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KATY INDUSTRIES, INC. REPORTS SALE OF GC/WALDOM ELECTRONICS AND ACQUISITION OF U.K. JANITORIAL BUSINESS

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MIDDLEBURY, CT ~ April 2, 2003 ~ Katy Industries, Inc. (NYSE: KT) today reported the divestiture of GC/Waldom Electronics, Inc. to Waldom Electronics Corporation, an Illinois-based electronics distribution company. GC/Waldom, located in Rockford, Illinois, is a distributor and packager of electrical and electronic component parts and supplies, and represented approximately 5% of Katy's revenues. The proceeds from the transaction, the terms of which were not disclosed, were used by Katy to further reduce its debt.

In other news, Katy announced the acquisition of Spraychem, Limited, a company based in the United Kingdom that specializes in the distribution of spraying and chemical dispensing products to a wide range of industries, including janitorial and sanitation markets. Spraychem will be integrated into the Katy Maintenance Group in Redruth, Cornwall, United Kingdom. The terms of the purchase were not announced.

"The sale of GC/Waldom is another step towards disposing of non-core businesses while we begin to now concentrate on growing our core maintenance business through internal growth and focused acquisitions," said Mike Jacobi, President and CEO of Katy.

This press release may contain various forward-looking statements. The forward- looking statements are based on the beliefs of the company's management, as well as assumptions made by, and information currently available to, the company's management. Additionally, the forward-looking statements are based on Katy's current expectations and projections about future events and trends affecting the financial condition of its business. The forward-looking statements are subject to risks and uncertainties, detailed from time to time in Katy's filings with the SEC, which may lead to results that differ materially from those expressed in any forward-looking statement made by the company or on its behalf. Katy undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Katy Industries, Inc. is a diversified corporation with interests primarily in Electrical/Electronics and Maintenance Products.

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