MONTREAL-April 9, 2008 - Domtar Corp. announced today that it has entered into an agreement for the sale of its text, cover and writing product line of papers to SMART Papers of Hamilton, Ohio, an independent manufacturer and marketer of premium cast-coated, matte-coated and uncoated printing papers. Closing is scheduled for April 21, 2008.

Domtar grades designated by this agreement are Solutions, Feltweave, Nekoosa Linen, Nekoosa Bond, Nekoosa 25% Cotton, Proterra and Skytone. SMART Papers will begin to process orders for these products as of the scheduled closing date.

"With this latest transaction, Domtar continues to reinforce its focus as the North American market leader in the areas of commercial printing, business and office, as well as converting and other specialty papers," stated Steve Barker, Senior Vice-President, Pulp and Paper Marketing, Domtar Corporation.