FAIRFIELD, NJ, July 12, 2006 - Covanta Holding Corporation announced today that its Bristol, Connecticut waste-to-energy (WTE) facility will be honored by the Federal Occupational Safety and Health Administration (OSHA) with its "VPP STAR" designation on July 13, 2006.  Covanta Bristol, Inc., a subsidiary of Covanta Holding Corporation owns and operates the facility, a renewable energy power plant fueled by municipal solid waste.  The "VPP STAR" recognition is the highest honor given to facilities who have demonstrated outstanding health and safety practices.  In awarding this elite status, OSHA gives strong consideration to the level of employee involvement in on-site health and safety program development and to long term management commitment and support. 

Covanta Bristol's designation as a "VPP STAR" facility is an honor held by less than 0.02% of the more than 7 million US workplaces and comes following participation in the agency's rigorous Voluntary Protection Program (VPP) requiring adherence to the highest health and safety protocols in the industry.  The Bristol employees launched participation in the VPP program in June 2005 and received OSHA's decision to be granted STAR status in March 2006.  Covanta Bristol is only the 13th worksite in the State of Connecticut to receive this prestigious recognition.  It is the company's third such award in Connecticut with Covanta's SeConn facility in Rochester and Mid-Conn facility in Hartford having also received the VPP STAR award in 1995 and 2004, respectively. 

"I am very proud of Covanta's dedicated employees at the Bristol facility as we recognize the exceptional accomplishment the VPP Star achievement signifies for them.  Through their own initiative, on-site safety activities and procedures have been implemented with outstanding results, contributing to an improved workplace environment." said Tony Orlando, President and CEO of Covanta. 

The Bristol facility is owned by Covanta with all of the waste deliveries being made under a 25-year agreement with the Bristol Resource Recovery Facility Operating Committee (BRRFOC), a consortium representing the 14 towns of Berlin, Branford, Bristol, Burlington, Hartland, New Britain, Plainville, Plymouth, Prospect, Southington, Seymour, Warren, Washington, and Wolcott. 

Covanta Bristol is the 12th facility within Covanta Energy's network of WTE facilities to achieve VPP STAR recognition, reflecting Covanta's long-term commitment to outstanding safety practices.  Covanta's current VPP sites are distributed in eight states, including Connecticut (3), New York (2), Massachusetts (2), Virginia, Florida, Maryland, Pennsylvania and New Jersey. 

About Covanta Holding Corporation
Covanta 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 1A of its Annual Report on Form 10-K for the year ended December 31, 2005, 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.

For more information generally, please contact:
Doreen Lubeck
973.882.7001