April 15, 2003 FOR IMMEDIATE RELEASE		For more information contact: Amir Rosenthal (203) 598-0397 Vice President, Chief Financial Officer, General Counsel & Secretary

KATY INDUSTRIES, INC. REPORTS 2002 FOURTH QUARTER AND FULL YEAR RESULTS MIDDLEBURY, CT - April 15, 2003 - Katy Industries, Inc. (NYSE: KT) today reported a net loss from continuing operations in the fourth quarter of 2002 of ($0.4) million, or ($0.05) per share, versus a net loss from continuing operations of ($1.4) million, or ($0.17) per share, in the fourth quarter of 2001, excluding restructuring and other non-recurring or unusual items, which are discussed below. Net sales in the fourth quarter of 2002 were $112.0 million, down 1.7% compared to the same period in 2001 (excluding SESCO, a business which was exited in April 2002). Earnings before interest, taxes, depreciation and amortization (EBITDA), excluding all unusual and non-recurring items, was $5.6 million in the fourth quarter of 2002, unchanged compared to the same period in 2001. Katy also reported net income from continuing operations for the twelve months ended December 31, 2002 of $1.6 million, or $0.19 per share, versus a net loss from continuing operations of ($15.1) million, or ($1.80) per share, in the same period of 2001, excluding restructuring and other non-recurring or unusual items, which are also discussed below. Net sales for the twelve months ended December 31, 2002 were $460.0 million, unchanged compared to the same period in 2001 (excluding SESCO, a business which was exited in April 2002). EBITDA, excluding all unusual and non-recurring items, was $30.6 million for the twelve months ended December 31, 2002, compared to $13.1 million for the same period in 2001, an increase of 134%. During the fourth quarter of 2002, Katy reported restructuring and other non-recurring or unusual items of ($11.4) million pre-tax [($2.25) per share], results of discontinued operations of ($4.3) million, net of tax [($0.51) per share], a cumulative effect of a change in accounting principle of $1.7 million, net of tax [$0.20 per share], as well as the impact of paid-in-kind dividends earned on convertible preferred stock of ($3.3) million [($0.39) per share]. Including these items, Katy reported a net loss attributable to common shareholders of ($25.1) million, or ($3.00) per share, in the fourth quarter of 2002, versus a net loss attributable to common shareholders of ($20.4) million, or ($2.43) per share, in the same period of 2001. During the fourth quarter of 2001, Katy reported restructuring and other non-recurring or unusual items of $14.3 million pre-tax [($2.01) per share], results of discontinued operations of $0.6 million, net of tax [$0.07 per share], as well as the impact of paid-in-kind dividends earned on convertible preferred stock of ($2.7) million [($0.32) per share]. Details regarding these items are provided in the "Reconciliation of GAAP Results to Results Excluding Certain Unusual Items" accompanying this press release. For the twelve months ended December 31, 2002, Katy reported restructuring and other non-recurring or unusual items of ($46.4) million pre-tax [($6.33) per share], results of discontinued operations of $(2.8) million, net of tax [($0.34) per share], a cumulative effect of a change in accounting principle of ($2.5) million, net of tax [($0.30) per share], as well as the impact of paid-in-kind dividends earned on convertible preferred stock of $(11.1) million [$(1.33) per share]. Including these items, Katy reported a net loss attributable to common shareholders of $(67.9) million, or $(8.11) per share, for the twelve months ended December 31, 2002, versus a net loss attributable to common shareholders of $(61.1) million, or $(7.28) per share, in the same period of 2001. During the twelve months ended December 31, 2001, Katy reported restructuring and other non-recurring or unusual items of ($63.8) million pre-tax [($5.69) per share], results of discontinued operations of $0.8 million, net of tax [$0.09 per share], a gain on the early redemption of a preferred interest in a subsidiary of $6.6 million [$0.79 per share], as well as the impact of paid-in-kind dividends earned on convertible preferred stock of $(4.5) million [$(0.53) per share]. Details regarding these items are provided in the "Reconciliation of GAAP Results to Results Excluding Certain Unusual Items" accompanying this press release. "We finished the year on a strong note from a liquidity standpoint - debt is low and free cash flow is strong," said C. Michael Jacobi, Katy Industries' President and Chief Executive Officer. "During the fourth quarter, we took a major step forward in restructuring the company for future success with the closure of our Woods manufacturing facilities in the U.S., a move necessitated by our need to reduce our cost structure." Added Mr. Jacobi, "Subsequent to year-end, we announced the sale of GC/Waldom Electronics, a non-core subsidiary, which enabled us to further pay down debt. Simultaneously, we 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. We also announced earlier this year that we are exploring the sale of Woods and Woods Canada, businesses which sell consumer electrical products, such as extension cords, power strips and surge protectors. These strategic moves will allow us to maintain our focus on our core businesses, which are in the maintenance products group." Gross margins were 17.6% in the fourth quarter of 2002, up from 16.4% in the fourth quarter of 2001. Selling, general and administrative expenses were 15.8% of sales in the fourth quarter of 2002, compared to 14.8% of sales during the same period of 2001. These amounts exclude severance, restructuring and related costs, as well as impairments of long-lived assets, which are detailed on the accompanying reconciliations of GAAP income to income excluding these items. Interest expense was down $0.9 million as year-end debt was reduced by $38.6 million from December 31, 2001. Debt at December 31, 2002 was $45.5 million, which is 28% of total capitalization. Cash on hand at December 31, 2002 was $4.8 million. Liquidity was strong during the fourth quarter of 2002, as the company generated free cash flow of $17.2 million versus $0.5 million generated in the fourth quarter of 2001. The Company defines free cash flow as cash generated from operations less capital expenditures and cash dividends. EBITDA, strong collections and continued improvement in payables management were the primary drivers of cash flow in the fourth quarter of 2002. Katy announced on November 1, 2002, that it had completed the sale of its Hamilton Precision Metals, L.P. business. Also, Katy completed the sale of GC/Waldom Electronics on April 2, 2003, a business that was held for sale at December 31, 2002. As a result, the results of these businesses have been classified as discontinued operations for all periods presented. To comply with new SEC regulations regarding the disclosure of non-GAAP financial measures, the "Reconciliations of GAAP Results to Results Excluding Certain Unusual Items" accompanying this press release exclude certain other unusual items that were previously included in similar reconciliations in the Company's prior press releases. 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, that 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 Maintenance Products and Electrical/Electronics. Fourth Quarter and Full Year Report Back to top