Canby, Ore., Awards Long-Term Partnership for Water Treatment Services to Veolia Water; Experience Gives Veolia Water Edge.

HOUSTON -- Access to global water experience and expertise was the key driver in the Canby, Ore., Utility Board's unanimous approval of a 10-year, $6.5 million water services contract to Veolia Water North America - West LLC (Veolia Water).

The public-private partnership calls for Veolia Water to manage the utility's water treatment system that serves approximately 15,000 people. The water treatment system includes a 6 million-gallon-per-day treatment plant, storage tanks, intake, sludge lagoons and related facilities.

"Our extensive service record and comprehensive facility management program convinced Canby Utility to select Veolia Water," said Chibby Alloway, president, Veolia Water North America - West LLC. "Our customized operating plan developed for their system will ultimately lead to lower overall costs, greater asset life and improved reliability."

Canby Utility General Manager Dirk Borges said, "Veolia Water's expertise and depth of resources will provide Canby's ratepayers tremendous value. This partnership gives us the ability to extract every benefit out of our systems while lowering our cost at the same time."

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) and (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 $36 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.