Planet Polymer Technologies Inc. and Agway Inc. Expand Relationship

Business Wire, August 2, 1999

SAN DIEGO--(BUSINESS WIRE)--Aug. 2, 1999--

Planet Polymer Technologies Inc., ("Planet") a specialty chemical company, (Nasdaq:POLY), announced today that Planet's License Agreement with Agrium Inc. of Calgary, Alberta, has been amended to allow development of Planet's time-release fertilizer coating technology with Agway Inc.

Planet has signed an expansion to their existing license agreement with Agway to increase further development and enhancement of Planet's time release fertilizer coating technology.

Dennis LaHood, president of the Country Products Group of Agway Inc. stated, "The opportunity to pursue fertilizer products using Planet's technology is very exciting. We would hope to start field trials in the near term."

Planet Polymer Technologies Inc. is a specialty chemical company that designs, develops, manufactures, and markets degradable and recycled polymer materials. The company's proprietary materials, which are marketed under the trademarks EnviroPlastic(R), Aquadro(TM), and AQUAMIM(TM), can be used to produce films, coatings, and injection molded parts that serve as environmental compatible alternatives to conventional engineered plastics.

Agway Inc., headquartered in Syracuse, N.Y., is a 1.6 billion-dollar agriculture cooperative owned by 75,000 farmer members. Agway's Country Products Group is involved in fresh produce distribution, sunflower processing, specialty pastry flour, dry edible beans and pet food. Agway's other businesses include agricultural supplies, energy products, yard and garden products, lease financing, and insurance. Agway currently owns 1,000,000 shares (15.7%) of Planet's Common Stock.

Except for the historical information contained herein, this news release contains forward-looking statements which involve risks and uncertainties, including the risk that the company and Agway Inc. will be unable to develop any products, the risk of acceptance and pricing of new products and approval by the appropriate governmental agencies, as well as the other risks detailed from time to time in Planet's SEC reports including the report on Form 10-KSB for the year ended December, 1998.