Cedar Falls, Iowa
December 23, 2002

Ag Services of America, Inc. (NYSE:ASV) today announced that net income for the third quarter of the fiscal year ending February 28, 2003 ("Fiscal 2003") increased 4.4% to $1.4 million, compared to $1.3
million for the same period one year ago.

Net revenues for the same periods increased 22% to $30.6 million from $25.1 million last year. Net income for the nine months ended November 30, 2002 increased 16.6% to $6.0 million as compared to $5.2 million for the same period one year ago. Net revenues for the nine months ended November 30, 2002 were $391.1 million, which was a 30.6% increase over the prior year of $299.6 million.

The 30.6% increase in net revenues was realized primarily through increasing demand for the Company's AgriFlex Credit(R) financing program. The convenience, flexibility and service within the program, plus the internal focus and efforts placed on customer support throughout all areas of the Company has contributed to high customer retention and a demand for the program. Gross margin on the sale of farm inputs increased 33% for the first nine months as the Company continues to focus on its primary market areas. Net financing income increased 11% for the first nine months over last year but was reduced by a 200 basis point decline in interest rates from one year ago which lowered the Company's return on equity. Despite a 20% increase in operating expenses over last year through November 30, 2002, operating expenses as a percentage of net revenues have continued to decline to 2.9% compared to 3.2% for the same period one year ago.

Management's outlook for Fiscal 2003 earnings has been revised and estimated to be in the range of $1.00 to $1.05 per fully diluted share. This revision from previous estimates is related to additional costs associated with the Company's recently announced $100 million credit facility and extensions on its existing credit facilities.

As previously announced on November 14th the Company signed a letter of intent with American Securities Capital Partners, L.P. (ASCP), a New York private-equity investment firm, under which ASCP will make investments in the Company up to an aggregate of $70 million in three annual investments. The first investment of $35 million is targeted on or around February 28, 2003. All investments are subject to, among other things, satisfactory completion of due diligence, Ag Services replacement of its current secured credit facilities and shareholder approval. There can be no assurance at this time that this investment will be consummated.

Ag Services of America, Inc. is based in Cedar Falls, Iowa, and is a leading supplier of crop input financing and agricultural inputs, including seed, chemicals and fertilizers 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, BASF, Dekalb, Dow AgroSciences, DuPont, Garst, Monsanto, Syngenta and Pioneer Hi-Bred. The Company also administers additional financing programs for various suppliers, manufacturers and distributors in the agriculture industry and provides ancillary services such as crop insurance and grain marketing.