Cedar Falls, Iowa
April 12, 2002

Ag Services of America, Inc. (NYSE:ASV) today announced record net revenue for Fiscal 2002 primarily through further penetration of its AgriFlex Credit(R) program. Net revenues increased 12% to $387.4 million for Fiscal 2002 as compared to $345.7 million in Fiscal 2001. Net income was $5.5 million, or $1.00 per diluted share, compared to $7.5 million, or $1.36 per diluted share a year ago.

This was the Company's most challenging year since its inception. Fiscal 2002 earnings were significantly impacted by an unprecedented eleven cuts in the prime lending rate and adverse weather conditions in the Company's primary market area. For the year, the average prime rate was approximately 300 basis points lower than the average prime rate in Fiscal 2001. This significant decline in rates reduced earnings on the Company's invested capital and negatively affected the interest rate swap agreement associated with the $30 million term note. As a result, pre-tax earnings were reduced by approximately $3.1 million. In addition, the cool, wet weather last spring in many areas of North Dakota, South Dakota, Minnesota and portions of Iowa and Nebraska, caused many producers to switch to a less favorable mix of crops and to leave a portion of their acres unplanted. This negatively impacted product sales by approximately $10-12 million. Also, related to the Company's
year-end audit, an adjustment of $500,000 was made to increase the reserve for doubtful notes. On the positive side, the Company was able to reduce its operating expenses, as a percent of net revenues, from 3.7% to 3.3%.

Fourth quarter net revenue increased 40.0% to $87.8 million in Fiscal 2002 compared to $62.7 million for the fourth quarter one year ago. Net income for the fourth quarter of Fiscal 2002 was approximately $320,000, or $0.06 per diluted share, compared to $598,000, or $0.11 per diluted share, for the same period last year. The adjustment to the reserve for doubtful notes at year-end had a $0.06 per share effect on fourth quarter earnings.

Looking forward to Fiscal 2003, AgriFlex Credit(R) applications and approvals are running over 20% ahead of last year's record levels at this same time. Applications for the Company's seed and chemical financing programs, which it administers for various suppliers and distributors, has nearly doubled from last year's record $17 million level. Despite the challenges of the past year, Ag Services management is optimistic about the opportunities to continue growing the company profitably. Based on current indicators, the Company is expecting Fiscal 2003 revenue and earnings to increase 18% to 23% over Fiscal 2002 levels.

Ag Services of America, Inc., which operates Powerfarm.com, is based in Cedar Falls, Iowa, and is a leading supplier of input financing and agricultural inputs, including seed, chemicals, fertilizer and cash advances to primarily corn and soybean growers in the U.S. The Company's one-stop shopping business model includes competitive and flexible financing packages through its AgriFlex Credit(R) program combined with the most comprehensive offering of agricultural inputs from national sources such as Asgrow, Aventis, BASF, Dekalb, Dow AgroSciences, DuPont, Garst, Monsanto and Pioneer Hi-Bred. The Company also provides ancillary services such as crop insurance, grain marketing and administers additional financing programs for various suppliers and distributors in the agriculture industry.

AgriFlex Credit is a registered trademark and Powerfarm.com and Powerfarm Credit are trademarks of Ag Services of America, Inc. All other trademarks or product names are the property of their respective owners.