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                                                                    EXHIBIT 99.2



FOR IMMEDIATE RELEASE
Contact:
Joyce Fox
619-549-5130

       PLANET POLYMER TECHNOLOGIES, INC. ANNOUNCES SHAREHOLDER APPROVAL OF
 AGWAY'S PURCHASE OF PLANET'S COMMON STOCK AND THE COMPLETION OF THE TRANSACTION


San Diego, CA -- January 12, 1999 -- Planet Polymer Technologies, Inc.,
("Planet") a specialty chemical company, (NASDAQ: POLY), announced today that
Agway, Inc.'s purchase of 1,000,000 shares of Planet's common stock for
$1,000,000 has been completed. Shareholders approved the transaction on January
6, 1999.

According to Robert J. Petcavich, Ph.D., "we are looking forward to a successful
long term relationship and this is a major step forward towards commercializing
Planet's polymer technologies."

Dennis LaHood, President of the Country Products Group of Agway, Inc. said, "we
continue to believe that there are a number of potential applications for
Planet's technology in food and agriculture sectors and we look forward to
working with Dr. Petcavich and the Planet team."

Planet Polymer Technologies, Inc. is a specialty chemical company that designs,
develops, manufactures, and markets degradable and recycled polymer materials.
The Company's proprietary polymer 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, NY, is a 1.6 billion dollar agricultural
cooperative owned by 75,000 farmers-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.

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, as well as the
other risks detailed from time to time in Planet Polymer's SEC reports including
the report on Form 10-KSB for the year ended December, 1997.

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