Agway, Inc. today announced that it is combining its agricultural products and retail services businesses. Robert A. Fischer, Jr. of Milford, DE has been named president of the new Agriculture & Retail Group. Fischer previously served as president of Agway Agricultural Products.

"The unification of our Agriculture and Retail businesses will allow us to better leverage our talent
in serving the needs of our existing customers and winning new customers,'' said Fischer. "Both
businesses share many of the same customers and are dealing with similar marketplace changes.''

Agway's agriculture business operates through six geographically-based enterprises within the
twelve Northeast states. The enterprises manufacture and distribute dairy and livestock feed, seed and agronomic products and services, and operate fifty-eight farm supply stores. The enterprises also produce many Agway-branded products that are distributed through over 100
company-owned retail stores and over 300 dealers in the Northeast states. The combined
Agriculture & Retail business, which accounts for about one-half of Agway's annual sales and
revenues, will be managed through the six enterprises.

Under the unification plan, Agway's River Valley Enterprise, headquartered in E. Syracuse, NY,
will provide overall leadership for the combined Group's advertising, procurement, operations,
customer service and dealer relations functions. Agway's Keystone Enterprise, headquartered in
Shippensburg, PA, will manage these functions, in collaboration with River Valley, for the
Agriculture & Retail Group's southern territory.

Also as part of the unification plan, Agway's Western New York Enterprise, based in Batavia,
NY, will be responsible for expanding the company's coordinated dairy systems activities across
enterprise boundaries and providing technical leadership to ensure that Agway is a leading dairy
foods company. Agway's Southeast Enterprise, headquartered in Milford, DE, will lead efforts in
the agronomic sector to ensure that Agway remains a leader in nutrients, nutrient management and related information technology. Each enterprise will oversee retail dealer relations and store
management within its territory.

The unification plan includes a workforce reduction of approximately 40 positions or 2 percent of
the combined Agriculture & Retail Group's current workforce of 2,158 employees. Agway added
that it will move forward with a planned consolidation of its Salina Meadows office facility in
Syracuse, NY into Agway's corporate headquarters location in DeWitt, NY.

Agway, Inc. is an agricultural cooperative owned by 75,000 Northeast farmer-members. The
cooperative is headquartered in DeWitt, NY.

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