AgriBioTech, Inc. said today that the drought on the East Coast has created significant opportunity for a strong fall sales season. "We are very pleased with the current pace of orders, although the extent and timing of rainfall will affect the amount of turf and forage seed planted. We are at a time when incoming seed inventory is being quickly converted to fall sales. We are receiving seed from growers and shipping to our customers as fast as we can,'' said Richard Budd, Chairman and Chief Executive Officer.

Budd added, "This increase in inventory and sales leads to an increase in the availability of funds under our revolving line of credit. As these funds are being utilized to pay our growers and vendors, they can remain confident in ABT's ability to pay them during the current harvest season.'' He added that the Company has paid vendors and growers approximately $10 million in the past three weeks. The Company has currently borrowed approximately $57 million under its $100 million revolving line of credit with Bank of America NT/SA, which facility does not expire until June 2001.

Budd also said that ABT is also currently in the midst of a due diligence process with undisclosed major financial institutions for an asset-based long-term debt financing that is expected to close within the next seven weeks. The addition of funds from this long-term debt, coupled with improving profitability, will significantly strengthen the company's capital structure.

Earlier this month, the Company reported that its continuing integration of acquired companies, focus on customer segments and expense reductions were expected to return ABT to profitability in the fiscal year ending June 30, 2000.

Budd added that, because of a continuing implementation of a new Oracle-based financial and management information system, the Company will not report audited financial results for the fiscal year ended June 30, 1999 until late September.

AgriBioTech, Inc. is a vertically integrated, full service seed company 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. 

Company news release
N2071