Memcor® Microfiltration System To Provide Highly Treated Reclaimed Water For Industrial Users In Western Australia

Perth, Australia – The new Kwinana Water Reclamation Plant, owned and operated by the Water Corporation of Western Australia (a governmental authority), will supply high quality reclaimed water to key industries at Kwinana, located south of Perth. These industries include a chemical fertilizer manufacturer CSBP, petroleum refiner BP, and Hismelt (Rio Tinto) for a future direct iron smelting plant. This new plant is part of the State Government's goal to achieve 20% reuse of treated wastewater by the year 2012.

An integral part of the new plant, which will treat wastewater from an existing wastewater treatment plant, will be the Memcor® Continuous Microfiltration-Submerged (CMF-S) system.

"This project represents a convincing start in our objective to significantly increase water reuse in Western Australia," announced Western Australian Government Enterprises Minister, Nick Griffiths. "The water reclamation plant will significantly reduce demand for scheme water at major Kwinana industrial sites, the metropolitan area's biggest public water supply users."

Added Griffiths, "Not only does this project represent an important advance in water recycling, but it is also a tangible illustration of the Government's determination to make Perth one of the world's most water-efficient cities. It demonstrates that we have a model for the rest of Australia to follow."

The plant, which will initially produce 2.3 mgd (8.7 ML/d) of treated water, will be increased to 4.4 mgd (16.7 ML/d) of reclaimed water within the next year, in order to meet the needs of the new Hismelt iron smelting plant. A third future expansion will increase the RO permeate capacity to 6.9 mgd (26 ML/d).

Veolia Water Systems (VWS) Australia, a sister company of USFilter, in a joint venture with John Holland Pty Ltd was awarded the contract for design and construction of the Kwinana Water Reclamation Plant.

The Memcor® CMF-S system at the Kwinana plant consists of four membrane filtration cells, each containing 288 modules. The Memcor® CMF-S system will easily expand to 4.4 mgd with the addition of membrane modules to the existing cells. Additional cells are planned for a future build-out of the plant. The reverse osmosis system, designed and supplied by Veolia Water Systems, consists of four 0.76 MGD trains configured in 18:8 arrays for phase 1. In phase 2, the RO system trains will be upgraded to 20:10 and two additional trains will be supplied. Both the microfiltration and reverse osmosis systems are designed to allow full treatment with one unit off-line.

Memcor® Products provides flexible, state-of-the-art integrated microfiltration and RO membrane solutions for treating ground water, surface water, seawater, industrial process water, and water reuse. A leading manufacturer of municipal and industrial microfiltration systems, USFilter's Memcor Products continues to develop new membrane polymers, module configurations and system designs for today and the future.

United States Filter Corporation, a Veolia Environnement company, is North America's leading water company providing comprehensive water and wastewater systems and services to commercial, industrial, municipal and residential customers. Veolia Environnement (Paris Bourse: VIE and NYSE:VE) 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 $31.5 billion. Visit the company's web sites at www.usfilter.com or www.veoliaenvironnement.com.

Important Disclaimer. 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. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risk that changes in energy prices and taxes may reduce Veolia Environnement's profits, the risk that governmental authorities could terminate or modify some of Veolia Environnement's contracts, the risk that Veolia Environnement's compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnement's financial results and the price of its shares, the risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations, and the risks related to Veolia Environnement's relationship with Vivendi Universal, as well as 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.