We are pleased to announce that on Friday, March 4, 2011, Veolia Transport, S.A., the global parent company of Veolia Transportation, announced its merger with Transdev, a highly regarded leader in public transportation with a significant operating base in Europe, Canada and Australia.

Created through the merger of two of the world's leaders in passenger transportation, we are proud that the new company, known worldwide as Veolia Transdev, has 119,000 employees and operations in 28 countries on 5 continents. This makes it the largest private sector provider of passenger transportation solutions in the world.

Rationale for this Merger

The two companies want to help address the three major changes in public transportation globally: a) increased need for mobility in congested cities, b) growing environmental concern, and c) strained public finances. To address these changes, and to meet the needs of both passengers and transport authorities, the two companies merged.
Both Veolia Transport and Transdev:

• Have extensive experience in transit and transportation operations, with deep multi-modal expertise, and a history of innovation.
• Are trusted partners of cities, transit agencies, airports, and other public authorities.
• Share similar operating philosophies and values, and a commitment to safety and sustainability.
• Have complementary geographic coverage, -- with Veolia Transport operating in 28 countries including a very strong base of operations in Europe, Asia, and the U.S., and Transdev operating in several European countries, with key contracts in Canada and Australia.

Together the new company is a leader in size, but also in human capital, professional skills and experience blending public and private sector capabilities in productive, long-term relationships with clients. We will continue to offer the best in solutions, technology and business practices from our even stronger global base.

Continuity in Leadership

Here in the United States, there will not be any changes to our contracts with clients and vendors, or to our corporate, regional or location-based staff as a result of this merger. Our current management team will continue to lead the operations in the U.S., and Canadian operations, including both Veolia and Transdev locations, will also report to Mark Joseph, the CEO of Veolia Transportation. At some point near the end of the summer of 2011, we will officially change our name here in North America from Veolia Transportation to Veolia Transdev.

We are excited about this merger of our parent and the increased value it will enable us to deliver to our clients. We are committed to continue to provide efficient, cost effective solutions to our clients, which is particularly important in this era of strained public finances.

KEY QUESTIONS ABOUT VEOLIA TRANSDEV:

1. WHAT IS THE RELATIONSHIP BETWEEN VEOLIA TRANSDEV AND
VEOLIA TRANSPORTATION?

Veolia Transdev was formed by the merger of two leading global transportation companies, -- Veolia Transport S.A. and Transdev. Veolia Transport, is the global parent company of Veolia Transportation. Veolia Transportation is a U.S. corporation that operates public transportation in the U.S. and, through a Canadian subsidiary, in Canada.

2. PRIOR TO THE MERGER, WHO WAS VEOLIA TRANSPORT AND WHO WAS TRANSDEV?

Veolia Transport is a leading private operator of multiple modes of transportation, operating in 28 countries and executing 2.6 billion passengers each year. The company has 150 years of operating experience and relationships with clients that span decades. The company is a partner of local authorities, industrial clients and other government agencies who want to implement innovative, cost-effective and sustainable mobility solutions for bus, rail, streetcars, paratransit, shuttles, taxis, ferries and more.

Transdev is a highly respected operator of bus and light rail networks, with extensive operations in Europe, Canada and Australia. The company covers all aspects of public transportation from the organization and management of major transport projects, to the development of passenger services, to the operation of transit networks and systems. The company operates light rail, metro, bus, and transport on demand services.

3. WHY DID VEOLIA TRANSPORT AND TRANSDEV ENTER INTO A MERGER?

The global public transport market is facing three major changes: increased need for mobility in congested cities, growing environmental concern and strained public finances. To address these changes, and to meet the expectations of both passengers and transport authorities, the two companies merged. Its mission is to improve quality of life in cities through better mobility.

4. WHO IS VEOLIA TRANSDEV?

Veolia Transdev is the largest private sector provider of passenger transportation solutions in the world. The company has 119,000 employees and operations in 28 countries on 5 continents. Veolia Transdev covers the entire transport chain to provide innovative solutions and strong operations that meet needs of passengers and local government authorities.

5. WHAT SETS VEOLIA TRANSDEV APART FROM THE COMPETITION?

Out of the leading public transport companies, Veolia Transdev is the most internationally oriented, offering the widest range of intermodal and integrated services. It is virtually unique in its involvement in every stage of public transport projects, including design, operation and maintenance. The company has expertise in operating all aspects of multiple modes of transportation including bus, commuter rail, light rail, streetcars, paratransit, shuttles, sedans, taxis and ferries. The company's local management teams around the world are in direct daily contact with our clients, and are close to their local communities.

6. WHO ARE THE OWNERS OF VEOLIA TRANSDEV?

Veolia Transdev is formed of two shareholders, Veolia Environnement as the industrial operator, and Caisse des Depots, a highly respected bank and financial institution, as the financial partner. Caisse des Depot has a 200-year history and was the primary owner of Transdev prior to the merger.

7. WHAT ARE THE MAIN ADVANTAGES OF THE NEW COMPANY?

The new company embodies a new approach to business based on offering services that are both multimodal and fully integrated, to maximize passenger convenience.

The company has extensive experience in blending public and private interests in long-term client relationships, expertise in customizing contract design to meet clients' unique needs, and a history of superior performance in operations.

It puts the strength of an international business to work at a local level.

8. WHAT ARE OUR COMPETITIVE ADVANTAGES?

• Our ability to provide public services with private sector efficiency by making real commitments in terms of service quality, ridership and risk sharing;
• Knowledge and experience of all management models, whether public or completely private, and of a number of different countries and cultures;
• Expertise operating all modes of public transportation, and integrating them for smooth and efficient connections between modes, for the convenience of time-constrained passengers.
• A sound reputation for providing high quality, client-focused services combined with a strong sense of corporate responsibility towards our employees and the environment;
• The close relationships that our employees maintain with the transport authorities are a defining feature of the company.

9. WILL VEOLIA TRANSPORTATION BE CHANGING ITS NAME?

At some point near the end of the summer of 2011, we will officially change our name in North America from Veolia Transportation to Veolia Transdev. Our email addresses will change to Veolia Transdev in early March 2011.

10. HOW IS VEOLIA TRANSDEV ORGANIZED GLOBALLY?

The company is organized into 7 geographic regions, responsible for the following countries:

• France
• Benelux (The Netherlands, Belgium)
• North America (USA, Canada)
• Germany and Central Europe (Croatia, Poland, Czech Republic, Serbia, Slovakia, Slovenia)
• The UK and Northern Europe (Finland, Ireland, Norway, Sweden)
• Asia and the Pacific (Australia, China, South Korea, India, New Zealand)
• Southern Europe and the rest of the world (Chile, Colombia, Israel, Morocco, Portugal, Spain)