MONTREAL, Aug 16, 2005 /PRNewswire-FirstCall via COMTEX/ -- Domtar Inc. is pleased to announce that it has obtained Forest Stewardship Council (FSC) certification for the Pineland Forest. Located 70 kilometres west of Timmins, Ontario, the Pineland Forest is managed by Domtar, and represents an important fibre supply for Domtar's Timmins Sawmill and the Gogama Forest Products Sawmill in Ostrom.

"This certification represents the positive conclusion of our North Eastern Ontario FSC pilot project. Following on this achievement, we have already begun the task of certifying our other North Eastern Ontario Crown Licenses. Certification involved a rigorous examination of all our management practices and identified a number of conditions that Domtar must address over the next five years. We view these conditions as opportunities for the continual improvement of our forest management practices," said Brian Nicks, Director, Sustainable Forest Management.

The Pineland Forest contains 390,000 hectares of Crown land, and is managed under the authority of a Sustainable Forest License (SFL) issued by the Ontario Ministry of Natural Resources. Granted by SmartWood, an FSC- credited certifier and a program of the Rainforest Alliance, this certification is consistent with the Ministry's objective to have all SFL holders independently certified to accepted performance standards by 2007.

The Pineland Forest pilot project was completed in accordance with our Agreement on Forest Stewardship in Canada jointly signed in November 2003 by Domtar and World Wildlife Fund Canada. With the successful completion of the Ontario pilot project, we will now proceed with FSC certification for our other Ontario Crown Licenses.

This certification supports Domtar's ongoing commitment to guarantee its customers, shareholders, and the public that all forest operations under its direct care are well managed and sustainable. This approach is also in line with the vision of the Boreal Leadership Council, of which Domtar is a founding member, to make Canada's boreal region the world's best-conserved forest ecosystem, while allowing the communities and businesses that depend on the forest to benefit from its resources.

FSC certification promotes natural resource conservation, regeneration, and sustainability, while balancing the interests of the forest products industry, governments, environmental organizations, and Indigenous peoples. The FSC is an international, independent, not-for-profit organization made up of social, environmental, and business representatives. It is the only forest products certification standard accepted and endorsed by environmental and conservation organizations worldwide, including the Rainforest Alliance, the World Wildlife Fund, and ForestEthics.

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 10,000 EMPLOYEES ACROSS NORTH AMERICA. THE COMPANY ALSO HAS A 50% INVESTMENT INTEREST IN NORAMPAC INC., THE LARGEST CANADIAN PRODUCER OF CONTAINERBOARD.

SOURCE DOMTAR INC.

Christian Tardif, Manager, Corporate and Financial Communications, (514) 848-5515,
christian.tardif@domtar.com; Source: Brian Nicks, Director, Sustainable Forest
Management, (705) 869-4020, brian.nicks@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.

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