SUEZ is Creating Environment Division Combining Ondeo and SITA

Division Will Have a Turnover of 15 Billion EUR and 120,000 Employees

SUEZ is announcing the gathering of all its waste services and water activities within a single division. This division employs some 120,000 persons, represents revenues of 15 billion EUR, and is the international leader for environment activities.

This strategic decision follows last December's announcement of the establishment of an Energy division. It will enable the Group to improve its efficiency and competitive position in markets that are undergoing major transformation and offering significant growth prospects.

The organization of the Environment division will be wholly customer-oriented through two subdivisions:

-- Municipal and Local: based in Paris, this will correspond to the traditional activities of Ondeo and SITA, which today represent a customer base of some 120 million persons for water services, 74 million for waste services and hundreds of thousands of commercial and local industries. It focuses on Europe and the major markets abroad, a rapidly growing territory comprising North America, Central Europe, Southeast Asia, Latin America and Africa-Middle East.

-- Industrial: based in Napperville, Chicago, this business comprises mainly the activities run by Nalco, OIS and Teris LLC. This subdivision will have a portfolio of 60,000 customers for water treatment and environmental services outsourcing. It is organized according to major industry sectors such as pulp and paper, oil and chemicals, etc.

SUEZ's Environment division will be headed by Jacques Petry, Chairman and CEO of Ondeo and Senior Executive Vice President of SUEZ. Jerome Tolot, Chairman and CEO of SITA and Executive Vice President of SUEZ, will be in charge of municipal and local customers. Christian Maurin, Chairman and CEO of Ondeo Nalco, will be responsible for industrial customers.

China, a market built on a continental scale and now experiencing exponential growth, is becoming particularly important to the Group. A specific department dedicated to this country will be created at the SUEZ level for the Energy and Environment divisions. It will be headed by Yves-Thibault de Silguy, Senior Executive Vice President of SUEZ.

With this streamlined structure, SUEZ Industrial Solutions' business activities will be reinforced towards large industrial customers, as well as for multi-service offerings. SUEZ Industrial Solutions is a common unit to the energy and environment division.

Ever since its creation, in 1997, SUEZ's strategy has been centered on its global businesses in which the Group has leading positions, delivering the essentials of life.

This strategy takes into account the perpetually changing character of customer needs and of the markets themselves (in terms of deregulation, outsourcing, environmental constraints, etc.). It is based on

-- A community of professionals who share the same values.
-- Sustained international development: In the last five years international revenues grew four-fold in energy, seven-fold in water and eight-fold in waste services. Decisive transactions have been
successfully effected (BFI, Calgon, Nalco, Epon, Cabot, Sulzer Infra
and GTI, Teris) while leading and strategically important contracts
have been won-among the most recent examples are the contracts for Porto Rico, Shanghai Chemical Industrial Park and Aventis Pharma.
-- The specific nature of the industrial customers (50 percent of the group's revenues), which requires the formation of a homogeneous supply of energy and environmental services.
-- A relentless quest for profitability.

"SUEZ is strengthening its original model by organizing itself around two well-balanced activities: energy (generating 60 percent of its revenues, 40 percent of the Group's employees) and environment services (40 percent of revenues, 60 percent of the group's employees) directed by the two leading professionals in their fields: Jean-Pierre Hansen and Jacques Petry, both members of SUEZ's Management Committee," said Gerard Mestrallet, SUEZ's chairman and CEO.

"This is a new and decisive step that will enable our teams to win a growing share of leading international markets," he continued. "By basing ourselves on an organization that anticipates tomorrow's leading trends, we will be in a position to keep our lead in each of our business activities. The simple and operational group structure will allow the reinforcement of common actions between the two divisions".


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