APRIL 23, 2008 - COVANTA HOLDING CORPORATION REPORTS 2008 FIRST QUARTER RESULTS

FAIRFIELD, NJ, April 23, 2008—Covanta Holding Corporation (NYSE:CVA) (“Covanta” or the “Company”) reported financial results today for the three months ended March 31, 2008. Diluted earnings per share was $0.10 in the first quarter of 2008, up from a diluted loss per share of $0.12 in the first quarter of 2007, and comparable to diluted earnings per share of $0.08 in that period, which excludes the impact of certain expenses as described in the Exhibits.

First Quarter Results

For the three months ended March 31, 2008, operating revenues grew 18% to $389 million, up from $330 million in the prior year comparative period. Domestic segment revenue grew 12% to $323 million, driven by the contribution of revenue from domestic acquisitions completed in 2007, contractual escalations in service fees, and higher prices for electricity and recycled metal. Domestic plant operating expenses increased by 20% primarily due to increased plant maintenance activities, escalating costs in fuel and materials, and additional operating costs from new businesses acquired in 2007. International segment revenue grew 58% to $63 million, driven primarily by increased electricity sales at two facilities located in India. International plant operating expenses increased by 70% primarily due to higher fuel costs related to higher energy generation at the Indian facilities.

 Cash Flow Provided by Operating Activities (“Operating Cash Flow”) was $49 million in the first quarter.Adjusted EBITDA was $106 million.

 “The first quarter was marked by continued steady operating and financial performance, which highlights the strength of our core business during this turbulent economic environment,” said Anthony Orlando, President and Chief Executive Officer of Covanta. “In addition, I remain optimistic about our prospects to grow our renewable energy business in key markets around the world.”

 2008 Guidance

 The Company is reaffirming its guidance for 2008 for the following key metrics:

• Adjusted EBITDA of $550 million to $575 million;
• Diluted earnings per share of $0.90 to $1.00; and
• Operating Cash Flow of $380 million to $420 million.

 Conference Call Information

 Covanta will host a conference call at 8:30 am (Eastern) on Thursday, April 24, 2008 to discuss its results for the three months ended March 31, 2008. To participate, please dial 877-795-3638 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside of the United States, please dial 719-325-4756. 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 11:30 am (Eastern) on Thursday, April 24, 2008 through midnight (Eastern) on Thursday, May 1, 2008. To access the replay, please dial 888-203-1112 or 719-457-0820 and use the replay pass code: 4702233. The web cast will also be archived on www.covantaholding.com.

About Covanta

Covanta Holding Corporation, a New York Stock Exchange listed company, is an internationally recognized owner and operator of energy-from-waste and renewable energy 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 37 energy-from-waste 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 convert 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, 2007, 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.

Contacts:

Bradford Helgeson
Vice President & Treasurer
973-882-4193

Vera Carley
Media Relations Manager
973-882-2439

Attachments