CATALINA LIGHTING, INC. APPLIES FOR NASDAQ NATIONAL MARKET LISTING 

MIAMI, Florida (August 28, 2002) – Catalina Lighting, Inc. (NASDAQ SmallCap: “CALA”), a leading international designer, manufacturer, and distributor of lighting products for residential and office environments, today announced that it has applied for listing on the Nasdaq National Market. Catalina's common stock is currently traded on the Nasdaq SmallCap Market. 

Eric Bescoby, Catalina's Chief Executive Officer, stated, "We are very excited about the prospect of moving to the Nasdaq National Market. Making the move to a National Market System listing is one we consider to be very important to improving the attractiveness of Catalina's securities to a larger audience of investors."  Bescoby added, "We believe this greater visibility would increase our shareholder base and the liquidity of our stock and thereby enhance the long-term value of the Company."

The prerequisites for Nasdaq National Market listing include financial thresholds, minimum bid and public float requirements, and compliance with corporate governance standards.  Although the Company believes that its application meets all the necessary requirements, approval remains at the discretion of Nasdaq.  The application process typically takes from four to eight weeks.