DANIELSON HOLDING CORPORATION ANNOUNCES
                     SELECTION OF INTERIM PRESIDENT AND CEO

CHICAGO, IL - APRIL 27, 2004 - Danielson Holding Corporation (AMEX:DHC) today
announced that Jeffrey R. Horowitz, 54, has been named the Company's interim
President and Chief Executive Officer, succeeding Samuel Zell as the Company's
President and Chief Executive Officer. Mr. Zell currently remains as Chairman of
the Company's Board of Directors. Mr. Zell had previously announced his
intention to step down from these positions before the end of the year.

Mr. Horowitz previously served as Senior Vice President, General Counsel and
Secretary of Covanta Energy Corporation prior to its acquisition by the Company.

Mr. Zell stated that "I have complete confidence in Jeff and his ability to
coordinate the integration of Danielson and Covanta, a business with which Jeff
is very familiar. Jeff's appointment will also allow Covanta CEO, Tony Orlando,
to focus all of his efforts on the management and strategic planning of Covanta
in this critical period following its emergence from bankruptcy. Jeff will also
be active in assisting the Danielson Board in choosing a permanent CEO."

"I am excited about the opportunity," noted Mr. Horowitz, "and I look forward to
working with Danielson to commence its previously announced rights offering in
the second quarter and continuing to work with Covanta's outstanding management
team as we integrate Covanta with the Danielson organization."

Danielson Holding Corporation is an American Stock Exchange listed company,
engaging in the energy, financial services and specialty insurance business
through its subsidiaries. Danielson's charter contains restrictions that
prohibit parties from acquiring 5% or more of Danielson's common stock without
its prior consent.

Danielson recently acquired Covanta Energy Corporation, an internationally
recognized owner and operator of waste to energy power generation projects.
Covanta's waste-to-energy facilities convert municipal solid waste into energy
for numerous communities, predominantly in the United States. Covanta also
operates water and wastewater treatment facilities.

THIS PRESS RELEASE SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF
AN OFFER TO BUY ANY SECURITIES OF DANIELSON HOLDING CORPORATION OR ANY OF ITS
AFFILIATES NOR SHALL THERE BE ANY SALE OF SECURITIES IN ANY STATE OR
JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY STATE OR
JURISDICTION. ANY SUCH OFFER OR SOLICITATION WILL BE MADE IN COMPLIANCE WITH ALL
APPLICABLE SECURITIES LAWS.



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", 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 and Covanta, 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, 2003 and in other
securities filings by Danielson or Covanta. Although Danielson and Covanta
believe that their 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 of its forward-looking
statements. Danielson's and 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 neither Danielson nor
Covanta has any or has undertaken 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:

FOR DANIELSON HOLDING CORPORATION
Doreen Lubeck
Danielson Holding Corporation
(312) 466-4030