Domtar to sell its Ariva business in the United States to Lindenmeyr Munroe, a division of Central National-Gottesman

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(NYSE: UFS) (TSX: UFS)

MONTREAL, July 22, 2013 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced that it has entered into an agreement to sell its Ariva business in the United States to privately-held Central National-Gottesman Inc. The business will be integrated into Lindenmeyr Munroe ("Lindenmeyr"), a division of Central National-Gottesman, and the transaction is expected to close at the end of July 2013, subject to customary closing conditions.

"Our employees' efforts to adjust to a rapidly changing printing industry are commendable and I am appreciative of their dedication over the years," said John D. Williams, President and Chief Executive Officer of Domtar. "Today's decision to rationalize and sell the business represents the best alternative for our shareholders and the agreement with Lindenmeyr, a well-established and long-time valued business partner of Domtar, will assure business continuity for customers. Lindenmeyr has committed to quickly assess its business requirements and this will provide employment opportunities for Ariva's employees."

In a subsequent transaction that Domtar is not party to, immediately following the closing of the sale, the purchaser, Central National-Gottesman Inc., has agreed to sell the US Midwest portion of the Ariva business to The Millcraft Paper Company, a family-run paper merchant based in Cleveland, Ohio.

Ariva has approximately 400 employees in the United States. Headquartered in Covington, Kentucky, Ariva operates from 15 locations in the United States across eight states in the Northeast and Midwest regions. Domtar will take proper measures to assist the employees affected by the transaction in accordance with its policies.

Ariva's Canadian operations are not affected by the transaction. The Canadian operations will be consolidated into Domtar's Pulp and Paper Division as they had been historically, upon closing of the transaction.

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 absorbent hygiene 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 9,800 people. To learn more, visit www.domtar.com.

About Central National-Gottesman Inc.
Founded in 1886 and headquartered in Purchase, New York, Central National-Gottesman Inc. is a leading international marketer of pulp and paper. The company has sales offices in 28 U.S. cities and 23 countries worldwide. CNG operates several divisions, including its U.S. Distribution Division, the largest independent paper merchant in the U.S., comprised of Lindenmeyr, Spicers Paper, Inc. and Kelly Paper Company; and Central National, a global provider of pulp, paper, and packaging. The company's sales of pulp and paper exceed $4 billion annually. To learn more, please visit www.cng-inc.com.

SOURCE Domtar Corporation