Ag-Bag International Limited announces third quarter results.

WARRENTON, Ore.--(BUSINESS WIRE)--Nov. 14, 1995--Ag-Bag International Limited today announced results for the third quarter and nine months ended Sept. 30, 1995. -0-

                 For the Three Months        For the Nine Months
                    Ended Sept. 30,            Ended Sept. 30,
                1995          1994          1995           1994

Net sales    $5,938,178    $7,149,271   $17,034,556    $16,882,778
Gross profit
 from sales   1,645,288     2,098,013     4,916,839      5,025,932
Income from
  operations    396,321       868,782     1,290,503      1,632,613
Net income
  before income
  tax           357,494       683,971     1,097,727      1,290,536
Net income      235,994       473,971       729,227        874,336

EPS                $.02          $.04          $.06           $.08

Weighted
 average
 shares
 outstanding 12,077,260    10,692,859    12,055,858     10,690,727

Shares of
  common
  stock
  outstanding
  9/30/95    12,053,751

Net sales for the three month period ended Sept. 30, 1995 were $5,938,178 down 16.94% from $7,149,271 for the same period in 1994. Net income for the quarter was $235,994 or $.02 per share compared to $473,971 or $.04 per share for the same period in 1994.

Net sales for the nine-month period ended Sept. 30, 1995 were $17,034,556 up .9% from $16,882,778 for the same period in 1994. Net income for the nine month period ended Sept. 30, 1995 was $729,227 or $.06 per share compared to $874,336 or $.08 per share for the same period in 1994.

Larry Inman, chairman, CEO and president of Ag-Bag International, stated "sales for the quarter were down primarily as a result of adverse global weather conditions in geographical areas where the company markets its products." Inman went on to say "the early winter freeze in the U.S. limited bagging of corn silage in the midwest and the hot U.K. summer eliminated second cuttings of some crops. In addition, milk and beef prices continued their downward trend here in the U.S. causing farmers to be cautious on capital expenditures for new equipment."

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. Additionally, Ag-Bag International Limited, 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