April 20, 2004 FOR IMMEDIATE RELEASE		For more information contact: Amir Rosenthal (203) 598-0397 Vice President, Chief Financial Officer, General Counsel & Secretary

KATY INDUSTRIES, INC. REFINANCES DEBT; RESUMES SHARE REPURCHASE PROGRAM MIDDLEBURY, CT – April 20, 2004 – Katy Industries, Inc. (NYSE: KT) today reported that it has completed a refinancing of its debt through an amended and restated credit agreement agented by Fleet Capital Corporation. The new agreement provides for $110 million of committed loans through a syndicate of banks, consisting of $20 million of term debt and a $90 million revolving loan facility. This agreement replaces a similar $110 million facility completed in February 2003, which also consisted of a $20 million term loan and a $90 million revolving credit facility. Since the inception of that credit facility, Katy had repaid $18.2 million of the previous $20 million term loan. The ability to repay that loan on a faster than anticipated timetable was primarily due to funds generated by the sale of GC/Waldom Electronics, Inc. in April 2003, the sale of Duckback Products, Inc. in September 2003 and various sales of excess real estate. The syndicate of banks participating in the amended and restated credit agreement consists of four banks, all of which had participated in the syndicate from the previous credit agreement. The additional funds raised by the new term loan were used to pay down revolving loans (after costs of the transaction), creating additional borrowing capacity. In addition, this agreement contains separate credit facilities in Canada and the United Kingdom which will allow Katy to borrow funds locally in these countries and provide a natural hedge against currency fluctuations. "The additional borrowing capacity created by the incremental term loan proceeds will be a key source of liquidity as we look to grow our revenues in 2004 and beyond through new product development and acquisitions," said C. Michael Jacobi, President and CEO of Katy. "The completion of this refinancing also provides greater flexibility for our foreign operations." Katy also announced that it has resumed its $5.0 million share repurchase plan, which had been previously suspended in November 2003. During 2003 and prior to the suspension, 482,800 shares of common stock were repurchased on the open market for approximately $2.5 million under this plan. 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 Products and Maintenance Products. Back to top