Domtar to Acquire Xerox's U.S. and Canadian Paper Business

          Domtar to Acquire Xerox's U.S. and Canadian Paper Business

PR Newswire

MONTREAL, QC and NORWALK, CT, March 22, 2013

TICKER SYMBOL
Domtar (NYSE: UFS) (TSX: UFS)
Xerox (NYSE: XRX)

MONTREAL, QC and NORWALK, CT, March 22, 2013 /PRNewswire/ - Domtar Corporation
(NYSE:UFS) (TSX:UFS), one of the  largest manufacturers and distributors  of 
paper in North  America, has  signed, through its  operating subsidiaries,  an 
agreement to  acquire  Xerox's  (NYSE:XRX) paper  and  print  media  products 
business in the United States and Canada.

"The Xerox brand is well regarded in  the paper markets it serves," said  John 
D. Williams, Domtar's President and Chief Executive Officer. "This deal brings
together Xerox's  branded papers  with  Domtar's already  comprehensive  paper 
offering and will allow us to better serve our customers."

While Xerox  does not  manufacture  paper, the  company has  long  distributed 
through its  brand  name a  broad  range of  coated  and uncoated  papers  and 
specialty print  media including  business  forms as  well as  carbonless  and 
wide-format paper. This  business will now  become part of  Domtar's pulp  and 
paper segment, and Domtar will  market and distribute Xerox-branded paper  and 
print media.

"As Xerox  broadens its  business to  focus more  on services  and  innovative 
document technology, we saw an opportunity  for our paper business clients  to 
be better served by a leader in the industry," said Frank Edmonds, senior vice
president, Xerox  Global  Paper  and Supplies  Distribution  Group.  "It's  an 
across-the-board win. Xerox benefits through a trademark licensing  agreement 
with Domtar;  Domtar adds  a well-regarded  brand to  its portfolio;  and  our 
respective clients get  a simplified, 'one-stop'  experience through  Domtar's 
extensive offerings and distribution network."

Xerox will  continue to  manufacture,  sell and  support  its broad  range  of 
consumables, such as toner and ink, and Xerox Replacement Cartridges.

The transaction is expected to close in the second quarter of 2013, subject to
customary closing conditions. Until the close, Xerox customers may continue to
order paper  and media  through Xerox  Supplies sales  representatives,  Xerox 
inside sales centers, or online at www.xerox.com.

                        _____________________________

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^®, a  network of strategically  located paper and  printing 
supplies distribution facilities. In 2012, Domtar had sales of US$5.5  billion 
from some 50  countries. The  Company employs approximately  9,300 people.  To 
learn more, visit www.domtar.com.

About Xerox
With sales approaching $23 billion, Xerox  (NYSE: XRX) is the world's  leading 
enterprise for  business  process  and document  management.  Its  technology, 
expertise and  services enable  workplaces -  from small  businesses to  large 
global enterprises - to simplify the way  work gets done so they operate  more 
effectively and  focus  more  on  what  matters  most:  their  real  business. 
Headquartered in Norwalk, Conn., Xerox offers business process outsourcing and
IT outsourcing services, including  data processing, healthcare solutions,  HR 
benefits management, finance support,  transportation solutions, and  customer 
relationship management services for  commercial and government  organizations 
worldwide.  The  company   also  provides   extensive  leading-edge   document 
technology,  services,  software  and  genuine  Xerox  supplies  for   graphic 
communication and office printing environments of any size. The 140,000 people
of Xerox serve clients in more than 160 countries. For more information, visit
http://www.xerox.com, http://news.xerox.com  or  http://www.realbusiness.com. 
For investor information, visit http://www.xerox.com/investor.

SOURCE DOMTAR CORPORATION

Contact:

DOMTAR
Pascal Bossé
Vice-President
Corporate Communications and Investor Relations
Tel.: 514-848-5938

XEROX
Bill McKee
Manager
Corporate Public Relations
Tel.: 585-423-4476
 
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