N1307

AgriBioTech announces a 121% increase in first quarter new sales, net earnings per common share of $0.01 and progress in EBITDA

Henderson, Nevada
November 16, 1998

AgriBioTech, Inc. (NASDAQ National Market: ABTX) announced first quarter Fiscal 1999 (July I - September 30) net sales of $89.6 million with a net profit of $333.227 or $0.0I per common share (basic and diluted) and an EBITDA of $5.3 million. This compares to net sales of $40.5 million, a net profit of $784,540 million or $0.03 per share (basic and diluted) and EBITDA of $2.1 million in the same quarter the prior year. Selected financial information is as follows:

AgriBioTech, Inc.
Three-month period ended September 30 (In thousands, except per share amounts)

.	1998	1997	1996
Net Sales	$89,602	$40,458	$7,653
Gross profit	23,771	7,534	2,041
Earnings (loss) from operations	2,546	1,063	(1,259)
Earnings (loss) before income taxes	675	785	(1,295)
Net earnings (loss)	333	785	(1,295)
Net earnings (loss) attributable to common stock	333	758	(2,002)
Net earnings (loss) per common share:	.	.	.
.Basic	0.01	0.03	(0.22)
.Diluted	0.01	0.03	(0.22)
Average shares of common stock:	.	.	.
.Basic	38,086	25,073	9,106
.Diluted	41,329	28,213	9,106
EBITDA	5,279	2,119	(849)
Total assets (at end of period)	385,740	103,259	52,292
Total stockholders' equity (at end of period)	198,667	53,828	21,171

The 121% increase in net sales was primarily due to the results of acquisitions subsequent to the same quarter in Fiscal 1997. Eight acquisitions were completed during the first quarter of 1998. According to Dr. Johnny Thomas, CEO of AgriBioTech, Inc. "While we are pleased with the revenue and operating earnings growth there were factors which suppressed further progress this quarter. A late fall turf season resulted in certain sales which usually occur in September slipping into October and to a lesser degree an industry-wide shortage of non-donnant alfalfa resulted in less supply and significantly higher cost of production." Quarterly net earnings were negatively impacted by the higher non-donnant alfalfa production costs, higher amortization and interest expense as the Company financed acquisitions with proceeds from short-term debt.

"AgriBioTech's acquisitions and existing capital structure tend to mask the underlying operational progress being made even before our integration plan is fully executed. Management believes EBITDA is the proper measure of current and future operational progress since it reflects the cash generating capacity of the Company's operations," added Dr. Thomas. EBITDA was $5.3 million for the quarter ended September 30, 1998 compared to $2.1 million for the same period in 1997 and $(0.8) million for the same period in 1996.

In the past few days AgriBiotech, Inc. has had discussions with certain warrant holders regarding voluntary tender of warrants to purchase common stock and certain warrants have been tendered. Due to the need to integrate this into the disclosures in the Company's September 30, 1998 Form 10-Q, the Company has filed a notification of late filing with respect to such Form 10-Q and the Form 10-Q will be filed within the five day period allowed thereunder. AgriBioTech, Inc. has retained the firms of Merrill Lynch & Co. and Deutsche Bank Securities as advisors to explore alternatives for maximizing shareholder value.

N1307