CATALINA LIGHTING INC ANNOUNCES NEW CORPORATE INITIATIVES
AS PART OF ITS ONGOING OPERATIONAL RESTRUCTURING

 Company Reorganizes Sales Divisions; Creates New Showroom Division;
Names Two New Vice Presidents of Sales

 MIAMI (May 21, 2003) … Catalina Lighting Inc (Nasdaq:CALA), a leading international designer, manufacturer, and distributor of lighting products for residential and office environments, announced a number of new initiatives as part of its ongoing structural reorganization.  The sales force of the Company’s Catalina USA unit will be structured into three sales divisions, each run by a Sales Vice President.  Two new Sales Vice Presidents were named and one was promoted in conjunction with this reorganization.  Catalina also announced a new brand positioning program geared towards different price points and distribution channels. 

Commenting on these measures, Catalina CEO Bob Varakian said, “In line with the solid recent financial performance of the Company, these measures demonstrate our increasing emphasis on product development and the enhancement of our sales force.  We have brought in two seasoned sales professionals and promoted a third, each with extensive lighting experience and expertise within their respective sales channels.  As a result, we believe that the Company is now well-positioned for future growth as we address the specific needs of our customers within each distribution channel.”

New Sales Divisions

To head up the Mass Market, Specialty and Office Stores Division, Catalina has promoted Larry Spitzer, 58, to the position of VP of Sales in charge of this Division.  Spitzer, who for more than two years has served as VP Sales of Special Markets, has over 20 years of lighting and furniture experience, including VP Sales at Alsy Lighting, based in Elwood City, PA, VP Sales of Villa Rica, GA-based Royal Creations, and at Creative Industries, in Greensburg, PA.  The Mass Market, Specialty and Office Stores Division of Catalina will focus on new product development to seek further penetration of these markets and to attempt to expand this channel into new geographic markets.

 Second, on May 12, Paula Panchisin, 42, joined Catalina as VP Sales to manage the Home Center and Hardware Store Division.  Panchisin has more than 12 years of experience in consumer products, with expertise in housewares, hardware and the lawn & garden industries, including functional and energy-efficient lighting.  Prior to joining Catalina, Panchisin was Director of Sales for Wheeling, IL-based Good Earth Lighting, where she achieved double-digit sales increases through the development of the Accent Lighting and Energy Star Lighting programs with key retailers.

 Third, on April 29, Howard Hough, 55, joined Catalina as VP Sales of the newly-created Showroom Division, called Ring USA, whose products will feature European designs, along the lines of the Company’s successful UK subsidiary Ring Ltd.  Ring USA is expected to begin shipping products at the end of calendar year 2003.  Hough has over 20 years of experience in sales of lighting and related products, including most recently as National Sales Manager of Murray Feiss Industries of New York, NY.  At Catalina, Hough has also been charged with developing a network of independent sales representatives for the Showroom Division as well as for the electrical-distributors sales channel. 

New Marketing Initiatives

Catalina also announced an enhanced brand marketing effort, featuring the creation of a "good, better and best" brand positioning program, centered on the Catalina, Illuminada and Ring brands.  Each brand will be geared towards a different price point and distribution channel, and each will have its own new logo and packaging concept.

 In the area of product development, Catalina introduced a range of new products at the High Point, NC trade show, the industry’s premier forum, held semi-annually.  Varakian commented, “Last month’s High Point market showcased our commitment to a renewed aggressiveness in product design and the development of innovative and unique products.  One of the first product categories we are attacking is the desk lighting, or task-area lighting sector.  With our own manufacturing facility specializing in the production of this type of product, it is a natural area for us to emphasize.”

 Other new initiatives include the expansion of Catalina’s Miami showroom to offer higher visibility to the Company’s three key brands and to accommodate the Company's increased commitment to new product development.  This improved facility will also allow the Company to make more presentations to buyers that are currently curtailing their overseas travel in the Southeast Asia region.  Catalina now has full-time showrooms in Miami, FL; High Point, NC; Leeds, UK; Toronto, Ontario; and Shenzhen, China. 

         Catalina is also in the process of adding a showroom for the Dallas market, and the Company expects to exhibit several new hardware design groups in the Dallas market in June.  Varakian noted, “We are delighted to be at the Dallas International Lighting and Accessory Show next month, and we believe that our introductions there will further showcase our new marketing direction and commitment to original designs.”

Catalina also announced that it has added two new sales representative groups to enhance its sales efforts: the Paul K. O’Rourke Company Inc. to handle sales in the Boston-area market, and The Marketing Source for sales in the Chicago-area market.  In addition to the enhanced coverage that these two quality sales representative organizations brings to the Company, Varakian noted that Catalina is continuing to review its sales representation options for additional territories, such as Texas.