AgriBioTech Inc. Acquires Biotechnology Rights and Equity Interest in Global Agro Inc.

LAS VEGAS--(BUSINESS WIRE)--July 24, 1998--Dr. Johnny R. Thomas, chairman and chief executive officer, AgriBioTech Inc. (Nasdaq NM:ABTX) Friday announced a biotechnology commercialization and equity stake agreement between AgriBioTech and Global Agro Inc. of Encinitas, Calif., a technology resource organization focused on plant agriculture.

As an equity owner in Global Agro, AgriBioTech will have worldwide rights, exclusive in certain crops, to technology at Global Agro, including rights to technology from The Salk Institute for Biological Studies. Global Agro has an agreement with The Salk Institute which allows the company to commercialize and license specific proprietary technologies developed by The Salk Institute's Plant Biology Laboratory. The Salk Institute is an equity owner of Global Agro.

The AgriBioTech worldwide exclusive technology rights are for all turfgrass species and for all forage grasses and certain forage legumes. The proprietary technologies include a package of proprietary genes that appear to regulate plant growth and development.

This technology offers the potential to develop traits of significant interest in turf grass and forage species, including enhanced gene expression, enhanced root growth, enhanced vegetative growth for rapid generation of biomass (yield) and increased disease resistance.

AgriBioTech will be responsible for all aspects of the development work related to generating new proprietary products in the subject species for eventual, possible commercialization. With this agreement, AgriBioTech launches its biotechnology effort in turf and adds to that already underway in forages.

"We are pleased and excited about this agreement," said Dr. Tom Rice, vice president and director of research at AgriBioTech. "It means we will have access to a portfolio of genes from a leading plant genomics program that could well lead to important breakthroughs and new traits for our customers."

"Accessing market opportunities for our technology portfolio is one of our primary objectives," said Gary H. Richardson, president of Global Agro. "AgriBioTech's commitment to Global Agro is important to us in achieving that goal." Global Agro is located in the San Diego area, and is working with several other companies to build a plant biology campus focused entirely on plant technology in agriculture.

The company announced it also completed the acquisition of J&M Seed Co. ("J&M") with annual revenues of approximately $8.8 million. AgriBioTech paid approximately $1.76 million in cash and 108,308 shares of AgriBioTech common stock with an estimated value of approximately $1.76 million based on stock prices at the time terms were agreed to.

J&M has facilities in London and Moorehead, Ky., and specializes in the distribution of forage seeds (approximately 80 percent), turfgrass seeds (approximately 10 percent) and ancillary products (approximately 10 percent) in eastern Kentucky, West Virginia and the northern part of Tennessee. Mike Rudder, former owner, and Billy Little, have signed five-year employment agreements.

The company believes that this acquisition is an excellent complement to the existing distribution base in the region.

AgriBioTech is a fully 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.

The company has completed 29 acquisitions since Jan. 1, 1995, and is the largest forage and cool-season turfgrass seed company in the United States, with a current level of annualized net sales of approximately $425 million, including the previously announced pending acquisitions of Willamette Seed Co. and Oseco Inc.

The statements discussed in this news release include forward-looking statements that involve a number of risks and uncertainties. These include the company's historical lack of profitability, need to manage its growth, intense competition in the seed industry, seasonality of quarterly results and other risks detailed from time to time in the company's Securities and Exchange Commission reports.

    CONTACT:  AgriBioTech Inc., Henderson, Nev.
               John Francis, 702/566-2440
                             702/566-2450, fax
                             www.agribiotech.com