Bion Environmental Technologies, Inc. Announces Management Agreement.

Business Editors

DENVER--(BUSINESS WIRE)--Dec. 23, 1999

Bion Environmental Technologies, Inc. (OTCBB: BION) announced today that it has entered into a three-year management agreement with D2 Co., LLC. The agreement calls for D2 to aid Bion in strengthening its management team, refining the Company's business plan and assisting with the raising of capital necessary to implement the plan. Details are available in the Company's Form 8K, dated December 11, 1999. Immediate actions include the appointment of two new members to the Board of Directors: Salvatore Zizza and David Mitchell. Mr. Mitchell will also serve as CEO of Bion and Chairman of Bion's Executive Committee.

Mr. Zizza is currently the Chairman of The Bethlehem Corporation (AMEX: BET). He was previously Chairman and CEO of The Lehigh Group, Inc. (formerly Lehigh Valley Industries). He is a Director of several of the Gabelli Funds (Asset, Convertible Securities, Equity Trust, Global Multimedia Trust, Growth and Utility), The Bethlehem Corporation and Hollis Eden Pharmaceuticals (NASDAQ: HEPH).

Mr. Mitchell is the President of Mitchell & Co., Ltd, a merchant banking company he founded in 1991. Previously, he was a Managing Principal and Director of Rodman & Renshaw, a publicly held investment banking and brokerage firm, and a Director with Laidlaw, Adams & Peck, Inc., also an investment banking firm. He has held various positions with Cralin & Co., Bear Stearns and Oppenheimer. Mr. Mitchell now serves as Director of Kellstrom Industries, Inc. (NASDAQ: KELL), Bogen Communications International (NASDAQ: BOGN), Moto Guzzi (OTCBB: GUZI), as well as various private companies, universities and foundations.

D2 will also provide the consulting services of Summerwind Restructuring, Inc. to help Bion in the development and implementation of the Company's business plan and Company operations. Summerwind Restructuring provided similar services from 1998 through 1999 for Internet Commerce Corp. (NASDAQ: ICCSA).

Mark Smith, Bion's Chairman, stated: "We are pleased to have reached an agreement with the people of D2. We are optimistic that the addition of a group of this caliber to the Bion team will have a significant impact on the successful refinement and implementation of the Company's business plan. As Bion continues to develop its relationships with the major integrators and others, as well as establishing new relationships in the livestock and soils industry, the management expertise and capital resources of D2 will prove invaluable."

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, organic fertilizer material. Both Company and University sponsored growth studies have shown BionSoil to have remarkable plant growth-enhancing characteristics, outperforming expensive, highly engineered synthetic products. Research and test marketing indicates a high demand for BionSoil products and that it can be sold profitably. The Company has offices in Colorado, New York, Florida, California and North Carolina. Direct any inquiries to Craig Scott, Director of Investor Relations at [phone] or [e-mail]. The Company's website is located at www.biontech.com.