Bion Environmental Technologies, Inc. Announces Monitoring and Control
System Initiative; Option on Dream Maker Dairy
September 7, 2000. Littleton, CO. Bion Environmental Technologies, Inc.
(OTCBB: BION) announced today that it expects to begin testing its new NMS
(Nutrient Management System) with an integrated monitoring and control system
within thirty days at Dream Maker Dairy in upstate New York. The initial
monitoring system has been installed and in operation since late July, 2000.
Construction modifications, as well as the installation of additional hardware
and communication links for the control modules, are expected to be completed
by mid-October. This next-generation system is being installed in parallel
with an existing Bion NMS that has been processing Dream Maker's waste since
1996.
The new system employs computerized, real-time monitoring and control that can
be remotely accessed for both reporting requirements and control functions.
The enhanced Bion NMS is designed to reduce the size of the systems by up to
80% over the current NMS technology while maintaining the same processing
capacity; alternatively, the processing capacity of the current technology
could be increased by a factor of up to five without a corresponding increase
in size. According to Dr. Jere Northrop, Bion's Chief Technology Officer,
"With the initial success of our monitoring system program, we are confident
that we will have achieved a significant increase in efficiency in the next
sixty days. In the near future, we anticipate reaching performance levels
five to twenty times that of our current systems." Results of the monitoring
and control initiative are anticipated to be available before the end of the
calendar year. Dr. Northrop also noted that, "We expect to obtain similar
results in applying this next-generation technology to our swine systems."
Currently, there is a direct correlation between the number of animals on a
farm and the land required to spread the waste. By converting the waste into
a high value soil amendment, BionSoil, which is then sold, the enhanced NMS
creates a nutrient removal mechanism - enabling producers to disassociate herd
size from the land area required for manure application. As a result, capital
requirements for both land and equipment are significantly reduced. David
Mitchell, Bion's CEO, stated, "Using a dairy model, it is not hard to see that
by separating the milk production from the less profitable farming operations
needed for manure and nutrient management, the economics of the operation
change dramatically. The successful implementation of the new Bion NMS will
allow larger and more efficient operations with substantially improved margins
but without the environmental liabilities associated with current nutrient
management practices."
Upon completion of the monitoring and control modifications, it is anticipated
that Bion's next-generation system will enable Dream Maker Dairy to expand its
existing operation from 350 dairy cows up to 3,000 cows on the same ninety-
eight acres, while continuing to comply with New York State CAFO (Confined
Animal Feeding Operation) nutrient management regulations. These regulations
utilize a guideline of approximately two acres per dairy cow for the field
application of nutrients. Without a technology solution, such a guideline
would make Dream Maker's proposed expansion impractical by requiring an
additional 6,000 acres for nutrient management.
<PAGE>
<PAGE>
As part of an amended agreement with Dream Maker Dairy, Bion has acquired an
option to purchase the dairy. Exercise of the option is contingent upon
several conditions including the successful conclusion of Bion's monitoring
and control system initiative, the arrangement of financing for the proposed
expansion of Dream Maker from 350 dairy cows to eventually 3,000, and other
final terms and conditions. (See Bion's 8-K dated August 3, 2000, Item 5.7 and
Exhibit 99.7).
----------------------------------------------------------------------------
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.
