Arjo Wiggins has chosen Dalkia to build and operate a new facility providing steam for its Wizernes plant in northern France

The project will be carried out under a twelve-year contract representing annual revenues of €10.6 million for Dalkia.

To be commissioned on 1 November 2006, the new facility with its 10 MWe gas turbine will allow the plant to increase output. Dalkia will supply 340,000 metric tonnes of steam a year and will operate and maintain the facility.

This successful bid comes on the heels of two other projects with Argo Wiggins, in Arches and Bessé-sur-Braye. The paper manufacturer selected Dalkia in 1998 to manage and maintain a facility in Bessé-sur-Braye and again in 2004 to manage the steam heating plant.

Arjo Wiggins is the world's largest manufacturer of creative and technical papers, with brands such as Canson, Chromomat and Gateway. The Wizernes plant produces coated paper, the primary type of paper used in magazines, catalogs and art books.

One of Dalkia's key areas of expertise in industry is its ability to choose among different primary energy sources to obtain the best long-term cost/performance ratio for each energy utility. In the paper industry, steam is particularly important during the pulp cooking, drying and bleaching stages, as well as in the black and white liquor regeneration cycle.

In areas ranging from fuel procurement and energy conversion to site management and maintenance or facilities management: Dalkia delivers innovative, operational, environmentally friendly solutions to free its 2,800 industrial customers from tasks that are not directly related to their core business. In 2004, industrial customers accounted for 27.5% of managed revenue of Dalkia.

A subsidiary of Veolia Environnement and Electricité de France (EDF), Dalkia is the leading European provider of energy services to local authorities and businesses. Since its creation, it has focused on energy and environmental optimisation. It meets customer expectations by delivering customised, 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 global building management services. With more than 43,300 employees in 38 countries, Dalkia reported 2004 revenue of €5.7 billion.

Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This press release contains ‘forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, including the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any 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 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