Bion Environmental Technologies, Inc. Announces Closing of Private Offering.

Business Editors, Environmental Writers

DENVER--(BUSINESS WIRE)--April 27, 2000

Bion Environmental Technologies, Inc. (OTCBB:BION) announced today the closing of a private offering of $4,156,425 consisting of $4,095,000 in long term convertible bridge debt and $61,425 in equity for the purchase of 1,213,500 warrants.

The proceeds, less approximately $50,000 in offering expenses, will be used to fund the working capital requirements of the company.

The offering has not been registered under the Securities and Exchange Act of 1933 (the "Act") and was made in reliance on exemptions set forth in the Act and Rule 506 of Regulation D. Details concerning the notes and warrants are available in the company's Form 8-K, dated April 13, 2000.

David Mitchell, CEO of Bion, said, "The proceeds of the offering will be used for further R & D to prepare Bion's core biological technology for commercial application, to fund expanded BionSoil trials with major agricultural universities on vegetable and turfgrass applications and to create both marketing and general working capital. The company intends to explore additional potential markets for its treatment systems and anticipates the need for additional financing in the next twelve months to fund expansion and operations."

Bion Environmental Technologies, Inc., designs and operates patented biological treatment systems that eliminate the odors from large hog and dairy farms and convert the waste into BionSoil, a nutrient-rich, soil enhancement or fertilizer material. Both Company and University managed growth studies have shown BionSoil to have certain plant growth-enhancing characteristics as well as lower nitrogen rates but higher nitrogen absorption outperforming than other highly engineered synthetic products. The Company has offices in Colorado, New York, Florida, California and North Carolina. Direct any inquiries to Craig Scott, Director of Investor Relations at 800/769-7205 or [e-mail]. The Company's website is located at www.biontech.com.

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.