Vivendi Environnement subsidiary, USFilter, wins largest U.S. municipal outsourcing water contract with the City of Indianapolis

USFilter Operating Services, Inc., a subsidiary of Vivendi Environnement, was selected by the City of Indianapolis to manage the city's drinking water waterworks system under a 20-year public-private partnership valued at approximately $1.5 billion. This move by the nation's twelfth-largest city marks the largest public-private partnership for water services in the United States.

USFilter will manage all operations, maintenance and customer service facets of the city's waterworks system that currently serves 1.1 million people. Out of the $1.5 billion contract, approximately $1.1 billion represents operations and maintenance service fees and approximately $400 million reflect capital improvement projects.

USFilter presented a strong project featuring transition plans, employee relations, technical approach, experience, management fees, customer service and local commitment. But key to the selection were the company's aggressive approach to resolving water taste and odor problems that have plagued the waterworks system for years and its commitment to invest in plant upgrades.

USFilter also sets a new model in the U.S. water outsourcing industry with an incentive-based compensation plan. Under that plan, a portion of the company's fees will be paid only if the company meets specified customer service, water quality, operations and other performance measures.

This major contract strengthens USFilter's position in the U.S. municipal deregulated outsourcing market where less than 10 percent of water infrastructure is managed by the private-sector. It demonstrates the overall capabilities of Vivendi Water's municipal services in terms of both management and strategic approach, as well as leading edge technologies.

With a service area that encompasses a 25-mile radius around Indianapolis, the waterworks system includes four surface water treatment facilities with daily water production averaging 143 million gallons per day (MGD) and peak demand capacity in excess of 200 MGD. The company employs more than 460 people.

The city is acquiring the waterworks system from NiSource, a public utility holding company, as of April 30, 2002. USFilter will commence management of the Indianapolis waterworks system on April 30, 2002.

USFilter Operating Services designs, builds, operates, owns and finances water, wastewater and related utility facilities and systems. Overall, the company manages 535 municipal and industrial water and wastewater treatment and related projects in North America, serving more than 600 communities and 12 million people.

United States Filter Corporation, a Vivendi Environnement company, is North America's largest water company providing comprehensive water and wastewater systems and services to commercial, industrial, municipal and residential customers. Vivendi Environnement (Paris Bourse: VIE and NYSE:VE), comprised of Vivendi Water (worldwide water products and services), Onyx (solid waste and industrial services), Dalkia (energy management), Connex (transportation and logistics) and FCC (Spanish company engaged in environmental and construction related industries), is the largest environmental services company in the world with more than 295,000 employees, including FCC, in about 100 countries and annual revenues of more than $25,6 billion. Visit the company's web sites at www.usfilter.com or www.vivendienvironnement-finance.com.

Important disclaimer
Vivendi Environnement is a corporation listed on the NYSE and Euronext Paris. This [document/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 Vivendi Environnement has filed with the U.S. Securities and Exchange Commission. Vivendi 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 Vivendi Environnement with the U.S. Securities and Exchange Commission from Vivendi Environnement..

Press Contacts
Vivendi Water
Pierre Servent
Tel : + 33 (0)1 49 24 31 46
e-mail : pierre.servent@generale-des-eaux.net

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