October 23, 2001

Vivendi Universal Comments on U.S. Federal Trade Commission Decision Regarding Sale of The Seagram Spirits and Wine Business

Company Remains 'Fully Confident' That Regulatory Issues
Will be Settled and Deal Closed No Later than December 31, 2001,
Due to Contractual Obligations by Purchasers



PARIS and NEW YORK, October 23, 2001 – In response to today’s action by the U.S. Federal Trade Commission (FTC), Vivendi Universal [Paris Bourse: EX FP; NYSE: V] issued the following statement in response to inquiries:

Vivendi Universal remains fully confident that the transaction will be cleared by the FTC, as soon as the commission’s specific concerns are addressed by the purchasers, Diageo and Pernod Ricard. 'The question is not ‘if’ the transaction will close, it is a matter of ‘when’ – which in any case is no later than December 31, 2001. We remain completely confident that the specific issues raised by the Commission will be resolved in a timely fashion,' said Edgar Bronfman, Jr., Executive Vice Chairman of Vivendi Universal.

On December 19, 2000, Diageo and Pernod Ricard agreed to purchase the Seagram Spirits and Wine business for $8.15 billion. Since that time, all three parties – Seagram, Diageo and Pernod Ricard – have worked diligently with the FTC and other regulatory bodies to address concerns raised. Vivendi Universal believes that the purchasers have the means to address the specific concerns raised by the FTC, and they will do so, so that the transaction closes in a timely fashion.

Specifically, those issues are limited to certain aspects of the rum category. Under the terms of the purchase and sale agreement, the purchasers are obligated to resolve this regulatory concern – including making any necessary divestitures – in order for the transaction to be consummated by December 31, 2001.

Separately, Diageo and Pernod Ricard have received regulatory clearance from the European Union, and they are one step closer to approval by Canadian regulatory authorities, following today’s clearance from the Canadian Competition Bureau.

The Seagram Spirits and Wine business has been performing very well throughout the first three quarters of calendar 2001, and its cash flow significantly exceeds the carrying costs of former Seagram Company Ltd. debt.

Media Relations Vivendi Universal:
New York
Anita Larsen
212.572.1118

Mia Carbonell
212.572.7556

Paris
Antoine Lefort
011-33-1-71-71-1180

Alain Delrieu
011-33-1-71-71-1341

Media Relations The Seagram Spirits And Wine Group:
New York
Vicki Nobles
212.572.7949

Investor Relations:
Paris
Ariane de Lamaze
011-33-1-71-71-1084

Laurence Daniel
011-33-1-71-71-1233

New York
Eileen McLaughlin
212.572.8961