City of Rialto, Calif., and USFilter Operating Services Partner for Wastewater Treatment Services.

Business Editors

HOUSTON--(BUSINESS WIRE)--May 5, 2003

New, Five-Year Public-Private Partnership Brings Higher Level of

Service, More Savings to Rialto 

The Rialto, Calif., city council voted unanimously to sign a five-year operations agreement for wastewater treatment services with USFilter Operating Services (USFilter). The $12 million agreement that includes three five-year renewals based on excellent performance calls for USFilter to operate and maintain the city's 8.4 million-gallon-per-day wastewater treatment plant, collection system and industrial pretreatment program. Additionally, USFilter will help the city implement a five-year capital improvement program to ensure the long-term reliability of Rialto's wastewater treatment system.

"Having outsourced our wastewater treatment operations for more than 17 years, we were simply looking to test the market. In today's tight economy, we were seeking a greater level of service at a lower cost for our wastewater operations, and we found it with USFilter," said Brad Baxter, director of public works for the city of Rialto.

The new public-private partnership with USFilter will enable this city of 95,000 to save almost $500,000 a year, or more than $2.5 million over the life of the contract. USFilter will apply its sound business practices, inject its technical know-how and use its economies of scale to create cost efficiencies.

"With USFilter as our partner, we now, for the first time, have a dedicated asset management program and a comprehensive capital improvement program to ensure our wastewater infrastructure is well maintained and can meet the needs of the community in the years to come," added Baxter.

Ron P. Davis, general manager for USFilter Operating Services, said, "Public-private partnerships for water services are proven in more than 1,000 communities across North America. We are excited that, again, a water partnership can benefit a community like Rialto. USFilter will provide professional management and expertise to move the city forward with solving its operational and fiscal issues related to wastewater treatment operations - all while facility ownership and rate-setting authority stay in the hands of city officials."

Local experience was a key driver in USFilter's selection by city officials. The company partners with seven California communities and holds the first and longest-standing public-private partnership for water services in the United States. This partnership with the city of Burlingame began in 1972 and has been consistently renewed, achieving significant benefits for the Northern California community.

Including the seven in California, USFilter operates more than 260 municipal water and wastewater facilities in North America, serving more than 13.5 million people.

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 EUR28.1 billion ($30.5 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.