Sludge Watch ==> N-Viro

[Maureen Reilly]

N-Viro International Corporation Announces Dismissal of Lawsuit Against It

October 16, 2007: 07:30 AM EST


TOLEDO, Ohio, Oct. 16 /PRNewswire-FirstCall/ --

N-Viro International Corp. ("N-Viro") announced today that it had achieved 
the dismissal of a lawsuit in favor of N-Viro and certain past and/or 
current officers and directors.

The action was originally brought in July 2006 by the former CEO, President 
and Chairman of the Board of N-Viro, J. Patrick Nicholson. In its order 
granting the dismissal, the Honorable James G. Carr, Chief Judge for the 
Federal District Court for the Northern District of Ohio, determined that 
the claims of the plaintiffs were not timely brought and that the 
plaintiffs' failed to serve properly certain defendants. In addition, the 
court concluded that the plaintiffs failed to identify any specific 
statements by N-Viro that were false and misleading and failed to prove that 
the required inference of scienter.

With the dismissal, N-Viro has prevailed in all actions brought by Mr. 
Nicholson against N-Viro and its officers and directors. Earlier this year, 
N-Viro was successful in an arbitration action brought by Mr. Nicholson 
regarding its termination of a consulting agreement in 2005. In that case, 
the arbitrator ruled that N-Viro was legally justified in its termination 
for cause of Mr. Nicholson's consulting agreement. Now his federal action 
has similarly ended in favor of the Company.

Timothy R. Kasmoch, CEO and President, had these comments: "Mr. Nicholson, 
through his onslaught of litigation, has wasted company resources. But, we 
were never distracted from our vision for the future. We will continue to 
develop our patented N-Viro Fuels technology and believe that N- Viro 
shareholders will be rewarded. N-Viro is a great company. With positive and 
honest leadership, I believe great things are possible for N-Viro."

About NVIC

N-Viro International Corporation develops and licenses its technology to 
municipalities and private companies. N-Viro's patented processes use lime 
and/or mineral-rich, combustion byproducts to treat, pasteurize, immobilize 
and convert wastewater sludge and other bio-organic wastes into biomineral 
agricultural and soil-enrichment products with real market value. More 
information about N-Viro International can be obtained by contacting the 
office or on the Internet at www.nviro.com or by e-mail inquiry to 
info at nviro.com

Special Cautionary Note Regarding Forward-Looking Statements

The Company cautions that words used in this document such as "expects," 
"anticipates," "believes" and "may," as well as similar words and 
expressions used herein, identify and refer to statements describing events 
that may or may not occur in the future. These forward-looking statements 
and the matters to which they refer are subject to considerable uncertainty 
that may cause actual results to be materially different from those 
described herein. For example, while the Company believes that trends in 
sludge treatment are moving in favor of the Company's technology, such 
trends may not continue or may never result in increased sales or profits to 
the Company because of the availability of competing processes. Additional 
information about these and other factors that may adversely affect these 
forward-looking statements are contained in the Company's reports, including 
its Annual Report on Form 10- KSB, its Quarterly Report on Form 10-QSB for 
the quarter ended June 30, 2007, and other filings with the Securities and 
Exchange Commission. The Company assumes no obligation to update 
forward-looking statements to reflect actual results, changes in assumptions 
or changes in other factors affecting forward- looking information except to 
the extent required by applicable securities laws.

For More Information Contact:

Timothy Kasmoch, CEO

info at nviro.com (419) 535-6374
http://money.cnn.com/news/newsfeeds/articles/prnewswire/CLTU02716102007-1.htm