(December 03, 2008) Domtar Corporation announced today that it has joined the Chicago Climate Exchange(R) (CCX), demonstrating its ongoing commitment to environmentally friendly and sustainable practices. CCX is North America's only active voluntary, legally-binding cap-and-trade system aimed at the registry and reduction of greenhouse gas emissions, with offset projects worldwide.

Domtar has made a voluntary, legally-binding commitment to achieve an absolute greenhouse gas emission reduction of 6% below its emission levels in year 2000, by the end of 2010. Domtar has already reduced its use of fossil fuels by 21.3% from 2002 to 2007, increasing the use of renewable energy to approximately 79% and reducing greenhouse gas emissions by 21.6% over the same period. For more information on Domtar's commitment to sustainability and targets for the coming years, please consult its 2007 Sustainable Growth Report available at www.domtar.com.

"Our quest for excellence in energy efficiency and the reduction of our environmental footprint are both integral parts of our sustainability agenda," said Raymond Royer, President and Chief Executive Officer of Domtar Corporation. "Joining CCX and making an explicit commitment to reduce our greenhouse gas emissions reinforces our leadership position and our broader commitment to sustainable practices and continuous improvement," concluded Mr. Royer.

"We are very pleased that Domtar Corporation has reinforced its commitment to the reduction of greenhouse gas emissions through membership with CCX," said Dr. Richard L. Sandor, Chairman and Chief Executive Officer of CCX. "Domtar's decision illustrates their focus on sustainable practices and also underscores the importance of working with a recognized, rules-based trading system such as ours to enhance a commitment to sustainability. We welcome them and look forward to their contributions to our organization."