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MONTREAL, May 10 /PRNewswire-FirstCall/ - Domtar announced today that it has filed a shelf registration statement with the United States Securities and Exchange Commission (SEC) in accordance with the Multijurisdictional Disclosure System between Canada and the United States. It will allow Domtar to issue up to US$500 million of debt securities in the United States over the next two years.

Domtar expects to use net proceeds from the sale of debt securities under the registration statement for general corporate purposes, including refinancing of existing debt.

A registration statement relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.

The registration statement, which includes the preliminary base prospectus, is available on the website of the SEC at www.sec.gov . The preliminary base prospectus is also available on the Canadian Securities Administrators' website at www.sedar.com . Prospectus supplements relating to specific offerings of debt securities will be available from the managing underwriters of such offerings.

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 10,600 EMPLOYEES ACROSS NORTH AMERICA. THE COMPANY ALSO HAS A 50% INVESTMENT INTEREST IN NORAMPAC INC., THE LARGEST CANADIAN PRODUCER OF CONTAINERBOARD.

SOURCE  DOMTAR INC.
    -0-              05/10/2005
    /CONTACT: Christian Tardif, Director, Corporate and
Regional Communications, (514) 848-5515, christian.tardif@domtar.com;
Source: Daniel Buron, Senior Vice President and Chief Financial Officer,
(514) 848-5234, daniel.buron@domtar.com;
To request a free copy of this organization's annual report, please go to
http://www.newswire.ca and click on reports@cnw./
    (DTC. DTC)

CO: DOMTAR INC.
ST: Quebec
IN: PAP
SU:

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8929 05/10/2005 16:49 EDT http://www.prnewswire.com