Veolia Transportation Awarded Delegated Management Contract in New Orleans Historic Agreement is First of Its Kind in U.S

PARIS--(Business Wire)--
Regulatory News:

The CEO of Veolia Environnement (Paris:VIE), Henri Proglio, and the CEO of
Veolia Transport, Cyrille du Peloux, announced today that the company has agreed
on terms for a 10-year contract (5 year initial term with a 5 year renewal based
upon performance goals) with the New Orleans Regional Transit Authority (RTA).

This historic agreement is based on an ambitious, phased plan to improve public
transportation and mobility in New Orleans over the next 10 years, as a
cornerstone of the city`s continuing renewal following Hurricane Katrina.

Veolia Transportation, North America subsidiary of Veolia Transport, has been
operating public transportation in New Orleans under a traditional management
contract with the New Orleans RTA since October of 2008. This new contract
substantially expands the company`s scope of responsibilities and commences on
September 1, 2009.

Under the new delegated management contract, Veolia Transportation will be
responsible for all aspects of the performance of public transportation in New
Orleans, including operations, safety, maintenance, customer care, routes and
schedules, capital planning and grant administration. Veolia will be compensated
at approximately $56.3 million per year by the RTA and will be responsible to
pay all salaries, benefits and operating expenses. The company expects to be
able to generate significant cost savings over the agency`s current expense
levels, while improving and enhancing service.

New Orleans RTA employees will become employees of the company. As has been true
in the past, the Board of Commissioners of the New Orleans RTA will retain its
policy-making authority for fares, service and operations, as well as approval
of each year`s annual transportation development plan, including major
initiatives, capital purchases and operating budget.

"Veolia Transport specializes in providing safe and sustainable mobility
solutions, thus improving quality of life in cities," said Henri Proglio. "We
are delighted to contribute to New Orleans our vast experience in improving
public transportation, earned in 5,000 contracts around the world."

"I am extremely pleased to expand our partnership with New Orleans RTA and the
city of New Orleans," said Cyrille du Peloux. "Through this model of
public-private partnership, which is new to the US, we are committed to making
New Orleans a showcase for well-designed public transit."

The new contract will include operation of 32 transit routes in New Orleans,
starting with 93 buses, 66 streetcars, 42 paratransit vehicles and 10 L`l`Easy
vans.

"We believe that Veolia Transportation has the operational expertise, technical
know-how, and vision needed to greatly improve our citizens` ability to get
around in our city,` said Cesar Burgos, chairman, New Orleans RTA Board of
Commissioners. "We are grateful to our unions, our board and our employees for
their support of this important public-private partnership."

Since October 2008, the company has worked with the New Orleans RTA to stabilize
operations, strengthen many business processes, reduce operating costs,
implement customer-oriented practices and bring the agency into tighter
compliance with the policies of the Federal Transit Administration and Louisiana
Department of Transportation. The company also invested in and launched an
innovative neighborhood circulator called the Lil` Easy in several parts of the
city, connecting residents with major bus routes.

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Veolia Environnement's transport division operates in 28 countries and employs
83,654 people. Veolia Transport posted revenue of €6,1 billion in 2008. Veolia
Transport operates 40,675 road and rail vehicles and carries more than 2,6
billion passengers per year.Veolia Transport contributes to remedy the shortage
of urban space and avoids 4.1 million metric tons of greenhouse gas emissions
(equivalent CO2) per year. www.veolia-transport.com

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is the worldwide
reference in environmental services. With more than 330,000 employees the
company has operations all around the world and provides tailored solutions to
meet the needs of municipal and industrial customers in four complementary
segments: water management, waste management, energy management and freight and
passenger transportation. Veolia Environnement recorded revenue of €36,2 billion
in 2008. www.veolia.com

Important Disclaimer

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.

Press release also available on our web site: http://www.veolia-finance.com

Veolia Environnement
Analyst and institutional investor contact:
Nathalie Pinon +33 1 71 75 01 67
or
US Investors contact
Brian Sullivan - Tel +1 (312) 552 2847

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