Domtar securityholders approve transaction to combine with Weyerhaeuser’s fine paper business

Montreal, February 26, 2007 – Domtar Inc. (TSX/NYSE: DTC) announces that its securityholders have approved the Plan of Arrangement required for its proposed combination with Weyerhaeuser’s fine paper business and related assets at a special meeting held earlier today. In accordance with the usual procedure, it is anticipated that definitive court approval of the Plan of Arrangement will be obtained shortly. The transaction is scheduled to close during the week of March 5.

DOMTAR IS THE THIRD LARGEST PRODUCER OF UNCOATED FREESHEET PAPER IN NORTH AMERICA. IT IS ALSO A LEADING MANUFACTURER OF BUSINESS PAPERS, COMMERCIAL PRINTING AND PUBLICATION PAPERS, AND TECHNICAL AND SPECIALTY PAPERS. DOMTAR MANAGES ACCORDING TO INTERNATIONALLY RECOGNIZED STANDARDS 18 MILLION ACRES OF FORESTLAND IN CANADA AND THE UNITED STATES, AND PRODUCES LUMBER AND OTHER WOOD PRODUCTS. DOMTAR HAS 8,500 EMPLOYEES ACROSS NORTH AMERICA.