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Great Falls, Mont., Extends Veolia Water's
Wastewater Partnership for Ten Years

HOUSTON -- Sept. 27, 2004--The city commission in Great Falls, Mont., has unanimously approved a 10-year contract extension with Veolia Water North America Operating Services, LLC, (Veolia Water) to continue managing the city's wastewater treatment operations.

"For more than 27 years, Veolia Water and its predecessor companies have safely operated and maintained our wastewater facility without a major environmental discharge permit violation or fine," said John Lawton, Great Falls city manager. "The company has also invested in the growth of our community. We are happy to continue this partnership, which will enable us to maintain our quality environment while expanding our economy and continue bringing new business to Great Falls."

Valued at $25.7 million, the contract extends Veolia Water's service of operating and maintaining the city's 21 million-gallon-per-day secondary wastewater treatment facility along with 26 lift stations, plus collection and analysis of industrial
pretreatment samples. Great Falls will continue to experience rate stability and have guaranteed environmental compliance with the extended agreement.

Lawton added Veolia Water has done more than just provide wastewater services over the last 27 years. "The company has been responsive and willing to support our staff, most recently, under a separate contract agreement, helping us analyze the feasibility of adding cogeneration to our wastewater treatment plant," he said.

Wayne Robbins, Great Falls project manager for Veolia Water, said, "This extension validates a job well done for us. Our team of professionals has maximized the Veolia Water programs and systems for the benefit of the Great Falls community and environment. We are certainly happy about this great news, and we look forward to serving the residents of Great Falls for another 10 years."

Veolia Water, formerly known as USFilter Operating Services, provides water and wastewater services to approximately 600 communities across North America.

Company Information

Veolia Water North America provides of comprehensive water and wastewater services to municipal and industrial customers, providing services to approximately 14 million people in more than 600 communities. The company is part of Veolia Water serving more than 110 million customers. Veolia Water is the Water Division of Veolia Environment (NYSE:VE) with annual revenues of more than $28.6 billion. www.veoliawaterna.com.