AgriBioTech, Inc. announced todav that the Company has completed the sale of certain assets relating to the chemical and fertilizer division, with approximately $20 million in sales, of Willamette Seed Company to Wilbur-Ellis Company, a San Francisco, California based company specializing in the marketing, distribution and formulation of crop protection products, fertilizers and animal feed stuffs primarily in the western region of the United States. The purchase price of approximately $10.5 million, for fixed assets, inventory and accounts receivable was paid with approximately $7.5 million in cash and the balance was paid through the assumption of trade payables and other selected debt. ABT retains the seed division of Willamette Seed Company.

Sale of the above business will allow ABT to focus on its core forage and turfgrass seed business and provide customers and farmers the opportunity to do fertilizer business with a leading fertilizer and chemical companv. The sale is also part of the Company's recently announced companywide integration effort designed to bring ABT's business closer to customers and increase earnings capacity.

The Companv previously reported (December 8, 1998 press release) on an $11 million equity funding through the sale of "250,000 shares of registered AgriBioTech Common Stock at $12.50 per share to the State of Wisconsin Investment Board, and the Company sold 600,000 units (1 common share and 1warrant) to three private investors led by Brown Simpson Asset Management, LLC. for $13.50/unit." No warrants were available for purchase, except as part of a unit, in spite of recent implications to the contrary. The common stock and unit were priced using a variety of pricing assumptions/models and independent, non-affiliated third party negotiations. Management believes both the sale of common stock and the sale of units were priced at market as some sophisticated investors chose to invest in only the stock, while others elected to purchase units.

The strategic alternative process (October 8, 1998 press release) is continuing on schedule.