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Atlanta-Fulton County Water Resources Commission Awards Veolia Water Renewal for Water Treatment Services; Agreement result of excellent performance and sound 15-year partnership.

HOUSTON -- The Atlanta-Fulton County Water Resources Commission (AFCWRC) has tapped a Veolia Water North America - South joint venture to continue managing its 90-million gallon per day (MGD) water treatment system in Alpharetta, Ga., under an $18.5 million partnership agreement. The commission's decision extends the 15-year partnership for another five years with the option of two, two-year renewals.

Veolia Water, teamed with minority businesses Khafra Engineering Consultants and Multi Energy Group, will be responsible for the operations and management of the system that serves 350,000 in Atlanta and northern area of Fulton County. The system includes the 90-MGD conventional surface water treatment facility (being expanded to 135-MGD), 240-MGD raw water pumping station, on-site reservoirs with a 1-billion-gallon capacity, and two off-site water distribution surge suppression systems. The company will also be responsible for residuals handling and disposal.

"As General Manager for AFCWRC, we look forward to the continuing success of our well-established partnership with Veolia/Khafra for the operation and maintenance of the AFCWTP," said Kathey Crews.

The joint venture has received more than 50 water industry awards and generated more than $15 million in savings to date through process control efficiencies, maintenance programs and management of power and chemical costs. Under the new agreement, continued savings are expected as the Veolia Water team plans to implement enhanced energy management and enhance risk management programs, as well as integrate new technologies and other value-added services such as security assessments and an interface with the design and construction team on the commission's capital improvement programs.

"This partnership is unique in that we are teams - working as teams. Our team includes two sound minority business partners and the commission team is a cooperative effort between the county and the city," said Stu McKenzie, president, Veolia Water North America - South. "This partnership is also very successful, and our track record of operational excellence, safety and compliance will continue for the AFWRC," he added.

Veolia Water North America is the leading provider of comprehensive water and wastewater services to municipal and industrial customers, providing services to approximately 15 million people in more than 600 communities. The company is part of Veolia Water, the No. 1 water company in the world, serving more than 110 million customers. Veolia Water is the Water Division of Veolia Environment (NYSE:VE) (Paris Bourse:VIE), the largest environmental services company in the world, with more than 310,000 employees in about 80 countries and annual revenues of more than $30 billion. Visit the company's web site at www.veoliawaterna.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.
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Publication:Business Wire
Date:May 8, 2006
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