Catalina Lighting, Inc. Renews Stockholder Rights Plan

MIAMI, Nov. 17 /PRNewswire/ -- Catalina Lighting, Inc. (NYSE: LTG), a leading international designer, manufacturer and distributor of lighting products for residential and office environments, today announced that its Board of Directors has approved reauthorizing its stockholder rights plan, by adopting a plan similar to its existing rights plan. The Company's existing rights plan will expire on November 20, 2000. In announcing the plan, the Company stated that the new rights plan, like the rights plan that is expiring, is intended to give the Board of Directors and management sufficient time to evaluate and respond to any proposed change in control transaction and to prevent an acquirer from gaining control of Catalina Lighting without offering a fair price to all of Catalina Lighting's stockholders. The Company added that the board's action was not taken in response to any specific takeover threat.

The rights plan provides for the distribution to Catalina Lighting's stockholders of one preferred stock purchase Right for each share of Common Stock outstanding at the close of business on the November 30, 2000, record date and each share issued thereafter. The Rights will initially not be exercisable, but upon the occurrence of certain takeover-related events, the holders of the Rights (other than an adverse or acquiring person, or group thereof) would, under certain circumstances, have the right to purchase additional shares of Catalina Lighting stock (or, in some cases, stock of the acquiring entity) at a discount to the then market price. The Rights can be redeemed by Catalina Lighting at any time, and will otherwise expire on November 20, 2005. The thresholds for triggering the rights plan will be a Person acquiring 21% of the outstanding stock of the Company or a declaration by the Board of Directors that a Person is an Adverse Person, and the exercise price of the Rights will be $17. Further details regarding the rights plan will be provided to stockholders in a forthcoming letter. Catalina Lighting, Inc., a leading international designer, manufacturer and distributor of lighting products for residential and office environments, employs approximately 3,800 people throughout the United States, Canada, the United Kingdom, Europe, Southeast Asia, Mexico, and South America. The Company is headquartered in Miami, Florida, and its common stock trades on the New York Stock Exchange under the ticker symbol "LTG."

For further information, please contact David Sasnett, Chief Financial Officer or Dean Rappaport, Chief Operating Officer at (305) 558-4777 or R. Jerry Falkner, CFA, Investor Relations Counsel at (800) 377-9893 or www.rjfalkner.com. Copies of Catalina press releases may be obtained by fax at any time by calling (800) 758-5804 and inputting access number 146925. SOURCE Catalina Lighting, Inc.

CONTACT:
David Sasnett, Chief Financial Officer, or Dean Rappaport, Chief Operating Officer, both of Catalina Lighting, Inc., 305-558-4777; or R. Jerry Falkner, CFA, Investor Relations Counsel, 800-377-9893, for Catalina Lighting