Veolia Transport's US subsidiary, Veolia Transportation North America, has been awarded the contract for urban and adapted transport* system in Mesa, Arizona.

The eight-year contract, which came into effect recently, represents an accrued revenue of $180 million. It covers 400 employees and 200 vehicles.

Said Stéphane Richard, Chief Executive Officer of Veolia Transport: "This contract makes us the first private transportation operator in the Phoenix region at a time when the city is preparing to privatize its urban network and open a new light rail system, and when there is strong population growth. We think we will undergo good growth over the next few years and we hope to reach annual revenue of around $100 million in the region."

Located to the east of Phoenix, Mesa is one of the United States' largest suburban cities, with a population of 500,000. The contract strengthens Veolia Transport's operations in Arizona where it provides transportation services to the airport and in the Tempe suburbs, as well as management aid for the Phoenix urban system. Veolia Transport now has close to 2,500 employees and 1,000 vehicles in the region, where there are more than 4 million inhabitants.

*adapted transport: transport on demand for sick people or people with disabilities

Veolia Environnement's transportation division operates in 25 countries and employs 72,302 people. Veolia Transport generated revenue of €€4.35 billion in 2005. It operates 30,800 road and rail vehicles and carries more than 2 billion passengers per year.

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. With more than 270,000 employees 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 €€25.2 billion in 2005.

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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. These factors and uncertainties include in particular risks related to customary provisions of acquisition transactions as well as those 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.

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