(All financial information is in U.S. dollars, unless otherwise noted.)

TICKER SYMBOL
(NYSE: UFS) (TSX: UFS)

MONTREAL, Sept. 1, 2011 /PRNewswire/ – Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced the completion of the acquisition of Attends
Healthcare, Inc. (“Attends”) from KPS Capital Partners, L.P. for $315
million, pursuant to a definitive agreement entered into on August 12,
2011.

Attends produces a complete line of incontinence care products and
washcloths marketed primarily under the Attends brand name. The management team of Attends will remain in place, and
the acquired business will be presented as a reportable segment in
Domtar’s financial statements.

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About Domtar
Domtar Corporation (NYSE: UFS) (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, Lynx Opaque Ultra, Husky Opaque Offset, First Choice and Domtar EarthChoice Office Paper, part of a family of environmentally and socially
responsible papers. Domtar also produces a complete line of
incontinence care products and washcloths marketed primarily under the
Attends brand name. Domtar owns and operates Ariva^TM, an extensive network of strategically located paper distribution
facilities. The Company employs approximately 8,800 people. To learn
more, visit www.domtar.com.

Forward-Looking Statements
All 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. 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.

SOURCE DOMTAR CORPORATION