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                                                                      Exhibit 13

                             1999 EXECUTIVE REVIEW

     1999 and early 2000 have resulted in major opportunities for N-Viro
International Corp.

     In 1999, we increased our revenue over 20% and gross profit over 22%, while
reducing our selling, general and administrative expenses over 17%. This
resulted in the Company having its best operational year since going public, an
increase in net profit of over $840,000 from 1998's net loss. We expect our
Florida joint venture to show a net profit and to continue growing its revenue
base and market share in 2000.

     N-Viro is the recognized U.S. pioneer and leader in organic and mineral
by-product utilization technologies. Several critical factors, which previously
have limited our growth, are now turning in a more positive direction.

     The wastewater industry is increasingly turning to advanced treatment
technologies to treat their sewage sludge so as to produce a Class A Exceptional
Quality Biosolids product. This is being driven by public concerns for the
safety of less treated materials and a lack of regulatory enforcement. The
N-Viro process in one of only a handful of such technologies, and we have shown
in the marketplace that we can be very competitive. Similar concerns in the
international market, particularly in England and other European countries are
driving sludge treatment to higher levels. This has resulted in increased
interest in our technology overseas.

     Improper and inadequate management of untreated animal manures are
highlighted daily in the press. The U.S. EPA and several states are moving
towards manure management regulations that will require the use of technology in
many cases. N-Viro is strategically placed to enter this large market as a
result of its RD&D efforts.

     Certain competitors with alternative alkaline treatment technologies have
attempted to bypass N-Viro patents. On March 3, 2000 N-Viro filed litigation
against the City of Warren, Ohio for patent infringement and patent infringement
inducement. We will spare no effort to defend our intellectual property.

     In July 1999 Dr. Terry Logan became President and Chief Operating Officer
of N-Viro. His reputation and his disciplines have been invaluable. Under his
leadership N-Viro's RD&D program has, once again, become an industry model. Our
research at USDA Beltsville, Maryland has demonstrated patentable processes to
disinfect animal manures, stabilize odors and vectors, immobilize nutrients and
provide carbon sequestration -- at a reasonable and recoverable cost.

     Working with the Department of Agriculture of Canada, N-Viro now has
exclusive non-Canadian worldwide rights to technology that demonstrates the
ability of N-Viro Soil(TM) to suppress nematodes in soybeans and similar crops.
The value-added benefit of these characteristics will increase the value of
alkaline pasteurized products and reduce total management costs.

     We are proud of the year we have had, and we believe there are a number of
market and regulatory factors that should be beneficial to the financial and
market growth that N-Viro has been working so hard to achieve since the Company
went public in 1993.

     First, the industry has experienced a long delay in the delegation of the
federal biosolids regulatory program to the state level. During the past seven
years, only a few states have adopted the new regulations. Today, the industry
is moving as the majority of states are currently within reach of delegation.
With delegation in sight, we believe municipal managers are now more comfortable
with a long-term, decision-making process. The long delay has, however, hurt the
credibility of the regulations and has drawn unwanted attention to the practice
of traditional Class B land application. In many areas of the country,
conventional Class B land application practices are under attack and are being
converted either to landfill disposal or upgraded to Class A (Exceptional
Quality). Obviously, this changing market condition should help N-Viro.

     Second, the solid waste industry has seen a tremendous amount of
consolidation and restructuring. Who would have thought three years ago that
Waste Management would have been sold? Over the past year, landfill prices have
significantly increased, as the solid waste industry has chosen to focus on its
key, core business and get landfill prices back to the levels of the late 80s
and early 90s. Consolidation in the water and wastewater industry also may
result in increases in the cost of traditional land-application programs. This
changing situation should also help N-Viro.
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     Third, in a recent consent decree with the National Resource Defense
Council, the USEPA agreed to prepare effluent guidelines for poultry, swine,
beef and dairy operations by December 15, 2000. Public health issues, together
with air and water pollution, are now critically impacted by inadequate manure
management.

     Biosolids constitute an annual land-application volume of about 20-to-25
million wet tons. In contrast, animal manure contributes about 1.5 billion wet
tons annually, which is either disposed in lagoons or land applied. N-Viro,
working with USDA, has developed what it believes is cutting-edge technology in
the treatment and economic utilization of animal manure.

     Finally, a major deterrent to N-Viro's development has been the lowering of
landfill prices in the last decade and subsequent movement of raw sewage sludge
(no treatment is now required by EPA regulations, i.e. 40 CFR 258) into
co-disposal landfills. These landfills, containing unstabilized, raw sewage
sludge, are a huge unregulated, unmanaged cause of global warming and ozone
depleting gases such as methane, nitrous oxides, ammonia and carbon dioxide.
N-Viro believes that nationally more than 5 billion wet tons of degradable
organics are disposed annually in landfills, generating the CO(2) equivalency of
2 billion tons annually. This is one-third of the total U.S. greenhouse gas
inventory presented by U.S. officials in Kyoto. USEPA now appears determined to
reduce greenhouse gases, including the huge greenhouse emissions emanating from
landfills, lagoons and surface impoundments caused by degradation of organic
waste.

     Beneficial utilization, such as the N-Viro process, provides soil fertility
and carbon sequestration in lieu of greenhouse gas emissions, caused by organic
disposal. There is a difference - a huge difference.

     We appreciate the patience, support and encouragement of our many
shareholders. We pledge our dedication to doing this job and doing it right.

Best wishes.

Terry J. Logan, Ph.D.
President, Chief Operating Officer

J. Patrick Nicholson
Chairman, Board of Directors,
Chief Executive Officer

     The Company cautions that words used in this document such as "expects,"
"anticipates," "believes," "may," and "optimistic," 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.