12.1.2006: Meldung: Veolia Water continues expansion in Czech Republic

Paris, January 11, 2006

Veolia Water continues its expansion in the Czech Republic

Veolia Water, the Water Division of Veolia Environnement, has been awarded the contract for the management of water services by the Prostejov Water Company, the public water utility responsible for the area around this large city in Central Moravia. The contract covers the production and distribution of drinking water, the collection and treatment of wastewater, as well as customer services. It will extend over 25 years and generate total revenues of more than Euro122 million over the period.

The operating company, a subsidiary of Veolia Water, will manage the contract and serve the 70,000 people in the area of Prostejov. It will take on the 120 employees of the former municipal water company.

Veolia Water has also been awarded a 15-year contract by the city of Slany in Central Bohemia (population 21,000) to manage all water, wastewater and customer services. This contract represents total revenues of Euro 30 million over the period. Slany is located close to the area of the Kladno-Melnik water company, which Veolia Water has managed since November 2004.

"These new contracts further strengthen Veolia Water"s business in the Czech Republic. Over the past 10 years, Veolia Water has become the country"s market leader for water services, thanks to the authorities" clearly stated objective to modernize them within the context of the country"s accession to the European Union completed in 2004. The geographical location of the new contracts, one of which is between the two other Moravian contracts of Olomouc and Zlin, and the other of which is in the vicinity of Kladno-Melnik, will enable Veolia Water to utilize synergies, accelerate the application of best practices, and achieve the company"s standard levels of performance," commented Antoine Frérot, Chief Executive Officer of Veolia Water.

In the Czech Republic, Veolia Water now manages water and wastewater services for 4.3 million people and has nearly 6,400 employees. The company operates in 10 regions and serves more than 1,200 communities. www.veoliavoda.cz

Veolia Water, the Water Division of Veolia Environnement, is the world leader in water and wastewater services. Specialized in outsourcing services for municipal authorities, as well as industrial and service companies, it is also one of the world"s major designers of technological solutions and constructor of facilities needed for water and wastewater services. Veolia Water serves 110 million people worldwide. With 67,800 employees, its 2004 revenues amounted to Euro9.8 billion.

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. The company has operations all around the world and provides tailored solutions to meet the needs of industrial and municipal customers in four complementary segments: water management, waste management, energy management and passenger transportation. Veolia Environnement recorded revenue of Euro24.7 billion in 2004 and has 250,000 employees.
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