The contract concerns operation of the cogeneration plant at the Pigna manufacturing facility based in Alzano Lombardo, north of Bergamo, in the region of Lombardia. The plant also supplies heat to the district heating system of Alzano Lombardo, which has a population of 12,000. Representing total revenue of around €413 million, the 12-year contract follows an initial maintenance contract signed in 2000.

Cogeneration enables simultaneous production of electricity and heat using the same fuel. The plant in Alzano Lombardo supplies the Pigna facility with more than 215,000 tonnes a year of steam and more than 17,000 MWh of heat, which is distributed via the district heating system. Electricity produced by the plant is sold under contract to supply the Italian power grid with 350,000 MWh a year.

Cartiere Paolo Pigna SpA is a family-owned enterprise based in northern Italy. With its main production facility in Alzano Lombardo, Cartiere Paolo Pigna is considered as the leading paper product manufacturer in Italy.

Siram currently employs 2,300 people. Its service portfolio includes the management of heating and air conditioning facilities, the operation of district heating systems, facilities management for state and private clients, and industrial energy services.

Dalkia, a subsidiary of Veolia Environnement and Electricite de France (EDF) and parent company of Dalkia International, is the leading European provider of energy services to local authorities and businesses. Since its creation, Dalkia has been totally committed to optimising energy and environmental protection. Dalkia meets customer demand by delivering personalised, end-to-end solutions to ensure comfortable living and efficient energy supply, including management of heating systems and energy and industrial fluid production facilities, energy plant engineering and maintenance services, technical services for commercial and industrial building operation, and facilities management. With more than 40,000 employees in 32 countries, Dalkia reported 2002 revenue totalling €5.1 billion.


Important Disclaimer
Veolia Environnement is listed on the NYSE and Euronext Paris. This press release contains forward-looking statements as that term is defined in the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on the current expectations and forecasts of management. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, as well as the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement is under no obligation and has made no commitment to update or revise its forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission at or directly from Veolia Environnement.

Analyst and institutional investor contact: Nathalie Pinon +33 1 71 75 01 67
US Investor contact: Brian Sullivan +(1) 630 371 2749