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Press releases, Paris, France, October 7, 1999

Suez Lyonnaise des Eaux Strengthens its Position in the Czech Republic Water Market

A contract renewed in Brno and a new contract won in Horni Slovak

Further strengthening its position in the Czech Republic, Lyonnaise des Eaux, the water management division of Suez Lyonnaise des Eaux today announced the extension of a contract in Brno and the signing of a new contract in Horny Slovak both for the provision of water and wastewater management services.

Extended for a 25 year period, the existing contract in Brno provides for the water and wastewater management services for the 420,000 city inhabitants. It represents an annual turnover of CZK1bn (Euro 28 million). The main objective for the future is to rehabilitate the existing wastewater treatment plant to meet the European Union environment regulation standards.

The new contract signed in Horny Slovak provides for the water and wastewater management services for the city's 9,000 inhabitants. It includes the operation and management of the existing network and the construction of a water network extension.

Commenting on the announcement Gérard Payen, CEO of Lyonnaise des Eaux says: "The Czech Republic water market is important for business development in central and Eastern Europe. The contract extensions with the Brno municipality and the new contract won in Horny Slavak reinforce the trust the municipalities have placed in Lyonnaise des Eaux. Since 1992 Lyonnaise des Eaux has been providing water and wastewater services for 2.1 million people in the country. It manages the water and wastewater services for the cities of Brno, the Ostrava region, Karlovy-Vary and South Moravia with a total turnover of CZK4.2 bn (Euro 117 million) per annum.

Suez Lyonnaise des Eaux Group operates on the entire water business through its water division. Lyonnaise des Eaux is the world leader in water management, currently supplying 85 million people with drinking water and 57 million people with wastewater services in large cities including Atlanta, Manila, Casablanca, Sydney, Santiago and Budapest. Lyonnaise des Eaux controls the entire water cycle including water resources management, drinking water treatment, wastewater treatment and sludge treatment.

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