EXHIBIT 99.2

Wednesday August 22, 11:18 am Eastern Time
Press Release
SOURCE: Bion Environmental Technologies, Inc.

Bion Announces Mass Balance Trials Successfully Completed and Further
Development of Integrated Energy Platform

NEW YORK--(BUSINESS WIRE)--Aug. 22, 2001--Bion announces today the Mass
Balance Analysis of its DreamMaker NMS (Nutrient Management System)(TM) in New
York State (announced December 12, 2000) has been completed with extremely
positive results.

The phosphorus and nitrogen removals from the total CAFO (Confined Animal
Feeding Operation) waste stream approximated 80%. Additionally, measurements
on the primary odor producing compounds indicate levels low enough to
essentially eliminate odor problems associated with CAFO waste handling.

"The Bion NMS(TM) reductions of phosphorus and nitrogen from CAFO waste
streams combined with the demonstrated low levels of odor producing elements
will allow dairies and hog raising facilities to operate in an economically
and environmentally satisfactory manner," according to Dr. James Morris,
Bion's Chief Technology Officer.

Further research and development will be focused on the system acceleration of
the current Bion NMS(TM) system to increase capacity and lower costs as well
as integrating the Bion NMS(TM) with a methane digestion system, in order to
create additional revenue streams from the sale of electricity and natural
gas.

"We are confident that the Bion NMS(TM) can be run at significantly higher
speeds which will substantially reduce the costs to both Bion and its
clients," said David Mitchell. "Further, if we can successfully integrate
Bion's technology with methane digestion, Bion will be able to provide a
technology platform which will fully utilize the valuable resources
(nutrients, water and energy) in the CAFO waste stream to generate revenue for
Bion from waste fees, BionSoil(R) and Fertilizer products, and electricity
generation."

The Bion NMS(TM) at DreamMaker Dairy has been developed based on Bion's
existing technology platform. The accelerated Bion NMS(TM) technology, first
deployed at DreamMaker during the fall of 2000, has now been placed in a fully
contained tank system. This NMS(TM) has a real-time computerized monitoring
and control system, which enables Bion to record and alter the material
operating conditions of the NMS(TM) and to correlate the data obtained in the
Mass Balance Analysis. The computerized module allows the NMS(TM) to be
remotely monitored to insure efficient operation. This capability not only
allows superior waste handling, but also allows Bion to control the parameters
associated with the production of BionSoil  and Fertilizer, Bion's line of
organic soil and fertilizer products, insuring a level of organic consistency
presently unobtainable in the marketplace. As a result, organic soil products
will for the first time be able to be marketed with the consistent quality of
chemical soil and fertilizer products. This will allow Bion to utilize
existing large sale distribution channels, for the roll-out of its BionSoil
and Fertilizer products.

The Mass Balance Analysis at DreamMaker is based on seven separate
comprehensive sets of system sampling data taken from July 16 through August
6, 2001. The data was analyzed by two independent laboratories. Essentially,
Mass Balance Analysis traces the components of the entire waste stream in a
CAFO, starting from the the animal, through all air, solid and water volumes
until it leaves the Bion NMS(TM) system.

The waste stream is processed in tanks and all water and solid volumes and
components are accounted for upon entering the tanks, and all air, solids and
effluent emissions are quantified and identified exiting the tanks. As a
result, Bion can account for all of the component parts of the waste stream
and provide a report based upon samples analyzed by independent labs
documenting as to the disposition of each aspect of the waste stream. This
total accounting is referred to as Mass Balance Analysis. It essentially
quantifies each component of the waste stream entering the system and
subsequently verifies what becomes of each component in the system. As an
example, the results demonstrate that approximately 80% of the phosphorus
entering the system in the waste stream is exiting the Bion NMS(TM) as part of
the solids that will be processed into BionSoil  and Fertilizer. That
significantly reduces the phosphorus volume in the effluent, which is a major
source of water pollution and, as a result, this scientific data quantifies
the benefit both environmentally, and financially, since the removal of
phosphorus from waste water is a known cost to the waste water treatment
industry.

"Bion will be able to guarantee the minimized levels of nutrients in the
effluent from its systems. This will be an integral part of our commercial
service contracts going forward. Mass Balance Analysis provides real time
accounting and verification, which will be a key for further acceptance by the
CAFO industry, environmentalists and state and federal regulatory
communities," said David Mitchell.

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.

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., New York
     David Mitchell, 212/758-6622