Richard Budd, Chairman and Chief Executive Ofricer, AgriBioTech, Inc. ("ABT") announced this week that the Company intends to pay off the subordinated convertible debentures sold in late December 1998 and early January 1999 ("sub-debt") in full with cash to prevent a resetting of the amount of shares into which this debt can be converted ("reset of this debt").

"Based on our current sales, cash flow estimates and discussions we have had with our banks, we intend to pay off the holders of these debentures in cash so as to prevent any reset of this debt," said Budd. He added, "Given current strong demand for our products, we believe that a significant portion of that debt will be paid with internally-generated cash."

AgriBioTech, Inc. is a fully integrated full service seed companv 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. ABT's vision is to lead the turf and forage seed industry in discovering its value potential.

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