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Press release from CNW Group

Domtar announces closing of sale of Lebel-sur-Quévillon assets

Friday, June 22, 2012

Domtar announces closing of sale of Lebel-sur-Quévillon assets14:16 EDT Friday, June 22, 2012TICKER SYMBOL (NYSE: UFS) (TSX: UFS)MONTREAL, June 22, 2012 /CNW Telbec/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced the closing of the definitive agreement for the sale by the company's Canadian subsidiary, Domtar Inc., of its Lebel-sur-Quévillon, Québec pulp and sawmilling assets to Fortress Global Cellulose Ltd. ("Fortress") and of its lands related to such assets to a subsidiary of the Government of Québec. Fortress will convert the mill to the production of dissolving pulp, a product intended for the viscose textile market.The Lebel-sur-Quévillon pulp mill ceased manufacturing operations in 2005 and sawmilling operations in 2006._____________________________About Domtar Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends® brand name. Domtar owns and operates ArivaTM, an extensive network of strategically located paper and printing supplies distribution facilities. In 2011, Domtar had sales of US$5.6 billion from nearly 50 countries. The Company employs approximately 9,100 people. To learn more, visit www.domtar.com.Forward-Looking StatementsAll statements in this news 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. The Company is under no obligation, and expressly disclaims such obligation, to update, alter or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. 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 Securities and Exchange Commission as periodically updated by subsequently filed Form 10-Q's.For further information: MEDIA AND INVESTOR RELATIONS Pascal Bossé Vice-President Corporate Communications and Investor Relations Tel.: 514-848-5938