Kent Schulze, President and Chief Operating Officer, AgriBioTech, Inc. (NASDAQ National Market: ABTX) announced today that ongoing consolidation actions to date should result in estimated cost savings of approximately $0.75 million per year. Dr. Johnnv R. Thomas, Chairman and CEO, noted "that recent financing activities are designed to allow the Company to decrease interest expense and operate its business, independent of the strategic alternative process, which is continuing as planned."

Schulze announced that recent actions in South Dakota, Ohio, Kentucky and Missouri have allowed the Company to close seven redundant facilities and reduce non-sales people by approximately 20. According to Schulze, "we expect better customer service, increased operational efficiencies and reduced cost to the benefit of our shareholders."

Thomas, also noted that "the Company has increased equity by about $18 million ($6.7 million from voluntary warrant exercise and $11.2 million from private placement of equity) and also received commitments for at least $25 million of long term debt, expected to close prior to Christmas. These fundings along with the pending Willamette divestiture (about $10 million) will allow payment of the $15 million BABC overadvance, prior to its due date, increase working capital and provide cash for pending acquisitions. Consequently, these fundings decrease interest rates while virtually eliminating all short term debt concerns. The Company's primary debt facility is a $100 million revolving line of credit, due June 30, 2001. Borrowings under the revolving line of credit are carried as a current liability on our balance sheet to match the classification of our accounts receivable and inventory which are shown as current assets and financed by such borrowings. These borrowings, along with the levels of inventory and receivables, fluctuate due to the seasonality of our business; however, there is no intent or need to pay the revolving line to zero before its maturity on June 30, 2001."

The strategic alternative process which was initiated on October 8th (as announced) is proceeding as planned. The Company is approximately at the mid-point of the likely timeframe to disseminate appropriate details to shareholders.

The importance of recent press releases on biotechnology cannot be overstated. Dr. Tom Rice, VP of Research and Development has assembled, in house, all the elements of a world class blotechnology program, i.e. facilities, personnel, freedom to operate for transformation and exclusive access to a number of genes which are expected to bring significant added value to the Company's customers and shareholders. The Company expects to continue to build on this platform.

The Company, with the help of KPMG Peat Marwick LLP and Oracle, is implementing a new business information system, which should also address all year 2000 concerns. By early February, 1999, the Company expects to have nearly half of its business operating on the new systems and substantially all by the end of its fiscal year (June 30. 1999).