MONTREAL, Canada, Oct 02, 2008 (PR Newswire Europe via COMTEX News Network) -- Domtar Corporation (NYSE: UFS) (TSX: UFS) announced today the appointment
of John D. Williams as President and Chief Executive Officer, effective
January 1, 2009. Mr. Williams joins Domtar from SCA Packaging Europe where he
has served as President since 2005. Mr. Williams will relocate from Brussels,
Belgium to Montreal, Canada and will be appointed to Domtar's Board of
Directors when he takes up his new position. As previously announced, Mr.
Royer will retire after 12 years as CEO, when Mr. Williams assumes his new
responsibilities.

"The Board of Directors is delighted to welcome John Williams to
Domtar," said Harold MacKay, Domtar's non-executive Board Chairman. "We
undertook a global search and our Board believes that John is the ideal
candidate to succeed Raymond Royer. He is a proven business leader with the
energy, skills and experience we need. We are confident that John, together
with our strong management team, will successfully position Domtar to
achieve its value potential in the years ahead."

Commenting on his appointment, Mr. Williams said, "This is a tremendous
opportunity for me. I look forward to working with the Board and the
management team to build on what has been accomplished and to take the
business to the next level of success. Domtar's world-class human resources
and physical assets, disciplined approach to capital allocation and excellent
cost position will be terrific building blocks in the time ahead."

Mr. MacKay also paid tribute to Mr. Royer's leadership. "The Board
thanks Raymond for his leadership of Domtar. He was the driving force behind
the Domtar-Weyerhaeuser transaction and has been rightly recognized by his
industry peers for his many accomplishments. Raymond leaves a great legacy at
Domtar, both in regards to the quality of its people and, most importantly,
its values. He has built a financially strong company in a challenging
business environment with a market leadership position in uncoated freesheet.
We wish him well in his retirement. Raymond will remain on the Board until
our 2009 annual meeting."

John D. Williams, 54, is a graduate of King's College, London
University. Prior to assuming his leadership position at SCA Packaging
Europe, Mr. Williams held increasingly senior management and operational
roles in companies in the packaging business and related industries. SCA
Packaging Europe is a leading producer of containerboard paper and corrugated
box products which employs some 18,000 employees with seven paper mills and
100 major manufacturing units across Europe, with revenues of over
(euro)3 billion.

Press Kit: http://files.newswire.ca/514/Williams_Eng.pdf

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
publication as well as converting and specialty papers including recognized
brands such as Cougar(R), Lynx(R) Opaque, Husky(R) Offset, First Choice(R)
and Domtar EarthChoice(R) Office Paper, part of a family of environmentally
and socially responsible papers. Domtar owns and operates Domtar Distribution
Group, an extensive network of strategically located paper distribution
facilities. Domtar also produces lumber and other specialty and industrial
wood products. The Company employs nearly 13,000 people. To learn more, visit
http://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 Form 10-K
filed with the SEC. Unless specifically required by law, we assume no
obligation to update or revise these forward-looking statements to reflect
new events or circumstances.

For further information: Media Relations: Michel A. Rathier,
+1-514-848-5103, communications@domtar.com; Investor Relations: Pascal
Bosse, +1-514-848-5938, ir@domtar.com

For further information: Media Relations: Michel A. Rathier,
+1-514-848-5103,
communications@domtar.com; Investor Relations: Pascal Bosse,
+1-514-848-5938, ir@domtar.com

Copyright (C) 2008 PR Newswire Europe