For more information contact:
Amir Rosenthal
(203) 598-0397
Vice President, Chief Financial Officer,
General Counsel & Secretary

KATY INDUSTRIES, INC.
Reports Sale of DUCKBACK PRODUCTS; FURTHER REDUCES DEBT

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MIDDLEBURY, CT – September 17, 2003 – Katy Industries, Inc. (NYSE: KT) today reported the divestiture of substantially all the assets of Duckback Products, Inc. to an affiliate of Professional Paint, Inc. Duckback, located in Chico, California, manufactures stains, coatings, and water repellent finishes for outdoor application, and represented approximately 3% 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.

"The sale of Duckback is a continuation of Katy’s strategy to exit non-core businesses," said C. Michael Jacobi, President and CEO of Katy. "This divestiture, along with previously announced transactions since April 2002, allows us to further deleverage our financial position and focus more resources on our core operations in maintenance and electrical products."

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 Maintenance and Electrical Products.


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