Press Releases

Dr. Johnny R. Thomas, Chairman and Chief Executive Officer, AgriBioTech, Inc. (NASDAQ National Market: ABTX) announced today that AgriBioTech and FFR Cooperative (FFR) have signed a letter of intent to enter into and form a long-term, worldwide research alliance to develop and commercialize improved proprietary seed products.

The letter of intent outlines how AgriBioTech and FFR will form a long-term research alliance to develop improved proprietary seed products, and details other intentions regarding selection and distribution of elite genetic material, biotechnology assets, production, funding and other matters.

FFR Cooperative was founded approximately 40 years ago by several regional farmer-owned cooperatives to breed genetically improved varieties of a number of crop species. FFR has an industry leading breeding program and gernplasm base in a number of important forage species, including orchard grass, red clover, tall fescue and timothy. Additionally, FFR has breeding programs in alfalfa, corn soybeans, and wheat. FFR has over 206,000 research test plots in 192 locations in approximately 15 states. FFR membership and affiliates are regional cooperatives including Southern States, Tennessee Farmers, Growmark, and Countrymark.

Under the agreement AgriBioTech will private label new genetically improved varieties of orchard grass, red clover, tall fescue and timothy developed by FFR through AgriBioTech's worldwide distribution system. FFR members and affiliates will be the only other distributors of FFR varieties in those species.

"This is a significant and important milestone for AgriBioTech," said Dr. Thomas when he made the announcement. "It means we will work with and gain access to elite germplasm from the US's leading commercial source of forage grass germplasm, " Dr. Steve Baluch, President of FFR, added: "This agreement forms an alliance between the true leaders of the forage grass business and will greatly benefit our customers."

Dr. Tom Rice, AgriBioTech Vice President and Director of Research noted that "the letter of intent outlines an agreement which should significantly expand AgriBioTech's distribution of biotechnology enhanced products developed in the future." The agreement provides for AgriBioTech to introduce genes into the forage germplasm using biotechnology tools and to private label products for marketing through the regional cooperative owners of FFR.

AgriBioTech management estimates that AgriBioTech's forage grass market share, coupled with those who distribute FFR's products, exceeds 55 % in the United States.

This agreement complements the relationship announced last week between Global Agro, Inc. and AgriBioTech through which the Company will have worldwide rights to a porufolio of proprietary genes that appear to regulate plant growth and development. The license, which is exclusive for the forage grass species that are the focus of the alliance with FFR, covers genes that appear to enhance gene expression, enhance root growth, enhance vegetative growth for rapid generation of biomass (yield) and increase disease resistance. If successful, the new traits would be put into FFR germplasm for distribution to the customers of both FFR and AgriBioTech.

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

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