MONTREAL, Jan. 9 -- As a result of the previously disclosed Canadian antitrust investigation in relation to sales by Canadian paper merchants, the Company today agreed to enter a guilty plea at the Ontario Superior Court with regard to sales of carbonless sheet paper in Ontario and Quebec during a part of 1999 and 2000. Pursuant to the plea, the Company has agreed to pay a total of $12.5 million, payable in installments over six and a half years. With this plea, the Canadian antitrust authorities have concluded their investigations into the Company's business activities. The Company has chosen this solution to avoid potentially lengthy and costly litigation and focus on its business. The Company has already taken steps to ensure ongoing compliance with the Competition Act, including the implementation and monitoring of an improved competition compliance program. The Company does not manufacture carbonless paper, but buys and resells it through its Merchant Division. Demand for this product has been declining steadily over the last several years, and the volume of carbonless sheet paper represents less than 1% of the Domtar Merchants' total volume in Ontario and Quebec. The settlement plea does not relate to Domtar's sales from its paper mills.