FAIRFIELD, New Jersey, July 6 /PRNewswire/ --

Covanta Holding Corporation (NYSE: CVA), a world leader in the development,
ownership and operation of Energy-from-Waste (EfW) facilities and other
renewable energy projects, today announced that it has signed a definitive
agreement to acquire from Veolia Environmental Services North America Corp.,
most of its North American EfW business.

The transaction is expected to be accretive to Covanta. The purchase price of
US$450 million, less net debt and minority interests (subject to certain other
adjustments) will be paid in cash.

The Energy-from-Waste operations to be acquired consist of the following:

Facility: Location: Capacity: 1. Long Beach CA 1,380 TPD 2. Dade FL 3,000 TPD 3.
Dutchess NY 450 TPD 4. Islip NY 486 TPD 5. Montgomery PA 1,200 TPD 6. York PA
1,344 TPD 7. Vancouver Canada 800 TPD

We expect the entire transaction will close by year end. However, the closing of
the transaction may occur in stages and is conditioned upon receipt of customary
regulatory and other approvals or consents. The failure to obtain certain
approvals or consents may result in the removal of certain businesses from the
transaction and a related price reduction.

An Attractive Acquisition

Each of the seven EfW businesses to be acquired includes a long-term operating
contract with the respective municipal client. In addition, we will acquire a
majority ownership stake in the Montgomery PA facility and a related transfer
station operating contract. Collectively, these seven EfW facilities process
approximately 3 million tons of waste per year. The acquired businesses
compliment Covanta's existing portfolio, which includes operation of 38 EfW
facilities that process approximately 17 million tons of municipal solid waste

Covanta expects it will achieve meaningful synergies by leveraging its scale,
operational expertise and in-house maintenance capabilities. Force reductions
are not anticipated at the operating facilities, which employ approximately 500
people. This acquisition is expected to add approximately US$60 million of
operating cash flow during 2010.

Anthony Orlando, President and CEO of Covanta stated We are extremely pleased to
announce this acquisition which is consistent with our growth strategy targeting
Energy-from-Waste development projects and acquisitions in key markets. We look
forward to welcoming new customers and employees into the Covanta family and
working closely with each client community to build on and improve the service

Advisors to Covanta

La Compagnie Financiere Edmond de Rothschild (Paris) and Latham Watkins LLP (New
York) served as financial and legal advisors, respectively, to Covanta in
connection with this transaction.

About Covanta

Covanta Holding Corporation (NYSE: CVA), is an internationally recognized owner
and operator of large-scale Energy-from-Waste and renewable energy projects and
a recipient of the Energy Innovator Award from the U.S. Department of Energy's
Office of Energy Efficiency and Renewable Energy. Covanta's 38 Energy-from-Waste
facilities provide communities with an environmentally sound solution to their
solid waste disposal needs by using that municipal solid waste to generate
clean, renewable energy. Annually, Covanta's modern Energy-from-Waste facilities
safely and securely convert approximately 17 million tons of waste into more
than 8 million megawatt hours of clean renewable electricity 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
general industry or broader economic performance in domestic and international
markets in which Covanta operates or competes, 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, the risk that Covanta may not acquire all seven of the EfW
businesses in the event that certain consents and approvals are not obtained and
those factors, risks and uncertainties that are described in periodic 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.

SOURCE: Covanta Holding Corporation

Marisa F. Jacobs, Esq., Vice President, Investor Relations and Corporate
Communications, +1-973-882-4196, or Vera Carley, Director, Media Relations and
Corporate Communications, +1-973-882-2439, both of Covanta Holding Corporation