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KATY INDUSTRIES, INC. COMMENTS ON LITIGATION

 ELGIN, Ill., Nov. 19 /PRNewswire/ -- Katy Industries, Inc. (NYSE: KT) announced today that the Delaware Court of Chancery heard arguments on Nov. 18, 1993, on the previously reported settlement in In Re Katy Industries, Inc. Shareholders Litigation, Consolidated C.A. No. 12612. The litigation challenges Katy's merger agreement with a company owned by the Carroll family, the holders of approximately 52.6 percent of Katy's outstanding common stock, pursuant to which members of the Carroll family will acquire all of the common stock of Katy not already owned by them at a price of $25.75 per share in cash.
 At the settlement hearing, counsel for the Carroll family reiterated the family's position that its majority interest in Katy is not for sale and that the family will not consider increasing the consideration to be paid in the merger. Counsel for the Carroll family also stated that, if the settlement is not approved by the court, the merger agreement will be terminated and Katy will remain a public company.
 The court reserved decision on the proposed settlement but indicated that a written decision is likely to be rendered within the next few weeks.
 Katy also stated that its shareholders' meeting to consider approval of the merger agreement is scheduled to be held on Nov. 29, 1993, but that the meeting may be further adjourned until after the court's decision if it has not been rendered by the time of the meeting.
 Katy Industries, Inc. is a diversified corporation with interests in industrial machinery, industrial components and consumer products.
 -0- 11/19/93
 /CONTACT: Paul Kurowski, secretary of Katy Industries (Elgin), 312-379-1121/
 (KT)


CO: Katy Industries, Inc. ST: Illinois IN: MAC SU:

TM -- NY080 -- 6545 11/19/93 17:38 EST
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Publication:PR Newswire
Date:Nov 19, 1993
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