Ag-Bag International announces first quarter results.

WARRENTON, Ore.--(BUSINESS WIRE)--May 4, 1995--Ag-Bag International Ltd. today announced results for the first quarter ended March 31, 1995. -0-

                                             For the Three Months
                                                Ended June 30,
                                               1995       1994

Net sales                                   $4,527,093  $3,907,807
Gross profit from
 operations                                  1,331,805   1,189,267
Income from operations                         162,834     210,485
Net income before
 taxes                                         121,641     167,643
Net income                                      79,641      89,643
Primary EPS                                       $.01        $.01

Weighted average shares
 outstanding
 3/31/95              12,041,462

    Net sales for the first quarter were $4,527,093 up 15.85% from
$3,907,807 for the first quarter of 1994.  The increase for the
quarter was the result of the company's continued international
expansion into the European market by shipping a large portion of a
machine and bag order to that region during the first quarter of
1995.  Additionally, the company completed the sale of a mid-sized
composting system to Edwards Air Force Base during the quarter.
    Larry Inman, chairman, president and chief executive officer
of the company, stated "Sales for the first quarter were better than
expected.  Our international expansion continued during the first
quarter as we shipped a large portion of an order for the company
into the European continent."  Inman went on to say, "Inquiries into
our compost system continue to increase as a result of the recent
sale to Edwards Air Force Base.  We continue to remain optimistic
about the potential for the composting market in the year to come."
    Ag-Bag International Ltd., 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 Ltd. also markets a complete
"in-vessel" system for composting designed to eliminate odors
inherent with traditional composting methods.

CONTACT: Ag-Bag International Ltd., Warrenton

Larry Inman, 503/861-1644