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

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

MONTREAL, May 11, 2012 /PRNewswire/ – Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced that it has acquired EAM Corporation, a
leading privately-held manufacturer of high quality absorbent composite
solutions, from Kinderhook Industries, LLC for $61 million.

“The acquisition of EAM Corporation will give us long term research
capabilities to further differentiate our full line of adult
incontinence products while integrating the best available technology
to grow our existing businesses,” said John D. Williams, President and Chief Executive Officer. “EAM’s patented airlaid manufacturing process provides the performance,
quality, and cost competitiveness that we believe to be keys to success
in the personal care market.”

EAM Corporation produces airlaid and ultrathin laminated absorbent cores
with brands such as NovaThin and NovaZorb used in feminine hygiene,
adult incontinence, baby diapers and other medical, healthcare and
performance packaging solutions. The company serves a diversified
customer base and has long-standing relationships including well-known
branded and private label consumer products manufacturers throughout
North America and abroad. The company operates a 71,000 square foot
facility with state-of-the-art research campus and production lines in
Jesup, Georgia. EAM Corporation has annual sales of approximately $45
million in more than 50 countries and a total of 53 employees.

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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^TM, 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 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