Ag Services of America Inc. (NYSE: ASV) announced the recent approval from the City of Cedar Falls for 12.5 acres of real estate in the City's Technology Park for the construction of a new
corporate office. In addition to the donated land, the City has agreed to provide certain property tax abatements over a five-year period following completion of construction. The new facility will have approximately 55,000 to 60,000 sq. ft of office space with adequate land for future expansion. The construction of the new office facility will start in the spring of 2001 with an estimated cost of $4.4 to $4.8 million and completion estimated in February 2002.

"The construction of the new office space will allow Ag Services to continue the growth that has been at the focal point of the company,'' said Brad Schlotfeldt, Senior Executive Officer. "At the present time, we lease approximately 35,000 sq. ft. with no opportunity for expansion at our current facility. After exploring all other avenues including leasing new space we found it would be more economical to construct our own facility.''

The Company will finance the project with a conventional mortgage or Industrial Revenue Bonds which offer very favorable interest rates. The debt associated with the construction of a new corporate headquarters will not impact the Company's ability to finance its growing portfolio of crop input loans.

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., 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.

Ag Services of America, Inc. also operates http://www.Powerfarm.com, through its wholly owned
subsidiary Powerfarm, Inc. 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. 

Company news release
N3138