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 P.O. Box 25099 Richmond, VA 23260 o phone: (804) 359-9311 o fax (804) 254-3594

                                  PRESS RELEASE

CONTACT                                                      RELEASE
Karen M. L. Whelan                                           Immediately
Phone:    (804) 359-9311
Fax:      (804) 254-3594
Email:    investor@universalleaf.com

          Universal Corporation Announces 30th Annual Dividend Increase
                   Richmond, VA, December 8, 2000 / PRNEWSWIRE

         Henry H.  Harrell,  Chairman and Chief  Executive  Officer of Universal
Corporation  announced  that the  company's  Board of  Directors  has declared a
regular  quarterly  dividend of thirty-two  cents ($.32) per share on the common
shares of the Company,  payable  February 12, 2001,  to common  shareholders  of
record at the close of business on January 8, 2001.  This represents an increase
of over 3.2% or $.01 per share per quarter and indicates an  annualized  rate of
$1.28 per share. Universal has raised its common dividend every year since 1971,
a record of 30 consecutive increases.

         Universal   Corporation   (UVV:NYSE)  is  a  diversified  company  with
operations in tobacco,  lumber,  and  agri-products.  Its gross revenues for the
fiscal year that ended on June 30, 2000, were  approximately  $3.4 billion.  For
more information, visit Universal's web site at www.universalcorp.com.




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