During the three months ended August 31, 1999, the Company reported record net revenues of $89.2 million up 29% from $69.4 million for the three months ended August 31, 1998. Income before income tax increased 24% to $4.4 million from $3.5 million for the second quarter a year ago. Net income was $2.7 million ($0.50 per share diluted) up 20% from $2.3 million ($0.42 per share diluted) for the same period last year.

For the six months ended August 31, 1999, the Company also reported record net revenues and
earnings. Net revenues increased 30% to $223.0 million compared with $170.9 million for the same period a year ago. Income before income tax increased 27% to $9.3 million from $7.3 million for the first six months a year ago. Net income for the six months ended August 31, 1999 was $5.8 million ($1.07 per share diluted) up 23% compared with $4.7 million ($0.87 per share diluted) for the same period last year.

In each of the thirty-two quarters since the Company began public trading it has reported record net revenues and record net income year over year in all but four quarters.

Management is pleased with the results of the quarter and six months ended August 31, 1999. Diluted earnings per share of $0.57 and $0.50, respectively, for the first two quarters of fiscal 2000 represent the highest quarterly diluted earnings per share in the Company's history. The Company's marketing strategy produced records in both the number and size of new customers. The industry continues to consolidate resulting in larger farming operations. As these larger farming operations seek to become more efficient and require more flexible financing and supply options, the wide range of products and services offered by the Company's AgriFlex Credit® program has become an attractive alternative to these larger producers. The Company expects to continue to benefit from this trend in the future.

In the first six months the Company's sales mix changed due to a shift in the market from corn to
soybean production and a decrease of approximately 50 basis points in the prime lending rate
reduced financing margins. In addition, the Company's provision for loan losses increased slightly and its federal tax rate reached the maximum level due to greater earnings.

The Company is currently in the process of completing annual farm visits to assess crop conditions and determine marketing strategies with its farmer clients. Preliminary results from these visits show favorable crop conditions, and the Company anticipates that fiscal 2000 will mark the twelfth consecutive year of record revenues and earnings.

Company news release
N2116