MAY 2011

Covanta initiates regular quarterly dividend

Covanta Holding Corporation announced that its board of directors has approved the initiation of a regular quarterly dividend of $0.075 per share.

On an annualized basis, that would represent a dividend of $0.30 per share, or approximately 15 percent of their estimated 2011 Free Cash Flow, based on the mid-point of the guidance range. The initial payment was made on April 12, 2011 to stockholders of record as of the close of business on March 30, 2011.

Covanta also announced that its board of directors has authorized an additional $50 million in share repurchases, bringing the total authorized amount to $200 million. As of the end of 2010, the company had repurchased 6.1 million shares at a cost of $95 million.

Covanta expects to fund the regular quarterly dividend and share repurchases during 2011 using cash on hand and cash generated from the business. The repurchases may employ a variety of methods including open market purchases, privately negotiated transactions, block trades or otherwise, or any combination of methods. The amount and timing of any repurchases will be determined based on an evaluation of a variety of factors at the time of any repurchases. The share buyback authorization does not obligate the company to acquire any specific number of shares in any period, and may be modified, suspended or discontinued at any time without notice to shareholders.