AgriBioTech Anticipates Strong Fall Sales Season; Says Current Line of Credit Provides Confidence to Growers, Vendors During Seed Harvest Season.

HENDERSON, Nev.--(BUSINESS WIRE)--August 27, 1999--

AgriBioTech, Inc. (Nasdaq:ABTX) said today that the drought on the East Coast has created significant opportunity for a strong fall sales season. "We are very pleased with the current pace of orders, although the extent and timing of rainfall will affect the amount of turf and forage seed planted. We are at a time when incoming seed inventory is being quickly converted to fall sales. We are receiving seed from growers and shipping to our customers as fast as we can," said Richard Budd, Chairman and Chief Executive Officer.

Budd added, "This increase in inventory and sales leads to an increase in the availability of funds under our revolving line of credit. As these funds are being utilized to pay our growers and vendors, they can remain confident in ABT's ability to pay them during the current harvest season." He added that the Company has paid vendors and growers approximately $10 million in the past three weeks. The Company has currently borrowed approximately $57 million under its $100 million revolving line of credit with Bank of America NT/SA, which facility does not expire until June 2001.

Budd also said that ABT is also currently in the midst of a due diligence process with undisclosed major financial institutions for an asset-based long-term debt financing that is expected to close within the next seven weeks. The addition of funds from this long-term debt, coupled with improving profitability, will significantly strengthen the company's capital structure.

Earlier this month, the Company reported that its continuing integration of acquired companies, focus on customer segments and expense reductions were expected to return ABT to profitability in the fiscal year ending June 30, 2000.

Budd added that, because of a continuing implementation of a new Oracle-based financial and management information system, the Company will not report audited financial results for the fiscal year ended June 30, 1999 until late September.

AgriBioTech, Inc. is a vertically integrated, full service seed company specializing in the forage and turfgrass seed sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national and international distribution and sales network. ABT's vision is to lead the turf and forage seed industry in discovering its value potential.

Certain of the statements in this press release, including, for example, expectations of sales due to drought, ABT's ability to finalize the received proposals for new, long-term financing, expectation of fall sales and expectation of a return to profitability in the Fiscal Year 2000 are forward looking statements that involve a number of risks and uncertainties. They are not a guarantee of future performance and actual results could differ materially. The risks and uncertainties associated with these statements include, but are not limited to: actual customer orders and purchases, which are dependant, in part, on weather patterns; ability of the Company to package and deliver needed seed inventory, which depend in part on weather in the growing regions of the West Coast; ability of the Company to finalize the transactions to obtain additional capital and debt financing ability of the Company, which depend on potential lenders' assessments of the Company's assets, overall financial condition and operations; ability of the Company to successfully manage the integration and to control costs; and ability of the Company to successfully transition to the new Oracle based information system; and other factors as detailed from time to time in the Company's SEC filings.