Veolia Water, the Water Division of Veolia Environnement, has been awarded the contract to manage wastewater services at the Fort Knox army base in Radcliff (Kentucky), which is home to the US gold reserves. Veolia Water will operate all the base's installations for 20 years, generating total revenue of €24 million over the period.

This contract was awarded following a competitive bidding process by the US army, which was seeking to withdraw completely from the base's wastewater services. Veolia Water participated in the tender under a public-private partnership (PPP) with Hardin County, which acquired ownership of all the installations, with Veolia Water managing the operation.

In addition, Veolia Water Indianapolis (VWI), the Veolia Water North America subsidiary responsible for all water services in Indianapolis, the 12th-largest city in the US, has recently been awarded dual ISO 9001 and ISO 14001 certification simultaneously. This is the first time that a US water services company has achieved accreditation for both Quality and Environmental Responsibility.

This recognition is just reward for the efforts made by all of VWI's departments since 2002 to deliver significant improvements in water quality and to restore the confidence of the Indiana State capital's population of 1.2 million. This accreditation has been welcomed by the municipal authorities, which regard it as further evidence of the effectiveness of the public-private partnership implemented successfully over recent years. The latest customers survey indicates a satisfaction rate of 83% compared with a national average of 83%.

"This new public-private partnership and the twin certification achieved by Indianapolis Water proves that Veolia Water's expansion in the US is founded on a long-term commitment to quality. We will continue to earn the trust of municipal authorities and local governments in private-sector service management by delivering concrete improvements that set new standards. The same applies to national bodies, such as the US army, with which Veolia Water is consolidating its relationship built on trust" stated Antoine Frérot, Veolia Water's Chief Executive Officer.

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 designer of technological solutions and constructor of facilities needed in water and wastewater services. Veolia Water serves 110 million people worldwide. With 67,800 employees, its 2004 revenue amounted to €9.8 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 €24.7 billion in 2004 and has 250,000 employees.

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