Covanta Announces New NOx Emission Control Technologies.

Reduces NOx Emissions Well Below U.S. EPA Requirements

FAIRFIELD, N.J. -- Covanta Holding Corporation (NYSE: CVA) today announced that it has developed and successfully tested two new and cost-effective technologies that represent major advances in controlling Nitrogen Oxide (NOx) emissions. Both technologies, for which patents are pending, have been tested at existing Covanta facilities and are now ready for full scale commercial application.

The Covanta LN technology will enable existing energy-from-waste facilities to cut NOx emissions well below their already low levels. This new technology is capable of achieving NOx emissions below U.S. Environmental Protection Agency requirements; even without the use of Selective Non-Catalytic Reduction (SNCR) systems currently employed at most energy-from-waste facilities in the United States. Furthermore, when Covanta LN technology is coupled with SNCR systems, it drops NOx emissions to approximately half of current regulatory limits.

A similar but more advanced technology to be made available for new boiler units has been developed in collaboration with Covanta's long-time technology partner, Martin GmbH. It will be marketed in the United States under the name Covanta VLN. This technology is capable of reducing NOx emissions to levels below even those demonstrated by the LN technology, and at the same time lowering the capital cost for new units by improving overall boiler efficiency.

"We are excited about the new Covanta VLN technology because it gives us a competitive advantage when pursuing facility expansion or greenfield energy-from-waste opportunities," said Covanta's Chief Executive Officer Anthony Orlando. "In addition, we are pleased to be able to offer the Covanta LN technology to our existing client communities. As a world leader in making clean energy from waste, we are committed to investing in research and development that enables us to provide clients with this type of innovative technology and environmentally superior service."

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 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.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, 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 Danielson, include, but are not limited to, those factors, risks and uncertainties that are described in Item 1 of Covanta's 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.