<b>Domtar Acquiring GP Mills</b>

Domtar Inc. is acquiring four paper mills from Georgia-Pacific Corp. for around $1.65 billion. GP will use the proceeds from the sale to repay some of its debt.

The mills GP is selling are located in Ashdown, Ark; Nekoosa and Port Edwards, Wis.; and Woodland, Maine. The sale was originally announced in April. The sale is expected to be completed by the third quarter of the year.

GP will continue to own and operate white paper mills in Camas, Wash.; Crossett, Ark.; Port Hudson, La.; and Wauna, Ore.

When the acquisition is completed Domtar will own and operate two mills ranked among the lowest cost producers in North America (Ashdown, Ark., and Windsor, Quebec). These two mills will be responsible for 50% of Domtar’s total paper production.

The Ashdown mill, with an annual capacity of approximately 825,000 tons, predominantly manufactures copy and offset papers. The Nekoosa and Port Edwards mills, with annual capacities of approximately 220,000 and 180,000 tons, respectively, produce various premium, specialty and business paper grades. The Woodland mill has an annual capacity of approximately 125,000 tons of premium and business grades. The four mills also have a net market pulp position of approximately 375,000 metric tons.