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

KATY INDUSTRIES, INC. ANNUAL MEETING TO BE ADJOURNED

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ENGLEWOOD, CO - June 25, 2001 -- Katy Industries, Inc. (NYSE: KT) announced
today that it expects its reconvened annual meeting of stockholders scheduled
for Tuesday, June 26, 2001 to be further adjourned to Thursday, June 28, 2001.

Katy and KKTY Holding Company, L.L.C., an affiliate of an investment
partnership affiliated with Kohlberg & Company, L.L.C., had announced on June
3, 2001 that they had entered into a definitive agreement for a
recapitalization of Katy. Completion of the recapitalization is subject to a
number of conditions, including Katy shareholders having authorized the
recapitalization at the annual meeting and Katy having entered into definitive
documentation with respect to a refinancing of Katy’s existing loans.

Katy's June 8, 2001 proxy supplement states that the proxy holders intend to
propose one or more adjournments of the annual meeting so that the annual
meeting can take place on the same day as, or soon before, the satisfaction of
the conditions to the transactions with KKTY Holding. The proxy holders have
now indicated that they will vote in favor of an adjournment of the annual
meeting to June 28, 2001 so that the annual meeting can take place on the same
day as the expected closing of the refinancing. The closing of the refinancing
is conditioned on shareholder approval of the recapitalization. The adjourned
annual meeting is expected to take place at 9:00 a.m. local time at the Inter-
Continental Central Park South, located at 112 Central Park South, New York,
New York.

The recapitalization is described in Katy's proxy statement dated April 25,
2001, as modified by Katy’s proxy supplement dated June 8, 2001.

Katy Industries, Inc. is a diversified corporation with interests primarily in
Electrical/Electronics and Maintenance Products.

KKTY is an affiliate of Kohlberg & Company, L.L.C., a private merchant banking
firm with offices in New York and California. Founded in 1987, Kohlberg &
Company, L.L.C. has completed more than 70 acquisitions and recapitalization
transactions in a variety of industries.

Katy contact:
Stephen Nicholson, Vice President of Finance, in Englewood at (303) 290-9300,
or at www.katyindustries.com

Where You Can Find Additional Information:

Katy strongly advises all shareholders to read Katy's proxy statement and the
supplement to Katy's proxy statement. Katy's proxy statement and supplement
contain important information that you should consider before making any
decision about the proposals to be voted on at Katy’s shareholder meeting.
Katy's proxy statement and supplement have been mailed to all Katy shareholders
and are available, together with the annual report, quarterly reports, current
reports and other documents filed by Katy, at no charge at the SEC's web site
at http://www.sec.gov or from Katy by contacting Steve Nicholson at (303) 290-
9300.

Some of the foregoing communications constitute "forward-looking statements."
Such forward-looking statements are subject to various risks and uncertainties
and Katy claims the protection afforded by the safe harbor for forward-looking
statements in the Private Securities Litigation Reform Act of 1995. These
statements include all statements regarding the timing, completion and effect
of the proposed recapitalization of Katy. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors, including the
ability to consummate the refinancing of Katy's existing loans and the ability
to obtain the needed shareholder approvals on a timely basis, that, together
with the other risks and uncertainties detailed from time to time in Katy’s
filings with the SEC, may cause the actual results, performance or achievements
of Katy to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements.


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