<B>Domtar Sees Strong Quarter</B>

Domtar Inc. announced a 20% increase in net earnings to $60 million for the third quarter, compared to $50 million for the third quarter of 1999. Operating profit grew 9% to $121 million for the third quarter, compared to $111 million for the same period in 1999. Net sales increased 19% to $954 million, compared to $804 million in the third quarter of 1999.

The Papers segment increased its operating profit by 58% to reach $112 million for the quarter, compared to $71 million during the same period in 1999. Net sales, including two months of Ris Paper Company results, were $712 million, a 32% increase from $540 million during the same quarter last year. The segment's overall performance is primarily due to higher pulp and paper prices in the quarter. In addition, mills experienced strong shipments and high efficiency rates.

The Wood segment reported a loss of $20 million compared to an operating profit of $19 million during the same period in 1999. Net sales amounted to $115 million, compared to $143 million in the same period last year. These results are primarily due to an approximate 25% decline in the product prices.

The Packing segment continues to deliver a strong operating performance as a result of a combination of sound management and favorable market conditions. Domtar's share of Norampac's operating profit was $28 million, a 40% increase over the corresponding quarter of 1999.

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November 2000
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