Q.E.P. Receives Notification from Nasdaq

Boca Raton, FL, August 15, 2007--Q.E.P. Co., Inc. said that it had received a letter August 9 from the NASDAQ stock market notifying the company that it is not in compliance with Nasdaq's rules regarding the composition of its audit committee.

Nasdaq requires a company's audit committee to have at least three independent directors.

The letter was received after the firm disclosed the resignation of Robert W. Muir Jr. from its board of directors and audit committee effective July 6, leaving the audit committee with only two independent members.

Q.E.P. has nominated Robert Walters to take the position and plans to appoint him to the audit committee, assuming he is elected at the shareholders meeting August 24.