Q.E.P. Sells Stone Holdings Business

Boca Raton, FL, July 27, 2007--Q.E.P. Co. said that it has sold substantially all of the assets of Q.E.P. Stone Holdings, Inc., a wholly-owned subsidiary of the company.

The Stone Holdings operation manufactures dry set powders and grouts in Georgia and Florida.

The company said it intends to use the proceeds, after reduction for liabilities retained, to invest in its core businesses and to reduce its bank debt. The net proceeds will be disclosed in the company's upcoming Form 10-Q for the fiscal second quarter ended August 31, to be filed with the SEC.