AgriBioTech Inc. Increases Equity by $11 Million and Has a Commitment for at Least $25 Million of Long-Term Debt Funding.

HENDERSON, Nev.--(BUSINESS WIRE)--Dec. 8, 1998--AgriBioTech Inc. ("ABT")(Nasdaq/NM:ABTX) Tuesday announced that the company has successfully completed and received aggregate proceeds of approximately $11 million from an equity placement.

The company has also received a commitment for long-term debt funding for a minimum of $25 million. The long-term debt will be used for pending acquisitions, short-term debt retirement and working capital. The long-term debt is expected to be funded prior to the Christmas holidays.

The company sold 250,000 shares of registered AgriBioTech Common Stock at $12.50 per share to the State of Wisconsin Investment Board, and the company sold 600,000 units (1 common share and 1 warrant) to three private investors led by Brown Simpson Asset Management LLC for $13.50/unit. The proceeds were designated for payment on the "BABC" overadvance due Dec. 31, 1998, and working capital, as were the voluntary warrant exercises of $6.7 million on Nov. 17, 1998.

According to Dr. Thomas, "the prudent use of equity and long-term debt to repay short-term debt, fund pending acquisitions, and provide working capital has been part of management's plan for capital formation since the filing of registration statements in March of 1998. These debt and equity placements are part of the company's normal business operations. The company is proceeding uninterrupted with the previously announced strategic alternative process."

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.