Montreal, February 21, 2001 - Domtar Inc. announced today that it has filed with securities regulators in Canada a preliminary short form shelf prospectus to establish a medium term notes program. Under the program, up to $250 million in unsecured medium term notes may be issued by Domtar Inc. from time to time over the next two years. Additional financial information has been filed electronically with various securities commissions in Canada through SEDAR. Domtar Inc. is Canada's largest producer of specialty and fine papers and is ranked seventh in North America. A leading producer of forest products in Eastern Canada, Domtar also owns 50% of Norampac inc., the largest Canadian producer of containerboard and corrugated containers. Domtar has annual sales of close to $4 billion, mostly in the United States, and counts on 9,000 employees across North America.