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from USFILTER Press release : May 15, 2000

Floyd County, Ky., Awards USFilter 20-Year Contract to Expand and Operate Rural Water Services


USFilter Promises Quick Expansion with DBOF Win

Prestonburg, Ky., May 15, 2000 — Floyd County, Ky.'s, Southern Water and Sewer District has awarded USFilter Operating Services a 20-year design, build, operate, finance (DBOF) contract to expand and oversee the operations and maintenance of its drinking water systems. Valued at approximately $1.4 million annually, the contract calls for USFilter to finance, design and construct 21 miles of new water lines, three pumps and three tanks. USFilter also will handle system operations and maintenance for the next 20 years.

The Southern Water and Sewer District, recently formed with the merger between Beaver-Elkorn and Mud Creek water districts, services 3,800 customers with its 2 MGD (million gallons per day) drinking water treatment plant, 200 miles of water lines, 13 existing pump systems and 24 tanks. The expansion will increase the District's customer base by 500. Construction is expected to begin in August with a completion by July, 2001.

"The Southern Water and Sewer District was formed to help expand the public water system to more county residents and to address operating problems such as a 50 percent water loss caused by aging infrastructure," said Rob Nicholas, regional vice president, USFilter Operating Services. "USFilter, with support from our distribution group and Lexington-based PDR Engineering, provided a quick, viable solution to get more water to the county while improving service and bringing in needed technology, maintenance and safety programs. We are hoping these improvements will serve as a catalyst for future growth of its public water system."

USFilter began operations May 1 and plans to implement a management program to help integrate the Beaver-Elkorn and Mud Creek Water Districts. The program will include an employee benefits component for district employees.

USFilter, a Vivendi Water company, is the leading global provider of commercial, industrial, municipal and residential water and wastewater treatment systems, products and services, with operations in more than 100 countries. USFilter is also the market leader in outsourced water and wastewater services including the design, construction, financing and operation of water and wastewater systems at industrial sites and for municipalities. USFilter operates several water and wastewater treatment facilities in Kentucky including facilities in Pikeville, Hardinsburg, Whitesburg and Wurtland. Based in Palm Desert, Calif., USFilter invites you to visit its website at www.usfilter.com.

USFILTER
40-004 COOK STREET
PALM DESERT, CA 92211
(760) 340-0098

CHRISTIE KALUZA/SCOTT EDWARDS
USFILTER OPERATING SERVICESs
14950 HEATHROW FOREST PARKWAY, SUITE 200
HOUSTON, TEXAS77032
PHONE: (281) 985-5481/5479
E-MAIL: Kaluzacm@usfilter.com    Edwardsa@usfilter.com

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