KATY INDUSTRIES, INC. RECONCILIATIONS OF GAAP RESULTS
TO RESULTS EXCLUDING CERTAIN UNUSUAL ITEMS - UNAUDITED
(In thousands, except percentages and per share data)
		Three Months Ended March 31,
		2008		2007
Reconciliation of net loss to net loss, as adjusted:
Net loss		$               (3,434)		$               (3,779)
Unusual items:
	Severance, restructuring and related charges	138		208
	Loss (gain) on sale of assets	533		(120)
	Discontinued operations	(291)		461
Adjustment to reflect a more normalized effective tax rate excluding
	unusual items	942		1,283
Net loss, as adjusted		$               (2,112)		$               (1,947)
Net loss, as adjusted per share - basic and diluted:
Net loss per share		$                 (0.43)		$                 (0.48)
Unusual items per share		0.04		0.07
Adjustment to reflect a more normalized effective tax rate excluding
	unusual items per share	0.12		0.17
Net loss, as adjusted per share		$                 (0.27)		$                 (0.24)
Weighted average common shares outstanding:
Basic and diluted		7,951		7,951
Operating loss, as adjusted:
Operating loss		$               (3,580)		$               (2,066)
	Severance, restructuring and related charges	138		208
	Loss (gain) on sale of assets	533		(120)
Operating loss, as adjusted:		$               (2,909)		$               (1,978)
Operating loss, as adjusted, as a % of sales		-7.0%		-4.3%