Cedar Falls, Iowa
June 15,  2001

Due to wet weather conditions and the resulting delay in planting, Ag Services of America, Inc. (NYSE:ASV) today announced that it expects to report earnings for the first fiscal quarter ended May 31, 2001 below prior year levels. As a result of delays in chemical and fertilizer sales due to wet weather conditions in much of the Company's primary market area, as well as a decline in the prime lending rate, which is the base rate used by the Company to charge interest on a variable rate basis to its customers, the Company expects to report diluted earnings per share in the range of $0.32 to $0.34 for the first quarter ended May 31, 2001.

"We do not believe that first quarter results will be indicative of our Fiscal year end results as we expect our first quarter delayed sales to be moved into our second fiscal quarter," stated Brad D. Schlotfeldt, Senior Executive Officer. The cool wet weather has delayed the current crop-growing season approximately two to three weeks compared to a normal planting season and roughly four to five weeks behind last year's early crop season throughout our primary market area. We have seen areas in North Dakota, South Dakota, Minnesota, portions of Iowa and portions of Nebraska where wet conditions have caused producers to switch crop rotations and leave a portion of acres unplanted. This will have an effect on our overall revenues for Fiscal 2002. In addition, lower interest rates have the effect of reducing earnings on our invested capital. As a result of these factors, we expect Fiscal year revenues to increase in the range of 10 to 13% and earnings to increase between 3 - 10% over last year's levels."

The Company intends to release first quarter results on June 27, 2001.

Ag Services of America, Inc., which operates Powerfarm.com, 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. The Company's one-stop shopping business model includes competitive and flexible financing packages through its AgriFlex Credit(R) program combined with the most comprehensive offering of agricultural inputs from national sources such as Asgrow, Aventis, BASF, Dekalb, Dow AgroSciences, DuPont, Garst, Monsanto, Pioneer Hi-Bred, and Syngenta. The Company also provides ancillary services such as crop insurance, crop scouting and grain marketing.

AgriFlex Credit is a registered trademark and Powerfarm.com and Powerfarm Credit are trademarks of Ag Services of America, Inc. All other trademarks or product names are the property of their respective owners. For more information visit www.agservices.com or www.powerfarm.com. 

Company news release
N3591