EXHIBIT 99.1

                    BION ENVIRONMENTAL TECHNOLOGIES, INC.

        Bion and Kreider Farms Execute Agreement for Cleantech Project
                       at Manheim, Pennsylvania Facility

September 29, 2008.  New York, New York.  Bion Environmental Technologies,
Inc. (OTC BB: BNET) and Kreider Farms announced today the execution of a
contract whereby Bion will build a livestock waste treatment system at
Kreider Farm's Manheim facility that will treat the dairy waste from the
equivalent of 1,900 to 2,000 milking dairy cows. In addition, the agreement
provides for an integrated renewable energy facility that will provide energy
for Bion's waste treatment facility through the combustion of the cellulose
captured in the Bion process. The net effect will be that no fossil fuels
will be required to provide energy to the waste treatment system.

Bion's waste treatment technology has been reviewed and approved by the
Pennsylvania Department of Environmental Protection (PA DEP) to generate
approximately 140 nutrient credits per milk cow's waste treated.  Bion
anticipates the sale of these credits under PA's nutrient credit trading
program and they are listed on the PA DEP's Nutrient Crediting Trading
website at www.dep.state.pa.us/river/Nutrient%20Trading.htm#Registry.

The PA DEP nutrient credit program is unique in that credits can be generated
from a non-point source discharger such as a dairy farm, and these credits
can then be sold to a point source discharger, such as municipal waste
treatment plants (MWTPs).  The key to the credit trading program is that it
allows lower-cost nutrient reductions from agricultural operations to offset
much more expensive 'last mile' reductions from MWTPs and other point
sources, providing an equally effective reduction in overall nutrients, but
utilizing much more cost-effective solutions.

The non-point to point source trade mechanism is critical to the success of
reducing nutrient loading into Pennsylvania's waterways and ultimately the
Chesapeake Bay because non-point sources contribute more than 50% of the
delivered load of nutrients into the Bay. Pennsylvania needs to reduce its
annual nitrogen discharges to the Chesapeake Bay by 7.5 million pounds.
Other unique aspects of Bion's nutrient credit approval in Pennsylvania
include:

     -   Bion was able to generate these credits at Kreider Farms because
         of their unique ability to verify nutrient reductions, which
         traditionally has been a key impediment to the advancement of these
         types of non-point to point source trades.  The PA DEP reviewed and
         approved Bion's nutrient credit verification plan (sampling and
         measurement definition) as a part of the credit approval process.
         Bion is the only company that has received nutrient credit approval
         for the installation of an on-site livestock waste treatment system,
         as well as the issuance of nitrogen credits for ammonia emission
         reductions.

     -   More than 40% of the nutrient credits Bion is receiving for its
         Kreider Farms project will be generated due to its ability to reduce
         ammonia air emissions.  This is a key advancement for the industry
         in verifying the linkages between ammonia air emissions and downwind
         nitrogen deposition in nearby waterbodies.

In addition to generating nutrient credits, Bion's Cleantech project at
Kreider Farms will produce:

     -   renewable energy by combusting the biomass captured in the dairy
         waste stream as well as the poultry litter from Kreider Farm's
         poultry operations.
     -   greenhouse gas emission credits from significantly reduced methane
         emissions associated with Bion livestock waste treatment process,
         and
     -   stabilized nutrient rich fertilizer (low leachability) generated as
         a by-product from the dairy waste treatment process.

Absent a trading program where least-cost nutrient credit trades can take
place, the municipal waste treatment plants would continue to spend excessive
amounts of ratepayer dollars to upgrade their facilities.  Simultaneously,
non-point sources, with their extremely concentrated waste streams, would be
unable to generate the revenue to fund these on-farm nutrient reduction
projects.  Using a trading program, the marketplace can determine the most
cost-effective location to reduce nutrients and the environment will receive
the same net benefit.  While Pennsylvania's nutrient credit trading program
rules are unique in their ability to maximize nutrient reduction cost
efficiencies by bringing non-point source dischargers into the program, it is
important to note that many states are also moving in this same direction,
including Ohio, Virginia, Maryland, and many others.

In addition to the municipal wastewater treatment market for credit trading,
Bion believes that its ability to certify nutrient credits is applicable to a
wide range of other applications whereby regions or watersheds are seeking a
least cost means to reduce nutrients that are discharged into the
environment.  For example, the electric power industry is now being
challenged with increasing nitrogen concentrations in their wastewater
effluent as they continue to push more of the nitrogen away from their
smokestacks.  A recent Electric Power Research Institute (EPRI) document
acknowledged that as air pollution control devices have advanced in their NOx
reduction efficiency, there is a corresponding impact on increased nitrogen
in plant effluent that must be managed at the same time.

Mark Smith, Bion's president, stated, "Part of Bion's opportunity is based on
the company's ability to clean-up the waste streams from existing livestock
facilities and to certify nutrient (and other) credits for a wide range of
applications in regions or watersheds that are seeking least-cost methods to
reduce discharges and emissions.  Bion believes that its ability to
substantially reduce ammonia air emissions and nitrogen and phosphorus
discharges from livestock waste streams can provide a source of credits to
offset point source discharges in a manner that makes both economic and
environmental sense."
                 ____________________________________________

About Bion: Bion has provided solutions to the agriculture and livestock
industry since 1990, with 30 first-generation systems installed through 2003.
Bion's next-generation technology results from 18 years of research &
development, testing, commercial deployment, and further adaptation to
evolving standards and opportunities.  In addition to providing proven
comprehensive environmental treatment, the system recovers cellulosic biomass
from the waste stream to produce renewable energy in a process different and
much more efficient than others that seek to exploit this energy source.  The
technology is scalable, proven and quickly gaining acceptance by regulatory
agencies and other stakeholders as an effective solution to the environmental
issues associated with concentrated livestock waste.  For more information,
see Bion's website: www.biontech.com.

This material includes forward-looking statements based on management's
current reasonable business expectations. In this document, the word
'potential', 'will', 'proposed' and similar expressions identify certain
forward-looking statements. 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.

Contact information:

Mark A. Smith                          Craig Scott
President                              Vice President-Capital Markets/IR
719-256-5329                           303-843-6191 direct
mas@biontech.com                       cscott@biontech.com