Suez creates ONDEO

Suez, a provider of energy, water, waste management and communication services, announced today the creation of ONDEO.

PARIS, March 21, 2001 (PRNewswire) — Suez, a provider of energy, water, waste management and communication services, announced today the creation of ONDEO.

The move represents the formation of the world's strongest and most comprehensive water solutions group, as well as a key step of an aggressive growth strategy to increase revenues 60% between 1999 and 2004.

With annual revenues of 9.1 billion euros in 2000 ($8.5 billion), 60,000 employees and a presence in 130 countries, ONDEO offers a full range of solutions to meet the water-related needs of cities, consumers and industries. To expand its already leading market share, ONDEO is implementing a growth strategy focusing on both internal and external opportunities.

Suez has united its existing water activities — as well as a newly established company that provides industrial water solutions — under a single global brand, ONDEO. Effective today, ONDEO's water solutions organization consists of the following companies:

* ONDEO Services — market leader in water management services to cities

(resources, drinking water, sanitation services), formerly operating

under the company name Lyonnaise des Eaux;

* ONDEO Nalco — market leader in water treatment and process chemicals

for industries, formerly operating under the name Nalco;

* ONDEO Degremont — water treatment specialist and market leader in

turnkey engineering, formerly operating under the name Degremont;

* ONDEO Industrial Solutions — a new company created to satisfy a full

range of industrial water needs.

No layoffs are expected as a result of the creation of ONDEO.

Commenting on the creation of ONDEO, Gerard Mestrallet, Chairman and CEO of Suez, said: "The creation of ONDEO, one of Suez's core businesses, is a major milestone in our history. We are creating today the world's premier water solutions group whose scale, global reach, and financial resources are without equal."

Gerard Payen, Chairman and CEO of ONDEO commented: "In ONDEO, we have created a group possessing the expertise, financial resources and research and development capabilities required to provide customized solutions to our millions of customers worldwide. We expect ONDEO to dramatically increase its market share in the fast-growing water services industry."

Gerard Payen added: "Under one name, ONDEO, we are of one mission, which is to be the premier provider of sustainable water-related solutions and services worldwide, through long-term partnerships that benefit our customers, communities, employees and the environment."

The Municipal Market

Activities benefiting cities and the consumer markets represent 64% of ONDEO's worldwide revenues. Today, only 5% of the population benefits from private sector water and wastewater services. According to the Global Water Partnership, "Framework for Action," an estimated $180 billion investment per year between 2000 and 2025 will be necessary to develop water services in developing nations, twice the current annual spending. In the United States alone, an estimated $14 billion annual investment will be necessary to upgrade infrastructure and meet even stricter regulations.

The Industrial Market

Activities benefiting the industrial market represent 36% of ONDEO's worldwide revenues. A recent study by Suez of its 200 largest industrial accounts indicates that the industrial outsourcing market — which includes energy and water — will reach $20 billion by 2009.

About ONDEO

ONDEO is the premier water-related solutions provider with a presence in 130 countries. ONDEO supplies 110 million people with water and wastewater services, provides services to more than 60,000 industrial customers and has built more than 10,000 water treatment plants worldwide. ONDEO comprises four business activities branches, including: ONDEO Services, world leader in water management services; ONDEO Nalco, world leader in water treatment and process chemicals; ONDEO Degremont, world leader in water treatment engineering services; and ONDEO Industrial Solutions a specialist in water services to industries. ONDEO, a fully owned subsidiary of Suez, had revenues of $8.5 billion in 2000.

In the United States, ONDEO activities include: United Water, a subsidiary of ONDEO Services, leader in water management services in the U.S. market; ONDEO Nalco, world leader in water treatment and process chemicals, headquartered in Chicago, IL; and IDI, subsidiary of ONDEO Degremont. ONDEO revenues from U.S.-based operations were $1975 million in 2000.

More information about ONDEO can be found at http://www.ondeo.com .

More information about Suez can be found at http://www.Suez.fr .

SOURCE: Suez/ONDEO

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