The funds will be used by Veolia Voda to continue its expansion in the Bank's countries of operation with an emphasis on development in Russia and Ukraine.

A holding company for Veolia Water central and eastern European activities, Veolia Voda has already made successful entries into the markets of Hungary and the Czech and Slovak republics. The EBRD's investment will support the entry of a world leader in the water sector into Russia and Ukraine.

As well as supporting a rise in quality of the provision of water and wastewater services, Veolia brings a commitment to transparency and good corporate governance. The development of effective and sustainable infrastructure is crucial for the successful transformation of economies in the EBRD region and infrastructure projects are playing an increasingly important role in EBRD investments.

"This partnership underlines VeoliaWater's commitment to working in close co-operation with authorities in Central and Eastern Europe, and our development in this region will be further enhanced through EBRD's support. Our long standing expertise will contribute not only to providing communities with efficient water and wastewater services, but also to the protection of natural water resources which is of major importance to this region."

Antoine Frérot, Chief Executive Officer of Veolia Water

"Improving the supply of water and reducing the danger of pollution and sickness by raising the quality of wastewater treatment made a real difference to the quality of people's lives. Veolia's track record in this sector makes them the ideal partner in the drive to transform this sector in areas where international operators have yet to enter the market."

Thomas Maier, EBRD Director for Municipal & Environmental Infrastructure

The EBRD provided €307 million in support of municipal and environmental infrastructure projects in 2006 and has committed a total of 2.8 billion in 165 infrastructure projects since 1996 - when the Bank first started MEI investment). Investments in water services totalled 1.6 billion during this period.

EBRD

The EBRD, owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies from central Europe to central Asia. Visit the EBRD's website: www.ebrd.com

Veolia Eau

Veolia Eau, Division Eau de Veolia Environnement, est le premier opérateur mondial des services de l'eau.

Spécialiste de la gestion déléguée des services d'eau et d'assainissement pour le compte de collectivités locales ou d'entreprises industrielles et tertiaires, il est aussi l'un des premiers concepteurs mondiaux de solutions technologiques et de construction d'ouvrages nécessaires à l'exercice des services de l'eau. Veolia Eau dessert 108 millions de personnes dans le monde avec un chiffre d'affaires, pour l'année 2006, de 10,1 milliards d'euros et 77 800 collaborateurs.

Veolia Environnement (Paris Euronext : VIE et NYSE : VE) est le leader mondial des services à l'environnement. Présent sur les cinq continents avec plus de 300 000 salariés, le groupe apporte des solutions sur-mesure aux collectivités comme aux industriels dans quatre activités complémentaires : la gestion de l'eau, la gestion des déchets, la gestion énergétique et la gestion des transports de fret et de voyageurs. Veolia Environnement a réalisé en 2006 un chiffre d'affaires de 28,6 milliards d'euros.

Veolia Environnement

Veolia Environnement (Paris Euronext: VIE and NYSE: VE) is world leader in environmental services. With more than 300,000 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 €28.6 billion in 2006. 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. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, the risk that Veolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, the risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations, as well as 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.