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KTI Purchases Three Facilities in Southeast

GUTTENBERG, N.J., Nov. 25 /PRNewswire/ -- KTI, Inc. (Nasdaq: KTIE) purchased for $2 million in cash and $13.4 million in municipal bond obligations all economic interests of Timber Energy Investments, Inc. ("Timber"), a Florida-based company with $8 million annual revenues and three subsidiaries:

-- A 14-megawatt power plant in Telogia, Florida, which processes wood

waste and sells electricity to Florida Power Company under contract

through year 2002.

-- A 400,000-ton per year wood chip mill in Cairo, Georgia, with a long-

term service contract with Stone Container, and

-- A 15-million pound plastic recycling plant in Tuscaloosa, Alabama.

The purchase price of $2 million includes the transfer of approximately $50 million of preferred stock and $11.8 million in notes from Continental Casualty Company ("CNA"), the principal seller, to KTI. KTI has agreed to release CNA from the guarantee on the $13.4 million outstanding municipal bonds. The net result of this purchase and restructuring will be a reduction of approximately $61.8 million in Timber's obligations.

"The acquisition of Timber provides KTI with the opportunity to apply its turn-around expertise in yet another challenging situation with substantial upside potential," according to Martin J. Sergi, Kit's President, "and, with Timber's debt now dramatically reduced, we will be able to focus on operational and marketing improvements immediately."

SOURCE KTI, Inc.
 -0- 11/25/96


/CONTACT: Martin J. Sergi, President of KTI, 201-854-7777/

(KTIE)

CO: KTI, Inc.; Timber Energy Investments, Inc. ST: New Jersey, Florida IN: ENV SU:

LI-MP -- NYM120 -- 3811 11/25/96 13:50 EST http://www.prnewswire.com
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Publication:PR Newswire
Date:Nov 25, 1996
Words:258
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