Exhibit 99.1

COVANTA REPORTS 2011 SECOND QUARTER RESULTS
2011 Guidance Reaffirmed
$81 Million Returned to Shareholders in Q2 2011

MORRISTOWN, NJ, July 20, 2011 — Covanta Holding Corporation (NYSE:CVA) (“Covanta” or the “Company”), an internationally recognized owner and operator of Energy-from-Waste projects, reported financial results today for the three and six months ended June 30, 2011.

		Three months ended June 30,
Continuing Operations		2011				2010
		(Unaudited)
		($ in millions, except per share amounts)
Revenues		$	411			$	393
Net Income From Continuing Operations		$	17			$	16
Adjusted EBITDA		$	123			$	122
Free Cash Flow		$	43			$	58
Adjusted EPS		$	0.14			$	0.11

Commenting on the second quarter of 2011, Anthony Orlando, President and CEO stated, “We had a strong second quarter and we are well positioned to meet all of our objectives for the year. Performance was in-line with our expectations, we completed a significant portion of our major scheduled maintenance and our construction activities are on track.”

“Market conditions are also improving; recycled metal prices are strong, waste markets are firming up and energy prices are holding steady in the face of ample natural gas supply. The improved operating environment opens the door for growth in the core business during the next few years which nicely supplements our long-term project development opportunities,” Mr. Orlando concluded.

Second Quarter Results From Continuing Operations

For the three months ended June 30, 2011, operating revenues increased to $411 million, up $18 million or 5%, from $393 million in the prior year comparative period. This increase is primarily attributable to increased construction revenue. Absent construction revenue, the increase was driven by improved waste disposal prices, higher service fee contract escalations and stronger recycled metal pricing, partially offset by lower debt service pass through revenues, and lower energy revenues, resulting primarily from the economic dispatching of certain biomass facilities.

Operating expenses of $358 million rose 4% from $343 million in the prior year comparative period. This was primarily due to higher construction expense. In addition, the increase reflects timing and scope of planned scheduled maintenance activity, higher fuel related costs and normal cost escalations, partially offset by lower costs associated with the economic dispatching of certain biomass facilities and lower development spending.

Adjusted EBITDA of $123 million was up $1 million compared with last year’s second quarter of $122 million. Growth in the core business and lower development spending more than offset increased scheduled maintenance activity and lower debt service revenue.

Free Cash Flow was $43 million in the second quarter, a decline of $15 million compared to $58 million in the prior year comparative period, primarily attributable to the semi-annual interest payment on the 7 ¹/4% senior notes issued in late 2010.

Adjusted EPS for the second quarter of 2011 was $0.14, up $0.03 compared to $0.11 in last year’s second quarter, due to the smaller number of shares outstanding as a result of the Company’s common stock buyback program, improved operating income and lower effective tax rate.

Year-to-Date Results From Continuing Operations

For the six months ended June 30, 2011, total operating revenues increased 4% to $788 million. Free Cash Flow was $109 million for the year-to-date period compared to $141 million for the same period last year. Adjusted EBITDA was $194 million compared to $191 million for the same period last year and Adjusted EPS was $0.03 compared to $0.00 Adjusted EPS in 2010.

2011 Guidance for Continuing Operations

The Company is reaffirming its 2011 guidance for the following key metrics (in millions, except per share amounts):

Metric		2011 Guidance Range		2010 Actual
Adjusted EBITDA		$480 - $520			$470
Free Cash Flow		$250 - $300			$318
Adjusted EPS		$0.40 - $0.55			$0.42

Shareholder Return Activities

During the quarter, Covanta repurchased $70 million in common stock, or 4.2 million shares (3% of the Company’s outstanding shares), at a weighted average cost of $16.58 per share. Aggregate repurchases since June 2010 total $219 million, or 13.5 million shares, representing 9% of its outstanding shares. The Company also paid its first quarterly dividend during the quarter and declared its second quarterly dividend which was paid on July 6, 2011, both for $0.075 per share.

Sanjiv Khattri, Chief Financial Officer, noted, “Over the past year, we have followed through on our commitment to return excess capital to shareholders. Our current dividend and share buyback program provide the flexibility to take advantage of growth opportunities when they arise, while ensuring that our shareholders reap the benefits of a strong and predictable stream of cash generation. Our core business is performing strongly and we are well positioned to meet our guidance.”

Sale of Asia IPP Assets

During the second quarter, the Company entered into an agreement to sell its Madurai facility in India, the third of the four Asia IPP assets designated as assets held for sale. The sale is expected to close later this year, subject to satisfaction of certain closing conditions, including financing.

“We are on track to realize gross proceeds of $270 to $290 million, assuming we successfully close all four asset sales. We have tax efficiently repatriated over $135 million of that amount and have been proactively returning this capital to shareholders,” added Mr. Khattri.

Conference Call Information

Covanta will host a conference call at 8:30 am (Eastern) on Thursday, July 21, 2011 to discuss its results for the three and six months ended June 30, 2011. The conference call will begin with prepared remarks, which will be followed by a question and answer session. To participate, please dial 877-806-3982 approximately 10 minutes prior to the scheduled start of the call. If you are calling from outside the United States, please dial 702-928-7062. Please utilize conference ID number 78213858 when prompted by the conference call operator. The conference call will also be webcast live from the Investor Information section of the Covanta Energy website. A presentation, which will be referenced during the call, can be found on the Investor Information section of our website at www.covantaenergy.com.

A replay of the conference call will be available at 11:30 AM (Eastern) Thursday, July 21, 2011. To access the replay, please dial 800-642-1687 or from outside of the United States 706-645-9291 and use the replay conference ID number 78213858. The webcast will also be archived on www.covantaenergy.com.

10-Q Filing Update

The Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2011 is expected to be issued during the week of July 25, 2011 and to include additional XBRL information required at this time.

About Covanta

Covanta 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 44 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 20 million tons of waste into 9 million megawatt hours of clean renewable electricity and more than 9 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 (“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 global 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 successfully close its announced or planned acquisitions or projects in development 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.

Contacts
Investors

Marisa F. Jacobs, Esq.
1.862.345.5285

Alan Katz
1.862.345.5456

IR@covantaenergy.com

Media
James Regan
1.862.345.5216

Exhibit 1

Covanta Holding Corporation
Condensed Consolidated Statements of Operations

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010(A)				2011				2010(A)
		(Unaudited)
		(In millions, except per share amounts)
Operating revenues
Waste and service revenues		$	276			$	268			$	527			$	509
Electricity and steam sales			98				100				192				201
Other operating revenues			37				25				69				51
Total operating revenues			411				393				788				761
Operating expenses
Plant operating expenses			248				233				519				497
Other operating expenses			30				25				58				49
General and administrative expenses			25				28				50				54
Depreciation and amortization expense			47				47				94				95
Net interest expense on project debt			8				10				16				20
Total operating expenses			358				343				737				715
Operating income			53				50				51				46
Other income (expense)
Interest expense			(17	)			(10	)			(34	)			(21	)
Non-cash convertible debt related expense			(6	)			(12	)			(11	)			(20	)
Other expenses, net			(3	)			—				(3	)			—
Total other expenses			(26	)			(22	)			(48	)			(41	)
Income from continuing operations before income tax expense and equity in net income from unconsolidated investments			27				28				3				5
Income tax expense			(11	)			(13	)			(1	)			(3	)
Equity in net income from unconsolidated investments			2				2				2				—
Income from continuing operations			18				17				4				2
Income from discontinued operations, net of income tax expense of $1, $2, $3 and $4, respectively (A) (B)			2				11				151				21
Net Income			20				28				155				23
Noncontrolling interests:
Less: Net income from continuing operations attributable to noncontrolling interests in subsidiaries			(1	)			(1	)			(1	)			(2	)
Less: Net income from discontinued operations attributable to noncontrolling interests in subsidiaries (A)			(1	)			(1	)			(3	)			(2	)
Total net income attributable to noncontrolling interests in subsidiaries			(2	)			(2	)			(4	)			(4	)
Net Income Attributable to Covanta Holding Corporation		$	18			$	26			$	151			$	19
Amounts Attributable to Covanta Holding Corporation stockholders’:
Continuing operations		$	17			$	16			$	3			$	0
Discontinued operations (A)			1				10				148				19
Net Income Attributable to Covanta Holding Corporation		$	18			$	26			$	151			$	19
Earnings Per Share Attributable to Covanta Holding Corporation stockholders’:
Basic
Continuing operations		$	0.12			$	0.10			$	0.02			$	0.00
Discontinued operations (A)			0.01				0.07				1.02				0.12
Covanta Holding Corporation		$	0.13			$	0.17			$	1.04			$	0.12
Weighted Average Shares			144				154				145				154
Diluted
Continuing operations		$	0.12			$	0.10			$	0.02			$	0.00
Discontinued operations (A)			0.01				0.07				1.02				0.12
Covanta Holding Corporation		$	0.13			$	0.17			$	1.04			$	0.12
Weighted Average Shares			145				155				146				154
Cash Dividend Declared Per Share:		$	0.075			$	1.50			$	0.15			$	1.50
Supplemental Information — Non-GAAP
Adjusted EPS (C)		$	0.14			$	0.11			$	0.03			$	0.00

(A)		In 2010, we adopted a plan to sell our interests in our non-core legacy fossil fuel independent power production facilities located in the Philippines, India, and Bangladesh. During the fourth quarter of 2010, these assets were classified as Assets Held for Sale as a result of our ongoing effort to sell them. Consequently, all corresponding prior year periods presented in our condensed consolidated financial statements have been reclassified to reflect these assets as discontinued operations.
(B)		During the first quarter of 2011, we completed the sale of our majority equity interests in a 106 MW (gross) heavy fuel-oil fired electric power generation facilities in Tamil Nadu, India (“Samalpatti”) and we completed the sale of our interests in a 510 MW (gross) coal-fired electric power generation facility in the Philippines (“Quezon”). The Quezon assets sold consisted of our entire interest in Covanta Philippines Operating, Inc., which provided operation and maintenance services to the facility, as well as our 26% ownership interest in the project company, Quezon Power, Inc. We received a combined total of cash proceeds of approximately $225 million, net of transaction costs. During the three and six months ended June 30, 2011, we recorded a net after-tax (loss) gain on disposal of assets held for sale of $(4) million and $132 million, respectively.
(C)		For additional information, see Exhibit 4 of this Press Release.

Exhibit 2

Covanta Holding Corporation
Condensed Consolidated Balance Sheets

		As of
		June 30,				December 31,
		2011				2010
		(Unaudited)
		(In millions, except per share amounts)
ASSETS
Current:
Cash and cash equivalents		$	235			$	126
Restricted funds held in trust			111				126
Receivables (less allowances of $3 and $3, respectively)			251				272
Unbilled service receivables			18				23
Deferred income taxes			35				27
Prepaid expenses and other current assets			118				110
Assets held for sale (A)			81				191
Total Current Assets			849				875
Property, plant and equipment, net			2,461				2,478
Investments in fixed maturities at market (cost: $27 and $29, respectively)			28				29
Restricted funds held in trust			108				107
Unbilled service receivables			28				32
Waste, service and energy contracts, net			454				472
Other intangible assets, net			76				79
Goodwill			238				230
Investments in investees and joint ventures			43				46
Other assets			325				328
Total Assets		$	4,610			$	4,676
LIABILITIES AND EQUITY
Current:
Current portion of long-term debt		$	56			$	7
Current portion of project debt			99				141
Accounts payable			27				23
Deferred revenue			84				72
Accrued expenses and other current liabilities			206				186
Liabilities held for sale (A)			19				34
Total Current Liabilities			491				463
Long-term debt			1,487				1,558
Project debt			635				662
Deferred income taxes			612				605
Waste and service contracts			82				89
Other liabilities			142				140
Total Liabilities			3,449				3,517
Equity:
Covanta Holding Corporation stockholders’ equity:
Preferred stock ($0.10 par value; authorized 10 shares; none issued and outstanding)			—				—
Common stock ($0.10 par value; authorized 250 shares; issued 158 and 157 shares; outstanding 143 and 150 shares)			16				16
Additional paid-in capital			858				893
Accumulated other comprehensive income			13				5
Accumulated earnings			260				213
Treasury stock, at par			(1	)			(1	)
Total Covanta Holding Corporation stockholders’ equity			1,146				1,126
Noncontrolling interests in subsidiaries			15				33
Total Equity			1,161				1,159
Total Liabilities and Equity		$	4,610			$	4,676

(A)		See Exhibit 1 — Note A of this Press Release.

Exhibit 3

Covanta Holding Corporation
Condensed Consolidated Statements of Cash Flow

		Six Months Ended
		June 30,
		2011				2010(A)
		(Unaudited, in millions)
OPERATING ACTIVITIES:
Net income		$	155			$	23
Less: Income from discontinued operations, net of tax expense (A)			151				21
Income from continuing operations			4				2
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization expense			94				95
Non-cash convertible debt related expense			11				20
Stock-based compensation expense			9				10
Deferred income taxes			(2	)			5
Decrease in restricted funds held in trust			(9	)			(1	)
Other, net			7				5
Change in working capital, net of effects of acquisitions			42				54
Net cash provided by operating activities from continuing operations			156				190
Net cash (used in) provided by operating activities from discontinued operations (A)			(4	)			19
Net cash provided by operating activities			152				209
INVESTING ACTIVITIES:
Purchase of property, plant and equipment			(68	)			(65	)
Acquisition of noncontrolling interests in subsidiaries			—				(2	)
Acquisition of businesses, net of cash acquired			(10	)			(128	)
Acquisition of land use rights			(8	)			(15	)
Other, net			(3	)			(16	)
Net cash used in investing activities from continuing operations			(89	)			(226	)
Net cash provided by investing activities from discontinued operations (A)			219				—
Net cash provided by (used in) investing activities			130				(226	)
FINANCING ACTIVITIES:
Principal payments on long-term debt			(9	)			(3	)
Principal payments on project debt			(77	)			(95	)
Proceeds from borrowings on project debt			8				3
Change in restricted funds held in trust			24				(16	)
Cash dividends paid to stockholders			(11	)			—
Common stock repurchased			(123	)			—
Other financing, net			(5	)			3
Net cash used in financing activities from continuing operations			(193	)			(108	)
Net cash provided by (used in) financing activities from discontinued operations (A)			14				(20	)
Net cash used in financing activities			(179	)			(128	)
Effect of exchange rate changes on cash and cash equivalents			1				(3	)
Net increase (decrease) in cash and cash equivalents			104				(148	)
Cash and cash equivalents at beginning of period			141				434
Cash and cash equivalents at end of period			245				286
Less: Cash and cash equivalents of discontinued operations at end of period (A)			10				15
Cash and cash equivalents of continuing operations at end of period		$	235			$	271

(A)		See Exhibit 1 — Note A of this Press Release.

Exhibit 4

Covanta Holding Corporation
Reconciliation of Diluted Income Per Share to Adjusted EPS

		Three Months Ended								Six Months Ended
		June 30,								June 30,								Full Year
		2011				2010(A)				2011				2010(A)				Estimated 2011
		(Unaudited)
Continuing Operations — Diluted Income Per Share		$	0.12			$	0.10			$	0.02			$	0.00
Reconciling Items (B)			0.02				0.01				0.01				0.00
Adjusted EPS		$	0.14			$	0.11			$	0.03			$	0.00			$	0.40 – $0.55

(A)		See Exhibit 1 — Note A of this Press Release.
(B)		For details related to the Reconciling Items, see Exhibit 4A of this Press Release.

Exhibit 4A

Covanta Holding Corporation
Reconciling Items

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
		(Unaudited)
		(In millions, except per share amounts)
Reconciling Items
Effect on income of derivative instruments not designated as hedging instruments		$	—			$	1			$	(1	)		$	(1	)
Effect of foreign exchange loss on indebtedness			3				—				3				—
Total Reconciling Items, pre-tax			3				1				2				(1	)
Tax effect of reconciling items			(2	)			(1	)			(1	)			—
Grantor trust activity			1				1				—				1
Total Reconciling Items, net of tax		$	2			$	1			$	1			$	—
Diluted Income Per Share Impact		$	0.02			$	0.01			$	0.01			$	0.00
Weighted Average Diluted Shares Outstanding			145				155				146				154

Exhibit 5

Covanta Holding Corporation
Reconciliation of Net Income to Adjusted EBITDA

		Three Months Ended								Six Months Ended
		June 30,								June 30,								Full Year
		2011				2010(A)				2011				2010(A)				Estimated 2011
		(Unaudited, in millions)
Net Income from Continuing Operations Attributable to Covanta Holding Corporation		$	17			$	16			$	3			$	—			$60 – $83
Depreciation and amortization expense			47				47				94				95			$196 – $190
Debt service:
Net interest expense on project debt			8				10				16				20
Interest expense			17				10				34				21
Non-cash convertible debt related expense			6				12				11				20
Subtotal debt service			31				32				61				61			$133 – $128
Income tax expense			11				13				1				3			$41 – $67
Net income attributable to noncontrolling interests in subsidiaries			1				1				1				2			$3 – $9
Other adjustments:
Debt service billings in excess of revenue recognized (B)			7				5				18				16
Non-cash compensation expense			4				6				9				10
Other non-cash expenses (C)			5				2				7				4
Subtotal other adjustments			16				13				34				30			$47 – $43
Total adjustments			106				106				191				191
Adjusted EBITDA – Continuing Operations		$	123			$	122			$	194			$	191			$480 – $520

Exhibit 6

Covanta Holding Corporation
Reconciliation of Cash Flow Provided by Operating Activities to Free Cash Flow

		Three Months Ended								Six Months Ended
		June 30,								June 30,								Full Year
		2011				2010(A)				2011				2010(A)				Estimated 2011
		(Unaudited, in millions)
Cash flow provided by operating activities from continuing operations		$	63			$	74			$	156			$	190			$325 – $385
Less: Maintenance capital expenditures (B)			(20	)			(16	)			(47	)			(49	)		($75) – ($85)
Continuing Operations Free Cash Flow		$	43			$	58			$	109			$	141			$250 – $300
Uses of Continuing Operations Free Cash Flow
Investments:
Acquisition of businesses, net of cash acquired		$	(10	)		$	—			$	(10	)		$	(128	)
Non-maintenance capital expenditures			(10	)			(11	)			(21	)			(16	)
Acquisition of land use rights			(8	)			(15	)			(8	)			(15	)
Acquisition of noncontrolling interests in subsidiaries			—				—				—				(2	)
Other investing activities, net (C)			(7	)			—				(3	)			(16	)
Total investments		$	(35	)		$	(26	)		$	(42	)		$	(177	)
Return of capital to stockholders:
Cash dividends paid to stockholders		$	(11	)		$	—			$	(11	)		$	—
Common stock repurchased			(69	)			—				(123	)			—
Total return of capital to stockholders		$	(80	)		$	—			$	(134	)		$	—
Capital raising activities:
Net proceeds from issuance of project debt		$	6			$	3			$	8			$	3
Other financing activities, net			—				8				(2	)			13
Net proceeds from capital raising activities		$	6			$	11			$	6			$	16
Debt repayments:
Net cash used for scheduled principal payments on project debt (D)		$	(23	)		$	(79	)		$	(53	)		$	(111	)
Net cash used for scheduled principal payments on long-term debt			(1	)			(1	)			(3	)			(3	)
Optional repayment of corporate debt			—				—				(6	)			—
Total debt repayments		$	(24	)		$	(80	)		$	(62	)		$	(114	)
Short-term borrowing activities:
Financing of insurance premiums, net		$	—			$	(4	)		$	—			$	(7	)
Short-term borrowing activities, net		$	—			$	(4	)		$	—			$	(7	)
Distributions to partners of noncontrolling interests in subsidiaries		$	(1	)		$	(2	)		$	(3	)		$	(3	)
Effect of exchange rate changes on cash and cash equivalents		$	(1	)		$	(3	)		$	1			$	(3	)
Net change in cash and cash equivalents from continuing operations		$	(92	)		$	(46	)		$	(125	)		$	(147	)

Maintenance capital expenditures		$	(20	)		$	(16	)		$	(47	)		$	(49	)
Capital expenditures associated with project construction / development			(8	)			(7	)			(11	)			(10	)
Capital expenditures associated with new technology			(1	)			(1	)			(2	)			(3	)
Capital expenditures — other			(1	)			(3	)			(8	)			(3	)
Total purchases of property, plant and equipment		$	(30	)		$	(27	)		$	(68	)		$	(65	)

(C)		Other investing activities is primarily comprised of net payments from the purchase/sale of investment securities and business development expenses.
(D)		Calculated as follows:

Total principal payments on project debt		$	(3	)		$	(52	)		$	(77	)		$	(95	)
(Increase) decrease in related restricted funds held in trust			(20	)			(27	)			24				(16	)
Net cash used for principal payments on project debt		$	(23	)		$	(79	)		$	(53	)		$	(111	)

Exhibit 7

Covanta Holding Corporation
Calculation of Key Metrics For The Three Months Ended March 31, 2010, June 30, 2010, September 30, 2010 and December 31, 2010 and for the year ended December 31, 2010 ^(A)

Free Cash Flow

		Three Months Ended																Year Ended
		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited, in millions)
Cash flow provided by operating activities from continuing operations		$	116			$	74			$	103			$	99			$	392
Less: Maintenance capital expenditures			(33	)			(16	)			(8	)			(17	)			(74	)
Free Cash Flow — Continuing Operations		$	83			$	58			$	95			$	82			$	318
Maintenance capital expenditures		$	(33	)		$	(16	)		$	(8	)		$	(17	)		$	(74	)
Capital expenditures associated with project construction / development			(3	)			(7	)			(4	)			(7	)			(21	)
Capital expenditures associated with new technology			(2	)			(1	)			(1	)			(2	)			(6	)
Capital expenditures — other			—				(3	)			(5	)			(6	)			(14	)
Total purchases of property, plant and equipment		$	(38	)		$	(27	)		$	(18	)		$	(32	)		$	(115	)

Adjusted EBITDA

		Three Months Ended																Year Ended
		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited, in millions)
Net (Loss) Income from Continuing Operations Attributable to Covanta Holding Corporation		$	(16	)		$	16			$	10			$	20			$	30
Depreciation and amortization expense			48				47				47				48				190
Debt service			29				32				30				30				121
Income tax (benefit) expense			(10	)			13				15				6				24
Net income attributable to noncontrolling interests in subsidiaries			1				1				2				1				5
Write down of assets			—				—				32				2				34
Loss on extinguishment of debt			—				—				—				15				15
Debt service billings in excess of revenue recognized			11				5				8				5				29
Other			6				8				6				2				22
Adjusted EBITDA — Continuing Operations		$	69			$	122			$	150			$	129			$	470

Adjusted EPS

		Three Months Ended																Year Ended
		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited)
Continuing Operations — Diluted (Loss) Earnings Per Share		$	(0.10	)		$	0.10			$	0.07			$	0.13			$	0.19
Reconciling Items			(0.01	)			0.01				0.17				0.06				0.23
Adjusted EPS		$	(0.11	)		$	0.11			$	0.24			$	0.19			$	0.42

		Three Months Ended																Year Ended
Reconciling Items		March 31, 2010				June 30, 2010				September 30, 2010				December 31, 2010				December 31, 2010
		(Unaudited)
		(In millions, except per share amounts)
Loss on extinguishment of debt (B)		$	—			$	—			$	—			$	15			$	15
Effect on income of derivative instruments not designated as hedging instruments			(2	)			1				—				—				(1	)
Non-cash write-down of loan issued for the Harrisburg EfW facility to fund certain facility improvements (C)			—				—				7				—				7
Non-cash write-down of capitalized costs related to the Dublin development project (C)			—				—				23				—				23
Non-cash write-down of corporate real estate (C)			—				—				2				1				3
Total Reconciling Items, pre-tax			(2	)			1				32				16				47
Tax effect of reconciling items			1				(1	)			(7	)			(2	)			(9	)
Grantor trust activity			—				1				1				(4	)			(2	)
Total Reconciling Items, net of tax		$	(1	)		$	1			$	26			$	10			$	36
Diluted Income (Loss) Per Share Impact		$	(0.01	)		$	0.01			$	0.17			$	0.06			$	0.23
Weighted Average Diluted Shares Outstanding			154				155				154				152				154

(A)		Prior year quarterly information is presented since it was not previously provided for continuing operations. See Exhibit 1 — Note A of this Press Release.
(B)		During the fourth quarter of 2010, as a result of the tender offer to purchase our outstanding Debentures, we recorded a loss on extinguishment of debt which is comprised of the difference between the fair value and carrying value of the liability component of the Debentures tendered, the write-off of deferred financing costs and fees incurred in conjunction with the tender offer. For details related to the tender offer transaction, see Note 12 — Long-Term Debt of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2010.
(C)		In 2010, we recorded a non-cash write-down of assets related to a notes receivable from our Harrisburg EfW facility and the write-down of assets related to the Dublin project, and the write-down to fair value of corporate real estate and certain other assets. For additional information, see Note 16 — Supplementary Information of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2010.

Exhibit 8

Covanta Holding Corporation
Capitalization Information

		As of
		June 30,				December 31,
		2011				2010
		(Unaudited, in millions)
Cash and Cash Equivalents:
Domestic		$	99			$	68
International			127				52
Insurance			9				6
Total Cash and Cash Equivalents		$	235			$	126
Restricted Funds Held in Trust: (A)
Debt Service — Principal		$	132			$	157
Debt Service — Interest			6				6
Debt Service Funds — Total			138				163
Revenue Funds			35				18
Other Funds			46				52
Total Restricted Funds Held in Trust		$	219			$	233

(A)		Restricted funds held in trust are primarily amounts received by third party trustees relating to certain projects we own which may be used only for specified purposes. We generally do not control these accounts. They primarily include debt service reserves for payment of principal and interest on project debt. Revenue funds are comprised of deposits of revenues received with respect to projects prior to their disbursement. Other funds are primarily amounts held in trust for operations, maintenance, environmental obligations and operating lease reserves in accordance with agreements with our clients.

Exhibit 8A

		As of June 30, 2011								As of December 31, 2010
		Face Value				Book Value				Face Value				Book Value
		(Unaudited, in millions)
Corporate Debt:
Revolving Credit Facility		$	—			$	—			$	—			$	—
Term Loan Facility			622				622				626				626
7.25% Senior Notes due 2020			400				400				400				400
3.25% Cash Convertible Senior Notes due 2014			460				471				460				485
1.00% Senior Convertible Debentures due 2027			51				50				57				54
Total corporate debt (including current portion)		$	1,533			$	1,543			$	1,543			$	1,565
Project Debt:
Domestic project debt — service fee facilities		$	339			$	344			$	395			$	402
Domestic project debt — tip fee facilities			366				371				386				391
International project debt			19				19				10				10
Total project debt (including current portion)		$	724			$	734			$	791			$	803
Total Debt Outstanding		$	2,257			$	2,277			$	2,334			$	2,368
Net Debt (A)		$	1,890							$	2,051
Availability for Borrowings under the Revolving Credit Facility		$	300							$	300