Exhibit 99.1

                                    KATY NEWS
                              FOR IMMEDIATE RELEASE

                              KATY INDUSTRIES, INC.
                   ANNOUNCES RETIREMENT OF C. MICHAEL JACOBI;
               ANTHONY T. CASTOR, III APPOINTED PRESIDENT AND CEO

MIDDLEBURY, CT - May 24, 2005 - The Board of Directors of Katy Industries,  Inc.
(NYSE:  KT) today announced the retirement of C. Michael Jacobi as President and
Chief Executive Officer. Mr. Jacobi will perform other consulting activities for
the Company.  Anthony T. Castor, III was appointed President and Chief Executive
Officer, effective June 1, 2005.

"On behalf of the Katy Board of Directors," said Chairman William F. Andrews, "I
want to thank Mike Jacobi for his leadership in the massive restructuring of our
operations  over  the  past  four  years.  This  restructuring  encompassed  the
elimination of thirty-five  facilities,  reduction of two million square feet of
excess  space  and  capacity,  divestiture  of four  non-core  subsidiaries  and
restructuring  of our balance sheet. Our organization is positioned to grow from
this more efficient  platform." Mr. Andrews added,  "We welcome Mike's continued
involvement with Katy as a valued advisor to the Board of Directors."

Mr. Castor is currently the President and Chief Executive  Officer of Chromalox,
Inc. in Pittsburgh. Mr. Andrews stated that "Over the past twelve years Tony has
lead four companies to improved  financial  results through growth and operating
efficiency.  Tony has  considerable  experience in retail and  industrial  sales
channels and plastic  molding  operations.  We look forward to having Tony apply
his experience and expertise to the challenges facing Katy."

This  press  release  may  contain  various  forward-looking   statements.   The
forward-looking  statements  are based on the beliefs of Katy's  management,  as
well as  assumptions  made by,  and  information  currently  available  to,  the
company's management.  Additionally, the forward-looking statements are based on
Katy's  current  expectations  and  projections  about future  events and trends
affecting  the  financial   condition  of  its  business.   The  forward-looking
statements are subject to risks and uncertainties, detailed from time to time in
Katy's  filings with the SEC,  that may lead to results  that differ  materially
from those expressed in any forward-looking  statement made by the company or on
its behalf. Katy undertakes no obligation to revise or update such statements to
reflect current events or circumstances  after the date hereof or to reflect the
occurrence  of  unanticipated  events.

Katy Industries,  Inc. is a diversified  corporation with interests primarily in
Maintenance Products and Electrical Products.

Company contact:
Katy Industries, Inc.
Amir Rosenthal
(203) 598-0397