Paris, May 10, 2005

PRESS RELEASE

2004FINANCIAL STATEMENTS UNDERIFRS(preliminary and unaudited)

Veolia Environnement has prepared IFRS-compliant financial statements for the 2004 fiscal year(1). They are in line with the
information communicated during the February 4thpresentation of the IFRS opening balance at January 1, 2004.

- Revenue(2)In accordance with IAS 18, IFRS revenue(3)excludes charges and indirect taxescollected on
behalf of local authorities by the Water division (€2,129 million), aswell as the repayment of financial receivables under contracts accounted foraccording to IFRIC 4
(€157 million). Revenue amounts to €22,353 millioncompared with revenue of €24,673 million under French GAAP.
- Operating incomeIFRS operating income includesEBITas defined under French GAAP, impairment losses recognized on
  goodwill, restructuring costs and other income and expense. On this basis, operating income came to €1,481 million in 2004. Excluding certain non-recurringitems (capital
  loss on the Berlikom transaction and an impairment loss recognized on goodwill related to operations in Northern Europe in the Transportation division), Veolia
  Environnements IFRS operating income was very close to EBIT under French GAAP. It came to €1,620 million under IFRS compared with €1,617 million under French
  GAAP.
- Net incomeThe difference between net income under French GAAP and IFRS derives chiefly from the elimination of goodwill amortization (IAS 36). In addition, given the option provided for under IFRS 1, the company incorporated cumulative translation adjustments net of tax in consolidated reserves at January 1, 2004 and thus recognized in advance the tax on the disposals of US assets carried out during 2004. Net income came to €392 million under IFRS compared with €125 million under French GAAP.
- Cash flow from operationsCash flow from operations as defined by the Conseil National de la Comptabilités (CNC) recommendation of October 27, 2004 is shown before tax and interest expense and is close to the former EBITDA.

| | (1) | Application to 2004 data of the accounting standards and interpretations that the Group expects to apply for the preparation of these comparative consolidated financial statements at
            December 31, 2005. Concerning the
      treatment of concessions, in the absence of a definitive interpretation from the IFRIC work, Veolia Environnement has chosen to retain its
      existing accounting methods under French GAAP for these contracts.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (2) | Revenue from ordinary activities.                                                                                                                                                                                                                                                                                                                                                                                                                             
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | (3) | Represents sales of goods and services in respect of which the risks and benefits and control of the items sold have been transferred to the buyer.                                                                                                                                                                                                                                                                                                           
|





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- Net financial debtNet financial debt is defined as gross debt plus or minus the fair value of derivative financial instruments on debt qualifying as fair value hedges less net cash and cash equivalents. As announced on February 4, 2004, the discounting of receivables (Dailly), the reclassification of certain deferred income (Cogevolt) and subordinated loan notes redeemable by preference shares (TSARs) are added back to net financial debt. Net financial debt amounted to €13.0 billion at December 31, 2004 compared with €15.4 billion at January 1, 2004. Economic net debt is calculated by deducting financial receivables, securities and financial receivables in connection with contracts corresponding to IFRIC 4. It amounted to €10.5 billion at December 31, 2004 compared with €12.8 billion at January 1, 2004.
- Shareholders equityShareholders equity (Groups share before minority interests) is essentially reduced by the amount of Veolia Environnements holdings of its own shares. Shareholders equity amounts to €3,239 million under IFRS compared with €3,563 million under French GAAP.

The key figures concerning the transition to IFRS are as follows:

|                            |                      |                                       |        |                                      
|--------------------------- | -------------------- | ------------------------------------- | ------ | -------------------------------------
|(in millions of euros)      | French 
        GAAP |                                       | IFRS   | IFRS Restatements/Presentation       
|                            |                      |                                       |        |                                      
|                            | 24,673               |                                       | 22,353 | Elimination of charges and indirect  
|                            |                      | taxes collected by the French Water  
|Revenue / Revenue from      |                      | division (€2.1 billion) and repayment
|ordinary activities         |                      | of financial receivables under       
|                            |                      | IFRIC 4                              
|                            |                      |                                       |        |                                      
|EBIT/Recurring operating    | 1,617                |                                       | 1,620  |                                      
|income                      |                      |                                      
|                            |                      |                                       |        |                                      
|                            | 3,317                |                                       | 3,228  | Including restructuring costs but not
|EBITDA/Cash flow from       |                      | including repayments of financial    
|operations                  |                      | receivables under IFRIC 4 and        
|                            |                      | excluding discontinued operations    
|                            |                      |                                       |        |                                      
|                            |                      |                                       |        | Elimination of goodwill amortization 
|Net income                  | 125                  |                                       | 392    | and tax on foreign exchange gains    
|                            |                      |                                       |        | linked to US asset disposals         
|                            |                      |                                       |        |                                      
|Free cash flow              | 694                  |                                       | 688    |                                      
|                            |                      |                                       |        |                                      
|Financial net debt          | 9,797                |                                       | 12,958 |                                      
|Economic financial net debt |                      |                                       | 10,452 |                                      
|                            |                      |                                       |       

> Details of the 2004 financial statements prepared under IFRS, including a description of the accounting principles and a French GAAP to IFRS reconciliation statement will be included in the updated 2004 Reference
>     Document(*)due to be published shortly.
>   (*) Report filed with the Financial Market Authority (AMF) in France.
>   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. 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. These factors and uncertainties include in particular risks related to the ability of Veolia Environnement to complete its divestiture transactions as a result of customary conditions precedent and closing adjustments, 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.

Analyst and institutional investor contact: Nathalie Pinon +33 1 71 75 01 67

US Investor contact: Brian Sullivan +(1) 630 371 27 49

Press release also available on our web site: http//veoliaenvironnement-finance.com



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Appendices2004 IFRS Consolidated Income Statement

|(in millions of euros)                   |         |  |                                            |        
|---------------------------------------- | ------- |  | ------------------------------------------ | -------
|                                         |         |  |                                            |        
|Under French GAAP                        |         |  | Under IFRS                                 |        
|                                         |         |  |                                            |        
|Revenue                                  | 24,673  |  | Revenue (revenue from ordinary activities) | 22,353 
|                                         |         |  |                                            |        
|                                         |         |  |                                            |        
|Cost of sales                            | -20,611 |  | Cost of sales                              | -18,167
|Selling, general and administrativecosts | -2,537  |  | Selling costs                              | -440   
|Other operating income (expense)         | 92      |  | General and administrative  costs          | -2,236 
|                                         |         |  |                                            |        
|= EBIT                                   | 1,617   |  |                                            |        
|                                         |         |  |                                            |        
|                                         |         |  |                                            |        
|Restructuring costs                      | -51     |  | Other costs                                | -29    
|Amortization of goodwill and             | -253    |  |                                            |        
|depreciation of intangible assets with   |         |  |                                            |        
|indefinite life                          |         |  |                                            |        
|                                         |         |  |                                            |        
|= Operating income                       | 1,313   |  | Operating income                           | 1,481  
|                                         |         |  |                                            |        
|                                         |         |  |                                            |        
|Cost of financing                        | -602    |  | Cost of net financial debt                 | -732   
|Other financial income and expense       | -33     |  | Other financial income and expense         | 46     
|                                         |         |  |                                            |        
|= Operating income less net              | 678     |  | Income tax                                 | -184   
|financial expense before equity          |         |  |                                            |        
|and minority interest                    |         |  |                                            |        
|                                         |         |  |                                            |        
|                                         |         |  | Equity in net income of affiliates         | 24     
|Other income and expense                 | -58     |  |                                            |        
|                                         |         |  |                                            |        
|= Income before tax                      | 620     |  | Net income before  discontinued operations | 635    
|                                         |         |  |                                            |        
|                                         |         |  |                                            |        
|Income tax                               | -182    |  | Net income from discontinued               | -106   
|                                         |         |  | operations                                 |        
|                                         |         |  |                                            |        
|= Net income before equity and           | 438     |  | Net income                                 | 529    
|minority interests                       |         |  |                                            |        
|                                         |         |  |                                            |        
|                                         |         |  |                                            |        
|Equity in net income of affiliates       | 22      |  |                                            |        
|Minority interests                       | -127    |  | Minority interests                         | -137   
|Net income (loss) from discontinued      | -208    |  |                                            |        
|operations                               |         |  |                                            |        
|                                         |         |  |                                            |        
|= Net income (Group's share)             | 125     |  | Net income (Group's share)                 | 392    
|                                         |         |  |                                            |        

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IFRS Consolidated Balance Sheet at December 31, 2004  Assets

|(in millions of euros)              |             |        |        
|----------------------------------- | ----------- | ------ | -------
|                                    |             |        |        
|                                    | French GAAP | IFRS   | IFRS   
|                                    |             |        | impacts
|                                    |             |        |        
|Goodwill                            | 3,558       | 4,286  | +728   
|Other intangible assets             | 1,859       | 1,113  | -746   
|Tangible assets                     | 13,844      | 10,958 | -2,886 
|Investments accounted for using the | 225         | 219    | -6     
|equity method                       |             |        |        
|Non-current financial assets        | 969         | 2,656  | +1,687 
|Deferred tax, net                   | 235         | 188    | -47    
|                                    |             |        |        
|                                    |             |        |        
|Total non-current assets            | 20,690      | 19,420 | -1,270 
|                                    |             |        |        
|                                    |             |        |        
|Current assets used in operations   | 9,224       | 10,082 | +858   
|Current financial assets            | 2,073       | 656    | -1,417 
|Cash and cash equivalents           | 3,635       | 4,660  | +1,025 
|                                    |             |        |        
|                                   
|Total current assets                | 14,932      | 15,398 | +466   
|                                    |             |        |        
|                                    |             |        |        
|Assets from discontinued operations | -           | 30     | +30    
|                                    |             |        |        
|                                    |             |        |        
|Total assets                        | 35,622      | 34,848 | -774   
|                                    |             |        |        

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IFRS Consolidated Balance Sheet at December 31, 2004 
Shareholders Equity and Liabilities

|(in millions of euros)                     |        |        |        
|------------------------------------------ | ------ | ------ | -------
|                                           |        |        |        
|                                           | French | IFRS   | IFRS   
|                                           | GAAP   |        | impacts
|                                           |        |        |        
|Shareholders' equity (Group's share)       | 3,563  | 3,239  | -324   
|Minority interests                         | 2,056  | 1,783  | -273   
|                                           |        |        |        
|Total Shareholders equity                 | 5,619  | 5,022  | -597   
|                                           |        |        |        
|                                           |        |        |        
|Subsidies                                  | 869    | -      | -869   
|Other long-term deferred income            | 529    | 1      | -528   
|Non-current provisions                     | 1,546  | 1,106  | -440   
|Non-current financial debt                 | 10,801 | 12,056 | +1,255 
|Other non-current debt                     | 274    | 352    | +78    
|                                           |        |        |        
|Total Non-current liabilities              | 14,019 | 13,515 | -504   
|                                           |        |        |        
|                                           |        |        |        
|Current debt from operations               | 9,737  | 9,576  | -161   
|Current provisions                         | 1,127  | 884    | -243   
|Current financial liabilities              | 4,610  | 5,426  | +816   
|Bank overdrafts                            | 510    | 420    | -90    
|                                           |        |        |        
|                                           |        |        |        
|Total current liabilities                  | 15,984 | 16,306 | +322   
|                                           |        |        |        
|Liabilities from discontinued operations   | -      | 5      | +5     
|                                           |        |        |        
|                                           |        |        |        
|Total liabilities and shareholders equity | 35,622 | 34,848 | -774   
|                                           |        |        |        

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