Exhibit 99


UNIVERSAL CORPORATION                                      NEWS     
P.O. Box 25099                                             Phone:  (804)359-9311
Richmond, VA 23260                                         Fax:    (804)254-3584


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




              UNIVERSAL CORPORATION ANNOUNCES 7% DIVIDEND INCREASE

         RICHMOND,VA DECEMBER 3, 1998/PRNEWSWIRE/----

         The Board of  Directors  of  Universal  Corporation,  at a meeting held
today, declared a regular quarterly dividend of thirty cents ($.30) per share on
the  common  shares  of  the  Company,  payable  February  8,  1999,  to  common
shareholders  of record at the close of  business  on  January  11,  1999.  This
represents an increase of over 7% or $.02 per share per quarter and indicates an
annualized rate of $1.20 per share.

         Henry H. Harrell,  Chairman of the Board and Chief Executive Officer of
the Company,  noted,  "By  increasing the dividend,  Universal's  Board has once
again  demonstrated  its  confidence in our business  prospects.  Earlier in the
year, the Board  approved a share  repurchase  program,  which is well under way
with about 75% of the announced program completed. We are proud of our record of
to  delivering  value to our  shareholders."  Universal  has  raised  its common
dividend every year since 1971, a record of 28 consecutive increases.

         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, 1998, were approximately  $4.3 billion.  For more information,
visit Universal's web site at www.universalcorp.com.




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