Veolia Transport to operate Line 9 of the Seoul subway system, starting July 2009

Paris, July 3, 2007 - Veolia Transport has won a 10-year contract to operate Seoul subway system's line 9, to be inaugurated in 2009.

The contract has been signed between the franchisee, SML9* (Seoul Metro Line 9), to which the City of Seoul has awarded the contract to build and operate this new line, and Southlink 9 Company Limited, an operating company 80%-held by Veolia Transport Korea and 20% by Korea's ROTEM group, a subsidiary of HYUNDAI Motors. Veolia Transport will recruit and train 550 people under this contract. The cumulative revenue for Veolia Transport is expected at approximately €507 million.

The 25-km Line 9, now under construction, will cross Seoul, linking the Gangnam district southeast of the city to Kimpo Airport in the west. It will have 25 stations and is scheduled to carry 760,000 passengers daily by 2013.

"The Seoul subway system will further add to Veolia Transport's subway operating knowhow, already gained with the Stockholm system, where passenger numbers are rising continuously", says Cyrille du Peloux, Chief Executive Officer of Veolia Transport. "Beyond its technological aspect, our firm's involvement in this project spotlights our contribution to efforts to improve air quality and cut greenhouse gas emissions, by facilitating traffic flows in crowded cities like Seoul, one of the world's largest, with a population of 22 million."

* The franchisee, Seoul Metro Line 9 (SML9), comprises a consortium of construction companies led by the ROTEM group (a subsidiary of HYUNDAI Motors), which manufactures rail rolling stock, and financial investors led by MACQUARIE Bank.

Veolia Environnement's transportation division operates in 27 countries and employs 81,897 people. Veolia Transport generated revenue of €4.95 billion in 2006. The company operates 30,800 road and rail vehicles and carries more than 2.7 billion passengers per year.

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

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.

Anne Gry-Monteil
Tél : 00 33 1 71 75 01 97

Jérôme Simon
Tél : 00 33 1 71 75 12 78