Ag Services of America, Inc. today announced the launch of http://www.powerfarm.com, a comprehensive information and e-commerce website with the support and participation of leading agriculture manufacturers.

The site includes current agricultural news, weather, market quotes and comprehensive product data as well as flexible financing and the most extensive selection of name brand agriculture products available on the Internet. The site initially features products produced by Monsanto, Dekalb, Novartis Seed, Asgrow, Garst, American Cyanamid, Zeneca and Bayer.

"We are very excited about the launch of Powerfarm.com and its long term potential for Ag Services,'' said Brad Schlotfeldt, Vice President of Finance for Ag Services. "Today, nearly 30% of American farmers have Internet access. That number has grown over 120% since 1997 and continues to increase. We believe Powerfarm.com puts Ag Services in a key strategic position within the industry as one of the first websites to effectively combine quality information with name brand products from the companies farmers know and trust. In addition, we offer producers flexible financing options to provide the purchasing power they need.''

Complete operating financing will be available through Ag Services' existing AgriFlex Credit® program. This option provides farmers credit for product purchases on or off the website and to receive cash advances for operating expenses such as land rent or fuel. In addition, the Company has developed a new product, Powerfarm Credit(TM), which is a financing program available for the purchase of products and services exclusively on the Powerfarm.com website. The site will also accept Master Card, Visa, checks, money orders and the electronic transfer of funds.

The Company continues discussions with additional suppliers and expects to add to the list of products and services available on Powerfarm.com.

The Private Securities Litigation Reform Act of 1995 provides a ``safe harbor'' for forward-looking
statements. This release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The factors that could cause actual results to differ materially, include the following: general economic conditions within the agricultural industry; competitive factors and pricing pressures; changes in product mix; changes in the seasonality of demand patterns; changes in weather conditions; changes in agricultural regulations; unknown risks; the amount and availability under its asset backed securitization program; and the risks described from time to time in the Company's SEC reports.

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
N2221