UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934



For the month of September 2006



Commission File Number: 001-15248



VEOLIA ENVIRONNEMENT

(Exact name of registrant as specified in its charter)



36-38, avenue Kléber

75116 Paris, France

(Address of principal executive offices)



Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.



| | Form 20-Fx | Form 40-Fo
| | ---------- | ----------



Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____



Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____



Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.



| | Yeso |  | Nox
| | ---- |  | ---



If Yes marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-________









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| | Paris, September 15th, 2006
| | ---------------------------



Press release

Veolia Environnement reports first half-year results at June 30, 2006

Further improvement in results



|Consolidated revenue:€13,998 million,up 13.7% at current exchange rates
      (+12.9% at constant exchange rates)
      Recurring operating income(1):€1,125.0 million,up 17.8% at current exchange rates(+16.5% at constant exchange rates)
      Net income:€444.5million versus €316.9 million,up 40.3%
      Recurring net income(2):€377.0 million versus €317.1 million,up 19.0%
    Free cash flow before new major projects: €655 millionversus €306 million
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The company has decided to apply, as from January 1, 2006, IFRS draft interpretations D12/D13/D14 
      relating to concessions. To ensure the comparability of data, the first half and full year 2005 accounts 
      have been restated to reflect this new accounting treatment and are shown in Appendix 1.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

CONFIRMATION OF THE BUSINESS MODEL AND ACCELERATED GROWTHVeolia Environnement continued to grow in all its businesses, benefiting from strong demand in all of its sectors of activity. The company was awarded several new contracts, particularly in the municipal sector in the
Czech Republic, Slovakia (winning the first public tender launched in this country), the Middle East and Asia in Water, in the UK and Asia in Waste Management, in Italy in Energy Services and in the United States in Transportation. In addition, the
company continued to win several new contracts in the industrial sector, notably in China, the UK and Germany. Consolidated revenue amounted to €13,998 million, compared to €12,307 million at June 30, 2005, a rise of 13.7% at current
exchange rates and of 12.9% at constant exchange rates.

|(1) | A table reconciling recurring operating income to operating income appears in Appendix 2 to this press release.
|--- | ---------------------------------------------------------------------------------------------------------------
|(2) | A table reconciling recurring net income to net income appears in Appendix 2 to this press release.            
|   

1

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CONTINUED IMPROVEMENT IN PROFITABILITYRecurring operating incomeincreased by17.8%at current exchange rates (+16.5% at
constant exchange rates) to €1,125.0 million compared to €955.0 million at June 30, 2005. This increase was due to the growth in business activity, the continued improvement in productivity and the greater degree of maturity in the
portfolio of contracts built up over the last few years. Operating income amounted to €1,125.0 million, compared to €959.5 million at June 30, 2005, a rise of 17.2% at current exchange rates.

Each of the companys divisions contributed to the improvement in operating income.

| | Veolia Waters recurring operating incomeamounted to €526.6 million versus€462.9 million in the first half of 2005 (+12.7% at constant exchange rates).In France, operating income benefited from the solid level of activity in the Distributionand Works/Engineering businesses.In Europe, operating performances continued to improve, in particular in the UK and inCentral Europe. Results in Asia and the Africa/Middle East region accelerated strongly.Lastly, profitability in the engineering and technological solutions businesses showed amarked improvement (in France, as well as in Germany and the US).                                                                                                                                                                                                                                                                                 
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Recurring operating income at Veolia Environmental Services, the wastemanagement division,amounted to €307.2 million versus €247.2 million in the first halfof 2005 (+23.2% at constant exchange rates).Operating performance in France was supported by an increase in volumes treated andcontinued measures to improve efficiency.Outside France, the strong growth in operating income was due to rising businessvolumes from integrated contracts that entered into force in the UK (in particular, newinfrastructure in Hampshire and the start-up of a new incinerator in Sheffield), as well asnew contracts that entered into force in the Asia-Pacific region and the overall healthystate of the industrial services business. In the US, results benefited from an increase inprices and higher volumes treated in the solid waste business, as well as strongmomentum in industrial services.
| | Veolia Energys recurring operating incomewas €266.7 million versus €223.8 millionin the first half of 2005 (+17.3% at constant exchange rates).In France, operating margins remained stable.Outside France, earnings rose strongly in Central Europe as a result of higher prices,favorable weather conditions in the Czech Republic and Poland and the start-up of newcontracts (notably Lodz).Operating income was also supported by the positive contribution from sales of surplusgreenhouse gas emission quotas.                                                                                                                                                                                                                                                                                                                                                                                   
| | Veolia Transports recurring operating incomeamounted to €70.2 million, comparedto €60.0 million in the first half of 2005 (+16.2% at constant exchange rates).In France, profitability improved in all business areas.Outside France, operations were marked by the recovery now underway in Sweden andby good performances in North America (in particular the impact of the ATC andShuttleport acquisitions and the full effect of the Denver contract).The EBRD's participation in the capital of Veolia Transport Central Europe  a companywhich includes the overall transportation activities in Central and Eastern Europe  wasfinalized in the first half of 2006.                                                                                                                                                                                                                            



2

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STRONG CASH FLOW GENERATIONCash flow from operations before tax and interest expenseamounted to €1,912.6 million versus €1,726.7 million at June 30, 2005, up 10.8% . This reflected the
contribution from recent contracts and efforts to improve productivity.

After taking into account the repayment of financial operating assets (€243 million), total cash generated was €2,156 million, compared to €1,883 million in the first half of 2005, up 14.5% . The company
also continued its active asset-management policy and carried out disposals of industrial assets and investments amounting to €226 million.

As such, the cash flow generated covered, in addition to interest expense and current taxes, all maintenance capital expenditures (€540 million) as well as growth and development capital expenditures totaling
€313 million and new financial operating assets (€159 million) as well as the change in working capital requirement linked to the growth of the business.

As such, free cash flow before new major projects amounted to €655 million, compared to €306 million in the first half of 2005.

To drive future growth, the company made targeted investments of €338 million, of which a significant part was related to the acquisition of the holding companies linked to the Kunming and Changzhou contracts
(China), the contract awards in Poprad and Banska Bystrica (Slovakia) in Water, the establishment of a business in Canada in Energy Services, the acquisitions of Shuttleport (US) and Dunn Line (UK) in Transportation, and the acquisition of
Biffas subsidiary in Belgium in Waste Management.

After these investments and the dividend payment, net financial debt was stable at €13.8 billion, compared to €13.9 billion at December 31, 2005.

COST OF BORROWING STABLEThe cost of net financial debt at June 30, 2006 remained stable, decreasing slightly from €333.1 million at June 30, 2005, to €331.0 million at June 30, 2006. The cost of net financial debt remained stable
due to only a slight increase in average net financial debt between the first half of 2005 and the first half of 2006, and a cost of borrowing rate of 4.95% that was in line with the rate in the first half of 2005.

STRONG GROWTH IN NET INCOMEDriven by good operating results and the stability in the cost of borrowing,consolidated recurring net income amounted to €377.0 millionat June 30, 2006, compared to €317.1 million at June 30, 2005, a rise of19.0%.

Net income amounted to €444.5 million in the first half of 2006, versus €316.9 million in the first half of 2005. Net income in the first half of 2006 included net income from discontinued operations of
€54 million, which related to the sale of the companys stake in Southern Water.



3

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OUTLOOK

Following the Board of Directors meeting, Veolia Environnements Chairman and Chief Executive Officer, Henri Proglio, stated:

"These strong results are a continuation of the pattern of previous periods and
  confirm the success of our business model. In each of our businesses, Veolia Environnement has continued to exhibit its commercial strength. Veolia Environnement has also made targeted acquisitions in its core businesses (such as the purchase of
  Cleanaway in the UK in waste management).

Overall, these figures allow us to confirm for 2006 our objective of more than 10% revenue growth, with operating income and recurring net income growing at a relatively faster rate.

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, such as: risks relating to the development of Veolia Environnements activities in highly competitive sectors which require substantial human and capital resources; the risk that changes in the prices of fuel and
other commodities or in tax levels reduce Veolia Environnements profits; the risk that governmental  authorities modify or terminate some contracts entered into with Veolia Environnement; the risk that Veolia Environnement incur higher costs
in the future in connection with the compliance with environmental regulations; risks relating to exchange rate fluctuations which may have an adverse effect on Veolia Environnement financial situation as reflected in its financial statements and/or
on the trading and sales prices of Veolia Environnements shares; risks relating to Veolia Environnement potential environmental liabilities with respect to past, present and future activities; 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 - Tel. +33 1 71 75 01 67

US investor contact: Brian Sullivan - Tel +(1) 630 371 2749

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

First half-year results at June 30, 2006 
September 15th2006 at 8.30 am (CET)

To listen to the presentation, please dial +44 207 138 0840

| | Phone number 
+33 1 71 23 02 48 (France)
| | ----------------------------------------
| | Phone number 
+44 207 806 19 70 (U-K)   
| | Phone number 
+1 718 354 1112 (US)      
| |                                         
| | Code 5452826# (French version)          
| | Code 1410804# (English version)         

4

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Appendix 1Memo on draft interpretation D12 
(the treatment of concessions under IFRS)

Draft interpretation D12For a contract to be considered as subject to the application of D12, the three following criteria must be satisfied:

| | The service provided under the contract has the nature of a service to the public ;                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The grantor controls or regulates the services (the infrastructures operating terms, thepurpose of the concession) and sets the payment for the service.                     
| | At the end of the contract, the infrastructure reverts to the grantor and has a significantresidual value  i.e. a useful life that is longer than the length of the contract.

According to interpretation D12, such infrastructure cannot be recorded as fixed assets in the operators balance sheet. When the operating company finances the infrastructure it must recognize it as a financial
asset if the grantor has the primary responsibility of paying the operator for the services (the D13 financial model), or as an intangible asset in other cases (the D14 intangible model).

Draft interpretation D13 (the financial asset model)

Financial assets that result from the application of draft interpretation D13 are recorded in the balance sheet under a specific heading Financial operating assets. They are accounted for at their amortized
cost. Unless there is a specific indication in the contract, the effective interest rate corresponds to the average weighted cost of capital of the companies carrying the assets concerned.

Revenue from ordinary activities includes the return on the financial operating asset (excluding repayment of the principal), the operating revenue and the revenue recognized at completion method in the case of
financial operating assets under construction (in accordance with accounting standard IAS11).

Draft interpretation D14 (the intangible asset model)

The intangible assets that result from the application of draft interpretation D14 are recorded in the balance sheet under a specific heading Intangible assets linked to concessions. These assets are
amortized over the life of the contract, usually on a straight-line basis.

In this intangible asset model, revenue from ordinary activities reflects operating revenue and revenue recognized at completion method in the case of intangible assets under
  construction (in accordance with accounting standard IAS11).

The choice of the financial-asset or intangible-asset model depends on the substantive identity of the payer of the service. Certain contracts, however, provide for a commitment to pay on the part of the
grantor. In such cases, the sum of the investment guaranteed by the grantor is accounted for under the financial asset model and the balance under the intangible asset model.

Assets not covered by draft interpretation D12

Veolia Environnement owns infrastructure that does not fall under draft interpretation D12 as at least one of the criteria for recognition has not been met (the nature of the service to the public, control or
regulation of the services and setting rates, reversion of the infrastructure). In such cases, the infrastructure is accounted for according to IFRIC 4 or accounting standard IAS 16.

5

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|a) | Assets connected with contracts covered by interpretation IFRIC 4:"Determining whether an arrangement contains a lease". The interpretation aims to identify contract terms,
which without having the legal form of a leasing contract, give clients the right to use a group of assets in return for rental payments that are included in the total return from the contract. It identifies in such agreements, on the basis of the
split of risks and rewards, a leasing contract, which is then analyzed and accounted for according to the criteria of accounting standard IAS 17. The contract operator then becomes a lessor in relation to its clients. When this lease transfers the
risks and rewards of the asset according to the criteria of IAS 17, the operator does not recognize it as a tangible asset but as a financial asset to reflect the corresponding financing.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|   | These financial assets are recorded under the balance-sheet heading Financial operating assets and are accounted for at amortized cost.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|  
|b) | Tangible assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|  
|   | Infrastructure related to contracts that do not fall under either of the two previous categories is recorded in tangible assets. In accordance with accounting standard IAS 16, the approach by component is
used.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|  

6

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Appendix 1

|BALANCE SHEET AT 31 DECEMBER 2005  ADJUSTED FOR THE EARLY APPLICATION OF THE DRAFT IFRS INTERPRETATIONS RELATED TO D12/D13/D14
|-------------------------------------------------------------------------------------------------------------------------------



|                                           |          |             |         
|------------------------------------------ | -------- | ----------- | --------
|(€ million)                                |          | D12         | 31/12/05
|                                           | 31/12/05 | Adjustments | adjusted
|                                           |          |             |         
|Goodwill                                   | 4,863.1  | -110.8      | 4,752.3 
|Intangible assets linked to concessions    | -        | 1,841.2     | 1,841.2 
|Other intangible assets                    | 1,171.5  | 109.9       | 1,281.4 
|Tangible assets linked to concessions      | 5,629.5  |             | -5,457.5
|Tangible assets                            | 6,722.0 
|Investments accounted for using the equity | 201.5    | -           | 201.5   
|method                                     |          |             |         
|Investments accounted for using the cost   | 209.5    | -           | 209.5   
|method                                     |          |             |         
|Long term IFRIC 4 financial receivables    | 1,901.9  |             | 3,339.1 
|Long-term financial operating assets       | -       
|Derivative instruments  Asset             | 249.0    | -           | 249.0   
|Other long-term financial assets           | 692.5    | -0.9        | 691.6   
|Deferred tax  Asset                       | 1,127.3  | 7.4         | 1,134.7 
|                                           |          |             |         
|Non-current assets                         | 22,767.8 | -271.6      | 22,496.2
|                                           |          |             |         
|Inventories and work in progress           | 646.2    | -11.0       | 635.2   
|Accounts receivable                        | 10,112.3 | 311.8       | 10,424.1
|Short-term IFRIC 4 financial receivables   | 163.5    |             | 42.4    
|Short-term financial operating assets      | -       
|Other short-term financial receivables     | 221.2    | -           | 221.2   
|Marketable securities                      | 60.7     | -           | 60.7    
|Cash and cash equivalents                  | 2,336.1  | -           | 2,336.1 
|                                           |          |             |         
|Current assets                             | 13,540.0 | 343.2       | 13,883.2
|                                           |          |             |         
|Assets from discontinued operations        | 1.6      | -           | 1.6     
|                                           |          |             |         
|TOTAL ASSETS                               | 36,309.4 | 71.6        | 36,381.0
|                                           |          |             |         
|                                          
|Share capital                              | 2,039.4  | -           | 2,039.4 
|Additional paid-in capital                 | 6,499.1  | -           | 6,499.1 
|Retained earnings and net income           | -4,735.9 | -12.4       | -4,748.3
|Minority interests                         | 1,890.9  | -2.9        | 1,888.0 
|                                           |          |             |         
|Shareholders equity                       | 5,693.5  | -15.3       | 5,678.2 
|                                           |          |             |         
|Non-current provisions                     | 1,613.6  | 7.8         | 1,621.4 
|Long-term financial debt                   | 13,722.8 | -           | 13,722.8
|Derivative instruments  Liability         | 154.5    | -           | 154.5   
|Other long-term debt                       | 207.8    | -4.1        | 203.7   
|Deferred taxes  Liability                 | 1,124.1  | 80.9        | 1,205.0 
|                                           |          |             |         
|Non-current liabilities                    | 16,822.8 | 84.6        | 16,907.4
|                                           |          |             |         
|Accounts payable                           | 10,374.3 | -4.5        | 10,369.8
|Current provisions                         | 773.8    | 6.8         | 780.6   
|Short-term financial debt                  | 2,138.2  | -           | 2,138.2 
|Bank overdrafts                            | 506.8    | -           | 506.8   
|                                           |          |             |         
|Current liabilities                        | 13,793.1 | 2.3         | 13,795.4
|                                           |          |             |         
|Liabilities from discontinued operations   | -        | -           | -       
|                                           |          |             |         
|TOTAL LIABILITIES                          | 36,309.4 | 71.6        | 36,381.0
|                                           |          |             |         

7

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Appendix 1

|INCOME STATEMENT AT 30 JUNE 2005 - ADJUSTED FOR THE EARLY APPLICATION OF THE DRAFT IFRS INTERPRETATIONS RELATED TO D12/D13/D14
|------------------------------------------------------------------------------------------------------------------------------



|(€ million)                                         |          |        | D12         | 30/06/05
|--------------------------------------------------- | -------- | ------ | ----------- | --------
|                                                    | 30/06/05 |        | Adjustments | Adjusted
|                                                    |          |        |            
|Revenue from ordinary activities                    | 12,148.3 | 158.5  | 12,306.8   
|                                                    |          |        |            
|                                                    |          |        |            
|Of which revenue from ordinary activities linked to | 53.2     | 110.7  | 163.9      
|financing for third parties                         |          |        |            
|Cost of sales                                       | -9,939.6 | -141.3 | -10,080.9  
|Selling costs                                       | -222.0   | -      | -222.0     
|General and administrative costs                    | -1,129.1 | 2.7    | -1,126.4   
|Other operating costs and revenue                   | 95.2     | -13.2  | 82.0       
|                                                    |          |        |            
|Operating income                                    | 952.8    | 6.7    | 959.5      
|                                                    |          |        |            
|Cost of net financial debt                          | -324.1   | -9.0   | -333.1     
|Other financial income and expenses                 | 30.0     | -1.3   | 28.7       
|Income tax                                          | -236.7   | 0.7    | -236.0     
|Equity in net income from affiliates                | 5.6      | -      | 5.6        
|                                                    |          |        |            
|                                                    |          |        |            
|Net income before earnings from discontinued        | 427.6    | -2.9   | 424.7      
|operations and minority interests                   |          |        |            
|                                                    |          |        |            
|Net income from discontinued operations             | -        | -      | -          
|                                                    |          |        |            
|Net income before minority interests                | 427.6    | -2.9   | 424.7      
|                                                    |          |        |            
|Minority interests                                  | 108.5    | -0.7   | 107.8      
|                                                    |          |        |            
|Net income                                          | 319.1    | -2.2   | 316.9      
|                                                    |          |        |            
|Net earnings per share (€)                          |          |        |            
|Diluted                                             | 0.81     | -      | 0.81       
|                                                    |          |        |            



|                   
|-------------------
|(€ million)        
|                   
|Revenue from       
|ordinary activities
|                   



8

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Appendix 1

|CONSOLIDATED CASH FLOW STATEMENT AT 30 JUNE 2005 - ADJUSTED FOR THE EARLY APPLICATION OF THE DRAFT IFRS INTERPRETATIONS RELATED TO D12/D13/D14
|----------------------------------------------------------------------------------------------------------------------------------------------



|(€ million)                                         |          | D12      | 30/06/05   
|--------------------------------------------------- | -------- | -------- | -----------
|                                                    |          | 30/06/05 | Adjustments
|                                                    |          |          |            
|Net income                                          | 319.1    | -2.2     | 316 .9     
|Share of minority interests                         | 108.5    | -0.7     | 107.8      
|Operating depreciation, amortization, provision and | 860.6    | -65.2    | 795.4      
|impairment losses                                   |          |          |            
|Financial amortization and impairment losses        | -24.9    | 0.2      | -24.7      
|Capital gains/losses and dilution                   | -33.9    | -0.2     | -34.1      
|Earnings of affiliates                              | -5.6     | -        | -5.6       
|Dividends received                                  | -4.0     | -        | -4.0       
|Cost of net financial debt                          | 324.1    | 9.0      | 333.1      
|Taxes                                               | 236.9    | -0.7     | 236.2      
|Other items                                         | 4.9      | 0.8      | 5.7        
|                                                    |          |          |            
|Cash flow from operations                           | 1,785.7  | -59.0    | 1,726.7    
|                                                    |          |          |            
|Change in receivables from D14 assets (stage of     | -        | -56.0    | -56.0      
|completion on construction contracts)               |          |          |            
|Change in working capital requirement excluding     | -195.8   | 4.3      | -191.5     
|receivables on D14 assets                           |          |          |            
|Tax paid                                            | -176.0   | -        | -176.0     
|                                                    |          |          |            
|Net cash flow from operating activities             | 1,413.9  | -110.7   | 1,303.2    
|                                                    |          |          |            
|Investments in property, plants and equipment       | -868.1   | 147.0    | -721.1     
|Proceeds from disposals of industrial assets        | 74.1     | -0.6     | 73.5       
|Financial investments                               | -464.4   | -        | -464.4     
|Proceeds from sale of financial assets              | 87.1     | -        | 87.1       
|Investment contracts defined under IFRIC 4:         |          |          |            
|New IFRIC 4 receivables                             | -84.3    | 84.3     | -          
|Repayment of receivables under IFRIC 4              | 82.8     | -82.8    | -          
|Financial operating assets:                         |          |          |            
|New financial operating assets                      | -        | -183.7   | -183.7     
|Repayments of financial operating assets            | -        | 155.5    | 155.5      
|Dividends received                                  | 9.5      | -        | 9.5        
|Disbursements on long-term interest bearing notes   | -340.8   | -        | -340.8     
|receivable                                          |          |          |            
|Repayments on long-term interest-bearing notes      | 374.9    | -        | 374.9      
|receivable                                          |          |          |            
|Change in short-term financial receivables          | 30.4     | -        | 30.4       
|Purchases/ sales of marketable securities           | 123.4    | -        | 123.4      
|                                                    |          |          |            
|Net cash flow provided by investing activities      | -975.4   | 119.7    | -855.7     
|                                                    |          |          |            
|Change in short-term financial debt                 | -1,580.1 | -        | -1,580.1   
|New loans and other long-term debt                  | 1,399.7  | -        | 1,399.7    
|Repayment of loans and other long-term debt         | -1,397.3 | -        | -1,397.3   
|Increase in capital                                 | -        | -        | -          
|Purchase of treasury shares                         | -        | -        | -          
|Dividends paid                                      | -352.4   | -        | -352.4     
|Interest paid                                       | -248.0   | -        | -248.0     
|                                                    |          |          |            
|Net cash flow provided by financing activities      | -2,178.1 | -        | -2,178.1   
|                                                    |          |          |            
|Opening cash and cash equivalents position          | 4,240.2  | -        | 4,240.2    
|                                                    |          |          |            
|Currency effects and miscellaneous                  | 129.1    | -9.0     | 120.1      
|                                                    |          |          |            
|Closing cash and cash equivalents position          | 2,629.7  | -        | 2,629.7    
|                                                    |          |          |            
|                                                   
|Cash and cash equivalents                           | 3,171.1  | -        | 3,171.1    
|- Cash liabilities                                  | 541.4    | -        | 541.4      
|                                                    |          |          |            
|Closing cash and cash equivalents position          | 2,629.7  | -        | 2,629.7    
|                                                    |          |          |            

9

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Appendix 2

|CONSOLIDATED BALANCE SHEET AT 30 JUNE 2006
|------------------------------------------



|                                                             |          |         
|------------------------------------------------------------ | -------- | --------
|                                                            
|(€ million)                                                  | 31/12/05 | 30/06/06
|                                                             | Adjusted |         
|                                                             |          |         
|BALANCE SHEET: ASSETS                                        |          |         
|Goodwill                                                     | 4,752.3  | 4,769.3 
|Intangible assets linked to concessions                      | 1,841.2  | 1,872.1 
|Other intangible assets                                      | 1,281.,4 | 1,257.3 
|Tangible assets                                              | 6,894.0  | 6,898.8 
|Investments accounted for using the equity method            | 201.5    | 166.2   
|Investments accounted for using the cost method              | 209.5    | 347.5   
|Long-term financial operating assets                         | 5,241.0  | 5,038.9 
|Derivative instruments  Asset                               | 249.0    | 125.5   
|A Of which revaluation of hedging instruments at fair value | 161.1    | 9.1     
|Other long-term financial operating assets                   | 691.6    | 510.6   
|Deferred tax Asset                                          | 1,134.7  | 1,113.3 
|                                                             |          |         
|Total non-current assets                                     | 22,496.2 | 22,099.5
|                                                             |          |         
|Inventories                                                  | 635.2    | 678.3   
|Accounts receivable                                          | 10,424.1 | 10,451.0
|Short-term financial operating assets                        | 205.9    | 303.1   
|Other short-term financial assets                            | 221.2    | 280.5   
|Marketable securities                                        | 60.7     | 75.5    
|B Cash and cash equivalents                                 | 2,336.1  | 2,642.0 
|                                                             |          |         
|Total current assets                                         | 13,883.2 | 14,430.4
|                                                             |          |         
|Assets from discontinued operations                          | 1.6      | -       
|                                                             |          |         
|Total assets                                                 | 36,381.0 | 36,529.9
|                                                             |          |         
|                                                            
|CONSOLIDATED BALANCE SHEET: LIABILITIES                      |          |         
|Share capital                                                | 2,039.4  | 2,044.3 
|Additional paid-in capital                                   | 6,499.1  | 6,528.1 
|Retained earnings                                            | -5,370.5 | -5,063.7
|Net income                                                   | 622.2    | 444.5   
|                                                             |          |         
|Shareholders equity                                         | 3,790.2  | 3,953.2 
|                                                             |          |         
|Minority interests                                           | 1,888.0  | 2,047.7 
|                                                             |          |         
|Shareholders equity and minority interests                  | 5,678.2  | 6,000.9 
|                                                             |          |         
|Non-current provisions                                       | 1,621.4  | 1,625.3 
|C Long-term financial debt                                  | 13,722.8 | 12,630.9
|Derivative instruments  Liability                           | 154.5    | 198.1   
|D Of which revaluation of hedging instruments at fair value | -        | 69.2    
|Other long-term debt                                         | 203.7    | 208.8   
|Deferred tax - Liability                                     | 1,205.0  | 1,202.0 
|                                                             |          |         
|Total non-current liabilities                                | 16,907.4 | 15,865.1
|                                                             |          |         
|Accounts payable                                             | 10,369.8 | 10,195.1
|Current provisions                                           | 780.6    | 699.5   
|E Short-term financial debt                                 | 2,138.2  | 3,192.0 
|F Bank overdrafts                                           | 506.8    | 577.3   
|                                                             |          |         
|Total current liabilities                                    | 13,795.4 | 14,663.9
|                                                             |          |         
|Liabilities from discontinued operations                     | -        | -       
|                                                             |          |         
|Total liabilities                                            | 36,381.0 | 36,529.9
|                                                             |          |         
|                                                            
|Net financial debt = C+D+E+F-A-B                             |          |         

10

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Appendix 2

|CONSOLIDATED INCOME STATEMENT AT 30 JUNE 2006
|---------------------------------------------

|                                                      |          
|----------------------------------------------------- | ---------
|                                                      |          
|(€ million)                                           |          
|                                                      |          
|                                                      |          
|Revenue from ordinary activities                      | 12,306.8 
|Of which revenue from ordinary activities linked to   | 163.9    
|financing for third parties                           |          
|Cost of sales                                         | -10,080.9
|Selling costs                                         | -222.0   
|General and administrative costs                      | -1,126.4 
|Other operating costs and revenue                     | 82.0     
|                                                      |          
|Operating income                                      | 959.5    
|                                                      |          
|Cost of net financial debt                            | -333.1   
|Other financial income and expenses                   | 28.7     
|Income tax                                            | -236.0   
|Equity in net income of affiliates                    | 5.6      
|                                                      |          
|Net income before earnings from discontinued          | 424.7    
|operations and minority interests                     |          
|                                                      |          
|Net income from discontinued operations               | -        
|                                                      |          
|Net income before minority interests                  | 424.7    
|                                                      |          
|Minority interests                                    | 107.8    
|                                                      |          
|Net income                                            | 316.9    
|                                                      |          
|                                                      |          
|Net earnings per share (€)                            |          
|Diluted                                               | 0.81     
|Net earnings per share from continuing operations (€) |          
|Diluted                                               | 0.81     
|                                                      |          

The number of non-diluted shares outstanding at June 30, 2006 was 393.4 million versus 390.3 million at June 30, 2005. 
The number of diluted shares outstanding at June 30, 2006 was 397.7 million versus 391.8 million at
June 30, 2005.

11

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Appendix 2

|CONSOLIDATED CASH FLOW STATEMENT AT 30 JUNE 2006
|------------------------------------------------

|                                                            |          |         
|----------------------------------------------------------- | -------- | --------
|(€ million)                                                 | 30/06/05 | 30/06/06
|                                                            | Adjusted |         
|                                                            |          |         
|Net income                                                  | 316.9    | 444.5   
|Share of minority interests                                 | 107.8    | 134.7   
|Operating depreciation, amortization, provision and         |          |         
|impairment losses                                           | 795.4    | 807.3   
|Financial amortization and impairment losses                | -24.7    | 3.7     
|Capital gains/losses on disposals and dilution              | -34.1    | -33.6   
|Earnings of affiliates                                      | -5.6     | -4.0    
|Dividends received                                          | -4.0     | -7.8    
|Cost of net financial debt                                  | 333.1    | 331.0   
|Taxes                                                       | 236.2    | 202.1   
|Other items                                                 | 5.7      | 34.7    
|                                                            |          |         
|Cash flow from operations                                   | 1,726.7  | 1,912.6 
|                                                            |          |         
|Change in working capital requirement                       | -247.5   | -311.3  
|Taxes paid                                                  | -176.0   | -160.9  
|                                                            |          |         
|Net cash flow provided by operating activities              | 1,303.2  | 1,440.4 
|                                                            |          |         
|Investments in property, plants and equipment               | -721.1   | -793.1  
|Proceeds from disposals of industrial assets                | 73.5     | 55.2    
|Financial investments                                       | -464. 4  | -251.4  
|Proceeds from sales of financial assets                     | 87.1     | 170.8   
|Financial operating assets:                                 |          |         
|New financial operating assets                              | -183.7   | -158.9  
|Repayment of financial operating assets                     | 155.5    | 242.7   
|Dividends received                                          | 9.5      | 9.8     
|Disbursement on long-term interest-bearing notes receivable | -340.8   | -9.6    
|Repayments of long-term interest-bearing notes receivable   | 374.9    | 52.2    
|Change in short-term financial receivables                  | 30.4     | -65.5   
|Purchases/sales of marketable securities                    | 123.4    | -9.9    
|                                                            |          |         
|Net cash flow provided by investing activities              | -855.7   | -757.7  
|                                                            |          |         
|Change in short-term financial debt                         | -1,580.1 | 60.1    
|New loans and other long-term debt                          | 1,399.7  | 590.6   
|Repayment of loans and other long-term debt                 | -1,397.3 | -543.9  
|Increase in capital                                         | -        | 121.6   
|Purchase of treasury shares                                 | -        | 58.4    
|Dividends paid                                              | -352.4   | -411.7  
|Interest paid                                               | -248.0   | -313.2  
|                                                            |          |         
|Net cash flow provided by financing activities              | -2,178.1 | -438.1  
|                                                            |          |         
|Opening cash and cash equivalents position                  | 4,240.2  | 1,829.3 
|Currency effects and miscellaneous                          | 120.1    | -9.2    
|                                                            |          |         
|Closing cash and cash equivalents position                  | 2,629.7  | 2,064.7 
|                                                            |          |         
|Cash and cash equivalents                                   | 3,171.1  | 2,642.0 
|- Cash liabilities                                          | 541.4    | 577.3   
|                                                            |          |         
|Closing cash and cash equivalents position                  | 2,629.7  | 2,064.7 
|                                                            |          |         

12

---



Appendix 2

|FROM RECURRING OPERATING INCOME TO OPERATING INCOME
|---------------------------------------------------

|                                          |          |         
|----------------------------------------- | -------- | --------
|(€ million)                               | 30/06/05 | 30/06/06
|                                          | Adjusted |         
|                                          |          |         
|Recurring operating income                | 955      | 1,125   
|Disposal of the Clemessy nuclear business | 5        | -       
|                                          |          |         
|Operating income                          | 960      | 1,125   
|                                          |          |         



|FROM RECURRING NET INCOME TO NET INCOME
|---------------------------------------

|(€ millions)                        | 30/06/05 | 30/06/06
|----------------------------------- | -------- | --------
|                                    | Adjusted |         
|                                    |          |         
|Recurring net income                | 317      | 377     
|Income from discontinued operations | -        | 54      
|Other                               | -        | 14      
|                                    |          |         
|Net income                          | 317      | 445     
|                                    |          |         



13

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Appendix 2

CHANGE IN NET FINANCIAL DEBT

|                                                        |          |         
|------------------------------------------------------- | -------- | --------
|(€ million)                                             | 30/06/05 | 30/06/06
|                                                        | Adjusted |         
|                                                        |          |         
|Opening net financial debt                              | -13,059  | -13,871 
|                                                        |          |         
|Cash flow from operations                               | 1,727    | 1,913   
|Tax paid                                                | -176     | -161    
|Interest paid                                           | -248     | -313    
|Capital expenditures for maintenance and ongoing growth | -1,061   | -1,012  
|Repayment of financial operating assets                 | 156      | 243     
|Change in working capital requirement                   | -248     | -311    
|Disposals of industrial assets and miscellaneous        | 156      | 226     
|Others                                                  | -        | 70      
|                                                        |          |         
|Free cash flow before new major projects                | 306      | 655     
|                                                        |          |         
|Strategic disposals of assets                           | -        | -       
|New major projects and acquisitions                     | -416     | -338    
|Increase in capital                                     | 12       | 120     
|Dividends paid                                          | -365     | -414    
|Change in other financial receivables                   | 188      | 17      
|Other changes (including currency)                      | -281     | 13      
|                                                        |          |         
|Closing net financial debt                              | -13,615  | -13,818 
|                                                        |          |         

14

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Appendix 3

Glossary

|IFRIC | International Financial Reporting Interpretation Committee: the body that interprets IFRS
    accounting standards
|----- | ------------------------------------------------------------------------------------------------------------------

|Revenue | Revenue from ordinary activities
|------- | --------------------------------

|Recurring net income | The companys recurring net income corresponds to the recurring part of operating income, cost of net financial debt, other financial income and expenses, equity in the net income of affiliates, minority interests and standard income tax.
|-------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Free cash flow before new major projects | Cash flow from operations  tax and interest paid +/- WCR  maintenance and growth capital expenditure net of disposals 
    + repayment of financial operating assets 
    + dividends received.
|---------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Financial operating assets | Financial receivables of industrial and municipal clients, established under the IFRIC4 interpretation and draft interpretation D13
|-------------------------- | -----------------------------------------------------------------------------------------------------------------------------------

|IFRIC4 interpretation | An interpretation whose aim is to identify among service contracts leasing contracts and ultimately financial leasing contracts.
|--------------------- | --------------------------------------------------------------------------------------------------------------------------------

|Cash flow from operations | Cash flow from operations before tax and interest expense, as defined by the CNCs recommendation of October 27, 2004
|------------------------- | ---------------------------------------------------------------------------------------------------------------------

|Cost of net financial debt | It represents the cost of gross financial debt, including the related income/cost of hedging interest rates and currencies, less interest income from net cash and cash equivalents.
|-------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Net financial debt | Net financial debt = C+D+E+F-A-B (see Consolidated balance sheet at 30 June 2006  appendix 2)
|------------------ | ----------------------------------------------------------------------------------------------

|Net income from discontinued operations | This is the sum of costs and income, net of tax, connected with activities that have been, or are in the course of being, disposed of, in accordance with accounting standard IFRS 5.
|--------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



15

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: September 15, 2006

| | VEOLIA ENVIRONNEMENT
| | --------------------
| | By:                 
| |                     
| |                     











---