Veolia Water, the Water Division of Veolia Environnement, has just signed a contract with the municipal authorities of Braunschweig in Lower Saxony to manage the city's wastewater services for a period of 30 years. Veolia Water won this new contract after a pan-European competitive bidding process.

Wastewater collection and treatment services for the city of Braunschweig (population of 250,000, north-western Germany) will complement the range of services already provided by Veolia Environnement since the beginning of 2005, including water distribution, street lighting and management of the municipal heating, electricity and gas network. Veolia Water prevailed as a result of its highly competitive bid, as well as the Group's quality of service and social responsibility in terms of keeping on existing personnel.

Veolia Water will operate the almost 1,150km-long network, as well as an almost 300,000 pop. eq. treatment plant. It has made a commitment to take on the 230 employees currently working for Stadtentwässerung Braunschweig Gmbh.

In a press release, Braunschweig's mayor, Dr Hoffmann, emphasized that: "Veolia is a solid and reliable partner. Our experience since it took over management of the city's municipal services has been highly positive. We are delighted to be entrusting Veolia with the management of Braunschweig's wastewater services. For Braunschweig's population, the partnership with Veolia means stable prices, plus a guarantee of the highest quality standards, without losing the influence of the municipal authorities."

"The fact that the Braunschweig municipal authorities have again placed their trust in us following the competitive bidding shows the quality of the partnership we have forged with them since we started providing the city's municipal services. This latest contract award confirms the competitiveness and quality of our services, as well as vindicating our partnership strategy with local authorities" commented Antoine Frérot, Veolia Water's Chief Executive Officer.

In Germany, Veolia Water manages water and wastewater services for the city of Berlin, as well as municipal services for the cities of Gera, Döbeln, Merseburg, Görlitz, Bad Münder and over 400 other districts, with a special emphasis on Saxony, Saxon-Anhalt and Lower Saxony. In total, it serves the needs of a population of over five million.

Important Disclaimer
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 designers 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 revenues 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.

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