MONTREAL, Quebec, Sept. 9 - Raymond Royer, President and Chief Executive Officer of Domtar Inc. announced today the creation of a new Forest Products Group, which combines both the Company's timber and lumber operations as well as the appointment of Richard Garneau as Senior Vice-President to head up this new Group. "Difficult market conditions combined with countervailing and anti- dumping duties has affected the profitability of this business segment, which represents 8% of Domtar sales. While Domtar has made good headway over the last five years, a new initiative to act as a steppingstone to further increase productivity, reduce costs and improve service to customers was necessary. The arrival of Richard Garneau, which has experience in this sector, will help us reach these objectives", said Raymond Royer. "I am very pleased to join Domtar and to take up this challenge", said Richard Garneau. "I want to thank Norampac for giving me this opportunity to pursue my career within the Domtar-Norampac family", added Mr. Garneau. Richard Garneau is currently the Chief Financial Officer of Norampac Inc., Domtar's joint venture in packaging with Cascades Inc. He has held several positions in the forest products industry, and he gained significant experience in the lumber sector at Donohue Inc. Richard Garneau will join Domtar on October 1st, 2002, and become Senior Vice-President, Forest Products Group. He will be a member of Domtar's Management Committee and will report to Raymond Royer. Domtar is the third largest producer of uncoated freesheet paper in North America. It is also a leading manufacturer of business papers, printing and publishing papers, and specialty and technical papers. Domtar manages according to internationally recognized standards 22 million acres of forestland in Canada and the United States, and produces lumber and other wood products. Domtar has 12,500 employees across North America. The Company also has a 50% investment interest in Norampac Inc., the largest Canadian producer of containerboard.