"DOMTAR'S STRATEGIC PLAN NOT FINALIZED YET," PRESIDENT SAYS.

MONTREAL, Quebec--(BUSINESS WIRE)--JUNE 5, 1995--DOMTAR INC. (ME, TSE, NYSE:DTC) "Domtar is in the process of completing a rigorous and comprehensive review of its corporate strategic plan, but it has yet to be finalized," said Domtar's President and Chief Operating Officer, Stephen C. Larson, following recent inquiries concerning the results of Domtar's strategic planning process.

This detailed strategic review, launched in the fall of 1994, was prompted by the desire to identify a corporate strategy that will maximize shareholder value over the long term and throughout economic cycles. The key objectives include establishing sustainable competitive cost and market positions, providing financial strength and flexibility and enabling future growth.

"I realize that significant interest surrounds this strategy, especially given the recent strong financial performance of Domtar," Larson stated. "We are nearing completion and intend to communicate our conclusions with all stakeholders once it is finalized. Given our current timeline, this should occur by the end of June. Whatever the decisions are in terms of strategy, those will be to safeguard and enhance Domtar as a strong, competitive company," he concluded. Montreal-based Domtar is a major North American manufacturer of pulp and paper products and construction materials. A leading manufacturer and marketer of printing and writing papers, Domtar is also a significant Canadian producer of containerboard and corrugated containers and is a major Eastern Canadian lumber producer. Likewise, Domtar is one of the continent's largest manufacturers of decorative panels and gypsum products.

CONTACT: Denis Couture, 514/848-5103