EXHIBIT 99.1


Monday August 6, 2:54 pm Eastern Time

Press Release

SOURCE: Bion Environmental Technologies, Inc.


Bion Selected for Evaluation of Environmentally Superior Technology

Bion to be Part of North Carolina Demonstration Effort

NEW YORK, NY--(BUSINESS WIRE)--Aug. 6, 2001--Bion Environmental Technologies,
Inc. (Bion-OTCBB)'s patented nutrient management system (Bion NMS(TM)) has
been selected for funding under North Carolina's "Environmental Superior
Technology" program.

The program is funded under the voluntary agreement by and between North
Carolina and Smithfield Foods and the Premium Standard Farms unit of Conti
Group, Inc., to develop and demonstrate solutions to the waste (air, water and
nutrient) from large hog raising facilities. The program will provide funding
for the new generation Bion system. The Bion NMS will be the centerpiece of a
project led by the engineering firm of Wright-Pierce, Inc. to demonstrate a
comprehensive, environmentally-sound management approach for swine manure. The
Bion NMS will be a fully contained, tanked system with computerized monitoring
and control capability. The Bion NMS is designed to resolve all problems
associated with the nutrients, odors and pathogens generated by hogs raised in
concentrated animal feeding operations (CAFOs). The panel of experts from
academia, animal agribusinesses, environmental, agricultural, government and
community interests has selected this project, as one of several, from nearly
100 proposals to receive funds for pilot demonstration facilities in North
Carolina.

Wright-Pierce, experts in the beneficial reuse of organic wastes, combined
Bion's technology with equipment to dry the BionSoil produced by the Bion NMS
to form a comprehensive system for swine manure management. "We selected the
Bion system because it addresses, at low cost, all of the principal
environmental problems, while creating valuable products," said Mike Giggey,
Wright-Pierce's Senior Vice President. "Working with the faculty of North
Carolina State University, and in particular Dr. Mike Williams, we believe
that this demonstration project will show that there is a technically workable
and environmentally viable solution for a significant environmental problem in
North Carolina."

David Mitchell, Chief Executive Officer of Bion, said, "We believe that the
Bion NMS project in collaboration with the NCSU Animal & Poultry Waste
Management Center, under the direction of Dr. Mike Williams, will validate the
Bion solution to the waste problems faced by companies and farmers involved in
large scale commercial hog raising in North Carolina and elsewhere." Bion
anticipates that final agreements related to the project will be completed by
the end of August 2001.

Bion Environmental Technologies, Inc., a publicly traded company (symbol:
BION), is a full service waste management company that has served the
Livestock Industry since 1989. The Company uses technologies that are
revolutionizing the way farm management is addressed by expanding both
economic and environmental opportunities. Bion systems incorporate a patented
biological process that safely converts animal waste into nutrient rich soil
and fertilizer products, which are valued for their high organics, slow
release nutrients, and odorless characteristics. Bion's family of products are
used in home gardens, potting soils, organic farms, golf courses, athletic
fields, and soil remediation projects. There are currently 14 Bion systems
across the nation. The company has recently developed a tank-based system,
which converts animal waste into a nutrient rich fertilizer within a 12-hour
cycle. The new systems have real time electronic monitoring and sensing
controls that precisely track the fate of all nutrient elements and air
emissions. The second-generation systems will be put into commercial operation
later this year.

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. The 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.

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Contact:
     Bion Environmental Technologies, Inc.
     David Mitchell, 212/758-6622