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N-Viro International Corporation Files SEC form 8-K, Other Events

Form 8-K for N-VIRO INTERNATIONAL CORP 28-Jun-2007 Other Events

ITEM 8.01 OTHER EVENTS

On June 25, 2007, N-Viro International Corporation (the "Company") received a favorable ruling from an arbitrator regarding a Demand for Arbitration filed in June 2005 by J. Patrick Nicholson, the Company's former Chief Executive Officer and Chairman of the Board. Mr. Nicholson filed a Demand for Arbitration based on a claimed breach of a Consulting Agreement dated August 28, 2003 with the Company. In July 2005, the Company terminated for cause his Consulting Agreement. Mr. Nicholson was being paid an aggregate of over $92,000 per year under the Agreement, exclusive of any other payouts earnable. In November 2005, Mr. Nicholson filed an amended Demand for Arbitration. A hearing on the matter was held with an Arbitrator between January and April, 2007.

The Arbitrator has ruled the Company was legally justified in its termination for cause of Mr. Nicholson's Consulting Agreement, in addition to not being liable for any additional payouts that could have been earnable by him under the Agreement. The Arbitrator specifically held that, "Based on the record in this matter the undersigned holds that [N-Viro's] Board of Directors acted in good faith with respect to its action to terminate the 2003 Consulting Agreement under the "menacing" provisions of Paragraph 18.02." All claims made by Mr. Nicholson under the matter were then dismissed with prejudice in their entirety by the Arbitrator. The Arbitrator also elected not to award legal fees to either party in the matter.

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 withreal 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@nviro.com

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, 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@nviro.com (419) 535-6374