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APRIL 30, 2007 - COVANTA HOLDING CORPORATION REPORTS 2007 FIRST QUARTER RESULTS REAFFIRMS 2007 GUIDANCE

FAIRFIELD, NJ, April 30, 2007 - Covanta Holding Corporation (NYSE:CVA) ("Covanta" or the "Company") reported financial results today for the three months ended March 31, 2007. Diluted loss per share was $0.12 in the first quarter, which included approximately $32 million of pre-tax expenses associated with the Company's previously-announced recapitalization and a pre-tax write-down of assets of approximately $18 million relating to an insured loss caused by a fire at the Company's SEMASS facility. Excluding these costs diluted earnings per share would have been $0.08 in the first quarter of 2007 which is comparable to $0.08 in the prior year comparative period.

First Quarter Results
For the three months ended March 31, 2007 total Company operating revenues grew 8 percent to $330 million, up from $305 million in the prior year comparative period.

The Company's domestic waste and energy operating revenues grew 10 percent to $288 million, driven primarily by construction revenues at the Hillsborough County facility, the inclusion of the Harrisburg facility in results of operations, and contractual service fee escalations. International revenues of $40 million grew by 3 percent primarily due to higher electricity sales at both Indian facilities offset by decreased revenues resulting from the sale of a small facility in China during the second quarter of 2006.

Adjusted EBITDA at the Company's principal subsidiary Covanta Energy Corporation ("Covanta Energy") was $103 million in the first quarter. Covanta Energy's Free Cash Flow increased by $12 million to $34 million for the three months ended March 31, 2007 compared to the comparable period of 2006.

"Our successful recapitalization and joint venture investment in China positions us to take advantage of promising growth opportunities around the world," said Anthony Orlando, President and Chief Executive Officer of Covanta.  "We are also pleased that our SEMASS facility has quickly resumed operation after a fire on March 31. The character and quality of our employees is never more evident than in a situation such as this. Their preparation, commitment to safety and dedication to provide uninterrupted service for our clients is exemplary of the core values that will drive our future growth."


2007 Guidance Reaffirmed
The Company is reaffirming its full year 2007 guidance for the following key metrics:

  • Covanta Energy Adjusted EBITDA in the range of $545 million to $565 million;
  • Covanta Energy Free Cash Flow in the range of $290 million to $320 million; and
  • Covanta diluted earnings per share in the range of $0.65 to $0.75.


Conference Call Information
Covanta will host a conference call at 8:30 am (Eastern) on Tuesday, May 1, 2007 to discuss its results for the three months ended March 31, 2007.  Prepared remarks will be followed by a question-and-answer session.  To participate, please dial 800-289-0438 approximately 10 minutes prior to the scheduled start of the call.  If you are calling from outside of the United States, please dial 913-981-5527.  The conference call will also be web cast live on the Investor Relations section of the Covanta website at www.covantaholding.com. 

A replay of the conference call will be available from 11:00 am (Eastern) on Tuesday, May 1, 2007 through midnight (Eastern) Tuesday, May 8, 2007.  To access the replay, please dial 888-203-1112 or 719-457-0820 and use the replay pass code: 9963240.  The web cast will also be archived on www.covantaholding.com.


About Covanta
Covanta is a New York Stock Exchange listed company engaging in waste disposal, energy services and specialty insurance through its subsidiaries. Covanta's subsidiary, Covanta Energy, is an internationally recognized owner and operator of energy-from-waste and power generation projects.  Covanta Energy's energy-from-waste facilities convert municipal solid waste into renewable energy for numerous communities, predominantly in the United States.


CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA") or in releases made by the Securities and Exchange Commission, all as may be amended from time to time.  Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of Covanta and its subsidiaries, or industry results, to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements.  Statements that are not historical fact are forward-looking statements.  Forward-looking statements can be identified by, among other things, the use of forward-looking language, such as the words "plan," "believe," "expect," "anticipate," "intend," "estimate," "project," "may," "will," "would," "could," "should," "seeks," or "scheduled to," or other similar words, or the negative of these terms or other variations of these terms or comparable language, or by discussion of strategy or intentions.  These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws.  Covanta cautions investors that any forward-looking statements made by Covanta are not guarantees or indicative of future performance.  Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements with respect to Covanta, include, but are not limited to, those factors, risks and uncertainties that are described in Item 1A of its Annual Report on Form 10-K for the year ended December 31, 2006, and in other securities filings by Covanta. 

Although Covanta believes that its plans, intentions and expectations reflected in or suggested by such forward-looking statements are reasonable, actual results could differ materially from a projection or assumption in any forward-looking statements.  Covanta's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The forward-looking statements contained in this press release are made only as of the date hereof and Covanta does not have or undertake any obligation to update or revise any forward-looking statements whether as a result of new information, subsequent events or otherwise, unless otherwise required by law.


Contact:
Gavin Bell
Vice President, Investor Relations
Covanta Holding Corporation

973.882.7107
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