LOGO
                          Universal Leaf North America
               A DIVISION OF UNIVERSAL LEAF TOBACCO COMPANY, INC.

 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                    8:00 a.m. Eastern Time
              Phone:   (804) 359-9311
              Fax:     (804) 254-3594
              Email:   investor@universalleaf.com

             Universal Leaf North America Announces Major Investment
                    Richmond, VA o May 17, 2001 / PRNEWSWIRE

      Universal  Leaf  North  America,  a division  of  Universal  Leaf  Tobacco
Company,  Inc.,  today announced  plans to undertake a major  investment in leaf
tobacco  processing  in the  United  States.  The  company  plans to build a new
state-of-the-art  processing  facility in eastern North Carolina and upgrade its
existing factory in Danville,  Virginia. The total project is expected to have a
cost of over $130 million.  The new facility will replace existing operations in
Wilson and  Henderson,  North  Carolina,  although those plants will continue in
operation until the new facility is completed.

      Construction  of the new facility is  scheduled to begin this summer.  The
new  building  will have more than one  million  square feet under roof and will
contain technologically advanced processing equipment. It is planned to be fully
operational  by July  2003,  and will  employ  over 1000 full time and  seasonal
personnel.  The  investment  is  expected  to  be  accretive  to  earnings  upon
completion and to meet the company's financial requirements.  Although the North
Carolina  building site has not yet been selected,  the company has narrowed its
search to Nash  County and  Wilson  County.  The  improvements  to the  Virginia
facility will embody the same  technology  as the new facility,  and the company
expects to complete them by the summer of 2002.

      Ray M. Paul, Jr.,  President of Universal Leaf North America,  noted,  "We
are very pleased to announce this  significant  investment in the United States.
We made this decision as a result of an intense planning process considering the
needs  of  our  domestic  and  foreign   purchasers  of  U.S.   tobacco.   These
state-of-the-art  facilities  will make it possible  for us to meet the exacting
requirements  of our customers at a level of efficiency that we believe will set
the standard for the industry.  In  conjunction  with this  investment,  we have
signed a 10-year contract with Philip Morris USA, our largest domestic customer,
to supply a significant portion of their U.S. leaf processing requirements."

      Universal  Leaf  Tobacco  Company,  Inc.  is  a  subsidiary  of  Universal
Corporation  (NYSE-UVV),  a  diversified  company  with  operations  in tobacco,
lumber, and agri-products. Universal Corporation's 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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