Server: Netscape-Enterprise/2.01 Date: Mon, 29 Dec 1997 18:08:47 GMT Content-type: text/html Ag Services News Release for 06/24/1996

NEWS RELEASE

June 24, 1996

NASDAQ: AGSV

Contact: Brad Schlotfeldt
Phone No. (319) 277-0261
or (800) 395-8505
Fax No. (319) 277-0144
http://www.agservices.com

AG SERVICES OF AMERICA, INC. ANNOUNCES RECORD FIRST QUARTER RESULTS

During the three months ended May 31, 1996, the Company reported record net revenues of $66.2 million up 35% from $49.0 million for the three months ended May 31, 1995. The Company also reported record net income of $1,572,716 ($0.33 per share fully diluted) up 37% from $1,148,155 ($0.25 per share fully diluted) for the same period last year.

Management was extremely pleased with the results of the first quarter ended May 31, 1996. On June 7, 1996 the Company called all of its 7% convertible subordinated debentures. The conversion of these debentures will increase profitibility as well as improve cash flow. The final date for conversion or redemption is July 10, 1996. The Paying and Conversion Agent is Norwest Bank Minnesota, N.A. and can be reached at (800)344-5128.

SAFE HARBOR PROVISION

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; and the risks described from time to time in the Company's SEC reports.

Ag Services of America, Inc. supplies farm inputs including seed, fertilizer, agricultural chemicals, crop insurance, and cash advances for land rent, fuel, and irrigation to farmers primarily in the central United States.


 
                                          (Unaudited)
                                      Three Months Ended              Year Ended
                                   May 31,        May 31,      February 29,   February 28,
                                     1996           1995           1996           1995
                                        (In thousands except per share amounts)

Net revenues                       $66,207        $48,954       $114,686        $87,331
Income before income taxes          $2,456         $1,799         $4,863         $3,763
Net income                          $1,573         $1,148         $3,133         $2,402

Earnings per share:
  Primary                            $0.41          $0.31          $0.84          $0.66
  Fully diluted                      $0.33          $0.25          $0.72          $0.60
Weighted average shares:
  Primary                            3,853          3,677          3,709          3,659
  Fully diluted                      5,355          5,169          5,260          5,158


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