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

MONTREAL, Jan. 2, 2014 /PRNewswire/ – Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced the closing of the acquisition of
privately-held Laboratorios Indas, SAU (“Indas”), pursuant to a
definitive agreement announced on November 19, 2013.

Indas is Spain’s largest manufacturer and marketer of branded adult
incontinence products, with its IncoPack and Indasec line of products. With the addition of the new business, Domtar will
become one of the leading adult incontinence products manufacturers in
Europe, providing the Company with the critical mass upon which to
build a pan-European business.

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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 absorbent
hygiene 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 broad line of
incontinence care products marketed primarily under the Attends brand name as well as baby diapers. In 2012, Domtar had sales of US$5.5
billion from some 50 countries. The Company employs approximately
10,000 people. To learn more, visit www.domtar.com.

SOURCE Domtar Corporation