Ondeo (SUEZ) Wins The World's Largest
O&M Water Services Contract In Puerto Rico
-- $4 Billion Over 10 years

May 2, 2001 — Ondeo (SUEZ), with its North American
subsidiary United Water, has been awarded a 10-year, $4
billion contract (an average of $400 million in annual
revenues) for the operation and maintenance (O&M) of the
water and wastewater services of the Commonwealth of
Puerto Rico. The contract, awarded by the Puerto Rico
Aqueduct and Sewer Authority (PRASA), is the largest O&M
contract for water services ever awarded. This historic
contract confirms Ondeo's leadership position in the North
American market.

The contract, which includes an extension provision, covers
the production and distribution of drinking water for Puerto
Rico's nearly 4 million residents, as well as the collection and
treatment of wastewater for the entire island. The operator is
responsible for operation, maintenance, and renovation of
the infrastructure, for client service, and for human resources
management.

The contract calls for management of the entire PRASA
system, which consists of:

133 water treatment facilities
68 wastewater treatment facilities
Approximately 7,700 miles of water distribution
pipelines
Approximately 3,900 miles of wastewater collection
pipelines
30 customer service centers
Nearly 6,000 employees

The award of the contract follows an international call for
tenders focusing on three primary objectives:

Support for the Agua para todos (Water for All)
program which was launched recently by Puerto Rico's
Governor, and which is aimed at providing a
consistent, adequate supply of water to the island's
residents and at extending water systems to areas that
are not currently serviced
Compliance with health and environmental standards
set by the U.S. Environmental Protection Agency and
the U.S. Department of Health
The optimization of the Puerto Rican government's
program of investment, which is designed to improve
water systems infrastructure.

O&M contracts allow local governments to delegate
management of their water and waste water systems to
private operators while retaining ownership of the systems
themselves. The U.S. market for delegated management
contracts, which help local governments to increase
operating efficiencies, reduce their costs, and gain access to
funding for infrastructure improvements, has grown steadily
over the last several years and is expected to continue its
expansion.

In 2001, Ondeo, the water division of SUEZ, generated
revenues of $2.1 billion in North America, in the areas of
management of municipal water and waste water systems
(United Water), design and construction of water treatment
facilities (Ondeo Degrémont), and services to industrial
customers (Ondeo Nalco). The award of the PRASA contract
is a major step in Ondeo's consolidation of its leadership in
the North American market, which, after Europe, is its most
important geographic base of operations and a key focus for
growth for both Ondeo and SUEZ.