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

KATY INDUSTRIES, INC. REPORTS SALE OF HAMILTON PRECISION METALS; FURTHER REDUCES DEBT

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MIDDLEBURY, CT – November 1, 2002 – Katy Industries, Inc. (NYSE: KT) today
reported the divestiture of Hamilton Precision Metals, L.P. to a company formed
by Hamilton’s management and Cedar Creek Partners, LLC, a Milwaukee, WI-based
private equity firm. Hamilton, located in Lancaster, Pennsylvania, is a
reroller of a wide range of precision strip and foil for various industries,
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 by prepaying its remaining term loan
balance. The recapitalization of Katy, which occurred in June of 2001,
included $30 million of term debt which was scheduled to be repaid through June
of 2006. The Hamilton transaction and other developments have allowed these
loans to be repaid in full well in advance of maturity.

“The sale of Hamilton is a continuation of Katy’s strategy to exit non-core
businesses,” said Mike Jacobi, President and CEO of Katy. “This divestiture,
along with the transaction earlier in the year which allowed us to exit the
SESCO waste-to-energy operation, have been very positive steps forward in this
effort. The reduction in debt will allow us to focus more resources on both
our commercial and consumer-oriented 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
Electrical/Electronics and Maintenance Products.




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