In view of the positions taken by Vinci's management, Veolia Environnement considers that the conditions are not met to go ahead with a friendly alliance between the two groups with the aim of creating a global leader in urban environment and regional development.
Veolia Environnement therefore decides not to pursue this project.
Veolia Environnement confirms its short and medium-term growth prospects. Thanks to strong sales performance since the beginning of 2006, it is forecasting growth of over 10% in revenue and a sharper rise in operating income, in line with the group's development strategy based on promising markets in environmental services.
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. www.veolia.com
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 - Tel. +33 1 71 75 01 67
US investor contact: Brian Sullivan - Tel +(1) 630 371 2749