Another Ontario Community Enters into a Public-Private Partnership for Water Services.

Business Editors

HURON-KINLOSS, Ontario--(BUSINESS WIRE)--Sept. 5, 2003

Three-Year Agreement with USFilter Brings Operational Experience and

Savings to the Township of Huron-Kinloss

The township of Huron-Kinloss, Ontario, has awarded a three-year contract to USF Canada, Inc., a subsidiary of United States Filter Corporation (USFilter), for the management of its water system. The public-private partnership agreement calls for USFilter to operate, maintain and manage Huron-Kinloss' 11 wells and related water systems, serving a community of approximately 6,000 people.

"We selected USFilter for the management of our water system based on the company's excellent reputation in Ontario, local experience and all-encompassing price offering," said Hugh Nichol, public works superintendent for the township of Huron-Kinloss. "Most importantly, USFilter demonstrated great flexibility in adapting to our needs."

The township's 11 wells come from four water supply systems that stretch across 100 kilometers (62 miles). USFilter is operating this system as a satellite project from the Goderich water and wastewater facilities, a system located just south of Huron-Kinloss and operated by the company under a five-year public-private partnership. The satellite arrangement provides great advantages to both communities, as the services and resources are shared, which results in overall lower cost and expanded services.

"The public-private partnership will provide the township of Huron-Kinloss with clean drinking water, compliant operations and a high degree of cost control--a combination of standards a public utility has difficulty achieving on its own with Ontario's stringent regulatory environment," said Laurie Cox, USFilter project manager in Huron-Kinloss and Goderich. "With our resources, experience and flexibility, we are confident in our ability to bring significant savings to the township without compromising water quality or regulatory compliance, and we look forward to a long and mutually beneficial relationship with Huron-Kinloss."

The Huron-Kinloss contract adds to USFilter's presence in Canada, where the first major drinking water public-private partnership--launched in 1998 by the city of Moncton, New Brunswick, and USFilter--secured fully compliant, uninterrupted water services and low-cost, high-quality drinking water for decades to come. Additionally, USFilter partners with approximately eight other Canadian municipalities and industries for water and wastewater services.

In North America, the company has amassed 30 years of continuous experience in providing municipal water and wastewater system operations and management services, and now serves 13 million people in more than 600 communities.

United States Filter Corporation, a Veolia Environnement company, is North America's leading water company providing comprehensive water and wastewater systems and services to commercial, industrial, municipal and residential customers. Veolia Environnement (Paris Bourse: VIE) and (NYSE:VE) is the largest environmental services company in the world with more than 295,000 employees, including FCC, in about 100 countries and annual revenues of more than $31.5 billion. Visit the company's web sites at www.usfilter.com or www.veoliaenvironnement.com.

Important Disclaimer. Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This press release contains "forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that Veolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, the risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations, and the risks related to Veolia Environnement's relationship with Vivendi Universal, as well as the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement.