Universal Corporation announced today that it received notification from the European Commission Competition Directorate that the Commission has imposed fines on four Italian tobacco processors totalling Euro 56 million (about US$ 67 million) for infringing European Union antitrust law in connection with the purchase and processing of tobacco in the Italian raw tobacco market.

The company's Italian subsidiary, Deltafina, and the company were jointly fined a total of Euro 30 million (about US$ 36 million).
Universal says it was surprised by the Commission's decision, as it does not believe that the decision can be reconciled with the Commission's Statement of Objections and the facts. As previously reported, Deltafina had received conditional immunity from the Commission in March 2002 because Deltafina voluntarily informed the Commission of activities in the Italian leaf markets that were the basis of a Commission investigation. The Commission notified the Company in December 2004 of its intent to revoke Deltafina's immunity for disclosing in April 2002 that it had applied for immunity.
Although the Commission is not expected to issue the text of its final decision until next month, Universal and Deltafina each intend to appeal the decision to the European Court of First Instance. (ci)