AgriBioTech, Inc. announced preliminary unaudited results for the fiscal year ended June 30, 1999.

The Company estimates it will report a net loss of approximately $47-$51 million, or $1.15 - $1.25 per share, on sales of approximately $370 million for fiscal 1999. This compares to net earnings of $0.4 million, or $0.01 per share, on sales of $205 million for fiscal 1998. Average outstanding fully diluted common shares for fiscal 1999 were 40.8 million compared to 32.1 million for fiscal 1998. The increase in shares outstanding and revenues reflects transaction activity in fiscal 1999, when the Company made nine acquisitions.

Of this loss, an estimated $35-39 million occurred in the fourth quarter on sales of approximately $98 million, compared to a loss of $3.9 million on sales of $65.4 million in the fourth quarter of 1998. The Company indicated that the primary contributors to this estimated fourth quarter loss were the restructuring charge, integration costs, extraordinary loss on early sub-debt redemption and reserves and write-offs on inventory and receivables.

The Company also estimates that EBITDA (earnings before interest expense, income taxes, depreciation, amortization, special charges and extraordinary item) of approximately negative $10-$14 million for fiscal 1999 compared to a positive $6.4 million for fiscal 1998. The fiscal 1999 estimated net loss includes an extraordinary item for the loss on early redemption of sub-debt of $3.9 million, or $0.10 per share. EBITDA is a cash based measure of operating performance.

Richard Budd, Chairman and Chief Executive Officer of ABT, said: "As we have previously
communicated, fiscal 1999 was a year of integration and significant organizational change which prepared us for the future. This 1999 loss is not indicative of future results due to the significant amount of unusual items such as the restructuring and special charges, integration related inventory reserves, duplicative operating expenses, bad debt write-off due to the Hechinger bankruptcy, new information system rollout costs, and the extraordinary loss on the early redemption of the sub-debt.''

AgriBioTech expects to report its final results and file its Form 10-K for the 1999 fiscal year end by October 13th. The Company said that the delay in reporting final fiscal year end financial results is due to the significant amount of recent organizational change including restructuring of the acquired companies into business units, closure of facilities and related appraisals, headcount reductions and the rollout of a new information system.

In addition, the Company provided an update on its long-term debt financing plans and activities. "We are pleased with ABT's current discussions with potential lenders. However, the appraisals of real estate, machinery and equipment are taking longer than anticipated. We expect the commitment to be finalized shortly, with the funding completed in late October or early November,'' Budd said.

Further information regarding the long term financing and fiscal year 2000 progress will be provided when the fiscal 1999 Form 10-K is filed.

AgriBioTech, Inc. is a vertically integrated, full service seed company specializing in the forage and turfgrass 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
N2137