Ag Services of America Inc. and Powerfarm Inc., its e-commerce subsidiary announced today
that they entered into a License and Information Sharing Agreement ("Agreement'') with a newly formed wholly owned subsidiary of Agritech Inversora S.A., ("AISA'') a publicly traded company listed on the Buenos Aires stock exchange (symbol AISA). AISA and its subsidiaries have been active in Argentine agriculture since 1993 and in 2000/2001 will be providing operations management services on 72,000 acres of various cash crops in Argentina.

Under the terms of the Agreement Ag Services of America, Inc. and Powerfarm Inc. agree to share their knowledge, trade secrets, technology, and the use of trade names and trademarks in exchange for a royalty fee on all net revenues generated through Powerfarm S.A. a subsidiary of Agritech Inversora S.A. The actual royalty fee earned by Ag Services of America, Inc. and Powerfarm Inc. will range from 1%-2% of total Net Revenues of Powerfarm S.A. as defined. Initially Powerfarm S.A. will focus on the Argentina market, followed by Brazil, Chile, Paraguay and Uruguay. All capital requirements, funding and financial risks of Powerfarm S.A. are the responsibility of AISA.

"This Agreement marks our first entry into International Market,'' said Brad Schlotfeldt, Senior Executive Officer. "It offers us a terrific opportunity to leverage our business model, domain expertise and advanced technologies into South America with an established agricultural firm that understands the local market. We are very pleased to have such a prestigious and experienced licensee as our first international partner. It's interesting to note that the current condition of agricultural credit in South America is very similar to the United States' agricultural credit, as it existed in the 1980's when Ag Services was founded. Considering this and the size of the market, we see significant opportunity for growth. With the broad reach of Powerfarm.com it is our intention to expand this model and concept into other international markets in the future.''

Commenting on the Agreement, AISA's President, Jose Maria Ibarbia, said, "AISA is proud and pleased to be able to introduce Ag Services' successful business model to Argentina and Mercosur. The move is consistent with AISA's mission and determination to offer leadership in bringing to Argentine and South American agriculture the best the world has to offer in new technologies, and the knowledge to operate them profitably while benefiting producers and
shareholders. With the country's farm credit system currently in a difficult state, the arrival of Powerfarm S.A. and Ag Services' innovative and unique financing approach will open a new source of credit that will be welcomed by farmers and input suppliers alike. We plan to expand the program aggressively. We believe Powerfarm S.A. can generate $6 to 8 million in revenues in the first twelve months of operations with accelerated growth thereafter.''

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.

Agritech Inversora S.A. is a holding company whose subsidiaries operate in two divisions: farm products and services; and fresh fruit and vegetable production and distribution. In both divisions the emphasis is upon providing value added products and in gaining and maintaining market leadership thorough research and development and innovative approaches to meeting customer requirements. Agritech's farm products division employs a number of qualified and experienced agricultural experts and is a leader in providing farm management services. Its fruit and vegetable division grows and sells a variety of high quality produce to the local market and, contra-seasonally, to export markets in Europe and North America. Fresh seedless table grapes, strawberries and sweet corn have enjoyed excellent acceptance. Agritech is the only agribusiness company listed on the Buenos Aires stock exchange that covers such a range of differentiated, and non-commodity products and services.

Powerfarm, Inc. is a wholly owned subsidiary of Ag Services of America, Inc. which operates and manages Powerfarm.com, the company's e-commerce website. Powerfarm.com has compiled the most comprehensive assortment of name brand agriculture products, services and credit options available on the Internet today. Products currently available include seed, fertilizer and crop protection products, along with headline Ag news, market quotes and weather. Growers can access secure, 24-hour shopping for products and sign up for additional services like crop insurance, grain marketing programs, crop scouting and soil sampling services. Within the Powerfarm community, producers can post questions for the company's agronomists and Certified Crop Advisors, as well as communicate with others around the world to share ideas and discuss topics of concern in agriculture.

Ag Services of America, Inc., is based in Cedar Falls, Iowa, and is a leading 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. The Company also provides ancillary services such as crop insurance, crop scouting and grain marketing. 

Company news release
N2822