Ag-Bag International Limited announces 1994 year end results.

WARRENTON, Oregon--(BUSINESS WIRE)--Ag-Bag International Limited today announced results of operations for the year ended Dec. 31, 1994. -0-

                                    December 31,      December 31,
                                       1994              1993

Net sales                           $20,706,738       $18,617,146
Gross Profit from operations          5,874,125         5,528,289
Income from operations                1,323,918         1,120,169
Net income before taxes
 and extraordinary item                 962,344           876,982
Net income before
 extraordinary item                     533,427           696,087
Net income                              533,427           847,887

EPS
 Income before extraordinary item        $.04              $.06
 Extraordinary item                                         .01
                                         $.04              $.07

Weighted average shares:
  Primary                            11,644,785        10,581,092

Shares of common stock
 outstanding 12/31                   11,655,373        10,627,228

Net sales for the year increased 11.22% to $20,706,738 compared to $18,617,146 for the same period in 1993. The increase for the year was primarily the result of the company continuing to gain market share through its expansion in Europe and Latin America with machine and bag sales to those regions, coupled with the fact in 1994 the company began selling its new grain bagging machines as well as complete composting systems. Net income for the year was $533,427 compared to $847,887 for the same period in 1993. Net income was down primarily as a result of increased costs to handle the company's expansion coupled with the company recording a loss on the closure of its joint venture operations in Holland of approximately $140,000. The company also did not have the extraordinary item from early extinguishment of debt or the litigation settlement gain as it did in 1993.

Larry Inman, chairman, CEO and president of Ag-Bag International, stated "We are very encouraged about our continued international expansion into the European and Latin American markets. The expansion into the latin American market has helped to counteract some of the seasonality the company historically experiences. Bag sales in our US operations were up 11.7% over 1993." Inman went on to say "When looking at our net income for 1994 versus 1993, and factoring out the non-operational items, our net income only decreased 2.67%. This is the result of increases in selling and administrative costs which were necessary to build our international expansion as well as our grain and compost divisions. We are very optimistic about the potential expansion into the grain and compost markets in 1995."

Ag-Bag International Limited, through operations in the United States and abroad, manufactures and sells to the agricultural industry its farm feed management system for the high moisture storage of silage and grains. Ag-Bag storage improves feed quality and significantly reduces losses suffered through the use of traditional storage methods such as silos, bunkers and pits. Ag-Bag International Limited also markets a complete "in-vessel" system for composting designed to eliminate odors inherent with traditional composting methods.

CONTACT: Ag-Bag International Limited

Larry Inman, 503/861-1644