Ag Services of America, Inc. reported record net revenue and earnings for the third fiscal quarter ended November 30, 1999. Net revenue for the three months ended November 30, 1999 increased 62% to $26.7 million from $16.4 million during the comparable quarter last year. Net earnings for the three month period ended November 30, 1999 increased 15% to $1.6 million compared to $1.4 million for the third quarter of fiscal 1999. Diluted earnings per share increased 14% to $0.30 for the third quarter of fiscal 2000 from $0.26 for the same period last year.

Net revenue for the first nine months of fiscal 2000 increased 33% to $250 million from $187
million for the same period last year. Net earnings for the nine month period ended November 30,
1999 increased 21% to $7.4 million compared to $6.1 million for the third quarter of fiscal 1999.
Diluted earnings per share increased 21% to $1.36 for the third quarter of fiscal 2000 from $1.13
for the same period last year.

"While we are extremely pleased to report record revenue and earnings we are also very excited
about several other accomplishments during the quarter,'' stated Brad Schlotfeldt, Vice-President
Finance of Ag Services of America. "During the quarter we introduced Powerfarm.com, our
one-stop-shop for agricultural e-commerce and farming information, increased our regional direct
sales force from 28 to 32, renewed our marketing efforts towards larger agricultural producers and
worked diligently to increase our financing commitments for the 2000 crop year,'' Schlotfeldt added.

The Company's operating expenses as a percentage of net revenue decreased slightly for the quarter ended November 30, 1999 over the comparable period last year due to gains in operating
efficiencies. Offsetting some of the operating efficiencies were margin reductions due to a change in farm input sales mix and a lower financing margin from financing a greater percentage of revenue. In addition, the Company increased its accrual for doubtful accounts in line with market conditions earlier in the year, reserving approximately an additional $100,000 during the quarter ended November 30, 1999.

Ag Services of America, Inc., based in Cedar Falls, Iowa, is a competitive supplier of input
financing and agricultural inputs, including seed, chemicals, fertilizer and cash advances to primarily corn and soybean growers in the U.S. ASV's one-stop shopping business model includes competitive and flexible financing packages through its AgriFlex Credit® program combined with the most comprehensive offering of agricultural inputs from national sources such as American Cyanamid, Asgrow, Bayer, Dekalb, Dow Chemical, DuPont, Garst, Monsanto, Novartis, Pioneer Hi-Bred, and Zeneca. ASV finances AgriFlex Credit® with a $275 million securitization program that is structured and guaranteed by MBIA Insurance Corporation. ASV protects its receivables by requiring multi-peril crop insurance, the first lien on the crop, assignment of all government payments and additional collateral (preferably land) if necessary. The Company also provides ancillary services such as crop insurance, crop scouting and grain marketing.

Company news release
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