Dr. Johnny R. Thomas, CEO of AgriBioTech, Inc., announced today that the Company has completed the acquisition of Allied Seed Company ("Allied") with annual revenues of approximately $20 million which will be consolidated into the Company's operations as of closing. AgriBioTech purchased Allied for approximately $14.5 million in cash. The Company also completed a private placement of approximately 1,750,000 shares and approximately 885,000 warrants primarily with Fidelity Commonwealth Trust: Fidelity Small Cap Fund ("Fidelity"), Quantum Partners LDC, a fund managed by Soros Fund Management ("Soros"), and the State of Wisconsin Investment Board ("Wisconsin"). The shares were valued at $8.9375 and the warrants, exercisable at $12.00, were valued at $2.00 for a total of approximately $,17.5 million in funding.

Allied is primarily an alfalfa production company with sales of alfalfa, clovers and forage grasses. Allied is a major supplier of seed to Agway for distribution in the northeastern United States and a number of other regional distributors, including farmer owned cooperatives who are members of Farmers Forage Research ("FFR") (See AgrioBioTech's press release dated July 21, 1998). Mr. Dave McWilliams is continuing as general manager. According to Dr. Thomas, "the Allied acquisition adds important alfalfa production capabilities and strengthens important distribution relationships with a number of farmer owned cooperatives, who have a good distribution base".

Dr. Thomas said, "he is pleased that large, knowledgeable investors such as Fidelity, Soros and Wisconsin support the acquisition of businesses which add 'franchise value' greater than the cost of money, even when the Company's common stock is greatly undervalued. The approximately 1,750,000 shares are registered as they were issued pursuant to the Company's shelf registration statement on Form S-3 while the shares underlying the warrants will be registered within the next 90 days. The Company has a balance of approximately 2.75 million shares registered under the shelf registration available for future growth".