AgriBioTech Inc. announced it has completed an early redemption of all $23.3 million of its subordinated convertible debentures ("sub-debt'') sold in late December 1998 and early January 1999.

The transaction to redeem the debt early was completed on Friday, May 28, 1999, and it will
prevent and eliminate a resetting of the amount of shares of common stock into which this debt
could otherwise have been converted by the debt holders.

The early redemption for $27.6 million, including accrued interest, was less than the payoff price of $28.5 million that would have been paid to the debt holders if the redemption were to have taken place beginning June 30, 1999, as allowed under the original contract.

The difference between the amount paid to redeem the debt and the amount reflected on the
company's books will be reported as an extraordinary item in ABT's Securities and Exchange
Commission filings and financial statements.

As previously announced, a significant portion of the cash ABT used for the early redemption of the "sub-debt'' was from internally generated funds available through its revolving line of credit (BABC revolver).

The remaining $10.0 million came from a short-term bridge loan from Richard Budd and members
of his family. Budd is chairman and chief executive officer of ABT. The unsecured bridge loan
carries an interest rate of prime plus one-half percent.

ABT expects to repay the bridge loan and reduce the BABC revolver balance shortly with the
proceeds from an issuance of equity securities to an existing shareholder.

"Redeeming this debt, and doing so early, is extremely important to ABT's future,'' said Budd. "It
means we can take advantage of the many options now open to us to strengthen our balance sheet, and that management can once again focus all of its energies on our long-term business plan and the future.''

Budd added, "My family and I have every confidence in the future of ABT, and we are pleased to
have helped put the matter of this sub-debt behind us.

"We thank those who have worked with us to achieve this milestone in ABT's growth and
development and we are grateful for the confidence they have shown in us and our business plan. I look forward to working with them as we move to take additional steps to strengthen and improve
our capital structure.''

AgriBioTech is a vertically integrated, full service seed company specializing in the forage and
turfgrass seed sector, complete with research and development of proprietary seed varieties, seed
processing plants, and a national and international distribution and sales network. ABT's vision is to lead the turf and forage seed industry in discovering its value potential.

Company news release
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