Covanta Announces Acquisition of EnergyAnswers' Operating Business.

Acquisition Adds Two Energy-from-Waste Facilities, Expands Covanta's Northeast Presence, and Reflects Company's Continued Growth

FAIRFIELD, N.J. -- Covanta Holding Corporation (NYSE: CVA), a world leader in the development and operation of large scale Energy-from-Waste (EfW) and renewable energy projects, today announced its agreement to purchase the operating businesses of EnergyAnswers Corporation ("EnergyAnswers"), which includes two EfW facilities in Massachusetts as well as several ancillary businesses.

"We are very pleased to add these operations to our growing portfolio," said Anthony Orlando, Covanta's President and Chief Executive Officer. "At Covanta, we are committed to providing our communities with safe and efficient waste disposal and clean, renewable energy. This acquisition fits nicely with our core strengths, and will expand our network of EfW and waste management assets in the Northeast, strategically positioning us to better serve markets in this region."

The acquired assets include a 400 tons-per-day EfW facility located in Springfield, MA, and a 240 tons-per-day EfW facility located in Pittsfield, MA. Approximately 75 percent of waste revenues are contracted for these facilities. In addition, Covanta is acquiring businesses that include:

* a landfill operation in Springfield, MA, which is used for ash disposal

* two transfer stations, one in Canaan, NY, permitted to transfer 600 tons-per-day of waste, and the other located at the Springfield EfW facility, permitted to transfer 500 tons-per-day;

* a waste transportation and small collections business operated in connection with the acquired facilities, and

* a wood and yard waste recycling operation on Cape Cod, MA

Covanta has agreed to acquire EnergyAnswers' businesses for cash and assumption of debt totaling $61 million, subject to working capital adjustments. The acquisition, which is subject to customary conditions to closing, is expected to close during the fourth quarter of 2007.

About Covanta

Covanta 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 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 over 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 over 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.covantaenergy.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, 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," "proposed," 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 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.