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City of Fall River, Mass., Awards Long-term Contract for Wastewater Treatment Services to Veolia

Contract Renews 10-Year Public-Private Partnership

HOUSTON, July 29, 2004 -- The City of Fall River, Mass., and Veolia Water North America (Veolia Water) have renewed their 10-year partnership for wastewater services.

Through a competitive bid, Fall River selected Veolia Water to continue providing operations and management services for its 30.9 million gallon per day wastewater treatment facility, 14 pump stations, and 179 mile collection system.

The five-year contract, with an option for a five-year extension, is valued at approximately $39 million.

Fall River Mayor Edward Lambert commended Veolia Water on its operational excellence and value-added proposal. "Our partnership with Veolia Water began a decade ago when our system was troubled by odor complaints and compliance. Today, we receive national recognition for our excellent compliance record. Veolia Water understands and is focused on helping us achieve our top priorities -- odor and noise control, environmental compliance, facility maintenance and savings. We are excited to continue this partnership," said Lambert.

The Fall River Regional Wastewater Facility services approximately 100,000 residents from Fall River along with several outlying communities and businesses and employs a staff of 50. "Over the past ten years, we have achieved many awards for environmental compliance and safety, but the award that best characterizes our performance is this 10-year extension from our client. Each day, about 25 million gallons of water is released from the City of Fall River's wastewater treatment facility into Mount Hope Bay -- which is a pretty awesome responsibility. We look forward to continuing to protect Fall River's precious resources for many years to come," said Christopher Hodgkins, northeast business center vice president, Veolia Water North America.

As part of its proposal to the city, Veolia Water will apply state-of-the-art project management techniques and industry-leading operations, maintenance and repair technologies to ensure 100 percent compliance, assist with the new three mile deep rock combined sewer overflow tunnel upon completion in December 2004 and continue to provide access to a backup sludge disposal plan.

Veolia Water, formerly known as USFilter Operating Services, provides services to approximately 600 communities across North America, including some 15 in Massachusetts. In the last month, the company has secured five contract renewals across the country and was most recently selected to enter into contract negations with the town of Lee, Mass., for the operations of its water and wastewater systems.