Domtar pleased with success of notes offering

TICKER SYMBOL DTC (TSX, NYSE) 


MONTREAL, Aug. 5  /PRNewswire-FirstCall/ -- Domtar Inc. announced today the successful completion of its previously announced public offering in the United States of US$400 million aggregate principal amount of 7 1/8 % notes due 2015.

Pursuant to the announced use of proceeds from the sale of the notes, Domtar will be issuing a notice to the holders of its 8 3/4 % notes due on August 1, 2006 that all the notes aggregating a principal amount of US$150 million, will be redeemed on September 9, 2005 at a redemption price based on the yield to maturity of a U.S. Treasury reference security plus a fixed spread of 50 basis points.

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. 

DATASOURCE: DOMTAR INC.



CONTACT: Christian Tardif, Manager, Corporate and Financial

Communications, [phone], ;

Source : Daniel Buron, Senior Vice President and Chief Financial Officer,

[phone], ;

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