Bion Environmental Technologies, inc.

For Immediate Release - August 17, 2004

Bion Announces Results from Commercial-Scale Dairy Pollution Mitigation Study

August 17, 2004. New York, New York.

Bion Environmental Technologies, Inc. (Pink Sheets: BNET) and its subsidiary, Bion Dairy Corp., announced today the results from the study conducted at the Bion installation located on the 1,250 cow DeVries Dairy, in Dublin, TX. The study was conducted from December 10, 2003 through July 15, 2004. Gas, liquid and solid samples were sent to independent laboratories utilizing testing protocols approved by a third-party scientific review panel, including independent pollution control experts from several land grant universities.

In summary, the study found that the Bion waste management system achieved the following results:

  1. Phosphorus and Nitrogen removal rate of 79% and 74%, respectively, when incorporating a centrifuge into the Bion waste management system for separation of fine solids.
  2. 95% conversion of soluble Phosphorus to particulate form.
  3. Dramatically reduced emissions of air pollutants relative to baseline dairy emissions (i.e. California Air Resources Board) as follows:

Ammonia (NH3) - 99.5% to 99.9% reductions over the baseline.
Non-Methane Organic Compounds (NMOC's) - 98% to 99.6%.
Hydrogen Sulfide (H2S) - 94% to 98%.
Substantial reductions of other constituent emissions as detailed in the report.

The complete report, entitled "DeVries Dairy Bion NMS Nutrient and Atmospheric Emission Quantification Project Analytical Approach Details and Results" can be viewed on Bion's website at http://www.biontech.com/technology/ or by requesting a copy from the Company. Also available on the website at http://www.biontech.com/stakeholder/ is a Bion paper entitled "Bion Technical Summary Performance Report: Implications for Public Policy," which contains a discussion of public policy implications and economic analysis of the Bion waste management system, as well as a summary of the technical data contained in the report.

With the ability to significantly and cost effectively reduce the pollution from dairies now regulated by the Clean Water Act and the Clean Air Act, Bion's proprietary technology provides a means for dairies to remain competitive while meeting environmental regulatory requirements.

About Bion: The Bion companies design and operate advanced waste and wastewater treatment systems for large dairy farms as well as swine and other animal facilities. Bion systems utilize patented biological and engineering processes to provide proven treatment solutions to the nutrient management and air emissions problems associated with these operations.

For further information, please contact:

Kathy Paradise
Office Administrator, Bion Dairy Corp.
kathy@biontech.com
212.758.6622

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