Cedar Falls, Iowa
February 25, 2003

Ag Services of America, Inc. (NYSE:ASV) and American Securities Capital Partners, L.P. (ASCP) announced today the signing of a definitive agreement providing for an investment of up to $70 million in Ag Services by ASCP.

The agreement provides that ASCP will invest up to $70 million in Ag Services over a three-year period. The first tranche of $35 million is expected in the first quarter of the Company's fiscal year, which ends on May 31, 2003, subject to shareholder approval and other closing conditions. Two additional tranches of $17.5 million each will be made in the two following years, subject to certain Company performance thresholds and other closing conditions. The last tranche of $17.5 million can be terminated if it is not needed to support the Company's growth plans. ASCP will be purchasing Ag Services' 8.375% convertible preferred stock, which may be redeemed after seven years and is convertible to common stock at a price of $8.50 per share. ASCP will have voting control of Ag Services after the initial funding of $35 million occurs. A definitive proxy statement will be mailed in connection with a shareholder meeting seeking to approve this transaction. Ag Services' board of directors', including the three founders, have agreed to vote their shares, currently representing approximately 23% of Ag Services, in favor of this transaction.

Additionally, Ag Services announced an increase of $100 million to its current revolving line of credit. This increases the current credit facility to $200 million and allows additional loan commitments to be made for the 2003 crop season. The Company also continues to work towards finalizing a long-term replacement of its current, secured credit facility.

American Securities Capital Partners is the private-equity investment arm of American Securities, a family office founded in 1947 by the late William Rosenwald, to manage his share of his family's Sears Roebuck fortune. ASCP manages more than $1 billion of committed capital in private equity and is currently investing its third private-equity investment fund with outside investors, which has $650 million of capital committed.

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 agricultural 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.