AgriBioTech Inc. Announces a 121 Percent Increase in First-Quarter Net Sales, Net Earnings Per Common Share of 1 Cent and Progress in EBITDA.

HENDERSON, Nev.--(BUSINESS WIRE)--Nov. 16, 1998--AgriBioTech Inc. (Nasdaq/NM:ABTX) announced first quarter Fiscal 1999 (July 1 - Sept. 30) net sales of $89.6 million with a net profit of $333,227 or 1 cent per common share (basic and diluted) and an EBITDA (earnings before interest, income taxes, depreciation and amortization) of $5.3 million.

This compares with net sales of $40.5 million, a net profit of $784,540 million or 3 cents per share (basic and diluted) and EBITDA of $2.1 million in the same quarter the prior year. Selected financial information is as follows: -0-

                           AgriBioTech Inc.
                   Three-month period ended Sept. 30
               (In thousands, except per share amounts)

                                 1998       1997       1996

Net sales                    $ 89,602   $ 40,458   $  7,653
Gross profit                   23,771      7,534      2,041
Earnings (loss)
 from operations                2,546      1,063     (1,259)
Earnings (loss)
 before income taxes              675        785     (1,295)
Net earnings (loss)               333        785     (1,295)
Net earnings (loss)
 attributable
 to common stock                  333        758     (2,002)
Net earnings (loss)
 per common share:
  Basic                          0.01       0.03      (0.22)
  Diluted                        0.01       0.03      (0.22)
Average shares
 of common stock:
  Basic                        38,086     25,073      9,106
  Diluted                      41,329     28,213      9,106
EBITDA                          5,279      2,119       (849)
Total assets
 (at end of period)           385,740    103,259     52,292
Total stockholders'
 equity (at end of period)    198,667     53,828     21,171

The 121 percent increase in net sales was primarily due to the results of acquisitions subsequent to the same quarter in fiscal 1997. Eight acquisitions were completed during the first quarter of 1998.

According to Dr. Johnny Thomas, chief executive officer of AgriBioTech, "While we are pleased with the revenue and operating earnings growth, there were factors which suppressed further progress this quarter.

"A late fall turf season resulted in certain sales which usually occur in September slipping into October and to a lesser degree an industrywide shortage of non-dormant alfalfa resulted in less supply and significantly higher cost of production," Thomas added.

Quarterly net earnings were negatively impacted by the higher non-dormant alfalfa production costs, higher amortization and interest expense as the company financed acquisitions with proceeds from short-term debt.

"AgriBioTech's acquisitions and existing capital structure tend to mask the underlying operational progress being made even before our integration plan is fully executed. Management believes EBITDA is the proper measure of current and future operational progress since it reflects the cash-generating capacity of the company's operations," added Thomas.

EBITDA was $5.3 million for the quarter ended Sept. 30, 1998 compared with $2.1 million for the same period in 1997 and a loss of $0.8 million for the same period in 1996.

In the past few days AgriBioTech has had discussions with certain warrant holders regarding voluntary tender of warrants to purchase common stock, and certain warrants have been tendered.

Due to the need to integrate this into the disclosures in the company's Sept. 30, 1998, Form 10-Q, the company has filed a notification of late filing with respect to such Form 10-Q and the Form 10-Q will be filed within the five-day period allowed thereunder. AgriBioTech has retained the firms of Merrill Lynch & Co. and Deutsche Bank Securities as advisors to explore alternatives for maximizing shareholder value.

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 33 acquisitions since Jan. 1, 1995, and is the largest forage and cool-season turfgrass seed company in the world, with a current level of annualized net sales of approximately $475 million, after the previously announced divestiture of the chemical and fertilizer division of Willamette Seed Co., which has annualized net sales of approximately $20 million, and including the previously announced pending acquisitions of the alfalfa business and international sorghum units of AgriPro Seeds Inc., Moore Seed Processors, and Production Plus+, which have annualized net sales aggregating approximately $35 million.

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, weather conditions, volatile stock price and other risks detailed from time to time in the company's SEC reports.