Catalina Lighting, Inc. Reports Third Quarter Operating Results

MIAMI, Aug. 14 /PRNewswire/ -- Catalina Lighting, Inc. (OTC Bulletin Board: CALA.OB), a leading international designer, manufacturer and distributor of residential and office lighting products, today announced operating results for the third quarter of its fiscal year ending September 30, 2001.

For the quarter ended June 30, 2001, net sales were $60.5 million, including $24.4 million in sales generated by Ring Ltd., a British subsidiary that was acquired in July 2000. Excluding Ring's results, Catalina's net sales totaled $36.1 million in the third quarter of FY2001, compared with $46.7 million in the prior-year period.

The Company reported a net loss of $2.4 million, or ($0.33) per diluted share, in the quarter ended June 30, 2001, compared with net income of $1.1 million or $0.14 per diluted share, in the quarter ended June 30, 2000. Net sales for the nine months ended June 30, 2001 were $180.9 million. Excluding Ring's sales, net sales for this nine-month period ended June 30, 2001 were $100.5 million, as compared to $131.9 million for the nine months ended June 30, 2000.

The net loss for the nine months ended June 30, 2001 was $7.7 million, or ($1.04) per share, as compared to net income of $2.4 million, or $0.30 per share, for the nine months ended June 30, 2000.

The Company reported that its results for 2001 to date reflect the effects on sales and profitability of weak economic and retail conditions in the Company's primary U.S. and U.K. markets.

This press release includes "forward-looking" statements, usually containing the words "believes," "anticipates," "estimates," "is optimistic," "expects" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, general domestic and international economic conditions which may affect consumer spending; reliance on key customers who may delay, cancel or fail to place orders; continued acceptance of the Company's products in the marketplace; new products and technological changes; pressures on product prices and pricing inventories; increases in the costs of labor and raw material; dependence upon third-party vendors and imports from China, which may limit the Company's margins or affect the timing of revenue and sales recognition; competitive developments; changes in manufacturing and transportation costs; the availability of capital; the ability to satisfy the terms and covenants of credit and loan agreements, and the impact of increases in borrowing costs, each of which affect the Company's short-term and long- term liquidity and ability to operate as a going concern; foreign currency exchange rates; changes in the Company's effective tax rate; and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.

For further information, please contact David Sasnett, Chief Financial Officer or Eric Bescoby, Chief Executive Officer at (305) 558-4777.

SOURCE Catalina Lighting, Inc. CONTACT: David Sasnett, Chief Financial Officer, or Eric Bescoby, Chief Executive Officer, both of Catalina Lighting, Inc., +1-305-558-4777/