domtar-Plymouth mill's conversion to 100% fluff pulp production was previously announced in October 2009. Once running at full capacity, the mill will exclusively produce fluff pulp and operate two fiber lines and one fluff pulp machine.

Fluff pulp is bleached softwood cellulose fiber used worldwide in absorbent applications such as baby diapers, feminine hygiene and adult incontinence products.

The Domtar-Plymouth mill has a Chain-of-Custody (CoC) certificate from the Forest Stewardship Council^TM (FSC^®). Adhering to this standard ensures that the fiber procured by the Plymouth mill meets the strict criteria set by this certification system, as well as avoids using fiber from unacceptable sources. The Plymouth mill also has a Chain-of-Custody certificate from the Sustainable Forestry Initiative^® (SFI) and the Programme for the Endorsement of Forest Certification^TM (PEFC). Domtar has been recognized globally by leading environmental groups for its commitment to responsible fiber sourcing.

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About Domtar North America ^{® ® ® ® ®} 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.

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