Domtar Wins Decision in Supreme Court of Canada

Montreal, Quebec, Canada, 23 November 2007 -– Domtar won a multi-million dollar judgment by the Supreme Court of Canada in a claim against ABB Inc. and Alstom Canada Inc.

In a unanimous decision rendered on 22 November 2007, the Court ordered ABB Inc. and Alstom Canada Inc. to pay Domtar approximately CAD 38.7 million in damages and interests relative to a 1989 lawsuit on matters regarding manufacturers’ liability, latent defects, and disclosure responsibility involving the installation of a recovery boiler at the Windsor, Québec, facility. Domtar was represented by the law firm of Ogilvy Renault LLP.

Domtar Corporation (NYSE/TSX: UFS) is the largest integrated producer 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 pulp. The company designs, manufactures, markets, and distributes a wide range of business, commercial printing, publication, technical, and specialty papers, as well as a full line 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 14,000 people. To learn more, visit www.domtar.com