Atlanta-Fulton County Water Resources Commission and USFilter Partnership for Water Services Wins Best Operated Surface Water Treatment Facility in Georgia.

Business Editors

ATLANTA--(BUSINESS WIRE)--June 10, 2003

Public-Private Partnership for Water Services Proves Beneficial to

More than 500,000 People

For the sixth time, the water partnership between the Atlanta-Fulton County Water Resources Commission (AFCWRC) and USFilter Operating Services (USFilter)/Khafra Engineering Consultants (Khafra) has won Georgia's "Best Operated Surface Water Treatment Facility" of the year by the Georgia Water and Pollution Control Association (GWPCA). The facility, located in Alpharetta, again won in the greater than 15-million-gallons-per-day (MGD) surface water treatment facility category.

"Winning this award is a testament to a well-run facility and that a public-private partnership can work," said Michael J. Leonard, general manager for the AFCWRC, which provides interface to representatives of the city of Atlanta and Fulton County for the management of both short-and long-term water plans affecting the area. "This award further highlights the dedication, pride and professionalism of our staff. Stewardship of our most precious resource is not just a job - it is a mission."

The GWPCA judged the water treatment facility on quality control, safety, equipment monitoring, facility maintenance, plant operations and other miscellaneous criteria. Established in 1932, the GWPCA is a not-for-profit association comprised of more than 5,000 members of professionals who implement state and federal water supply, water protection, and water resources laws and regulations.

More than 500,000 citizens in northern Atlanta and northern Fulton County have benefited from the water partnership between USFilter/KHAFRA and the AFCWRC since it began delivering potable water in 1991. USFilter and Atlanta-based Khafra provide operation, maintenance and administrative services for the AFCWRC's 90-MGD surface water treatment facility, raw pumping station and 480 million gallon reservoir.

The partnership has enabled citizens of the greater metropolitan area of Atlanta to receive the highest-quality drinking water while generating significant savings in operations and maintenance costs through efficiencies such as reductions in electrical and chemical consumption through process optimization. The USFilter/KHAFRA team also provided solutions for maintenance optimization of facility processes and support equipment, thereby increasing the operational life span of equipment and reducing capital replacement costs.

Additionally, the USFilter/KHAFRA team completed, in conjunction with the U.S. EPA and the American Water Works Research Foundation (AWWARF), two pilot-test programs. The joint- sponsored studies focused on microfiltration treatment of backwash water and the impact of water quality on the inactivation of bacterial and viral pathogens. USFilter/Khafra, along with the AFCWRC, plan to participate in a third AWWARF study entitled "natural organic matter fouling of low pressure membrane systems."

"Receiving this award is important to USFilter because it clearly demonstrates our dedication to operational excellence and to providing exceptional services to the residents of greater Atlanta," said Ron Davis, USFilter Operating Services executive vice president and general manager. "For more than 30 years, public-private partnerships have delivered municipalities rate stability, improved water quality and enhanced infrastructure while guaranteeing environmental compliance and generating significant savings. In fact, today more than 1,000 municipalities nationwide benefit from water partnerships."

The successful USFilter/Khafra and AFCWRC public-private partnership was the first water partnership of its kind in the Atlanta area. Most recently, USFilter entered into a public-private partnership with the city of Atlanta for the development and management of an innovative, city-wide program that will produce Class A biosolids. The program will recycle 90 percent of wastewater solids and sludge from the city wastewater treatment plants, greatly reduce the use of city incinerators and produce an environmentally friendly fertilizer for Atlanta residents at no cost for residential use.

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.