A model of sustainable and balanced growth, creating value in the long term:

Solid structure and financial rating (A3 for long-term debt by Moody’s).

Dividend of EUR0.65/share paid in 2009, totaling EUR318 million.

Balanced and resilient fundamentals.

Long-term strategy confirmed, adaptation of priorities over the short term.

In spite of a deteriorated and uncertain economic environment in 2009:

Low single digit growth targeted of revenues and EBITDA, based on current economic conditions1.

Continued growth of Free Cash Flow.

Acceleration of the costs cutting COMPASS program: improved objective at EUR180 million for 2008-20103.

Temporary slowdown of investments: around -25%4 in 2009 versus 2008.

Maintained ratio of net debt / EBITDA < 3 times.

ROCE significantly higher than WACC.

Commenting on the 2008 results, Jean-Louis Chaussade, chief executive officer of SUEZ ENVIRONNEMENT, made the following statement:

“In 2008, SUEZ ENVIRONNEMENT posted satisfactory growth and operating performance illustrating the dynamic performance of the Group’s activities and the efficiency of its business model. SUEZ ENVIRONNEMENT is in line with its 2008 guidance. With sustained, profitable growth and a strong capacity of generating free cash flow, SUEZ ENVIRONNEMENT has a sound financial profile and a resilient business model in a deteriorated economic environment.

Over the short term, SUEZ ENVIRONNEMENT adapts its priorities to the deteriorated economic situation to focus on free cash flow, maintain a financial discipline and strengthen selectivity of capital expenditures.

The businesses of SUEZ ENVIRONNEMENT rely on three growth drivers : the natural increase in the world’s population and its concentration in urban areas, the need to manage the environmental impact of human activity and new industrialization needs, and finally the toughening of regulations.

The availability of natural resources and the emergence of sustainable growth are among the major issues of the 21st century. Water and waste businesses are growth activities. SUEZ ENVIRONNEMENT intends to meet the challenge of resource management through on-going innovation and a circular approach of the economy.”

WATER EUROPE

The Water Europe segment recorded steady revenue growth (+7.1%1 and +8.5% organic growth). EBITDA at EUR812 million with a high margin rate of 21.1%. Lyonnaise des Eaux and Agbar generated steady sale activity in water and waste treatment with new contracts (SIAEP du Bas Languedoc, EUR68 million over 14 years, Nantes EUR50 m over 10 years, Gran Canaria contract EUR98 million over 25 years,…) and the renewal of major contracts (Noumea EUR456 million over 20 years, Cannes EUR220 million over 20 years, Grasse EUR124 million over 20 years, Muchamiel EUR24 million over 8 years, Benidorm EUR279 million over 20 years…). 2008 other main event was the success of the offer on Aguas de Barcelona.

WASTE EUROPE

With revenue growth of +3.9% and EBITDA at EUR924 million, the Waste Europe segment recorded an EBITDA margin of 16.1%, benefiting from the strong performance of its activities over the year, despite an unfavorable economic environment in the fourth quarter. Sales activity was dynamic, with new contracts won within the whole consolidated area (SMIRITOM Nord in France for EUR123 million over 22 years, Hounslow in Great Britain for EUR55 million over 7 years, Bad Kissingen in Germany for EUR15 million over 8 years, Calderdale in Great Britain for EUR54 million over 7 years…) and a number of contracts renewed (Montpellier in France for EUR29m over 6 years…). SUEZ ENVIRONNEMENT continued to develop and expand its presence over the entire waste value chain with acquisitions of businesses such as Boone Comenor and Fayolle’s waste activities in France, Doopa in Belgium, BellandVision in Germany, and through strategic long-term partnerships with major industrial groups (Nexans, Renault, Michelin, Airbus…).

The international operations of the group generated steady growth in revenues (+6.0%, i.e. organic growth of +7.1%) thanks to selective development. The strong operational performance of this segment, which posted EBITDA of EUR419 million and a margin of 15.1%, comes from Degremont, with a number of contracts, including those in Rusafa (Iraq EUR150 million), East Alexandria (Egypt EUR99 million), Baraki (Algeria EUR68m) and Bombay (India EUR59 million), water operations in China, and waste operations in Australia and Central Europe. In China, the acquisition of 7.5% of Chongqing Water, the Yuelai and Changshou Chemical Industry Park concession projects, and the acquisition agreement1 for 50% of Swire Sita from Swire Pacific are demonstrations of the Group’s strategy to expand its presence in the country.