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UPM to Become Exclusive Distributor of Domtar's BioChoice Lignin in Europe

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Domtar, Inc.
395-T de Maisonneuve Blvd. West
Montreal, QC, H3A1L6
USA



Press release date: July 10, 2014

TICKER SYMBOL

(NYSE: UFS) (TSX: UFS)

MONTREAL - Domtar Corporation (NYSE: UFS) (TSX: UFS) and UPM (NASDAQ OMX Helsinki: UPM1V) today announced that the companies have entered into an agreement for UPM to become the exclusive distributor of Domtar's BioChoice™ lignin in Europe. The agreement takes effect on August 1(st), 2014.

BioChoice™ lignin is produced at Domtar's biorefinery in Plymouth, North Carolina. A by-product of the kraft pulping process, BioChoice™ is a 100% bio-based sustainable alternative to fossil-based products, and also holds the USDA Certified Biobased product label.

"Our lignin separating process is groundbreaking as it allows us to offer high quality kraft lignin in commercial quantities," said Domtar's Richard Mullen, Vice-President Market Development and Analysis. "UPM is an ideal partner for Domtar in many ways, as they have a strong presence in the European market and also years of experience with biomaterials."

"We at UPM are truly excited about this agreement, not only because we get a great product in our offering, but also because together with Domtar we can develop the market and offer our customers sustainable, value added products for a growing variety of end uses," said UPM's Juuso Konttinen, Vice President Biochemicals.

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 broad line of incontinence care products marketed primarily under the Attends®, IncoPack and Indasec® brand names as well as baby diapers. In 2013, Domtar had sales of US$5.4 billion from some 50 countries. The Company employs approximately 10,000 people. To learn more, visit www.domtar.com.

About UPM

Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 21,000 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com

Source
Domtar Corporation

Contact: DOMTAR MEDIA RELATIONS  David Struhs
Vice-President
Corporate Communications and Sustainability
Tel.: 803-802-8031 MORE INFORMATION  Richard Mullen
Vice-President Market Development and Analysis, Domtar
Tel.: 803-802-8283  Juuso Konttinen
Vice President Biochemicals, UPM
Tel.: +358 40 531 7405


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