Domtar announces an increase to its regular quarterly dividend

        Domtar announces an increase to its regular quarterly dividend

PR Newswire

MONTREAL, May 1, 2013

(All financial information is in U.S. dollars unless otherwise noted.)

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

MONTREAL, May 1, 2013 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS)
today announced that  its Board of  Directors approved a  22% increase in  its 
quarterly dividend (from  $0.45 per share  to $0.55 per  share) on its  common 
stock (NYSE: UFS) (TSX: UFS) as well  as on the exchangeable shares of  Domtar 
(Canada) Paper Inc. (TSX: UFX).

"The Board's  decision  to  increase the  dividend  recognizes  the  continued 
progress we are making on our  strategic roadmap. Our commitment is to  return 
the majority of free cash flow to  shareholders and our aspiration is to  grow 
the dividend to  a level that  balances our strategic  objectives of  bringing 
growth and stability  to our  earnings and creating  shareholder value,"  said 
John D. Williams, President and Chief Executive Officer.

The Board  of Directors  declared the  dividend payable  on July  15, 2013  to 
stockholders of record as of the close of business on June 14, 2013.

The Company is holding its Annual  Meeting of Stockholders today at 9:00  a.m. 
(ET). Investors and other interested parties are invited to listen to the live
webcast at www.domtar.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.

Forward-Looking Statements
All statements in this news 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.  The Company  is  under  no 
obligation, and  expressly  disclaims such  obligation,  to update,  alter  or 
revise  these  forward-looking  statements,  whether   as  a  result  of   new 
information, future  events, or  otherwise. 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  Securities  and  Exchange  Commission  as  periodically  updated  by 
subsequently filed Form 10-Q's.

SOURCE DOMTAR CORPORATION

Contact:

MEDIA AND INVESTOR RELATIONS
Pascal Bossé
Vice-President
Corporate Communications and Investor Relations
Tel.: 514-848-5938