MONTREAL, Aug. 21 Domtar Inc. announced today that it has filed a preliminary prospectus with the securities and regulatory authorities in each of the provinces and territories in Canada and a registration statement with the Securities and Exchange Commission in the United States. These documents relate to the Company's proposed public offering of common shares. The proceeds of the offering will be used to repay part of the indebtedness incurred in order to purchase four pulp and paper mills in the United States from Georgia-Pacific Corporation on August 7th, 2001. Salomon Smith Barney Inc. and CIBC World Markets Inc. are acting as the lead managers of the underwriting group. Domtar is the second largest producer of uncoated freesheet paper in North America and the third largest in the world. It is also a leading manufacturer of business papers, printing and publishing papers, and specialty and technical papers. Domtar manages close to 36 million acres of forest land in Canada and the United States, and produces lumber and other wood products. The company also has a 50% investment interest in Norampac Inc., the largest Canadian producer of containerboard. Domtar has 12,500 employees across North America.