Hillsborough County decision makers point to long-standing service and award winning performance record. FAIRFIELD, N.J., Aug. 24 /PRNewswire/ -- Covanta Energy Corporation, a wholly-owned subsidiary of Danielson Holding Corporation, has announced the execution of contracts with Hillsborough County, FL to construct and to operate and maintain an estimated $106 million expansion to the Hillsborough County Solid Waste Energy Recovery Facility ("Facility"). Covanta's subsidiary constructed the Facility and has been operating it since 1987. Construction of the expansion should begin in mid to late 2006 once necessary Federal, State and local permits are obtained by the County, with completion expected within 28 months. Covanta's original 20-year contract with the County to operate and maintain the Facility has also been amended to include the expansion and to extend the contract for another 20 years during which Covanta will continue to meet operating and environmental performance standards. "We are very gratified by Hillsborough County's confidence in Covanta to manage, design and construct the expansion and continue operating this important component of its integrated waste management system," said Anthony J. Orlando, Chief Executive Officer of Danielson and Covanta. "We look forward to continuing our long-standing partnership with the County to deliver both reliable and environmentally-sound waste disposal to County residents." The Facility's three boiler units, utilizing the proprietary combustion grate and controls technology of Martin GmbH, annually process over 372,000 tons of residential and commercial solid waste generated in the County. Waste is converted first to steam and then to electricity which is sold to Tampa Electric Company. With the expansion, a fourth boiler unit, also featuring Martin technology, will be added to increase annual processing capability by approximately 190,000 tons of solid waste per year. Additionally, at no cost to the County, Covanta will design, build and operate a new non-ferrous metal recovery system. The Company will market non-ferrous metals recycled from the combustion residue to recover its initial investment in this recycling component and will thereafter share resulting revenues with the County. Danielson Holding Corporation is an American Stock Exchange listed company, engaging in waste disposal, energy services and specialty insurance through its subsidiaries. Danielson's subsidiary, Covanta Energy Corporation, is an internationally recognized owner and operator of waste-to-energy and power generation projects. Covanta's waste-to-energy facilities convert municipal solid waste into renewable energy for numerous communities, predominantly in the United States NOTE: Danielson's charter contains restrictions that prohibit parties from acquiring 5% or more of Danielson'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 Danielson 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. Danielson cautions investors that any forward-looking statements made by Danielson 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 Danielson, include, but are not limited to, those factors, risks and uncertainties that are described in Item 1 of Danielson's Annual Report on Form 10-K for the year ended December 31, 2004, as amended, and in other securities filings by Danielson or Covanta. Although Danielson 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. Danielson'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 Danielson 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. DATASOURCE: Covanta Energy Corporation CONTACT: Louis Walters, +1-973-882-7260, or Doreen Lubeck, +1-773-583-4331, both for Covanta Energy Corporation

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