AgriBioTech Inc. Announces 2nd- Quarter Results, Appointment of William A. Brandt Jr. as Responsible Person and Retention of DSI.

Business Editors

HENDERSON, Nev.--(BUSINESS WIRE)--Feb. 22, 2000

Company Also Announces Delisting of Its Securities

From Nasdaq National Market

AgriBioTech Inc. (ABT) (Nasdaq:ABTXQ) today announced fiscal 2000 unaudited second-quarter results for the period ended Dec. 31, 1999.

For the second quarter ended Dec. 31, 1999, AgriBioTech reported a net loss of $19.5 million, or 39 cents per share, on revenues totaling $52.0 million, compared with a net loss of $10.3 million, or 26 cents per share, on sales of $75.9 million in the same period last year.

On an EBITDA basis (earnings before interest expense, income taxes, depreciation, amortization, restructuring and special charges and extraordinary items), the company reported a negative $13.4 million, compared with a negative $4.4 million in the second quarter a year ago.

EBITDA is an important, cash-based measure of operating performance, particularly in companies engaged in significant industry consolidation through acquisitions and mergers.

Net loss for the first six months of fiscal 2000 was $23.1 million, or 47 cents per share, on sales of $125.5 million, compared with a net loss of $9.9 million, or 25 cents per share, on sales of $165.5 million in the same period last year. EBITDA for the first six months of fiscal 2000 was a negative $11.9 million, compared with a positive $0.8 million for the same period last year.

On Feb. 15, 2000, the Bankruptcy Court approved the appointment of William A. Brandt Jr. as the company's responsible person under Federal Rule of Bankruptcy Procedure 9001(5). As the responsible person, Brandt will be in complete control of the day-to-day operations.

Although Brandt will not be an officer of the company, he will have all of the powers vested in the members of the board of directors and officers of ABT.

To assist Brandt in fulfilling his duties as the responsible person, the court approved the company's retention of Development Specialists Inc. (DSI) as reorganization consultants. Brandt is a principal of DSI.

Brandt and DSI maintain a Web site that provides a descriptive background on the firm, its principals and their experience. This Web site can be found at www.developmentspecialists.com. Further, following Brandt's appointment, all of the members of the company's board of directors and all of its officers have resigned.

Brandt, together with DSI and ABT's other professionals, have determined that it is in the best interests of the company's estates to sell the assets in one or more going-concern sales as efficiently and expeditiously as possible, provided that sufficient financing for an orderly sale process exists.

In that regard, the company is in the process of preparing a bid-solicitation package, which will be disseminated to all parties expressing interest in purchasing any of the company's assets.

The company anticipates that the filing of the bankruptcy case, lack of liquidity and current absence of debtor-in-possession financing will have an immediate negative impact on the results of operations.

Lower revenues and net losses are anticipated for the foreseeable future as a result of lack of adequate cash reserves to undertake certain activities (e.g., purchase of seed for blends and mixes, freight costs, quality testing, etc.) needed to move products to market during this critical shipping season.

ABT is currently operating with funds supplied under interim arrangements with its prepetition secured lenders. This interim financing will expire on Feb. 25, 2000, at which time the company expects to enter into a debtor-in-possession loan agreement that is currently being negotiated with this same group of lenders.

The company is confident that the new loan agreement will be completed and funded by the time the interim arrangements expire.

The Nasdaq National Market has determined to delist the company's securities from the Nasdaq National Market effective with the close of business on Feb. 18, 2000. The company has chosen not to file an appeal.

Because of the burden on the company's remaining management and other personnel resulting from the need to focus on reorganization- related matters, the company has requested a modification of reporting requirements from the Securities and Exchange Commission.

The company believes that modified reporting, which permits the filing of monthly bankruptcy reports in lieu of Forms 10-K and 10-Q, would not be inconsistent with the protection of investor interests.

For further information regarding AgriBioTech's bankruptcy case and financial overview, see the www.agribiotech.com Web site and/or the SEC's Web site (www.sec.gov) filings for the latest 10-Q. The Form 10-Q for the quarter ended Dec. 31, 1999, is expected to be filed by the close of business on Tuesday, Feb. 22, 2000.

About AgriBioTech

AgriBioTech is a vertically integrated, full-service seed company specializing in the forage and turfgrass sector, complete with research and development of proprietary seed varieties, seed- processing plants, and a national and international distribution and sales network.

The foregoing information regarding anticipated financial results and finalization of debtor-in-possession financing are forward-looking statements. They should be considered strictly preliminary, and actual results may differ materially. The risks and uncertainties associated with these statements include but are not limited to the financial ability to support the sales effort and to consummate the debt financing which depends upon the lender's assessment of the company's assets, financial condition and other factors as detailed from time to time in the company's SEC filings, including the Form 10-K for fiscal 1999.