Domtar Corporation is pleased to announce today that it has reached a settlement in its dispute with the City of Windsor regarding the tax evaluation of Domtar's Windsor mill.

The agreement between the two parties is based on application of the Court of Québec judgment regarding the 2006-2007-2008 roll. The judgment by the Administrative Tribunal of Québec ratifies the agreement between the parties, to wit, to apply to the Court of Québec judgment of September 27, 2010 to the 2009-2010-2011 roll.

In October 2010, Domtar informed the municipality that it wished to come to an agreement. "We are satisfied with the work done by the experts on both sides to apply the clauses in the judgment on the 2009-2010-2011 roll and pleased that the tribunal has ratified our agreement. We can now turn the page and continue our efforts to position the mill for the future," said Martin Lorrion, Vice-President, Operations - Domtar Region 1.

Following the settlement, Domtar withdrew its originating motion for judicial review before the Québec Superior Court for the 2006-2007-2008 roll.