SEPTEMBER 2009

Covanta Holding Corporation reports on second quarter

Covanta Holding Corporation reported financial results for the three months ended June 30, 2009. Diluted earnings per share were $0.21 in the second quarter of 2009 compared to $0.27 in the second quarter of 2008.

For the three months ended June 30, 2009, operating revenues were $376 million, an 11 percent decline from $423 million in the prior year comparable period.

Domestic revenues declined by $21 million due to lower recycled metal revenue of $13 million and a $7 million decline in other revenue primarily related to timing of construction activity. The remaining domestic business revenue was essentially flat with new business revenue of $6 million offsetting a $4 million decline in revenue earned explicitly to service project debt. Domestic operating expenses were reduced by $8 million during the quarter, reflecting $20 million in expense reductions at existing businesses and from reduced construction activity this year, offset by $13 million in added expense from new businesses and the effects of insurance recoveries.

International segment revenue decreased $28 million in the quarter while plant operating expenses declined by $27 million. These declines relate primarily to the Company’s Indian facilities, where falling fuel prices reduced the pass through component of our revenues and also lowered our expenses.

Adjusted EBITDA was $140 million, down $22 million from last year’s second quarter. 2008 results included $5 million of insurance recovery benefits at the Semass facility. The remaining $17 million was due to lower recycled metal revenue and higher G&A spending to pursue growth. Strong operating performance and cost reductions entirely offset lower energy prices and merchant tip fees.

For the six months ended June 30, 2009, total Company operating revenues were down 10 percent to $735 million. Operating Cash Flow was $137 million for the year-to-date period. Adjusted EBITDA was $222 million.