EXHIBIT 99.1

		395 de Maisonneuve Blvd. West Montreal, QC H3A 1L6

DOMTAR COMPLETES ATTENDS ACQUISITION

(All financial information is in U.S. dollars, unless otherwise noted.)

Montreal, September 1, 2011 – Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced the completion of the acquisition of Attends Healthcare, Inc. (“Attends”) from KPS Capital Partners, L.P. for $315 million, pursuant to a definitive agreement entered into on August 12, 2011.

Attends produces a complete line of incontinence care products and washcloths marketed primarily under the Attends^® brand name. The management team of Attends will remain in place, and the acquired business will be presented as a reportable segment in Domtar’s financial statements.

About Domtar

Domtar Corporation (NYSE/TSX:UFS) is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity, and is also a manufacturer of papergrade, fluff and specialty pulp. The Company designs, manufactures, markets and distributes a wide range of business, commercial printing and publishing as well as converting and specialty papers including recognized brands such as Cougar^®, Lynx^® Opaque Ultra, Husky^® Opaque Offset, First Choice^® and Domtar EarthChoice^® Office Paper, part of a family of environmentally and socially responsible papers. Domtar also produces a complete line of incontinence care products and washcloths marketed primarily under the Attends^® brand name. Domtar owns and operates Ariva^TM, an extensive network of strategically located paper distribution facilities. The Company employs approximately 8,800 people. To learn more, visit www.domtar.com.

Forward-Looking Statements

All statements in this news release that are not based on historical fact are “forward-looking statements.” While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under the captions “Forward-Looking Statements” and “Risk Factors” of the latest Form 10-K filed with the SEC as periodically updated by subsequently filed Form 10-Q’s. Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.

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