EXHIBIT 99.1

                     BION ENVIRONMENTAL TECHNOLOGIES, INC.

        Bion Announces Kreider Farms Groundbreaking Ceremony and Update

October 21, 2010.  New York, New York.  Bion Environmental Technologies, Inc.
(OTC BB: BNET) announced today that there will be an official groundbreaking
ceremony for its project at the Kreider Dairy Farm in Manheim, Pennsylvania,
on November 10, 2010.  Details of the groundbreaking ceremony, including time
and location, will be posted on www.bionpa.com, a new website dedicated to
Bion's Pennsylvania activities as described below.

Update

Since announcing the PA Department of Environmental Protection's (PA DEP)
approval of the demonstration permit for the Kreider Farms project on August
12, 2010, http://www.biontech.com/news/docs/Bion.PR.100812.Permit%20
Approval.pdf, Bion has been carrying out a number of pre-construction
activities including soil sampling and testing, engineering and survey work,
final system design, and securing pricing and documentation required for the
PENNVEST financing.

On October 6, 2010, Bion PA 1, LLC and Primus Builders, Inc. of Woodstock,
Georgia executed a design-build contract to complete final designs and
construct Bion's Nutrient Management Facility at Kreider Farms.  Construction
is anticipated to begin in late October/early November and with initial
operations to begin at the end of January/beginning of February 2011, subject
to contractor scheduling, equipment and materials delivery, weather and other
factors.  Primus has been working with Bion on the design process at Kreider
Farms since the preliminary design phase of the project.

PENNVEST, the Pennsylvania Infrastructure Investment Authority, has scheduled
a settlement date of October 27, 2010 for Bion's $7,754,000 loan to construct
the Kreider Farms dairy waste treatment facility. Bion previously announced
PENNVEST's approval for the low-interest project financing on January 28,
2009, http://www.biontech.com/news/pressreleases/release20090128.php.

Bion has submitted to the PA DEP its nutrient credit trading application for
Phase 2 of the Kreider Farms project (as previously announced on August 23,
2010, http://www.biontech.com/news/docs/Bion.PR.100823.Poultry%20
Protocols.pdf).  This application, which is currently in the review process,
will (upon approval by the DEP) also provide certified nitrogen and
phosphorus credits eligible to be sold as verified offsets under the
Chesapeake Bay Tributary Strategy.  The final total of verified credits will
be based upon the results from actual operations of the renewable energy
facility, as well as several other factors as described in the Bion-PA
website overview.

Bion has established a website (www.bionpa.com) to provide the Chesapeake Bay
watershed stakeholder community and Bion shareholders with a transparent
means of communicating the projects' status and, upon completion, to publish
data and results that will be consistent with Bion's credit verification
plan.  The Bion installation will demonstrate the technology's ability to
generate real, measurable, permanent and verifiable nutrient reductions from
unregulated non-point source livestock facilities such as the Kreider dairy.
Bion's approved credit certification plan is unique in that it includes
nitrogen credits from the reduction of ammonia emissions. The measurable and
verified reductions to both the local watersheds and the Chesapeake Bay
drainage basin will demonstrate the overall cost effectiveness of treating
livestock waste at the source.  Stakeholders and others will be able to post
questions and comments that Bion staff will respond to, subject to the
limitations imposed by SEC Regulation FD.
           ______________________________________________________

About Bion: Bion Environmental Technologies has provided environmental
treatment solutions to the agriculture and livestock industry since 1990.
Bion's patented next-generation technology provides a unique comprehensive
treatment of livestock waste that achieves substantial reductions in nitrogen
and phosphorus, ammonia, greenhouse and other gases, as well as pathogens,
hormones, herbicides and pesticides. Bion's process simultaneously recovers
cellulosic biomass from the waste stream to produce renewable energy.

Bion's technology enables development of large scale livestock facilities in
strategic locations that provide greater efficiencies and dramatically
reduced transportation costs but were previously impracticable due to their
environmental impact.  These environmentally-responsible, large scale
facilities can be integrated with existing or new food processing and
renewable energy production operations to substantially reduce risk and
improve the economics of all partners.  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
'expect', '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