Bion Announces Private Placement Closed

NEW YORK, July 30 /PRNewswire-FirstCall/ -- Bion Environmental Technologies,
Inc. (OTC Bulletin Board: BNET) announced today that it has ceased accepting
additional subscriptions for an offering of its Series B Convertible Preferred
Shares. The private placement, offered under Regulation D of the Securities
Act of 1933 (as amended), was underwritten by Capital Financial Services,
Inc., of Minot, North Dakota, and will result in gross proceeds of $2,817,000
(net proceeds of approximately $2,450,000 after commissions and offering
expenses) to Bion when the process of collecting funds has been completed next
week.

Proceeds of the offering will be used for general working capital and for
investment in Phase 1 of Bion's Kreider Farms project. Kreider Phase 1 will
treat the dairy waste stream to generate nutrient trading credits that can be
sold to offset higher cost reductions required of municipal waste water
treatment plants in the Susquehanna River watershed under the Chesapeake Bay
Tributary Strategy. The project will also produce significant greenhouse gas
reductions. Phase 2 of the project, which will process Kreider's poultry
wastes to generate renewable energy, is expected to provide substantially
greater nutrient and carbon credits and sufficient renewable energy for both
on-farm use and/or sale.

Bion has received subscriptions for 28,170 Shares of Series B Preferred Stock
at $100 per Share ('Shares'). The Shares are scheduled to pay dividends at the
rate of 2.5% per quarter (10.0% per annum). The Shares are convertible into
shares of the Company's common stock at a conversion rate of $2.00 per share
of common stock at the election of the holders for a period of three years
after their initial issuance. Under certain conditions, the Shares may be
mandatorily converted to the Company's common stock. For a complete
description of the Series B Convertible Preferred Shares, see Exhibit 3.3 of
the Company's 10QSB for the quarterly period ended March 31, 2009.

Craig Scott, Bion's VP - Capital Markets, stated, "It has been a pleasure to
work with both the staff and the Registered Representatives of Capital
Financial Services. We appreciate their confidence in Bion and we are
extremely pleased with their performance in an uncertain and difficult market.
The successful financing of our short-term capital needs, coupled with the
previously announced PENNVEST funding of our Kreider Farms project, puts Bion
in a much stronger position as we move forward at Kreider and with the
development of our anticipated Integrated Projects."

About Bion: Bion's technology provides the only comprehensive solution to the
environmental impacts of livestock waste, including excess nitrogen and
phosphorus, pathogens, and ammonia, greenhouse gases, odors and other
emissions. 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 is now being deployed at Kreider Farms to
generate nutrient credits as part of Pennsylvania's efforts to reduce excess
nutrients in accordance with their obligations under the Chesapeake Bay
Tributary Strategy. In addition to providing environmental treatment, the
system recovers cellulosic biomass from the waste stream to produce renewable
energy. 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.

SOURCE Bion Environmental Technologies, Inc.

Mark A. Smith, President, +1-719-256-5329, mas@biontech.com, or Craig Scott,
Vice President-Capital Markets/IR, direct, +1-303-843-6191,
cscott@biontech.com, both of Bion Environmental Technologies, Inc.