Contact:                                          Release:
         KAREN M. L. WHELAN                                IMMEDIATELY
         (804)359-9311





        UNIVERSAL CORPORATION ANNOUNCES DIVIDEND INCREASE AND ADDITIONAL
                                SHARE REPURCHASE

         RICHMOND, VA  DECEMBER 2, 1999/PRNEWSWIRE/----
Henry H. Harrell,  Chairman and Chief Executive Officer of Universal Corporation
announced  that the  company's  Board of Directors  has approved the  additional
repurchase of up to $100 million of Universal common stock. This  authorization,
when added to two prior  programs,  brings the total level of  authorization  to
$300  million  since April  1998.  Approximately  4.9  million  shares have been
purchased so far under these programs for about $153.6  million.  The authorized
purchases  may be made  from  time to time on the open  market  or in  privately
negotiated  transactions  at  prices  not  exceeding  prevailing  market  rates.
Universal currently has approximately 30.6 million common shares outstanding.

         In  addition,  the Board of  Directors  declared  a  regular  quarterly
dividend  of  thirty-one  cents  ($.31)  per share on the  common  shares of the
Company,  payable  February 14, 2000,  to common  shareholders  of record at the
close of business on January 10, 2000.  This represents an increase of over 3.3%
or $.01 per share per  quarter and  indicates  an  annualized  rate of $1.24 per
share.  Universal has raised its common dividend every year since 1971, a record
of 29 consecutive increases.

         Mr. Harrell explained that improving  shareholder value is a continuing
objective of the company and that these steps are among a number of actions that
the company has taken in response to strong  earnings and free cash flow.  Other
actions have  included  managing  debt  structure  and  expanding  the company's
businesses.

         Universal  Corporation  is a  diversified  company with  operations  in
tobacco, lumber, and agri-products.  Its gross revenues for the fiscal year that
ended on June 30, 1999, were  approximately  $4 billion.  For more  information,
visit Universal's web site at www.universalcorp.com.




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