TICKER SYMBOL
Domtar (NYSE: UFS) (TSX: UFS)
Xerox (NYSE: XRX)

MONTREAL, QC and NORWALK, CT, March 22, 2013 /PRNewswire/ – Domtar
Corporation (NYSE: UFS) (TSX: UFS), one of the largest manufacturers
and distributors of paper in North America, has signed, through its
operating subsidiaries, an agreement to acquire Xerox’s (NYSE: XRX)
paper and print media products business in the United States and
Canada.

“The Xerox brand is well regarded in the paper markets it serves,” said
John D. Williams, Domtar’s President and Chief Executive Officer. “This
deal brings together Xerox’s branded papers with Domtar’s already
comprehensive paper offering and will allow us to better serve our
customers.”

While Xerox does not manufacture paper, the company has long distributed
through its brand name a broad range of coated and uncoated papers and
specialty print media including business forms as well as carbonless
and wide-format paper. This business will now become part of Domtar’s
pulp and paper segment, and Domtar will market and distribute
Xerox-branded paper and print media.

“As Xerox broadens its business to focus more on services and innovative
document technology, we saw an opportunity for our paper business
clients to be better served by a leader in the industry,” said Frank
Edmonds, senior vice president, Xerox Global Paper and Supplies
Distribution Group. “It’s an across-the-board win. Xerox benefits
through a trademark licensing agreement with Domtar; Domtar adds a
well-regarded brand to its portfolio; and our respective clients get a
simplified, ‘one-stop’ experience through Domtar’s extensive offerings
and distribution network.”

Xerox will continue to manufacture, sell and support its broad range of
consumables, such as toner and ink, and Xerox Replacement Cartridges.

The transaction is expected to close in the second quarter of 2013,
subject to customary closing conditions. Until the close, Xerox
customers may continue to order paper and media through Xerox Supplies
sales representatives, Xerox inside sales centers, or online at www.xerox.com.

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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 Ariva, a network of strategically located paper and printing supplies
distribution facilities. In 2012, Domtar had sales of US$5.5 billion
from some 50 countries. The Company employs approximately 9,300 people.
To learn more, visit www.domtar.com.

About Xerox
With sales approaching $23 billion, Xerox (NYSE: XRX) is the world’s
leading enterprise for business process and document management. Its
technology, expertise and services enable workplaces – from small
businesses to large global enterprises – to simplify the way work gets
done so they operate more effectively and focus more on what matters
most: their real business. Headquartered in Norwalk, Conn., Xerox
offers business process outsourcing and IT outsourcing services,
including data processing, healthcare solutions, HR benefits
management, finance support, transportation solutions, and customer
relationship management services for commercial and government
organizations worldwide. The company also provides extensive
leading-edge document technology, services, software and genuine Xerox
supplies for graphic communication and office printing environments of
any size. The 140,000 people of Xerox serve clients in more than 160
countries. For more information, visit http://www.xerox.com, http://news.xerox.com or http://www.realbusiness.com. For investor information, visit http://www.xerox.com/investor.

SOURCE DOMTAR CORPORATION