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Domtar declares regular quarterly dividend

MONTREAL, Aug. 3, 2011 /PRNewswire/ - Domtar Corporation today announced that its Board of Directors has approved its second quarterly dividend for the 2011 fiscal year on its common stock (NYSE: UFS) (TSX: UFS) and on Domtar (Canada) Paper Inc. (TSX: UFX) exchangeable shares. The dividend of US$0.35 per share is payable on October 17, 2011 to stockholders of record on September 15, 2011.

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About Domtar
Domtar Corporation (NYSE/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 owns and operates Ariva(TM), an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,500 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this press 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 Annual Report on Form 10-K filed with the SEC as updated by the Company's latest Quarterly Report on Form 10-Q. 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