CATALINA LIGHTING INC REPORTS FIRST QUARTER FISCAL 2003 RESULTS

Solid Move to Profitability Demonstrates
Ongoing Success of Company’s Operational Restructuring and Its Strength in the U.K.

        MIAMI (February 4, 2003) … Catalina Lighting Inc (Nasdaq:CALA), a leading international designer, manufacturer, and distributor of lighting products for residential and office environments, today announced results for its first fiscal quarter ended

        December 31, 2002.  In a strong profit resurgence resulting in part from its recent streamlining and restructuring, Catalina reported $2.1 million of net income, or $0.37 per diluted share, versus a net loss of $196,000, or $0.06 loss per diluted share inthe prior-year period. Sales were $56.2 million, unchanged from first quarter sales in fiscal 2002.  The Company’s gross profit margin increased 2.9 percentage points to 20.6 percent over the prior year period, as the Company emphasized its more profitable product lines and maintained stringent cost controls implemented during the preceding year.  Operating income increased over 150 percent to $4.3 million, compared with $1.7 million in the first quarter of fiscal 2002.  Likewise, operating income as a percentage of sales increased dramatically from 3.0 percent to 7.7 percent.

Catalina CEO Bob Varakian commented, “We believe these results can be traced, in part, to the ongoing benefits of our operational restructuring and cost-cutting programs.  The improvement in our profitability is also attributable to the standout success of Ring, our U.K. business segment.  Even though Ring’s business is somewhat seasonal, with more sales occurring in the winter months, the segment’s sales results in the first quarter have been even better than we had anticipated.”

Noting that Catalina’s continuing efforts to control costs should keep the Company focused on delivering bottom-line performance, Varakian continued, “We believe our first quarter results offer proof of our ability to bring value to the consumer and high quality, high margin, successful products to our retail partners.”

About Catalina Lighting Inc

Catalina Lighting Inc is a leading international designer, manufacturer, and distributor of residential and office lighting products. The Company's broad product line includes functional and decorative table lamps; ceiling, wall, recessed, vanity and track lighting fixtures; emergency and outdoor lighting; and chandeliers.  Its line is distributed under several brand names, including Catalina, Dana, Ring, Illuminada and Pro Office.  The Company also functions as an OEM, selling goods under its customers' private labels.

This press release includes statements that constitute “forward-looking” statements, including, without limitation, that the Company’s retention of Allen & Caron will aid in increasing the Company’s visibility among investors, introduce the Company to a broad investor base, and increase the liquidity and valuation of the Company's securities. 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, the termination of the relationship between the Company and Allen & Caron; the absence of investors interested in trading in the Company's common stock; an adverse change in the Company's financial condition; and other risks detailed in the Company’s periodic reports filed 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.

CATALINA LIGHTING, INC. AND SUBSIDIARIES
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