March 23, 2005 13:26 ET

Vivendi Universal Unwinds its Interest-Rate Swaps




MARCH 23, 2005 - 13:26 ET

Vivendi Universal Unwinds its Interest-Rate Swaps

PARIS--(CCNMatthews - Mar 23, 2005) -

In accordance with the statement made during the company's 2004 earnings
announcement on March 10, 2005, Vivendi Universal (Paris Bourse: EX FP;
NYSE: V) has completed its plan to unwind the interest-rate swaps on its
variable-rate debt, which was repaid following recent asset disposals.
The unwinding concerned a notional 3.1 billion euros and required
Vivendi Universal to pay a balance of 189 million euros in total, of
which 57 million euros were paid in 2004 and the remainder provisioned
at December 31, 2004.

On the basis of current market conditions, this transaction will enable
the group to reduce its interest expense in 2005 by 84 million euros in
2005, by 61 million euros in 2006 and 23 million euros in 2007. These
savings were included in the forecast of 2005 results previously

Vivendi Universal's net debt currently stands at less than 4 billion
euros (estimated, unaudited, debt, according to French accounting
standards) and has an average maturity of 4.1 years. It consists mainly
of four bond issues: a 7-year, 600-million euro issue, with a 3.875%
coupon; a 5-year, 630-million euro issue (1), with a 3.625% coupon; a
700-million euro issue, launched in July 2004 with a 3-year maturity and
at a variable rate plus a spread of 0.55%; and, lastly, a 605-million
euro issue launched in November 2003 with an initial maturity of five
years and a coupon of 1.75%, which is exchangeable into Sogecable

The company has also two, undrawn, syndicated loans of 2 billion dollars
granted to Vivendi Universal SA, while SFR Cegetel has a 1.2-billion
euro syndicated loan, of which 150 million euros has been used to date.

(1) Issue has already occurred, proceeds expected on April 6, 2005.

Vivendi Universal is a leader in media and telecommunications with
activities in television and film (Canal+ Group), music (Universal Music
Group), interactive games (VU Games) and fixed and mobile
telecommunications (SFR Cegetel Group and Maroc Telecom).

Important disclaimer:

This document contains 'forward-looking statements' as that term is
defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are not guarantees of future performance.
Actual results may differ materially from the forward-looking statements
and business strategy as a result of a number of risks and
uncertainties, many of which are outside our control, including but not
limited to the risks that Vivendi Universal will not be able to obtain
the necessary approvals for the contemplated transaction, as well as the
risks described in the documents Vivendi Universal has filed with the
U.S. Securities and Exchange Commission and with the French Autorite des
Marches Financiers. Investors and security holders may obtain a free
copy of documents filed by Vivendi Universal with the U.S. Securities
and Exchange Commission at or directly from Vivendi
Universal. Vivendi Universal does not undertake to provide, nor has any
obligation to provide, update or revise forward-looking statements.


Contact Information

    Media: Paris
    Antoine Lefort, +33 (0) 1 71 71 11 80
    Agnes Vetillart, +33 (0) 1 71 71 30 82
    Alain Delrieu, +33 (0) 1 71 71 10 86
    New York
    Flavie Lemarchand-Wood
    +(212) 572 1118
    Investor Relations: Paris
    Daniel Scolan, +33 (0) 1 71 71 32 91
    Laurence Daniel, +33 (0) 1 71 71 12 33
    New York
    Eileen McLaughlin, +(1) 212.572.8961