Cedar Falls, Iowa
September 26, 2002

Ag Services of America, Inc. (NYSE:ASV) today announced that net income for the second quarter of fiscal year ending February 28, 2003 ("Fiscal 2003") increased 3.6% to $2.5 million as compared to $2.0 million for the same period one year ago. Net revenues for the second quarter of Fiscal 2003 were $148.5 million, which was a 35% increase over prior year second quarter revenues of $110.3 million.
Net income for the first six months of Fiscal 2003 increased 21% to $4.7 million, compared to $3.9 million for the same period one year ago. Net revenues for the same periods increased 31% to $360.5 million from $274.5 million last year.

Strong demand for the Company's AgriFlex Credit financing program for the 2002 growing season has influenced the growth in earnings and revenues for the first two quarters of Fiscal 2003. Gross margin on the sale of farm inputs grew 36% compared to 31% growth in revenue for the first six months. Net financing income increased 7% for the first six months over last year as a result of a 250 basis point decline in interest rates from one year ago. Operating expenses through August 31st as a percentage of net revenues have continued to decline to 2.2% compared to 2.4% for the same period one year ago.

Looking forward, the Company is currently in the process of replacing its current credit facilities. The current facilities are set to expire in November of this year. The Company expects to have a firm commitment on its new credit facility prior to November. Management's outlook for Fiscal 2003 revenue and earnings is on target with original expectations of an 18% to 23% increase over prior year levels.

As part of the regular evaluation of its financial reporting practices, the Company has decided that effective the fourth quarter of the current fiscal year, the Company will present revenues associated with the cash advances for fuel, irrigation, land rents and other farm inputs and revenues associated with the input only program on a net reporting basis in contrast to the current gross reporting basis. The input only program is a financing program provided by the Company for various suppliers and manufacturers. The Company has decided to report its revenue in this manner because it believes this will be a more preferable presentation under current generally accepted accounting principles. This presentation would have the impact of reducing farm input revenues and cost of farm input revenues for the six month periods ended August 31, 2002 and 2001 by approximately $205 million and $153 million, respectively. For the three months ended August 31, 2002 and 2001 the impact would have reduced farm input revenues and cost of farm input revenues by approximately $68 million and $50 million, respectively. Most importantly, this presentation will have no impact on future or past earnings of the Company.

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.

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