Ag Services of America, Inc. today announced that they expect to launch "Powerfarm.com,'' a comprehensive information and e-commerce site with the support and participation of leading agriculture companies. Powerfarm.com will initially feature a wide selection of farm inputs, product data and flexible financing options. In addition, current news, market information and weather forecasts will also be available. The company intends to introduce the site and the online store by November 1, 1999, in time for the 2000 crop year.

The web based operation will feature a wide selection of products that initially includes name brand seed and chemicals from major manufacturers such as Monsanto, Dekalb, Novartis, Asgrow, Garst, American Cyanamid, Zeneca and Bayer. As the site continues to develop, additional key companies will be added to supply farmers with all types of agricultural related products and services. Financing for crop production needs will be available through the company's existing AgriFlex Credit® program and additional credit and cash options, administered by Ag Services of America, will also be available to customers.

"The Powerfarm.com e-commerce website is a natural expansion and enhancement of the business model Ag Services has been following since our inception in 1985. We have the people, infrastructure and distribution access to make this an extremely important and significant step in the continued growth and success of our company,'' said Brad Schlotfeldt, Chief Financial Officer of Ag Services of America Inc. "Through our established relationships with the nation's leading  manufacturers and suppliers, we have long been able to sell, finance, and distribute thousands of products to farmers throughout the country by utilizing these companies' existing storage facilities and distribution networks. Powerfarm.com will provide Ag Services of America with a powerful tool to efficiently and effectively reach the growing number of farmers that utilize the Internet,'' continued Mr. Schlotfeldt.

Through the development of Powerfarm.com, Ag Services of America will be enhancing their unique "One-Stop'' structure for farmers by now combining a large selection of quality products and flexible financing, with timely market information and news from trusted sources.

"The availability of credit, and the ability for a farmer to access our existing staff of Certified Crop
Advisors and experienced credit, accounting and insurance personnel, will effectively complement the strong support services already offered by Powerfarm.com suppliers,'' continues Schlotfeldt. "The store will be designed to combine the strengths of Ag Services, with the quality products and distribution functions of the major companies supporting and participating in Powerfarm.com.''

Ag Services of America Inc. extends credit and provides farmers the convenience of purchasing and financing a wide variety of name brand farm inputs from a single source at competitive prices. Inputs offered by the Company include seed, fertilizer, agricultural chemicals, crop insurance, and cash advances for operating expenses such as land rent, fuel and irrigation. The Company's customers consist primarily of corn and soybean producers in the central United States.

Company news release
N2088