MONTREAL, Oct. 25 Domtar Inc. announced that the underwriters of its public offering of common shares on October 5th, 2001 have exercised their over-allotment option to purchase 5 million additional common shares at a price of $11.44 per share. The gross proceeds of the exercise of the over-allotment option are CDN$ 57.2 million. Domtar will use the net proceeds of the offering to repay part of the indebtedness it incurred for the purchase of four pulp and paper mills in the United States on August 7th, 2001. Domtar is the second largest producer of uncoated freesheet paper in North America and the third largest in the world. It is also a leading manufacturer of business papers, printing and publishing papers, and specialty and technical papers. Domtar manages close to 36 million acres of forest land in Canada and the United States, and produces lumber and other wood products. The company also has a 50% investment interest in Norampac Inc., the largest Canadian producer of containerboard. Domtar has 12,500 employees across North.