February 2004

N-Viro International Issued Patent for Conversion of Volatile Organic Material into Alternative Fuel Additives

Toledo, OH— N-Viro International Corp. announced it has been issued a new patent in the field of organic waste management. The patent issued by the United States Patent office deals with the modification of thermal ignition characteristics of organic based waste materials. The concept is to utilize mineral by-products to raise the ignition characteristics of volatile organic waste materials such as municipal biosolids and animal manures so that they may be mechanically dried more cost effectively and safely. Additionally the modification of ignition characteristics will allow the materials to be safely utilized as an alternative fossil fuel additive.

“By raising the ignition characteristics of the residuals, we greatly reduce, if not eliminate, the risk of spontaneous combustion. Thus, we eliminate the risk of unwanted fires. The process prevents fires during the treatment and drying process of the waste material and enhances the burning efficiency of the material as a fuel additive,” Terry Logan, President and CEO of the Company said. The Company is working with LaFarge North America to demonstrate the concept in cement kilns, and also has demonstrations planned with a large coal-fired power generator in the northeast United States by the second quarter of 2004.

This patent is the second patent the Company has been awarded in the area of converting volatile organic material into alternative fuel additives. The first was issued June 18, 2002 and involves a process and a system for using biomineral by-products as a fuel and for NOx removal at coal burning power plants. The process involves the liberation of ammonia upon drying a mixture of organic waste, coal combustion by-products and lime, having a pH of at least 9.5 to a coal burner in a power plant. A process is also provided for fueling a coal burner of a power plant with coal and a dried mixture of organic waste and combustion by-products. The Company believes the combination of the two patents is a strong base of intellectual property in the field of thermal processing.

N-Viro also announces the development of two new N-Viro facilities in Indiana. The N-Viro Class A biosolids treatment technology has been chosen by the cities of Greenfield and Stueben Lakes. The Company currently licenses other operating facilities in Indiana in the cities of Auburn, Anderson, Franklin and Fishers.