Ownership Submission
FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
  Mills Keith
2. Date of Event Requiring Statement (Month/Day/Year)
09/08/2005
3. Issuer Name and Ticker or Trading Symbol
KATY INDUSTRIES INC [KT]
(Last)
(First)
(Middle)
C/O KATY INDUSTRIES, INC., 765 STRAITS TURNPIKE, SUITE 2000
4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP - International Operations
5. If Amendment, Date Original Filed(Month/Day/Year)
(Street)

MIDDLEBURY, CT 06762
6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Beneficially Owned
1.Title of Security
(Instr. 4)
2. Amount of Securities Beneficially Owned
(Instr. 4)
3. Ownership Form: Direct (D) or Indirect (I)
(Instr. 5)
4. Nature of Indirect Beneficial Ownership
(Instr. 5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 4)
2. Date Exercisable and Expiration Date
(Month/Day/Year)
3. Title and Amount of Securities Underlying Derivative Security
(Instr. 4)
4. Conversion or Exercise Price of Derivative Security 5. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 5)
6. Nature of Indirect Beneficial Ownership
(Instr. 5)
Date Exercisable Expiration Date Title Amount or Number of Shares
Option to Purchase Common Stock (1) 12/10/1999 12/10/2009 Option to Purchase Common Stock 11,600 $ 9.875 D  
Stock Appreciation Rights 11/22/2002 11/22/2012 Stock Appreciation Rights 18,450 $ 3.15 D  

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
Mills Keith
C/O KATY INDUSTRIES, INC.
765 STRAITS TURNPIKE, SUITE 2000
MIDDLEBURY, CT 06762
      VP - International Operations  

Signatures

/s/ Michael C. Paul 09/22/2005
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The exercisable date, conversion price, and expiration date on the stock options reflect information from the most recent grant date. The Reporting Person has received stock options from 1995 to 1999 with conversion prices ranging from $9.875 to $19.56.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, See Instruction 6 for procedure.

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