Burley, Idaho, Awards Long-Term Partnership for Wastewater Treatment Services to Veolia Water North America; Local Knowledge Gives Veolia Water Edge.

HOUSTON -- A deep understanding of community needs was the driver in the city of Burley, Idaho's unanimous approval of a 10-year, $5.6 million contract for wastewater services with Veolia Water North America - West LLC (Veolia Water).

The public-private partnership calls for Veolia Water to manage the city's $29 million, 2-million-gallon-per-day (MGD) municipal wastewater treatment facility when it comes online in October 2006. In the interim, Veolia Water will assist with startup activities to ensure reliable, long-term performance of the plant that will serve approximately 10,000 people. Additionally, the company will manage the city's 2.3-MGD industrial wastewater treatment plant and provide oversight of the industrial pretreatment program.

"Veolia Water did an excellent job of articulating their approach to managing our assets and convinced us of the value of their services to the community," said Burley City Manager Mark Mitton. "This partnership gives us the ability to maximize our significant investment through their skilled employees and global expertise."

Veolia Water North America - West President Chibby Alloway added, "Access to our broad range of expert resources coupled with a comprehensive management approach convinced Burley leaders to select Veolia Water. As the world's leader in operating wastewater systems, Veolia Water always strives to improve the value and life of our clients' assets."

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 Environnement (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.