Covanta Announces Adjustment to the Conversion Rate on Its 3.25% Cash Convertible Senior Notes Due 2014

Covanta Holding Corporation

today announced an adjustment to the conversion rate on its 3.25% cash convertible senior notes due 2014 in connection with its previously announced dividend payable on January 5, 2012 to stockholders of record as of December 21, 2011. As a result of this dividend, the conversion rate was adjusted to 60.3520 from 59.4517 shares of Covanta's common stock per $1,000 principal amount of the notes. The adjusted conversion rate is equivalent to an adjusted conversion price of $16.57 per share, compared to $16.82 per share.