CATALINA LIGHTING REPORTS FIRST QUARTER, FISCAL 2004 RESULTS  

     MIAMI (February 13, 2004) … 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 quarter ended December 31, 2003.  Net income for the quarter was down slightly to $1.9 million, or $0.33 per diluted share, from the prior year’s first quarter result of $2.1 million, or $0.37 per diluted share.  Catalina’s U.K. division reported a sales increase of $5.8 million, or 17 percent over the prior year period.  The increased U.K. sales were offset by the loss of the largest do-it-yourself (DIY) customer in the U.S. during the second quarter of fiscal 2003.  Excluding the impact of the loss of this customer, U.S. sales increased in the remaining customer base by $730,000, or 11 percent.  

     Commenting on these results, Catalina CEO Bob Varakian said, “We are pleased with the continued solid results of our U.K. division.  We also believe we are positioned to reap the benefits of our focus on re-establishing Catalina as a dominant player in the U.S. in both the office superstore and DIY channels.  We also expect that the planned growth of our track and recessed lines will benefit our Asian manufacturing and distribution division through increased factory utilization and reduced production costs.”

     Sales for the first quarter in fiscal 2004 were essentially unchanged at $56.2 million from sales for the same period in fiscal 2003.  Gross profit for the first quarter of fiscal 2004 was 21.9 percent, up from 20.8 percent from the same period in fiscal 2003.  The increase in the gross profit percentage was a result of the strengthening British Pound, the Company’s ongoing focus on profitability and changes in product and customer mix.

     Catalina also announced that it has continued to emphasize new product introductions across a broad range of lighting categories.  During the first quarter of fiscal 2004, Catalina introduced new designs in the pendant, accent lamps and vanity categories.  Other categories that have been recently redesigned include task lamps, torchiere, track, recessed and outdoor lighting.  Catalina also introduced an innovative line of furniture items with built-in lighting at the October trade show in High Point , NC .

     Catalina also introduced over 200 upscale SKUs at the Dallas Lighting Show in January 2004, targeting the previously untapped lighting showroom channel.  These products included decorative chandeliers, pendants, and bath lighting products.  These items will be sold under the Aziano™ trademark.