Covanta Announces Adjustment to Conversion Rate of 3.25% Cash Convertible Senior Notes Due 2014

Covanta Holding Corporation

("Covanta" or the "Company") 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 December 26, 2012 to stockholders of record as of December 18, 2012. As a result of this dividend, the conversion rate was adjusted to 62.5210 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 $15.99 per share.