Following a proposal from the chairman, the VIVENDI board has decided to set up an exceptional stock option plan.

All permanent employees of the VIVENDI group’s environmental services and communications divisions worldwide, whether working part time or full time, are to receive ten stock options each. Some 250,000 employees will benefit from this plan, for a total of 2.5 million options.

The plan will represent about 0.4% of VIVENDI’s capital stock, and will make use of the remaining authorizations already granted by the 1998 Shareholders’ Meeting. There will be no dilution effect as the stock involved will be taken from treasury stock.

This exceptional decision, taken at the eve of the Year 2000, is a strong signal of management’s confidence in VIVENDI’s growth potential. It will enable all employees to be linked into the perspectives and performance of the group. Following the success of the various Group Savings Schemes, which have enabled over 100,000 employees to become together VIVENDI’s largest shareholder, this new measure will strengthen internal cohesion and group spirit.