Ag Services of America, Inc. (NYSE: ASV - news) reported record net revenue and earnings
from continuing operations for the six months ended August 31, 2000. Net revenues for the six
months ended August 31, 2000 increased 17% to $259.3 million from $221.6 million during
the comparable quarter last year. Net earnings from continuing operations increased 1% to
$5.9 million for the first six months of fiscal 2001. Diluted earnings per share for the six months
ended August 31, 2000 was $1.06 per share compared to $1.07 last year. The investment and
build out of Powerfarm impacted the six-month earnings by $416,000, or $0.08 per share on a
diluted basis. Powerfarm's results included revenues of approximately $700,000 and expenses
related to infrastructure and web site development and the ongoing operations of Powerfarm of
$670,000. Excluding Powerfarm, Ag Services net earnings from continuing operations for the
first six months of fiscal 2001 were $6.3 million, an increase of 7% over last year.

Net revenues from continuing operations for the three months ended August 31, 2000
increased 17% to $103.5 million from $88.7 million during the comparable quarter last year.
Net earnings were $2.73 million compared to $2.75 million for the same period last year.
Earnings per share for the second quarter of fiscal 2001 remained steady with the second
quarter of fiscal 2000 at $0.50 per diluted share. Excluding Powerfarm, net earnings from
continuing operations increased 6% to $2.9 million when compared to last year.

"This level of earnings was anticipated given the continued qeographic diversification of our
sales, the continued increase in the average size of our customers, pricing pressures specifically
in the chemical industry, and our investment in the future of Ag Services through
Powerfarm.com,'' stated Brad Schlotfeldt, Senior Executive Officer.

The Company believes the future potential for Powerfarm is great and will continue to develop
and build out the business while implementing a more traditional business strategy. This strategy
will be more conservative as compared to many other internet companies, with a focus toward
long-term growth and profitability. The strengths of Powerfarm's business model include internal
agronomic professionals and flexible financing options available for the producer. Powerfarm
also includes a broad selection of agricultural inputs from national agricultural seed and crop
protection companies including these industry leaders: American Cyanamid, Asgrow, Bayer,
Dekalb, Dow AgroSciences, Garst, Gutwein, Monsanto, Novartis, Stine, Valent, Wilson and
Zeneca.

The Company is currently in the process of completing annual farm visits to assess crop
conditions and to determine marketing strategies with its agricultural producers. The Company's
portfolio of agricultural notes continues to strengthen, as it has become a focal point for the
Company. Current year collateral positions appear to be strong as agricultural producers have
overcome depressed commodity prices with projected near record yields and government
support programs. The Company is currently in the planning process for the next crop year.
District sales managers are being added in new and existing geographic areas and increased
marketing efforts are underway to expand the AgriFlex Credit® financing program.

Ag Services of America, Inc., which operates Powerfarm.com, is based in Cedar Falls, Iowa,
and 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. Ag Services'
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. 

Company news release
N3010