Quarterly Revenues At March 31, 1998: Up 6.7% To FRF 48.7 Billion.

PARIS--(BUSINESS WIRE)--June 5, 1998--Suez Lyonnaise des Eaux group (1) consolidated revenues were up 6.7 percent at March 31, 1998, +6.4 percent at constant exchange rates.

-- Core business revenues rose 6.7 percent.

-- International revenues from core businesses (outside France and

Belgium) advanced by 20.2 percent. The group's international

activity accounted for 27 percent of total revenues, compared

with 24 percent at March 31, 1997.

-- Total revenues generated outside France amounted to 61 percent.

REVENUE CONTRIBUTION BY BUSINESS

                  1st quarter 1998(a)  1st quarter 1997(b)
(in FRF millions)      Revenues             Revenues         Change

- Core businesses      30,364                28,464           +6.7

 - Energy              18,313                17,520           +4.5%
 - Water                7,352                 6,978           +5.4%
 - Waste services       4,062                 3,380          +20.2%
 - Communications         637                   587           +8.5%

- Other businesses     18,292                17,146           +6.7%

 - Construction        12,039                10,439          +15.3%
 - Retail financial
    services            4,466                 4,931           -9.4%
 - Financial,
   industrial and real
   estate equity
   holdings             1,786                 1,776           +0.6%

- Total                48,656                45,610           +6.7%

(1) excluding revenue contribution from BFI acquired assets
(consolidated from April 1, 1998).  This contribution would have been
FRF 1,453 million.


     All CORE BUSINESSES Progressed

     --   ENERGY                   +4.5%

          This increase is accounted for by new TRACTEBEL business
          activity and the contribution of Lyonnaise des Eaux
          Casablanca, which started up in August 1997.

          ELYO group activity remained level.


     --   WATER                    +5.4%

          International water distribution, especially in Argentina
          and the United Kingdom, account for this advance.

          Excluding changes in consolidation and exchange rate,
          DEGREMONt (water treatment process engineering), business
          recovery led to a 4.2 percent revenue improvement.


     --   WASTE SERVICES           +20.2%

          SITA Group business grew in France as well as Spain and the
          United Kingdom.

          Waster service subsidiaries of TRACTEBEL, AGBAR and
          NORTHUMBRIAN also continued their sustained expansion.

          The BFI subsidiaries recently acquired by SITA did not
          contribute to first quarter revenues as they will only be
          consolidated from April 1, 1998. Revenues from this source
          for the first three months of the year were about FRF 1,400
          billion.

     --   COMMUNICATIONS           +8.5%

          Higher advertising revenues for M6 and an increased number
          of LYONNAISE CABLE subscribers explain revenue growth for
          this sector.

OTHER BUSINESS ACTIVITIES likewise generated 6.7 percent higher
revenues.

     This advance was due in particular to Construction, especially
Offshore work (+73.4 percent) and Road building (+28.7 percent),
advancing in France as well as abroad.

     Conversely revenues generated by financial services were affected
by continued declining interest rates.

REVENUES BY GEOGRAPHIC AREA

The following is a comparison of geographic breakdown (in percent) of revenues at March 31, 1998:

Revenues 1st quarter 1998(a) Revenues 1st quarter 1997(b)

Core Other Total Core Other Total

businesses businesses businesses businesses France 29% 56% 40% 30% 62% 42%

Belgium 44% 13% 32% 46% 9% 32%

Other countries 27% 31% 28% 24% 29% 26%

Core business revenues outside France and Belgium increased from FRF 6.8 billion for 1st quarter 1997 to FRF 8.2 billion for 1st quarter 1998, an increase of 20.2 percent.

MAIN CONTRIBUTIONS TO COMBINED REVENUES AT MARCH 31

1998 1997

Revenues Revenues Change (in FRF millions) 1st quarter 1998(a) 1st quarter 1997(b)

Societe Generale de

Belgique 19,366 17,937 +8.0% Groupe GTM  9,761 8,743 +11.6% Other business 19,529 18,930 +3.2%

Total 48,656 45,610 +6.7%

(a) Revenues include sales and services, inventory of finished goods, and production of related activities. The contribution of financial services includes the same items plus interest income, income from securities gross insurance premiums written and other operating revenues.

(b) Pro forma figures 1997 correspond to the combined total of revenues of the former Suez and Lyonnaise des Eaux groups adjusted to account for changes in methods of consolidation in 1997.

CONTACT: Media Contact:

Sue Lawrence, [phone]

or

Analyst Contact:

Patrick Ayoub, [phone]