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                                                                     EXHIBIT 4.2

                                  NEWS RELEASE

FOR IMMEDIATE RELEASE


                      KTI CONVERTS SERIES A PREFERRED STOCK


                  GUTTENBERG, N. J. (FEB. 2, 1998) -- KTI, Inc. (Nasdaq:KTIE)
announced today the conversion of its Series A Preferred Stock into common
stock. At the time of the conversion 444,000 shares of Series A Preferred Stock
were outstanding. The Series A Preferred is subject to mandatory conversion when
the closing bid price of the common stock has exceeded $16.00 per share for
twenty consecutive trading days, with an average volume of 10,000 shares per
trading day. Such conditions were met for the twenty trading days ending on
January 30, 1998.

                  For further information, contact Marty Sergi at KTI, Inc.
(201) 854-7777 or Frank N. Hawkins, Jr./Julie Marshall, 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.