Domtar Provides Business Update

                       Domtar Provides Business Update

PR Newswire

MONTREAL, July 12, 2013

Company to release second quarter of 2013 financial results on July 25, 2013
(All financial information is in U.S. dollars, unless otherwise noted.)

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

MONTREAL, July 12, 2013  /PRNewswire/ - Domtar  Corporation (NYSE: UFS)  (TSX: 
UFS) today provided  an update  on its  financial performance  for the  second 
quarter of 2013. Domtar's  management expects sales to  be $1,312 million  and 
estimates the operating loss to be between $30 and $35 million.

EBITDA before items^1 will be between $130 and $135 million primarily due to a
combination  of   costs  related   to   maintenance  shutdowns,   lower   pulp 
productivity, lower paper  and pulp  shipments and higher  costs for  freight. 
During the second quarter of 2013,  paper and pulp shipments stood at  801,000 
tons and 344,000 metric tons, respectively.

Estimated operating loss in the second  quarter of 2013 includes a  litigation 
settlement charge  of  $49million, closure  and  restructuring costs  of  $18 
million, a charge of  $5 million related to  the impairment and write-down  of 
property,  plant  and   equipment,  and  depreciation   and  amortization   of 
$93million. Adjusting estimated operating loss for these four amounts  yields 
EBITDA before items^1.

"We had  sub  optimal  pulp  productivity and  unusually  high  costs  due  to 
significant planned maintenance and delayed restarts in our pulp mills."  said 
John D. Williams, President and  Chief Executive Officer. "However, a  closer 
look at our  operations demonstrates  that by quarter  end we  made very  good 
progress on addressing production  issues in the Pulp  and Paper business.  We 
remain confident that we  will return to  more normalized productivity  levels 
across the business by the end of the third quarter."

Domtar will  release  its second  quarter  of 2013  financial  results  before 
markets open on  Thursday, July25, 2013.  A conference call  will be held  to 
discuss the results at  10:00 a.m. (ET) the  same day. Financial analysts  are 
invited to participate in the  call by dialing 1-866-321-8231 (North  America) 
or 1-416-642-5213 (International). Media and other interested individuals  are 
invited to listen  to the  live webcast at  www.domtar.com. A  replay will  be 
available  by  dialing  1-888-203-1112   (North  America)  or   1-647-436-0148 
(International) using access code 5591030 until August 8, 2013.

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  as well  as 
baby diapers. 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 9,900 people. To learn more, visit www.domtar.com.

Forward-Looking Statements

All statements in  this news release  that are not  based on historical  fact, 
including  our   estimates  for   the  second   quarter  2013   results,   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,  the  finalization  of  the 
accounting for the second quarter 2013  results and those set forth under  the 
captions "Forward-Looking Statements"  and "Risk Factors"  of the latest  Form 
10-K filed with  the SEC as  periodically updated by  subsequently filed  Form 
10-Q's. Unless specifically required by law, we assume noobligation to update
or  revise  these  forward-looking  statements   to  reflect  new  events   or 
circumstances.

^________________________

^1 Non-GAAP  financial  measure.  EBITDA  before  items  is  presented  as  a 
complement to  enhance  the understanding  of  operating results  but  not  in 
substitution for GAAP results.

SOURCE Domtar Corporation

Contact:

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