Domtar to improve energy efficiency and environmental performance of its
Kamloops pulp mill

    
    TICKER SYMBOL
    UFS (NYSE, TSX)
    

KAMLOOPS, BC, April 8 /CNW Telbec/ - Domtar Corporation (NYSE/TSX: UFS) today announced that it will proceed with two projects to improve energy conservation, increase renewable power generation and reduce particulate emissions at its Kamloops, British Columbia, pulp mill. The capital investment of CDN$57.6 million will be entirely funded by credits received from the Government of Canada's Pulp and Paper Green Transformation Program.

"We welcome and appreciate the support we have received from Natural Resources Canada under this program," said Eric Ashby, General Manager of the Domtar Kamloops mill. "The funding for these projects, together with support from BC Hydro's "Integrated Power Offer" for industrial customers, were instrumental for Domtar in moving forward with these important improvements."

The first phase of work related to these projects is expected to begin in late May 2010, during the mill's annual maintenance shutdown.

Domtar was allocated credits totaling CDN$143 million dollars for investments aimed at improving energy efficiency and environmental performance under the Pulp and Paper Green Transformation Program. It owns and operates a total of four pulp and paper mills in Canada, all eligible for this program.

Domtar is a participant in BC Hydro's Integrated Power Offer which promotes investment in energy efficiency and renewable energy generation.

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(R), Lynx(R) Opaque Ultra, Husky(R) Opaque Offset, First Choice(R) and Domtar EarthChoice(R) 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. Domtar also produces lumber and other specialty and industrial wood products. The Company employs over 10,000 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 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.

For further information: Bonny Skene, Manager, Regional Public Affairs, [phone]; Media and Investor Relations: Pascal Bossé, Vice-President, Corporate Communications and Investor Relations, [phone]