Bion Announces Joint Venture to Develop Advanced, Environmentally-Compliant Dairy Complexes.

Business Editors / Environment Writers

Bion Environmental Technologies, Inc. (OTCBB:BNET), a leader in the development of innovative livestock waste management systems, announced today that its subsidiary, Dairy Park, LLC, has entered into an agreement with Dr. Michael J. McCloskey and Timothy C. den Dulk to develop, own and operate a number of large dairy facilities.

Bion anticipates that two to four complexes, ranging in size from 10,000 to 50,000 animals, will be developed by the joint venture over the next three years. The complexes will be turnkey, state-of-the-art facilities and will be made available to dairy producers under terms of a 10-year, triple-net lease. Bion will provide its technology for waste management, secure financing for the facilities, develop the financial lease terms and provide independent management. The primary responsibilities of the McCloskey/den Dulk partnership will be site selection and development, lease terms and recruitment of tenants, and management of the facilities.

David Mitchell, Chairman and CEO of Bion, stated, "The complexes envisioned by Bion and the McCloskey/den Dulk partnership represent a significant shift in the economics of dairy farming and milk production. The availability of a turnkey facility will enable dairy farmers to concentrate their capital resources on herd development instead of land and equipment, marketing and waste management expenses. Additionally, because the environmental issues normally associated with large dairies are solved by the Bion Nutrient Management System(R) (NMS), the complexes can be located to maximize profitability and distance to market."

Dr. McCloskey obtained a Doctorate of Veterinary Medicine in 1976 from the University of Mexico, Mexico City and completed a specialty in dairy production medicine at the University of California, Davis. Since that time he has served in leadership positions in every aspect of the dairy industry -- from individual production to the development of dairy policy at the regional and national levels.

Dr. McCloskey is actively involved in the ownership and management of dairies in New Mexico, Michigan, and Indiana, including Fair Oaks Dairy Farm, Fair Oaks, Indiana which is currently at 15,000 milking cows and anticipated to grow by another 7,000 within two years. Dr. McCloskey was instrumental in the formation of the Texas-New Mexico Milk Marketing Agency, an agency that controls the marketing and transportation of virtually all milk marketed in Texas and New Mexico. Additionally, he serves on the board of the National Milk Producers Federation, participates in the Federal Order Policy and Dairy Export Policy committees, and is a member of Bion's Advisory Board.

In regards to the concept of large dairy complexes, Dr. McCloskey stated, "The Bion technology will allow us to position these facilities very competitively, from the standpoint of both marketing and feed."

Timothy C. den Dulk owns and manages dairy farms in California, New Mexico, Michigan, Ohio, and Indiana that milk approximately 30,000 cows. He also raises dairy heifers in Tennessee, Kentucky, Missouri, Nebraska and South Dakota which, when combined with his milking cows, total to a herd size of almost 60,000 cows. Additionally, Mr. den Dulk farms row crops on approximately 20,000 acres in the above mentioned states as well as grapes, walnuts, peaches and almonds in California.

Mr. den Dulk was a Founder and past Director of Select Milk Producers, Inc., the nation's 18th largest milk cooperative. He was a Founder and is currently Chairman of the Board of Continental Dairy Products, Inc., a rapidly growing marketing cooperative with members in Ohio, Indiana and Michigan.

Dr. McCloskey and Mr. den Dulk are co-owners of Quality Milk Sales, Inc., responsible for marketing the milk produced by the dairy farmer members of Select Milk Producers, Elite Milk Producers, and Continental Dairy Products in New Mexico, Texas, Indiana, Michigan and Ohio. As a group, these members produce in excess of 4 billion pounds of milk per year accounting for approximately $600,000,000 in annual sales.

David Mitchell further stated, "We are very pleased to be entering into this joint venture with partners such as Dr. McCloskey and Mr. den Dulk. The depth of their experience and associations within the dairy and farming industries, combined with the geographically-diversified nature of their operations, give them a unique national presence that will prove invaluable in this endeavor."

About Bion: Founded in 1989, Bion provides waste management solutions to agriculture, focusing on livestock waste from confined animal feeding operations (CAFOs), such as large dairy and hog farms. Bion has invested 13 years and $40 million into developing the state-of-the-art Bion NMS in response to this need. The Bion NMS is a proprietary and patented waste treatment system that remediates animal waste in a manner that is both economical and consistent with existing and proposed environmental regulatory requirements. The Bion NMS also serves as a platform that is able to incorporate other waste treatment technologies, enabling those technologies to be implemented more efficiently than if they were installed and operated independently. Because it is a platform, Bion's NMS is capable of generating revenue not only from the products and services it produces (waste removal, soil production and potentially environmental credits), but also from technologies that are integrated into the platform (anaerobic digestion, which produces energy; and membrane filtration, which produces reusable water).

This material includes forward-looking statements based on management's current reasonable business expectations. In this document, the words "anticipates," "will," "can," and similar expressions identify certain forward-looking statements. These statements are made in reliance on the Private Securities Litigation Reform Act, Section 27A of the Securities act of 1933, as amended. There are numerous risks and uncertainties that could result in actual results differing materially from expected outcomes. The material should be read in conjunction with the Company's current annual and quarterly reports filed with the SEC, which contain discussions of currently known factors that could significantly impact the Company's future expectations.