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Covanta Holding Corporation Announces Emergence From Chapter 11 Of Covanta Warren Waste-To-Energy Facility

Posted on: Friday, 16 December 2005, 15:00 CST

FAIRFIELD, N.J., Dec. 16 /PRNewswire-FirstCall/ -- Covanta Holding Corporation today announced the successful reorganization and emergence from bankruptcy of its subsidiary, Covanta Warren Energy Resources Co., LP ("Covanta Warren"), which owns and operates a 400-ton-per-day waste- to-energy facility in Warren County, New Jersey. Under new agreements entered into with the Pollution Control Financing Authority of Warren County ("PCFA"), Covanta Warren will continue to own the 12 megawatt waste-to-energy plant and will now operate the facility utilizing its typical "tip fee" contract structure. Covanta will charge market rates for the facility's entire waste disposal capacity which will serve Warren County and surrounding areas. The electrical output remains under long term contract with Jersey Central Power and Light through 2013.

Under the reorganization plan, Covanta Warren paid the entire outstanding balance of the project bonds originally issued by the PCFA of Warren County to finance construction of the facility.

"We are very pleased that our Warren facility has successfully reorganized, and that we and the PCFA have worked out new arrangements that make good sense for both parties," said Anthony Orlando, President and Chief Executive Officer of Covanta Holding Corporation. "Since we began operating the Warren facility thirteen years ago, our employees have done an outstanding job providing the County with superior waste disposal service. This plan allows us to continue that tradition for many years to come and ensures that the Warren facility will be an important component of our network of waste disposal assets in the attractive northeast region."

About Covanta Holding Corporation

Covanta Holding Corporation, formerly Danielson Holding Corporation, is a New York Stock Exchange listed company engaging in waste disposal, energy services and specialty insurance through its subsidiaries. Covanta's subsidiary, Covanta Energy Corporation, is an internationally recognized owner and operator of waste-to-energy and power generation projects. Covanta Energy's waste-to-energy facilities convert municipal solid waste into renewable energy for numerous communities, predominantly in the United States.

NOTE: Covanta's charter contains restrictions that prohibit parties from acquiring 5% or more of Covanta's common stock without its prior consent.

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 Covanta, include, but are not limited to, those factors, risks and uncertainties that are described in Item 1 of its Annual Report on Form 10-K for the year ended December 31, 2004, as amended, and in other securities filings by Covanta or its subsidiaries.

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.

Covanta Holding Corporation

CONTACT: Elizabeth O'Melia, +1-973-882-4193, or Doreen Lubeck,+1-773-583-4331, both for Covanta Holding Corporation

Source: PRNewswire-FirstCall

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