Nano-cellulose joint venture under construction

June 3, 2011, Montreal – Domtar and
FPInnovations announce CelluForce, the corporate identity of their new joint
venture launched in July 2010. CelluForce will manufacture nanocrystalline
cellulose, a recyclable and renewable nanomaterial that will be commercialized
globally. The new company's identity was developed to reflect both the origin
of the nanomaterial, extracted from tree cellulose, and one of the multiple
properties of the product to be sold by the new company.

Nanocrystalline cellulose will be produced
in a large-scale commercial demonstration plant using cutting-edge technology.
The plant is currently under construction on the site of Domtar's pulp and
paper mill in Windsor, Quebec. Construction is progressing quickly, and the
plant should be operational in the first quarter of 2012. The management team is
preparing to welcome all the workers who are set to undergo training in June.