Catalina Lighting Concludes Divestiture of Non-Core Business in United Kingdom MIAMI, April 20 /PRNewswire-FirstCall/ -- Catalina Lighting, Inc. (OTC:CALA), 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 talent and resources 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." About Catalina Lighting, Inc. Catalina Lighting, Inc. is a leading international designer, manufacturer, and distributor 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(R), Dana(R), Ring(R), Illuminada(R) and Aziano(TM). The Company also functions as an OEM, selling goods under its customers' private labels. Forward-Looking Statement This press release includes statements that constitute "forward-looking" statements, including, without limitation, that the Company anticipates that the Company's common stock will be quoted on the Pink Sheets, and believes that deregistering will reduce certain expenses and enable management to focus more time and resources on the operations of the Company. 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. The risks and uncertainties that may affect the operations, performance, growth, and results of the Company's business include, but are not limited to, the following: failure to have at least one market maker continue to make a market in the Company's common stock on the Pink Sheets following delisting and deregistration; becoming subject to the Exchange Act in the future due to the filing of a registration statement; economic factors, regulatory changes or legislative enactments that adversely affect the Company's business; and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission. The forward-looking statements included herein are made as of the date of this press release and the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. Contact: Allen & Caron Jesse Deal (investors) (212) 691-8087 or Brian Kennedy (media) (212) 691-8087 Catalina Lighting, Inc. Gary Rodney Chief Financial Officer (305) 558-4777 DATASOURCE: Catalina Lighting, Inc. CONTACT: investors, Jesse Deal, , or media, Brian Kennedy, , both of Allen & Caron, +1-212-691-8087, for Catalina Lighting, Inc.; or Gary Rodney, Chief Financial Officer of Catalina Lighting, Inc., +1-305-558-4777

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