Bion Environmental Technologies, Inc. Announces Capitalization Restructuring.

Business Editors

LITTLETON, Colo.--(BUSINESS WIRE)--Aug. 16, 2000

Bion Environmental Technologies, Inc. (OTCBB:BION) announced today that it has begun to implement the final components of the restructuring of its capital structure, which was agreed to as part of its transaction with D2 Co., LLC, in December, 1999. (See Form 8K dated 12/11/99.)

This restructuring includes, without limitation, exchanges of outstanding warrants for restricted common stock, exchanges of existing options for new options, exercises of existing options by cancellation of debt, amendment of debt conversion terms and conversion of outstanding debt. These matters should be completed no later than mid-January, 2001.

According to David Mitchell, CEO, "This restructuring, affecting both employees and investors, is an opportunity for the Company to simplify its capitalization in preparation for future anticipated debt and equity capital requirements." Bion anticipates concluding these financings by early in the first quarter of 2001.

In conjunction with the restructuring, the Company has retained BDO Seidmann as Bion's accounting firm. (See Form 8K dated August 9, 2000.)

Bion Environmental Technologies, Inc., designs and operates patented biological treatment systems that eliminate the odors and nutrient leaching from the waste produced on large hog and dairy farms. The systems, which can be monitored from remote locations, convert the waste into BionSoil, a nutrient-rich, soil enhancement or fertilizer material. The Company has offices in New York, Colorado, North Carolina, California and Florida. Inquiries may be directed to Craig Scott, Director of Investor Relations, at 800-769-7205 or 303-843-6191.

This material includes forward-looking statements based on management's current reasonable business expectations. 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. This 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.