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EXHIBIT 99.1

                      BION ENVIRONMENTAL TECHNOLOGIES, INC.


                  Bion Announces Bioreactor Startup and Update

January 19, 2011.  New York, New York.  Bion Environmental Technologies, Inc.
(OTC BB: BNET) announced today that it has initiated the flow of waste into
the Bioreactor at its livestock waste treatment facility currently under
construction at the Kreider Dairy Farm in Manheim, Pennsylvania.

This milestone represents activation of the first major treatment step, with
the remaining portions of the treatment system to be operational during the
second quarter of this year.   Initiating the Bioreactor (while the remaining
portions of the project are still undergoing construction) allows time to
build biological mass in the nutrient treatment vessel, shortening the time
necessary to reach operational efficiency once the entire project is
constructed and operating.

Bion anticipates construction completion during the Spring of 2011 followed
by an "operational shakedown" period.

Construction photos will be posted periodically on the Bion PA website at
www.bionpa.com/photos.

As previously reported in an 8-K, dated January 5, 2011, Bion received its
initial reimbursement/draw request of approximately $1.739 million from the
Pennsylvania Infrastructure Investment Authority ('Pennvest') on Bion's
previously announced $7.6 million loan from Pennvest for the initial stage of
Kreider Dairy Farms waste treatment project. Bion has made further
reimbursement/draw requests and will continue to do so over the next several
months as construction proceeds and is completed and operations commence on
the initial Kreider system.
            ______________________________________________________

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
websites: www.biontech.com and www.bionpa.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