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                                  NEWS RELEASE


FOR IMMEDIATE RELEASE

                KTI ACQUIRES ADDITIONAL 14.8% OF PENOBSCOT ENERGY
                   RECOVERY COMPANY RAISING OWNERSHIP TO 71.3%

         GUTTENBERG, N. J. (NOV. 13, 1997) -- KTI, Inc. (Nasdaq: KTIE) announced
today that it has increased its ownership in the Penobscot Energy Recovery
Company (PERC) to 71.3% by purchasing the remaining 14.8% limited partner
interest held by Prudential Insurance Company of America for $2.1 million. KTI
exercised an option granted in September to acquire Prudential's remaining
interest.

         The other 28.7% of PERC is owned by Energy National, Inc. (ENI), a
subsidiary of NRG Energy, which is also a general partner of PERC.

         Located in Orrington, Maine, PERC processes approximately 250,000 tons
of municipal solid waste a year from 230 Maine communities and generates 25
megawatts of electricity which is sold to Bangor Hydro Electric Company. PERC
generated $30.3 million in revenue and net income of $6.1 million in 1996. For
the nine months ended Sept. 30, 1997, PERC had revenues of $23.8 million and
$5.2 million in net income.

         Martin J. Sergi, president of KTI, said, "We're pleased we have been
able to further increase our ownership in PERC. This is consistent with our
strategy to maximize our ownership of the waste to energy facilities which we
operate. This purchase, which is accretive to earnings, will further enhance our
operating results."

         KTI is an award winning environmental company engaged in integrated
waste processing and management in diversified services and markets. The company
handles over 1.5 million tons of material a year and is best known for its
expertise in the waste-to-energy sector. KTI was organized in 1983 to develop
and own waste-to-energy facilities with the dual purpose of providing a means of
disposal for non-hazardous municipal solid waste and of generating electricity
from alternative fuel sources. Since then, KTI's operations have expanded to
include the development of an integrated waste management business providing not
only municipal solid waste handling and disposal services, but also wood waste
processing, ash and municipal waste recycling, specialty waste disposal,
transportation facilitation services and transfer station operations.

                                     -more-
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         In addition to PERC, KTI owns and operates another Maine
waste-to-energy facility, Maine Energy Recovery Company, in Biddeford which
converts non-hazardous solid waste from residential, commercial and industrial
sources into electric power. KTI has developed and operates a wood waste
processing and recycling facility in Lewiston, Maine. In Telogia, Fla., KTI
operates a 14-megawatt power plant and in nearby Cairo, Ga. own a wood chipping
plant.

         KTI also holds a majority interest in America's only commercially
operational municipal waste ash recycling facility in Nashville, Tenn., owns a
Maryland company specializing in marketing post-industrial recycled plastics, a
paper and metals recycling company in Biddeford, Maine and a world wide
secondary fiber marketing company based in Portland, Ore.

         For further information contact Marty Sergi at KTI, Inc. (201) 854-7777
or Frank N. Hawkins, Jr., Hawk Associates, Inc. at (305) 852-2383.

         Copies of KTI press releases, SEC filings, current price quotes, stock
charts, analysts' comments and other valuable information for investors may be
found on the website http://www.hawkassociates.com.

         This release contains various forward look statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 which represent the company's expectations or
beliefs concerning future events of the company's financial performance. These
forward looking statements are qualified by important factors that could cause
actual results to differ materially from those in he forward looking statements.
Results actually achieved may differ materially from expected results included
in these statements.