FISCAL YEAR 2009 HIGHLIGHTS

-- Diluted earnings per share up 17%, to $4.32 per share versus $3.70 per

share last year.

-- Revenues up 19% to $2.6 billion on higher volumes and higher prices.

-- Operating income up 10% to $210 million, despite $50 million in currency

losses this year.

-- Restructuring costs last year of $12.9 million.

FISCAL YEAR 2009 FOURTH QUARTER HIGHLIGHTS

-- Diluted earnings per share more than doubled to $0.48 compared to $0.23

last year.

-- Revenues up 21% to $564 million.

-- Operating income nearly triples to $23 million.

-- Restructuring costs last year of 9.6 million.

George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (NYSE: UVV), announced strong results for the fiscal year that ended on March 31, 2009. Diluted earnings per share were $4.32, up nearly 17% from last year's $3.70 per diluted share, reflecting volume increases and improved margins in most regions, along with share repurchases. The benefits of those factors were partially offset by significant foreign currency related losses. Net income for fiscal year 2009 was $131.7 million, compared to $119.2 million last year. Performance for the prior fiscal year was reduced by restructuring charges of $12.9 million ($0.25 per diluted share after taxes) from employee separation costs related to rationalizing operations in or associated with Africa and Canada, as well as pension curtailment charges related to benefit plan design. Revenues for the latest fiscal year were $2.6 billion, which represented a 19% increase compared to last year. The increase in revenues was primarily caused by increased leaf prices, as higher costs related to both farmer prices and the then weak U.S. dollar were included in product pricing. Volumes shipped also increased as African burley crops recovered from the weather-reduced levels of fiscal year 2008. In addition, trading volumes improved in North America and Asia.

For the fourth fiscal quarter, net income was $15.8 million, or $0.48 per diluted share, compared to $9.9 million, or $0.23 per diluted share, in the same period last year. In fiscal year 2008, fourth quarter results were reduced by restructuring charges of $9.6 million ($0.21 per diluted share after taxes), related to employee separation costs and pension curtailment charges. Revenues were $564 million, up 21% from the $467 million reported in the same quarter last year. Much of the revenue increase was due to increased volumes in North and South America this year, but customer pricing was also higher, reflecting increased costs.

The leaf cost increases seen in most regions during fiscal year 2009 were related to increased farmer pricing earlier in the year when crops were purchased and reflected competition from commodity crops and higher prices for fertilizer and other agronomic input materials. Those cost increases contributed to higher customer pricing. Universal also experienced significant remeasurement losses related to the rapid strengthening of the U.S. dollar compared to most currencies in tobacco sourcing markets, especially in Brazil. At certain points in the crop financing cycle, Universal has larger net monetary asset exposures, and most of the currency rate changes took place during that time. For fiscal year 2009, currency related losses totaled $50 million, while fiscal year 2008 included currency related gains of $30 million. The $80 million unfavorable year-to- year currency-related change, most of which was in Brazil, is reflected in selling, general, and administration expense and caused the large increase in that line item.

Mr. Freeman noted, "We are extremely pleased with the results of our operations this year. Setting aside significant currency effects, we produced improved results in almost every operation of our business. It was gratifying to see the improvements in our African results after several long, lean years while we worked to wind down our unprofitable growing projects. Teamwork and execution by our African management team and their counterparts in our corporate organization have been impressive. The currency effects in this extraordinary economic climate were dramatic, as the U.S. dollar strengthened by 44% over a six-month period against the local currency in Brazil, our single largest origin. We absorbed those costs, and with our strong operations and our financial discipline, we closed the year with an overall improvement in earnings and a strong financial position.

"Looking ahead, we have several observations and initiatives. In our major origins, we project somewhat smaller crops to be marketed in Brazil in fiscal year 2010, which should keep flue-cured markets in relative balance. However, filler grades of burley now face oversupply after the fiscal year 2008 shortages. The crops that were marketed in fiscal year 2009 did much to alleviate those shortages, and the current crops are extremely large, especially in Malawi, where production exceeds demand. It is likely that there will be a considerable amount of excess filler style burley tobacco in fiscal year 2010. The global economic situation continues to be unpredictable with volatility continuing in oil prices, currency rates and capital availability. In light of that volatility, we will continue to manage our financial resources conservatively. We also recognize the need to continually improve our operations. We plan to work to create new efficiencies, including the consolidation of our U.S. dark tobacco processing in Pennsylvania and the upgrade of our facility there. We will also continue to work with our farmers and our customers toward security of supply for our customers and stability of markets for our farmers. Our management team is agile and focused firmly on our business -- the business of providing our customers with quality leaf tobacco that meets their needs."

FLUE-CURED AND BURLEY LEAF TOBACCO OPERATIONS:

For the fiscal year ended March 31, 2009, segment operating income for the flue-cured and burley operations was up 6% compared to last year, to nearly $190 million, which is the highest level this group has reported in the last five years. The increase was primarily related to improved volumes and margins. Revenues for those operations increased by over $440 million, to $2.3 billion. The North American segment reported operating income of $48 million, up nearly 40% from the prior year. The increase was attributable primarily to increased volumes from both core operations and sales of old crop tobacco as well as improved margins. Those factors also generated a 24% increase in revenues. Revenues for the Other Regions segment also grew by 24% to $1.8 billion. However, operating income fell by 2%, as significant improvements in African operations were offset by the effects of the currency losses, primarily in South America. After experiencing extremely short burley crops in fiscal year 2008, African operations improved as volumes grew, and customer pricing increased, covering the effects of higher farm prices. These two factors caused margins to return to more normal levels. Comparative performance in Africa also benefited from reduced provisions and write downs related to farmer receivables as well as last year's $8 million one-time charge in Malawi. Although South American volumes were down, performance was relatively flat before recognition of about $40 million in exchange and remeasurement losses related to the rapid strengthening of the U.S. dollar. Those losses, compared to gains in fiscal year 2008, were responsible for a $60 million decline in South American earnings. Results for Europe improved on higher volumes, due to shipment timing and to increased demand for tobacco sheet. Results in Asia were slightly lower, reflecting reduced availability of trading volumes.

For the fourth fiscal quarter, segment operating income for our flue-cured and burley tobacco operations increased by nearly 19% to $13.9 million. The increase was in large measure caused by a 30% improvement in performance of our North America segment. Although operating margins were down slightly for the North America group, volumes were higher, reflecting both increased current crop orders and sales of old crop tobaccos this year. Revenues for this group increased by more than 33%, primarily related to volumes. Segment operating income for the Other Regions operations was down about $2.6 million for the quarter. Last year's results were increased by a gain on the sale of surplus timberland and the reduction of a valuation allowance on Brazilian VAT tax. Those two items increased South American results by $14 million last year and were not repeated in the fourth quarter this year. African results were higher this year primarily because of an $8 million one-time charge accrued last year in Malawi. Although African volumes improved in this year's quarter with larger crops, most of the benefit was offset by currency remeasurement losses related to farmer advances and VAT receivables. Asia's results for the quarter improved in comparison to last year on higher volumes from trading and from shipment timing. Results from European operations were flat. Revenues for Other Regions increased by 16% to $278 million mainly due to increased pricing, which reflected higher leaf costs.

OTHER TOBACCO OPERATIONS:

In the Other Tobacco Operations segment, fiscal year 2009 operating income was $42 million, an increase of 5% over last year on an 11% reduction in revenues. Earnings improved on higher volumes from early shipments of dark tobacco in anticipation of the enactment of U.S. excise tax increases, some price increases related to higher costs, and higher volumes in the oriental tobacco joint venture.