Dr. Johnny R. Thomas, Chairman and Chief Executive Officer, AgriBioTech, Inc. (NASDAQ National Market: ABTX) announced today that for its fiscal year ended June 30, 1998 ("Fiscal 1998"), the Company had record net sales of $205,117,007 (up 211%) as compared to $65,904,058 for the comparable preceding twelve month period. Assets and equity increased 178% and 288%, respectively, to $264,530,908 and $174,571,036, respectively, as compared to $95,113,025 and $44,987,982 on June 30, 1997. Net earnings attributable to common stock were $303,141, or $0.01 per share (basic and diluted), for Fiscal 1998 as compared to a loss of $5,947,191 or $0.38 per share (basic and diluted), for the comparable preceding twelve-month period.

"Fiscal 1998 was an exceptionally successful year for the Company as Franchise Value was significantly enhanced in all key areas", according to Dr. Johnny R. Thomas. Franchise Value is measured by forage and turfgrass seed market share, germplasm/conventional genetics research, world class employees and biotechnology access. Fiscal 1998 was the Company's most successful year for acquisitions. The Company began the year with annualized net sales of
approximately $155 million and concluded the year with annualized net sales of approximately $425 million, including acquisitions pending at that time. These acquisitions coupled with agreements with third parties enhanced the Company's ownership and access to an industry leading forage and turfgrass germplasm position. A number of experienced key management personnel were added, most notably Mr. Kent Schulze, President and Chief Operating
Officer, and Dr. Tom Rice, Vice President and Director of Research. Fiscal 1998 was the Company's first profitable year and cash flow from operations was positive, approximately $4.7 million (excludes taxes, depreciation and amortization). The Company achieved sufficient critical mass to allow it to achieve its strategic goals.

Fiscal 1998 revenues and profitability were favorable impacted by continued growth through acquisitions. Fiscal 1998 results were negatively impacted by the widespread weather effects of "El Nino", accelerated ramp-up of management personnel due to faster than anticipated growth (approximately 2 years ahead of schedule), competitive factors as other companies reacted to the Company's growth, and the April 1, 1998 change to recognition of acquisitions at closing dates instead of mutually agreed upon effective dates. Two of these variables are easily quantified. Corporate expenses increased from the prior year by approximately $2.4 million or 88%. The change in recognition of acquisitions decreased Fiscal 1998 net sales by approximately $35.1 million and earnings by approximately $1.4 million. In addition, three of the Company's acquisitions in one geographic region had decreased sales of approximately $10 million with a corresponding decrease in earnings of approximately $4.5 million, primarily due to "El Nino" with possibly some competitive effects. The Company is in the process of converting all accounting
systems to one unified system which will provide more timely, accurate management information and resolve year 2000 accounting issues at a cost of about $6 million, including internal costs.

Net sales and net loss attributable to common stock for the fourth quarter of Fiscal 1998 were $65,421,712 and $3,934,339, or $0.11 per share (basic and diluted), respectively, as compared to $24,739,230 and $1,555,220, or $0.07 per share (basic and diluted), for the comparable quarter of the preceding year. The fourth quarter absorbed most of the negative impacts outlined in the preceding paragraph for accelerated ramp up of management personnel to accommodate growth, the weather and competitive effects for the region given as an example, and the impact of the
change in recognition dates for acquisitions.

AgriBioTech, Inc.
Audited Consolidated Financial Information*
(In thousands, except per share amounts)

*Assets and equity numbers are at year-end for each audit period.

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 January 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 $460 million.

The statements discussed in this press release include forward looking statements that involve a number of risks and uncertainies. These include the Company’s historical lack of profitability, need to manage its growth, intense competition in the seed industry, seasonality of quarterly results, volatile stock price and other risks detailed from time to time in the Company’s SEC reports.

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