Sale of USFilter Corporation’s systems and services business to Siemens

05/12/04  • Water
May 12, 2004- Veolia Environnement (Euronext: VIE and NYSE: VE) announced today the signing of an agreement for the sale by Veolia Environnement of US Filter Corporation's systems and services businesses to Siemens for $993 million. The transaction is expected to close during the third quarter of 2004 following approval by the applicable antitrust authorities.

This disposal is a major step in the strategic refocusing of Veolia Environnement's water activities in North America on long-term contracts for both municipal and industrial clients, as announced last September. This sale follows the sale of Everpure announced last November.

Henri Proglio, Chairman and CEO of Veolia Environnement, said: "The sale of US Filter Corporation's systems and services businesses generated significant interest from both strategic and financial investors. We found Siemens's offer very convincing from all points of view: industrial, financial and strategic. This transaction will preserve the future and growth of these businesses and their teams, while providing attractive prospects for industrial and commercial cooperation with an important European group."

Joergen Ole Haslestad, President of Siemen's I&S Group, said: "This acquisition is an important step in the framework of strengthening our Group portfolio. The growing water segment will play a critical role within our industrial activities at Siemens. With it, we will be able to expand our product and service offerings for our customers, in particular within the world's largest water market, the United States."

Veolia Environnement (Paris Euronext: VIE et NYSE: VE), is the leading provider of environmental services to municipalities and industrial companies worldwide. The company has global operations in four core business areas: Water, Waste, Energy Services and Transportation. In 2003, Veolia Environnement generated consolidated revenue of 28.6 billion euros ($36.1 billion). Visit the company's web site

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