Suez Lyonnaise Des Eaux Increases Its Interests in Aguas Argentinas.

PARIS--(BUSINESS WIRE)--Oct. 13, 1998--SUEZ LYONNAISE DES EAUX and SOCIEDAD COMERCIAL DEL PLATA (SCP) have entered into an agreement whereby Suez Lyonnaise des Eaux will retake SCP's water interests in Aguas Argentinas, Aguas de Santafe and Aguas Cordobesas in Argentina and Aguas de Illimani in Bolivia for US$ 150 million.

This transaction will allow Suez Lyonnaise des Eaux and AGBAR (Aguas de Barcelona) to take a controlling position in the three Argentinian companies.

Gerard Mestrallet, Suez Lyonnaise des Eaux's Chief Executive Officer and President of the Executive Board stated, "After many years of a very positive working relationship and partnership with Sociedad Comercial del Plata, and its Chairman Santiago Soldati, we are very pleased to have entered into a transaction which advances both our strategic and financial objectives. Indeed, this transaction will be accretive to our earning per share as of 1999."

Suez Lyonnaise des Eaux is a world leader in the water sector, present in over 120 countries, supplying drinking water to 73 million people and providing wastewater services to 43 million people. The group's four core business sectors are energy, water, waste services (internationally) and communications (European horizon) with revenues of US $32.5 billion.