Veolia Transport and EBRD connect business and people in Central and Eastern Europe
Equity investment by EBRD will support expansion of transport network

London, United Kingdom – The EBRD is acquiring a 35 per cent equity stake in Veolia Transport Central Europe GmbH to support the expansion of the leading European passenger transport operator in Central and Eastern Europe to new markets. Public transport services in Hungary and in the Balkans region are seen as potential targets.

Following the reorganisation and gradual liberalisation of national rail services Veolia Transport is also exploring this sector.

Increased competition and private sector participation in a market valued at about €12 billion will lessen the financial burden for regions and municipalities and provide customers with more choice and improved services.

Veolia Transport Central Europe GmbH is a holding company for the activities of Veolia Transport SA in Central and Eastern Europe. It is majority-owned by the French company Veolia Transport, one of the world’s leading passenger transport operators which has been operating in Central and Eastern Europe since 1998. Today it holds significant market shares of the bus services markets in the Czech Republic, Poland and Slovenia, with 5301 employees and 2601 vehicles, and has recently started operations in the Slovak Republic.

Alain Pilloux, EBRD Business Group Director, Russia, Central Europe and Specialised Industries, said teaming up with the EBRD will help Veolia Transport to establish a strong market presence in countries where the Bank can offer its expertise and experience. The Bank’s investment will also help to demonstrate the effectiveness of competition and private sector participation in the provision of local passenger transport services.

Stephane Richard, CEO of Veolia Transport, said “We are very proud to have entered into this partnership with the EBRD. This is recognition of the ethical and sustainable development we have already achieved in this part of the world, together with a strong support for the future.”

The EBRD, owned by 60 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies in central and eastern Europe and the Commonwealth of Independent States. Visit the EBRD’s website: www.ebrd.com

Veolia Environnement’s transport division operates in 25 countries and employs 72,302 people. Veolia Transport made 4.35 billion euros turnover in 2005. It operates 30,800 road and rail vehicles and transports more than 2 billion passengers annually.

Veolia Environnement (Paris Euronext: VIE, and NYSE: VE) is the world leader in environmental solutions. With operations on five continents, the company provides custom solutions to industrial and municipal clients in its four complementary businesses, namely water, environmental services, energy and transport. Veolia Environnement reported revenues of 25.2 billion euros in 2005 and employs 270,000 people. http://www.veoliaenvironnement.com