1
                                  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 of 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.