CATALINA LIGHTING INC PROVIDES GUIDANCE FOR FISCAL 2003

        MIAMI (December 11, 2002) … Catalina Lighting Inc (Nasdaq:CALA), a leading international designer, manufacturer, and distributor of lighting products for residential and office environments, today provided financial guidance for the coming fiscal year ending September 30, 2003. Catalina is currently estimating fiscal 2003 sales of approximately $230 million, with earnings in the range of $0.93 to $0.97 per diluted share.  For the fiscal year ended September 30, 2002, the Company reported sales of $220 million and earnings per diluted share of $0.18.

Commenting on these guidance figures, Catalina CFO Stephen Marble pointed to continuing strength in the Company’s United Kingdom and Canadian markets resulting in the sales of higher-margin lighting products, as well as the ongoing benefits of the Company’s cost-cutting programs that have been implemented over the past 16 months.

About Catalina Lighting Inc

Catalina Lighting Inc is a leading designer, manufacturer and marketer 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.