Q.E.P. in Compliance with Nasdaq Rules

Boca Raton, FL, August 27, 2007–Q.E.P. Co. said it has received a letter from Nasdaq stock market acknowledging that it is in compliance with the exchange’s rules regarding the composition of its audit committee, which require at least three independent directors.

After the company’s recent stockholders’ meeting the board of directors appointed three independent directors to serve on the audit committee effective immediately.