NVIC Reports 42% Increase in Revenues

TOLEDO, Ohio, May 19, 2011 /PRNewswire/ -- N-Viro International Corporation (OTCQB: NVIC) filed the Company's quarterly report on Form 10-Q for the three months ending March 31, 2011.  For a full report, visit the OTC website at http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7939156

(Logo: http://photos.prnewswire.com/prnh/20101027/NVIROLOGO )

Financial highlights for the quarter include:

• Revenues were $1.95 million, representing a 42% increase over first quarter 2010 revenues of $1.37 million
• Gross profit for the reporting period was $656,000, representing a 75% increase over first quarter 2010 reported as $374,000;
• Gross profit margin for the period was 34%, an increase of 26% from first quarter 2010;
• Operating expenses reported as $563,000, a decrease of $958,000 or 63% from first quarter 2010;
• Operating income increased $1.24 million to $92,000 for 2011, from a loss of $1.15 million in 2010;
• Net income of $561,000 was reported for the current period, an increase of $1.7 million compared with a net loss of $1.43 million for the first quarter ended 2010;
• Non-GAAP adjusted cash profit was $253,000 for the quarter compared with adjusted cash income of $7,000 for first quarter 2010.

Timothy Kasmoch, President, and CEO of N-Viro said, "NVIC's successful performance in the first quarter 2011 is attributed to new customers, efficient operations and the new business model.  We look forward to continuous improvements as the N-Viro Fuel™ technology develops."  

Operational highlights for the quarter include:

• Wet tons of biosolids processed in the first quarter 2011 increased 43% to 37,700 tons compared with 26,300 tons in the first quarter of 2010.
• Final equipment installation and contracts procurement in preparation of startup of the first N-Viro Fuel™ facility in western Pennsylvania, which commenced in April 2011.

About N-Viro International    

N-Viro International Corporation is an environmental and materials handling company that owns significant patented technologies to convert various residual bio-organics into renewable fuel.  N-Viro Fuel™ has received alternative energy status from the U.S. Environmental Protection Agency, which qualifies the technology for renewable energy incentives.  Two manufacturing facilities currently use advanced treatment for management of wastewater residuals.  Both facilities are in full-scale operation producing considerable volumes of N-Viro Soil for a variety of customers.  

N-Viro maintains a company website http://www.nviro.com and a company blog site http://nvirointernational.wordpress.com where interested parties can follow the progress of the Company.  

N-Viro will continue to post press releases on the company website and a discussion forum on the company blog site.  We encourage stockholders and interested parties to monitor the site on a regular basis.  

Special Cautionary Note Regarding Forward-Looking Statements

The Company cautions that words used in this document such as "expects," "hopes", "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 differ materially from those described herein.  For example, while the Company expects business expansion projects to begin in an estimated time frame, such expectations are subject to adverse economic conditions and other factors outside of the Company's control.  Further, the Company's ability to increase capabilities and expand capacity is subject to the ability of the Company or its partners to access sufficient capital to pay for this expansion, which will further depend on, among other factors, market acceptance.  The Company's ability to achieve profitability of these projects could be negatively impacted if there is a lack of an adequate supply of waste or expenses increase above the Company's expectations - including fuel and transportation costs, labor costs and costs relating to the treatment and processing of the biosolids and creation of the N-Viro Soil or N-Viro Fuel.  In addition, while the Company believes that trends in "greener" energy solutions 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 products and other alternative energy source.  All of these factors, and other factors, will affect the profitability of the Company.  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-K for the year ended December 31, 2010 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 R. Kasmoch, CEO
| 2254 Centennial Road | Toledo, Ohio 43617  
| PHONE 419-535-6374  | FAX 419-535-7008
[email protected]

SOURCE N-Viro International Corporation