CATALINA LIGHTING CONCLUDES DIVESTITURE OF NON-CORE BUSINESS IN UK  

MIAMI ( April 20, 2005 ) … Catalina Lighting, Inc. (CALA:PK), a leading international designer, manufacturer, and distributor of lighting products for residential and office environments, announced the divestiture of its non-core business lines in the United Kingdom. The applicable U.K. subsidiaries include: Lightenpoint Corporation Europe, Ltd., Arctic Products, Ltd., BMAC, Ltd., Grove Products, Ltd., PH Products, Ltd. and Van Line, Ltd. The Company also sold the assets of the automotive division of Ring Lamp as part of the same transaction. The subsidiaries and assets were acquired by Volvox Group Ltd., a newly formed Yorkshire-based distribution group.

The divested subsidiaries and assets engaged in a variety of business activities, ranging from the sale and distribution of automotive aftermarket products to shop supplies and cleaning fluids. The Company engaged in the divestiture to improve its ability to focus on its core business, the distribution of consumer lighting.  

Catalina CEO Bob Varakian commented, "Our future growth is in consumer lighting products, particularly in the North American market, and as a company we need to focus our talend and resousrces on making that growth a reality. We are pleased with the recent successes in the US market, which validates our plan. Further, we are using the proceeds of this sale to retire debt and improve our overall financial position."