Domtar and Conifex Agree to Terminate Deal

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Domtar and Conifex Agree to Terminate Deal

Tuesday, January 08, 2008

Press release from the issuing company

MONTREAL, Jan. 7 2008 - Domtar Corporation announced today that its wholly-owned subsidiary, Domtar Inc., and Conifex Inc. have terminated the agreement announced June 22, 2007, relating to the sale of Domtar Inc.'s forest products business.
Conifex was to acquire sawmills and other forest operations situated in Ontario and Quebec. Both parties recognized that closing conditions had not been met pursuant to the terms of the agreement.
Domtar will continue to seek opportunities to maximize the value of these assets as well as pursue initiatives to improve their operational efficiency.

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