Press Releases

Dr. Johnny Thomas, CEO of AgriBioTech, Inc. (NASDAQ national Market:ABTX), announced today that the Company has signed two separate letters of intent to purchase J&M Seed Company ("J&M") in Kentucky and Oseco Inc., Ontario, Canada, including all its seed and seed coating operations, Canadian Seed Coaters, North Battleford, Saskatchewan and Precision Seed Coaters Inc., Yuma, Arizona ("Oseco"). The two companies have combined annual sales of approximately $17 million. The effective date for each of the purchases is expected to be April 1. AgriBioTech is purchasing the two companies for an aggregate of approximately $3.4 million in cash and 212,308 shares of AgriBioTech common stock with an aggregate value of $3.4 million ($16.01/share) based on the Company's common stock prices at the time terms were agreed to.

J&M is a regional seed distribution company, primarily in Kentucky and West Virginia, which specializes in forage seeds (approx. 80%), turfgrass (approx. 10%) and ancillary products (approx. 10%). Mike Rudder, as owner, and other key employees are continuing as employees of AgriBioTech. J&M will continue to build AgriBioTech's market share and distribution base in this region.

Oseco distributes forage (approx. 46%) and turfgrass seeds (approx. 34%) in Canada and export, and markets seed coating services and products (approx. 20%) in Canada and the United States. Oseco will give AgriBioTech direct access to Canadian production of certain forage and turfgrass species. Gabe Eros, owner, Paul Eros, National Sales Manager, and Trevor Bailie, General Manager of Canadian Seed Coaters, are continuing as employees of AgriBioTech. The acquisition of Oseco will broaden AgriBioTech's production and distribution base into Canada and expand AgriBioTech's seed coating business efforts, previously acquired through Seedbiotics, Inc. and the pending acquisition of Peterson Seed Company, Inc.

According to Dr. Thomas, "these two acquisitions will increase the Company's market share, distribution base, management team and coating capabilities, consistent with the Company's goal to be the premier forage and turfgrass seed company in the world."

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 22 acquisitions since January 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 $426 million, including the above two acquisitions and the previously announced pending acquisitions of Las Vegas Fertilizers Co., Inc., Willamette Seed Company, Peterson Seed Company, Inc., Geo. W. Hill & Co., Inc., Fine Lawn Research, Inc. and Geo. W. Hill of Indiana, Inc.

Contact:
John C. Francis, Vice President
(702) 566 2440

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