We consider when the universal C *-algebras associated to separated graphs are exact. Specifically, for finite separated graphs we show that the universal C *-algebra is exact if and only if the C *-algebra is isomorphic to a graph C *-algebra which occurs precisely when the universal and reduced C *-algebras of the separated graph are isomorphic. 2010 Mathematics Subject Classification. 46L05, 46L09. Key words and phrases. Edge-colored directed graph, separated graph, C *-algebra, exact.