Bion Environmental Technologies, Inc.'s business model applies cleantech principles to the multi-trillion dollar agribusiness sector. Bion’s patented and proven livestock waste treatment technology largely eliminates the environmental impacts of concentrated animal waste, including excess nutrients, ammonia and greenhouse gases. Bion’s is the only technology that provides a comprehensive solution to the air and water pollution associated with large-scale livestock operations.  This capability gives Bion the unique ability to provide solutions to existing livestock operations, as well as permit and develop new state-of-the-art livestock facilities that can be integrated with complementary agricultural operations in strategic locations.  These facilities will be environmentally sustainable, produce renewable energy, increase biofuel production efficiency, while substantially increasing profits for all partners.

Livestock waste has been identified by the Pew Trusts, the U.N. Food and Agriculture Organization and many others as one of the greatest environmental threats facing the world today.  In the U.S., industry trends toward increased scale and production efficiency have been all but halted by concerns over the impacts of the waste on the environment.  Bion has been providing solutions to the livestock industry since 1990 and its new generation technology is quickly gaining acceptance from industry, regulatory and other stakeholders.

Increased livestock scale creates value by enabling the production of renewable energy, not economic on a smaller scale. Scale enables integration with end-product processing and/or biofuel production in an efficient closed-loop system that significantly increases profits due to improved operational and resource efficiencies. The projects’ minimal environmental footprint allows them to be permitted and developed in non-traditional locations that maximize transportation efficiencies. 

INTEGRATED PROJECTS

Bion is currently developing a Project in St. Lawrence County, New York, comprised of approximately 95,000 beef cattle balanced with a 42 million gallon ethanol plant. Pre-development work is in the final stages and construction is anticipated to begin in the fourth calendar quarter of 2008.  Bion plans to develop 6 to 8 similar projects in selected areas over the next five years.

While not all Integrated Projects will incorporate ethanol production as in St. Lawrence County, Bion’s technology platform and integrated business model substantially reduce commodity risk for ethanol production. Maximum value is extracted from the corn: first as ethanol feedstock, then livestock feed, finally as renewable energy.  Transportation (and fuel) costs for all project partners are dramatically reduced. Higher margins are achieved due to the environmental, operational and energy efficiencies produced by Bion’s closed loop model. The reduced environmental footprint of the livestock enables proximity to high-value markets. Project partners will enjoy a significant competitive advantage over stand alone or smaller scale competitors.

Integrated Projects represent a substantial economic benefit to the areas in which they are located.  Bion anticipates local, state, and federal grants, tax credits, and other economic incentives, consistent with existing programs, that will offset at least 20% of the total investment required for the Projects.  Bion also expects to receive ongoing annual renewable energy credits and incentives consistent with other renewable energy sources, nutrient and other environmental credits, and other incentives. 

INVESTMENT HIGHLIGHTS

• SLC Project: economic impact and air quality studies complete; County Board review vote favorable; moving forward with site selection and input agreements
• Bion reviewing several additional potential Project opportunities, any one of which will have a significant impact on its future
• Bion intends to develop six to eight Integrated Projects over the next five years
• PA Project: first-of-its-kind nutrient credit program provides financial incentives to reduce nutrients from livestock in the Chesapeake Bay watershed
• Company has 11 million shares outstanding; 18M fully diluted
• Highly experienced management team significantly invested in company
• Patented and proven technology – only technology that can achieve permits for large scale livestock needed for efficient integration
• Environmental responsibility is a high visibility/high priority item at all levels
• Significant investment ongoing in cleantech and agribusiness opportunities

THE TECHNOLOGY

Bion’s technology platform is easily scalable and combines mechanical and biological processes to provide a comprehensive solution to effluent nutrients and air emissions from livestock waste.  Bion has provided solutions to the livestock industry for 18 years while its technology has evolved to address changing standards and opportunities. The platform economically reclaims much of the nutrients and energy in the ‘waste’ stream, dramatically reducing environmental impacts and capturing substantial value that is lost in traditional operations.  By largely eliminating discharged nutrients and air emissions, a livestock facility requires far less acreage per animal since waste is no longer spread on fields (where it is subject to runoff). Bion holds 8 patents and has multiple pending patents on its technology and business model.

Bion's technology enables environmental compliance for existing livestock facilities and allows new large-scale operations to be developed and integrated with food/end product processing, and in some cases biofuel production.  Renewable energy produced from the waste stream is typically consumed on-site or nearby, maximizing its value; excess nutrients are captured, either for sale as animal feed supplements and organic fertilizer products or to create additional energy, rather than lost to contaminate downstream water supplies; resource and operational efficiencies are significantly increased; substantial greenhouse gas and other harmful air emission reductions are achieved. The ‘net energy balance’ of ethanol production is more than tripled.

MARKET  OPPORTUNITIES

Bion’s technology platform unlocks several opportunities:

Existing Livestock Facilities:

• Retrofit existing livestock facilities – of which there are many – to achieve compliance with current and future regulation under the Clean Water Act and the clean Air Act, while simultaneously allowing a substantial reduction in the acreage (and related expenses) needed for nutrient management.  Existing operations will have the option to either reduce land or potentially expand their herds to achieve greater economies of scale.  This opportunity will grow with increased regulation and incentives.
• Bion was recently approved by the Pennsylvania Department of Environmental Protection to generate nutrient trading credits at an upcoming dairy installation in Lancaster County, as part of PA’s efforts to comply with the Chesapeake Bay nutrient guidelines.  PA DEP recognizes Bion’s ‘multi-media’ (both water and atmospheric) approach to nutrient reductions and will certify credits for reductions of both ammonia emissions and nitrogen in the effluent.  These credits can be sold under a program established by the DEP to provide financial incentives to voluntarily reduce nutrients from agricultural sources that have been identified as a primary contributor to the Bay’s problems. Credits provide a substantially cheaper alternative to the $1.2 billion cost now facing the taxpayers of Pennsylvania to upgrade the affected municipal wastewater treatment plants.

Develop Sustainable Integrated Projects:

   Bion’s ability to permit new large scale livestock facilities with a dramatically reduced environmental footprint creates the opportunity to develop integrated agriculture operations in strategic locations that maximize transportation and market efficiencies and overall economic advantages. Integration coupled with Bion’s platform reduces investment and operating costs and increases revenues and/or margins for the entire integrated complex.  Depending on location and opportunity, Bion’s modern livestock facilities, with comprehensive environmental treatment and renewable energy production, will be integrated with milk or meat processing, in some cases ethanol (or other biofuel) production, or other renewable energy consumer in an environmentally sustainable cooperative enterprise. Bion has identified four primary market opportunities to develop Integrated Projects:

• Locate newly-permitted livestock herds near existing ethanol plants to improve ethanol plant economics.  Bion’s platform creates a closed-loop system whereby the distiller grain co-product is fed to the livestock herd, eliminating the need for drying and transportation; renewable energy from the livestock waste replaces all of the remaining fossil fuel requirements of the ethanol plant.  Ethanol production costs are significantly reduced while the net energy balance is more than tripled.
• Locate newly-permitted livestock herds near existing milk and meat processing plants to improve processing efficiencies and opportunities. Higher transportation fuel costs have dramatically increased the expense to deliver beef and milk inputs to these facilities.  Additionally, recent trends toward consumer demand for eco-friendly products have created an opportunity to produce environmentally responsible brands. Bion’s Projects can deliver products with meaningful environmental benefits.
• Central Processing Facilities that will consolidate waste treatment services in areas with existing concentrated livestock operations that are smaller scale and with fragmented ownership.  Bion anticipates a limited market (at this time) for this model in areas such as Pennsylvania and the San Joaquin Valley in California.
• Greenfield Projects that are comprised of new state-of-the-art facilities in selected locations that maximize the Projects’ economic and competitive market advantages, such as Bion’s St. Lawrence County Project, located in upstate New York within 400 miles of more than 50 million consumers.  Partners in these Projects will increase productivity and profits by capitalizing on the operational and resource efficiencies of integration.  Additional opportunities result from strategic location, such as proximity to high-value product markets, product branding, and economic development incentives, subsidies and tax credits.

MANAGEMENT TEAM

Bion has assembled an exceptional in-house and consulting management team (biographies available on the company’s website) that provides expertise and experience in all disciplines required to execute the Company’s business plan, including core technology, engineering, public policy and regulation, strategic planning/operations/finance, livestock – development and operations, biofuels – development and operations, and industrial facilities development, construction and operations

This Profile, dated June 20, 2008, contains, in addition to historical information, forward-looking statements which represent Bion's expectations or beliefs including, but not limited to, statements concerning the Company's operations, performance, financial condition, business strategies, and other information and that involve substantial risks and uncertainties.  The Company's actual results, many of which are beyond the Company's control, could differ materially.  For this purpose, any statements contained in this Executive Summary that are not statements of historical fact may be deemed to be forward-looking statements.  Words such as "may," "will," "anticipate," “plan," or variations of these words identify such forward-looking statements. Bion does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Potential investors should carefully review the Company’s 10-KSB (year end June 30, 2007) and other SEC filings at www.sec.gov.