QEPC Q E P Company Inc (QX)

Q.E.P. Co., Inc. (NASDAQ:QEPC), today announced that effective June 1, 2006, Q.E.P. Co., Inc. (the "Company"), entered into a Seventh Amendment and Waiver Agreement to its Second Amended and Restated Loan Agreement dated as of November 14, 2002 (as amended and in effect from time to time), with Bank of America, N.A. and HSBC Bank USA, National Association (the "Amendment"). The Amendment, among other things, waived the Company's violation of a financial covenant and modified certain other items. Lewis Gould, Q.E.P.'s Chairman and Chief Executive Officer, stated: "We are pleased to have concluded these negotiations with our lenders." Additional information on the Amendment is included in a Current Report on Form 8-K filed with the Securities and Exchange Commission on June 7, 2006. Q.E.P. Co., Inc., founded in 1979, is a leading manufacturer, marketer and distributor of a broad line of flooring tools and accessories for the home improvement and professional installer markets. Under brand names Q.E.P., Roberts, Q-Set and O'Tool, Q.E.P. markets approximately 3,000 products used primarily for surface preparation and installation of ceramic tile, carpet, vinyl and wood flooring. The Company sells its products to large home improvement retail centers, as well as traditional distribution outlets in 50 states and around the world. Certain statements in this press release are made pursuant to the safe-harbor provisions of the Securities Litigation Reform Act of 1995. The forward-looking statements are made only as of the date of this report and are subject to risks and uncertainties which could cause actual results to differ materially from those discussed in the forward-looking statements and from historical results of operations. Among the risks and uncertainties that could cause such a difference are the Company's assumptions relating to the expected growth in sales of its products, the continued success of the Company's manufacturing processes, continued increases in the cost of raw materials and finished goods, improvements in productivity and cost reductions, the continued success of initiatives with certain of the Company's customers, the success of the Company's price increases initiatives, and the success of the Company's sales and marketing efforts. A more detailed discussion of risks attendant to the forward-looking statements included in this press release are set forth in the "Forward-Looking Statements" section of the Company's Annual Report on Form 10-K for the year ended February 28, 2005, filed with the SEC, and in other reports already filed with the SEC.