OCTOBER 30, 2007 - COVANTA BEGINS OPERATING NATION’S FIRST ENERGY-FROM-WASTE UNIT UNDER THE EPA’s NEW SOURCE PERFORMANCE STANDARDS

FORT MYERS, FLA October 30, 2007 - Covanta Holding Corporation (NYSE: CVA), a world leader in the development and operation of large scale Energy-from-Waste and renewable energy projects, today announced it has begun operating the first energy-from-waste unit built under the U.S. Environmental Protection Agency’s New Source Performance Standards.

The new unit expands the Lee County Resource Recovery facility, which is owned by Lee County, Florida, and allows the County to convert an additional 636 tons of municipal waste every day into an additional 18 megawatts of electricity. Prior to the $120-million expansion, the facility had processed more than 4 million tons of waste in two 600-ton per day combustion units and generated enough electricity to power 26,000 homes.

“Rising energy costs and environmental concerns underscore the logic for sustainable waste management solutions such as the Lee County Resource Recovery facility,” said Anthony Orlando, President and Chief Executive Officer of Covanta. “We are excited about its increased ability to generate clean, renewable energy and add electricity to the nation’s power grid. With this additional capacity, we’ll be able to help keep the lights on in 36,000 homes.”

Five years ago, Lee County decided to expand the facility to meet the increased waste disposal needs of its growing community. The County approved the new combustion unit, which increases the facility’s capacity to convert municipal waste into renewable energy by over 50 percent.

“Lee County’s Board of County Commissioners deserve credit for continuing to expand its integrated waste management system,” said Lindsey Sampson, Director of Lee County’s Solid Waste Division.

Working with Lee County, Covanta oversaw the expansion project. Covanta operates and maintains the facility under a long-term contract with the County.  Covanta is pleased to be part of delivering environmentally sound waste disposal and clean, renewable energy for the areas 600,000 residents.

Orlando said Covanta was proud to be part of Lee County’s comprehensive solid waste management plan, which includes strong recycling and composting programs.

“The Lee County Resource Recovery facility complements those efforts and has prevented close to 4 million tons of greenhouse gas emissions from being released into the atmosphere. And it has produced enough electricity to eliminate the need to burn 1 million tons of coal or 4 million barrels of oil,” said Orlando. “Those are impressive statistics and indicative of the positive role energy-from-waste facilities can play in a sustainable future.”

About Covanta
Covanta Holding Corporation is an internationally recognized owner and operator of energy-from-waste and power generation projects. Covanta's energy-from-waste facilities convert municipal solid waste into renewable energy for numerous communities, predominantly in the United States. As a world premier operator of large-scale energy-from-waste facilities, Covanta is proud to offer an environmentally sound solution to communities' solid waste disposal needs. With more than 30 facilities worldwide, Covanta uses municipal solid waste as a fuel to generate clean, renewable energy. Covanta's modern energy-from-waste facilities safely and securely turn 15 million tons of waste into more than 8 million megawatt hours of clean renewable electricity each year and create 10 billion pounds of steam that are sold to a variety of industries. For more information, visit www.covantaholding.com.

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 (“SEC”), 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 securities filings by Covanta with the SEC.
 
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.

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For more information contact:
Derek Porter
Director, Corporate Communications
Covanta Holding Corporation
703-236-2817
dporter@covantaenergy.com

Vera Carley
Media Relations Manager
Covanta Holding Corporation
973-882-2439
vcarley@covantaenergy.com