Environmental Services — September 1, 2010

DOMTAR EXPANDS LICENSING AGREEMENT WITH WORLD WILDLIFE FUND

    Agreement with WWF Now Covers all of Domtar's EarthChoice(R) Paper,
    Further Promotes Forest Conservation and Environmental Responsibility

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    UFS (NYSE, TSX)

MONTREAL, Sept. 1 /CNW Telbec/ - To promote ongoing forest conservation and environmentally responsible paper products, Domtar Corporation (NYSE/TSX: UFS) announced today that it has expanded a licensing agreement with World Wildlife Fund (WWF) to now cover all of Domtar's EarthChoice(R) products, including office paper. The sale of all papers from EarthChoice, Domtar's family of socially and environmentally responsible paper products, will now support WWF's mission.

Domtar will make an annual contribution of US$350,000 to WWF from the sale of its EarthChoice products, the broadest and most flexible collection of environmentally responsible papers available in the marketplace. Since its launch, more than a million tons of EarthChoice papers have been sold, all of which have been certified to the standards of the Forest Stewardship Council(TM) (FSC(R)) and are publicly supported by both WWF-Canada and the Rainforest Alliance.

"Domtar is proud to further support WWF's conservation work through this agreement," said Domtar Vice-President of Brand Management and Sustainable Product Development, Lewis Fix. "Domtar is committed to the responsible sourcing of fiber and to the credible forest certification of its suppliers. We can meet our customers' needs for quality, performance, versatility and value without sacrificing the needs of the environment."

On top of the EarthChoice licensing agreement, Domtar participates in WWF's Global Forest & Trade Network, an initiative to eliminate illegal logging and improve the management of valuable and threatened forests. In addition, Domtar's work with WWF has included efforts to help increase FSC forest certification and protect areas throughout Canada and to increase access to forest certification for small, private landowners in the United States. This work complements Domtar's efforts to increase the availability of FSC(R) certified paper at major office supply retailers, which WWF supports.

"Domtar has been recognized as a leader in sustainable growth in the pulp and paper industry," said Terry Macko, Vice President and Chief Marketing Officer at WWF. "The funds generated by this agreement will build upon Domtar's long-standing commitment to supporting WWF's sustainability efforts around the globe. We hope their commitment to source fiber responsibly and promote credible forest certification sets an example for other companies to follow."

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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(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. The Company employs over 9,000 people. To learn more, visit www.domtar.com.

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