Three Alabama Communities Partner with USFilter for Water and Wastewater Services.

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HOUSTON--(BUSINESS WIRE)--Sept. 8, 2003

Public-Private Partnerships Expected to Save Camden, Marion and

Perry County $2 Million While Guaranteeing Environmental Compliance

and Improving Water Quality

Three Alabama communities - Perry County and the cities of Camden and Marion - have each awarded USFilter Operating Services, Inc., (USFilter) long-term contracts for the operation, maintenance and management of their complete water and wastewater systems. Combined, the agreements have an approximate $33 million value, total 60 years of service and are expected to generate more than $2 million in savings for the communities.

"These three communities join the ranks of more than 1,200 others in North America who rely on public-private partnerships for the delivery of water and wastewater services," said John Eddlemon, regional vice president, USFilter Operating Services. "Public-private partnerships are proven, and they certainly continue to flourish in Alabama. Our partnerships help improve water quality and related services while ensuring a city's positive environmental compliance and safety record and, hopefully, its financial health through the generation of significant savings."

City of Camden, Ala.

The 20-year, $14 million agreement calls for USFilter to operate, maintain and manage Camden's three 600-gallons-per-minute water wells, 0.8-million-gallon-per-day (MGD) wastewater treatment plant and 20-mile collection and 31-mile distribution systems. Additionally, the company will handle meter reading, customer service, ground and street maintenance and sanitation services for the city's approximately 2,500 residents.

"Entering into a public-private partnership with USFilter provides us with a viable alternative to fund future capital improvements, and it will enable us save more than $1 million over the term of the agreement that can go towards other city services like schools, roads and health services," said Camden Mayor Henrietta Blackmon. "We can do more for less, and it is a win-win situation from both a service and administrative standpoint."

City of Marion, Ala.

Marion, home to the prestigious Marion Military Institute, the oldest military junior college and preparatory school in the United States, entered into a $13.1 million public-private partnership agreement with USFilter for the operation and management of the city's 3-MGD water and 0.5-MGD wastewater treatment facilities and 11 lift stations. Starting Sept. 1, 2003, for the next 20 years, the contract also calls for USFilter to provide Marion's 3,500 residents billing, collection, distribution, meter reading and customer-related services. The partnership is expected to generate savings of approximately $800,000 over the life of the agreement.

"With USFilter as our partner, we have full confidence we can, together, tackle our water systems more efficiently and safely, which in turn will generate significant savings and enable us to meet some of our financial challenges," said Marion Mayor Edward Daniel.

Perry County

According to Earl Ford, chairman of the Perry County Water and Sewer Board, it was USFilter's breadth of experience in Alabama and the wide array of company resources that drove Perry County to outsource its water operations to USFilter. The 20-year, $5.3 million contract includes the operations and management of the county's water treatment, collection and distribution systems, meter reading, customer service and billing.

"USFilter's extensive experience with public-private partnerships, easy access to technology and strong resource base in Alabama will enable us to elevate the level of services we will provide to Camden, Marion and Perry County," added Eddlemon.

These contract wins reinforce USFilter's presence in Alabama, where the company currently operates, maintains and manages approximately 15 municipal and industrial projects, most of which currently enjoy the benefits of a long-term partnership. USFilter has 30 years of continuous experience in providing water and wastewater operations, maintenance and management services and now serves more than 13 million people in more than 600 communities across North America.

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 $31.5 billion. Visit the company's web sites at www.usfilter.com or www.veoliaenvironnement.com.

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