<b>Domtar Cutting Pulp Production</B>

Domtar Inc. is cutting its bleached softwood kraft market pulp by the end of the year. The company is curtailing production of Northern Bleached Softwood Kraft market pulp by ceasing operations at its Lebel-sur-Quevillon Mill from Dec. 24- Jan. 2, and by taking 3 days of downtime at its Espanola Mill.

``Sales for our specialized Maple, Birch and Aspen pulps have been good and we expect to significantly grow this business over the next few years. However, we have noticed some softening of the NBSK pulp market. While our Q90 softwood pulp product is considered to be one of the best on the market, many of our American customers have announced that they are taking downtime. In this context, we think that it is important to manage our production'' said Ghislain Dinel, Vice-President, Pulp.

Domtar produces softwood pulp at its Lebel-sur-Quevillon and Espanola Mills, and specialized hardwood pulps at the latter facility. Most of its production is used internally. Domtar sells, however, approximately 250 000 tonnes per year on the open market.