Dr. Johnny R. Thomas, chairman and chief executive officer, AgriBioTech Inc. announced today that due to market conditions, the company has decided to remain independent in order to maximize shareholder value and suspend its previously announced efforts to find a strategic equity partner.

According to Thomas: "The purpose of the strategic alternative process was to evaluate with
outside professional guidance all alternative courses of actions to maximize shareholder value.
This process has led company management and the board of directors to the conclusion that the
best course is to focus its complete attention on continuing to build franchise value as measured
by market share, germplasm leadership, world-class seed personnel and biotechnology.''

Over the past two months, the company has raised approximately $50 million through the
private placement of equity, convertible debt and the sale of certain non-seed assets of
Willamette Seed Co.

The financings have permitted the company to pay off the $15 million overadvance facility under
its Revolving Credit Facility with Bank America Business Credit, and the $15 million bridge loan
from Deutsche Bank, which has resulted in providing the company with greater operating
flexibility. As a result of these financings, the company's near-term cash requirements have
largely been met.

Although the company will likely continue to pursue opportunistic acquisitions, management's
focus has shifted to maximizing the exceptional asset base which the company has acquired over the past four years. Integration and biotechnology are expected to be the company's main focus over the next year. Integration of the 33 acquired companies into one unified, customer- oriented team is proceeding nicely.

The company's emerging biotechnology program is poised to lead the forage and turfgrass seed
sector in product development. Management expects significant additional biotechnology
developments.

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