Suez Lyonnaise Des Eaux Elects To Launch A Multi-Service Offer Over CATV Network (TV - Data-Voice), By Adding Telephony To Its Existing Services.

PARIS--(BUSINESS WIRE)--November 21, 1997--Suez Lyonnaise des Eaux, through its 77% owned subsidiary Lyonnaise Cable, is about to launch a multi-service offer, thus maximizing the potential of cable networks by adding telephony to its present services. The package will include existing digital TV and high-speed access to Internet plus the new telephony over its hybrid cable network. Through its pilot program that will begin on December 8th in Annecy, France, Suez Lyonnaise des Eaux aims to leverage its position as the owner of France's largest cable operator.

Suez Lyonnaise des Eaux's involvement in communications also includes terrestrial TV with M6 (34% stake) and digital satellite television through the TPS venture (10% directly owned and 20% via M6), the latter being complementary to cable for digital access.

Girard Mestrallet, Suez Lyonnaise des Eaux's Chief Executive Officer, stated: "Communications is one of our four core businesses that we have identified for growth. By utilizing our existing cable system, we have the opportunity to participate in key growth areas of the communications business at a reasonable cost to our company."

For residential and commercial customers, this multi-service package supplied by the same operator will be user-friendly, economical and state-of-the-art. It will rely on technical agreements with strong industrial groups such as Sagem (digital TV decoders), Alcatel (telecom/equipment) and Motorola (Internet modem). Pricing of the combined services will be at a meaningful discount to existing rates. Telephone rates will be degressive and at least 10% lower than at present. As far as Internet access is concerned, for a fixed monthly fee of less than FRF 200, internautes will be able to connect to the Web a thousand times faster than by telephone, with unlimited usage and no telephone charge. Lyonnaise Cable's state-of-the-art networks offer multi-media capabilities, the return path, wide band and high-capacity data transmission.

Lyonnaise Cable's existing operations are expected to generate sales of FRF 1 billion in 1997 and are about to break-even. The implementation of this strategy requires additional investments not exceeding FRF 2 billion over 5 years, which will be 50% funded by equity. Return on investment is expected to be over 20%, turning positive as of 2001. In 2002, the forecasted sales of Lyonnaise Cable will reach about FRF 4 billion.

With nearly one-third cable market share and 2.3 million homes passed (620,000 customers), Lyonnaise Cable is the leading cable operator in France and the first to provide this type of multi-service package (TV-data-voice) in Europe over a single market.

Communications is one of Suez Lyonnaise des Eaux's core businesses along with Energy, Water and Waste Services.

CONTACT: Patrick Ayoub

[phone]

Josette Jolibois

[phone]

Betsy Brod/Stephanie Giroux

Morgen-Walke Associates, Inc.

212/850-5688

MEDIA: Marie-Jean Pasquette

Suez Lyonnaise des Eaux

[phone]

Christian Rossi

Suez Lyonnaise Cable

[phone]

Media: Brian Maddox/Estelle Bieber

Morgen-Walke Associates, Inc.

212/850-5660