GENERAL PRESENTATION OF SAUR CORPORATE GROUP & BUSINESS ACTIVITY

The Saur Group is one of the three leading and established providers of outsourced services for local authorities in the water and waste management industries in France. In addition, it has developed a strong position in France in the engineering and construction of water treatment plants.

Since its creation in 1933, the Saur Group has grown from a local operator focused on water services contracts to an established provider of water and waste management services. It has also developed its expertise in water treatment plant engineering and construction, expanded its operations across France and overseas, and broadened its customer base to include both local authorities and industrial customers.

With its staff of 12,000, the Saur Group manages approximately 5,300 water services contracts and over 1,000 waste collection contracts serving approximately 5.5 million consumers and over 5 million people, respectively, in France. In 2004 it had net sales (*) of €1,3 billion on its perimeter (see Part III for 2004 consolidated accounts ; the fiscal year has been modified and 2005 – 2006 consolidated Accounts will cover the period from March 2005 to March 2006 and will be available by the middle of the present year).

• Saur France manages water distribution and sanitation activities in France. The principal activities of Saur France are the production and supply of drinking water and the collection and treatment of wastewater prior to releasing it back into the natural environment. It also performs works activities related to water supply and sanitation infrastructure. Saur France is the third largest provider of water management services in the French outsourced market.
• Coved handles waste management in France. Coved offers a wide range of services including collection, sorting and processing of waste and landfilling in final waste disposal centers. It also offers complementary services such as urban cleaning. Coved is the third largest waste management service provider in France.
• Stereau specializes in the engineering and construction of water treatment plants. It has operations in France, Spain and the United Kingdom. Stereau is the third largest contractor in the water treatment plant engineering and construction market in France.
• Saur International controls our water distribution and sanitation businesses outside of France that are primarily located in Spain and Poland.
• Optimum takes charge of all computer-based activities. (*) Net sales equals revenues excluding surcharges collected on behalf on local authorities and water agencies.

SAUR IN ARMENIA

The 19th of August 2004 Saur has signed a Management Contract with the Government of Armenia represented by the State Committee of Water Economy, the purpose of this Contract is the Management of the Armenian Water and Sewerage Company (AWSC).
The 19th of October 2004 the Management Contractor has started its activities of management within the AWSC. The Contract has been signed for a period of 4 years till 18th of October 2008.
Considering company accomplishments, successfully implemented projects and continuous efforts, the RA government extended the management contract with 2 more years (until 2010).

To implement its activities in Armenia, SAUR has created its Armenian branch under the name of SAUR SEVAN SERVICES, SAUR being the shareholder (100%).