Cedar Falls, Iowa
June 24, 2002

Ag Services of America, Inc. (NYSE:ASV) today announced that net revenues for the first quarter of Fiscal 2003 increased 29% to $212.0 million as compared to $164.2 million for the same period one year ago. Net income for the first quarter of Fiscal 2003 was $2.2 million, or $0.39 per diluted share, which was an 18% increase over prior year first quarter earnings of $1.8 million, or $0.34 per diluted share.

Fiscal 2003 first quarter results were influenced largely by strong demand for the Company's AgriFlex Credit(R) program and an excellent spring planting season in its primary market area. Gross margin on farm input sales increased 28% while margin on financing income remained almost flat with the same period one year ago due to a 300 basis point reduction in the prime lending rate. Also contributing to the strong first quarter was the reduction in operating expenses as a percent of net revenues from 2.0% last year, to 1.7% this year. Considering the significant negative impact on earnings resulting from the reduction in the prime lending rate, management is very pleased with first quarter results.

The Company recently completed a $30 million increase to its commercial paper securitization program to a total facility size of $375 million. In conjunction with the increase in commercial paper, Ag Services increased it Senior Subordinated debt facility by $35 million to a total $80 million. With these increased credit facilities, the Company anticipates these resources will meet its financing needs for the current crop year.

Looking forward, due to the strong demand for the Company's AgriFlex Credit and Crop Input Financing programs, management anticipates that Fiscal 2003 revenue and earnings will increase 18% to 23% over prior year levels. The Company is also currently evaluating alternatives to increase and replace its current credit facility. The new credit facility will likely include a commercial paper securitization program similar to the one currently in place.

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.