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Joint Development Agreement Encourages Projects Within China

November 6, 2012 - N-Viro International Corporation (NVIC: OTC:QB) has entered into a Joint Development Agreement with Hong Heng Energy (NYSE:HK) Co., LTD, a subsidiary company of Hong Heng Group headquartered in Fuzhou, Fujian, China. Hong Heng Group is a conglomerate of construction, engineering, real estate development, alternative energy, concrete manufacturing and fly ash management companies. Hong Heng Group has completed the development and construction of power plants, highways, bridges, hotels and parks within China. Their concrete and fly ash management companies provide complete synergy with the N-Viro Fuel™ technology.

N-Viro International retained the assistance of Mr. Yee D. Shek, as N-Viro Marketing Director/Asia, ydshek@nviro.com, to assist the company in marketing our technology in China. Mr. Shek worked directly with Hong Heng Energy to establish a Joint Venture Agreement between the companies. Ultimately Mr. Shek will work directly with Hong Heng Energy and N-Viro International to develop and build multiple N-Viro process facilities under our Joint Venture Agreement.

China, with both the world's largest population and largest increasing energy demand, in March 2011 adopted its twelfth five-year plan. A five-year plan sets forth a comprehensive statement of the priorities and policies that will be the focus of that period.

In this most current five-year plan, China has among many things embarked on an ambitious focus to reduce pollution, increase energy efficiency, and to ensure a reliable and clean energy supply. Specifically, China has identified and targeted seven strategic emerging industries to be drivers for China's future economic development, and seeks to grow these industries as a percentage of GDP from 5% to 15% by 2020. Among these seven targeted industries are green energy and alternative energy. In support of these initiatives, China plans to produce 15% of its energy needs through non-fossil fuels, and has earmarked financial support to encourage development in a wide variety of green energy technologies, including waste and/or resource recycling and energy recovery. Included in these investments are planned expenditures on 334 Billion RMB ($51 Billion US Dollars) on wastewater projects, with an expanded emphasis on sludge treatment.

Timothy R. Kasmoch, CEO and President of N-Viro International said, "We are honored to have this valuable opportunity for project development and new revenue opportunity for the company. The N-Viro International technology patents are competitive, robust and efficient ways to create alternative energy. We are looking forward to rapid growth in China. Having Mr. Yee D. Shek on our team and being able to partner with the Hong Heng Energy Co., LTD demonstrates the value our company offers a world market"