Rabobank Continues Its Expansion of US Agri-Business Finance

Rabobank International, the corporate and investment banking arm of The Netherlands-based Rabobank Group, today announced that it has entered into an agreement to acquire Ag Services of America, Inc. (NYSE: ASV - News).

Under the terms of the agreement, Rabobank would purchase 100 percent of the shares of Ag Services of America. Ag Services of America shareholders will receive value equivalent to US$8.50 in cash for each Ag Services of America share, a premium of 39 percent over the closing price of $6.12 on October 31, 2003. This price values the total issued shares of Ag Services of America at approximately $47 million. Rabobank plans to finance the transaction from existing funds.

Ag Services of America, Inc., based in Cedar Falls, Iowa, is a supplier of crop production financing to primarily corn and soybean growers in the U.S. Ag Services also administers financing programs for suppliers, manufacturers and distributors in the agricultural industry in addition to providing ancillary services such as crop insurance and grain marketing programs. The company employs approximately 115 people in Cedar Falls and throughout the U.S. Ag Services of America has originated approximately $265 million in loans for the current crop year.

The acquisition has been approved by the boards of directors of both Rabobank International and Ag Services of America. The sale is expected to close on or about December 31, 2003, subject to approval by Ag Services of America's shareholders and the Dutch Central Bank.

Rabobank said that its acquisition of Ag Services of America builds upon its strategy of exporting its core competencies in retail banking and agricultural lending from its home market of The Netherlands to the most promising markets around the world. This acquisition will broaden and deepen Rabobank's capabilities and geographic reach in the U.S. to the agricultural sector.

Following the closing of the sale, Ag Services of America will be renamed Rabo Ag Services of America. Ag Services of America will largely retain its current structure. Ag Services of Americas' current CEO Kevin Schipper will retain his current position leading the new subsidiary of Rabobank International. During the transition and following the close of the sale, Ag Services of America will continue to provide credit products and services to its clients seamlessly and without interruption.

Cor Broekhuyse, Regional Head of the Americas for Rabobank International, said, "We are very pleased about the acquisition of Ag Services, which complements our previous investments in VIB Corp and Lend Lease Agri-Business (now Rabo Agrifinance). With this acquisition we will be able to deliver all the short and long term financing products that our farming clients need."

Kevin Schipper, Chief Executive Officer of Ag Services of America, said, "We are excited to become a part of Rabobank, a group that closely represents the ideals and dedication to agriculture that we have based our company on for 18 years. Becoming a part of a global agricultural network with immense resources and financial stability will enhance our business and allow us to develop even more competitive products and services to meet the growing needs of commercial producers."

About the Rabobank Group

The Rabobank Group (http://www.rabobank.com) is a broad financial services provider. Its cooperative foundation has given it a clear customer focus. All the divisions of the Group work in close cooperation in order to jointly offer customers the best possible price-quality ratio and a wide range of financial services and products, such as payment, saving, lending, insuring and investing. The Group consists of 341 independent local cooperative Rabobanks and encompasses specialized subsidiaries and entities such as De Lage Landen (leasing and vendor financing), Gilde Investment (Venture Capital), Interpolis (insurance), Rabobank International (corporate and investment banking) and Robeco (asset management). The Group is represented internationally with 169 locations in 34 countries. The Rabobank Group has received the highest credit rating from Moody's and Standard & Poor's. The Rabobank Group has over nine million private and business customers and is market leader in The Netherlands in virtually every area of financial services.

About Ag Services of America, Inc.

Ag Services of America, Inc. (http://www.agservices.com) is one of the leading providers of crop input financing and agricultural services to primarily corn and soybean growers in the central U.S. The Company offers competitive and flexible financing packages through its primary product, AgriFlex Credit®. 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.

Additional Rabobank Group Information

U.S. Operations