Dr. Johnny R. Thomas, Chairman and Chief Executive Officer, AgriBioTech, Inc. ("ABT") (NASDAQ National Market: ABTX) announced that the Company believes the reported class action lawsuit filed by Milberg Weiss Bershad Hynes and Lerach LLP is without merit.

The Company has not been served with the class action lawsuit reportedly filed by Milberg Weiss. The Company has seen a newswire story which alleges fraud, accounting manipulations and implies restatement of financial statements in fiscal years 1997 and 1998.

The allegations reported in the newswire attempt to establish a relationship between the alleged accounting irregularities and the drop in the Company’s stock price through August 26, 1998.

Dr. Thomas stated, "the allegations about fraud, accounting manipulations and implied restatements are false. The SEC performed a full review, including a review of financial information, of the Company’s registration statements under the Securities Act of 1933 and its periodic filings under the Securities Exchange Act of 1934, which concluded on August 14, 1998. There was no restatement of sales, profit or losses as implied. Furthermore, the Company believes the stock volatility during the period ended August 26, 1998 was generally in line with the decline of all NASDAQ small cap stocks. Consequently, management believes the class action lawsuit is without merit and will be defended vigorously."

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