News Releases

Fiscal Year 2008 News Releases

• December 9, 2008 — KMG Chemicals Reports First Quarter Results with 145% Increase in Revenues
• December 4, 2008 — KMG Chemicals Declares Quarterly Cash Dividend
• December 3, 2008 — KMG Chemicals to Conduct First Quarter Conference Call on December 9, 2008
• October 16, 2008 — KMG Chemicals to Present at the Sidoti & Company New York Emerging Growth Institutional Investment Forum
• October 13, 2008  — KMG Chemicals Reports Fourth Quarter and 2008 Year End Results
• October 10, 2008  — KMG Chemicals Named to Forbes List of America’s 200 Best Small Companies
• October 6, 2008 — Pam Birkholz of KMG Chemicals Receives Prestigious Recognition from the Association of Financial Professionals
• September 18, 2008 — KMG Chemicals Provides Update on 2008 Fourth Quarter and Fiscal Year
• August 19, 2008 — KMG Chemicals Declares Quarterly Cash Dividend
• June 3, 2008 — KMG Chemicals Names Gerald G. Ermentrout and Christopher T. Fraser to Board of Directors
• May 29, 2008 — KMG Chemicals Declares Quarterly Cash Dividend
• May 28, 2008 — KMG Chemicals Provides Business Update and Comments on 2008 Second Half and Fiscal Year
• March 19, 2008 — KMG Chemicals Announces to Present at the Sidoti & Company 12th Annual New York Emerging Growth
• Institutional Investor Forum
• March 17, 2008 —  KMG Chemicals Announces Second Quarter Results; Revenues up 66% Year Over Year
• February 27, 2008 — KMG Chemicals Declares Quarterly Cash Dividend
• February 12, 2008 — KMG Chemicals Names Ernest C. Kremling, II as New VP of Operations
• January 2, 2008 — KMG  Chemicals Acquires High-Purity Process Chemicals Business
• December 13, 2007 — KMG Chemicals Announces First Quarter Results; Expects Fiscal 2008 Revenues of Approximately $135 million Assuming January Close of HPPC Acquisition
• November 28, 2007 — KMG Chemicals Declares Quarterly Cash Dividend
• October 31, 2007 — KMG Chemicals to Present at the Sanders Morris Harris Investor Growth Conference
• October 24, 2007 — KMG Chemicals to Acquire High-Purity Process Chemicals Business From Air Products and Chemicals, Inc.
• October 15, 2007 — KMG Chemicals Names to Forbes and Fortune Small Business Lists
• October 10, 2007 — KMG Chemicals Announces Strong Fiscal 2007 Results

KMG CHEMICALS THIRD FISCAL QUARTER 2002 RESULTS

Third fiscal quarter earnings up considerably over same period last year. Annual results expected to exceed last year’s.

HOUSTON, May 23, 2002 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the third fiscal quarter ended April 30, 2002.

Net income for the third fiscal 2002 quarter was $0.799 million or $0.11 per diluted share, up from $.211 million or $0.03 per diluted share reported for the same quarter in 2001. Fiscal third quarter net sales were $8.8 million, up from $8.1 million in the year earlier quarter.

At the end of the third fiscal 2002 quarter, KMG had total assets of $28.1 million and long-term debt of $0.937 million. Long-term debt to total assets was 3.3 percent on April 30, 2002. Cash and cash equivalents at that date totaled approximately $2.5 million.

David Hatcher, chairman and president of KMG Chemicals, said, “Our fiscal third quarter results came in significantly ahead of our internal annual plan, and slightly ahead of the earnings guidance we gave last quarter. Although dryer-than-normal weather in the Southern cotton states is adversely impacting our herbicide sales, we believe that fiscal year 2002 results should exceed last year’s. This is the result of three primary factors:

• We are experiencing improved market conditions for certain wood treating chemical products.
• We continue to control our costs, as we strive to be the low cost producer in the markets we serve.
• The MSMA plant we acquired in fiscal 2001 was successfully relocated to our Matamoros, Mexico facility in December 2001 and produces according to expectation, which has favorably impacted our profitability.”

The company anticipates that fiscal 2002 earnings will exceed fiscal 2001 earnings of $0.35 per share. The current earnings per share estimate for fiscal year 2002 is in the range of $0.36 to $0.39. Accordingly, fourth quarter earnings per share are expected to be in the $0.15 to $0.18 range.
The company is entering the peak selling season for MSMA (Bueno® 6). This coincides with the growing season for cotton in the Southern United States. Fiscal 2002 earnings will be skewed toward the last quarter of the fiscal year as a result of this seasonality.

Hatcher concluded, “We are currently working on several acquisition opportunities. I am very pleased with the pace of our acquisition program, and with the quality of attractive opportunities we are pursuing.”

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's Web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS SECOND FISCAL QUARTER 2002 RESULTS

Second quarter results meet internal plan. Second half of fiscal 2002 expected to beat last year's numbers.

HOUSTON, March 1, 2002 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal quarter ended January 31, 2002.

For the second fiscal 2002 quarter, net income was $0.386 million or $0.05 per diluted share, down from $0.609 million or $.08 per diluted share reported for the same quarter in 2001. Fiscal second quarter net sales were $7.6 million, down from $8.2 million in the year earlier period.

At the end of the second fiscal 2002-quarter, KMG had total assets of $26.1 million and long-term debt of $1.1 million. Long-term debt to total assets was 4.2 percent on January 31, 2002, and has decreased from 26.2 percent at the end of fiscal 1998. The company had approximately $1.7 million of cash and cash equivalents at January 31, 2002.

David Hatcher, chief executive officer and president of KMG Chemicals, said, "Both the second quarter and the first half of fiscal 2002 went according to our internal annual plan. However, we now expect the second half of fiscal 2002 to exceed our annual plan. These higher expectations are a result of two main factors:

• We are seeing improvement in portions of our wood treating chemicals business.
• We continue to benefit from the cost control initiative which we began in 2001, in anticipation of the current national economic slowdown."

In spite of the recessionary environment, the company maintains strong and profitable positions in stable markets. Based on existing business, it anticipates that fiscal 2002 earnings will exceed fiscal 2001 earnings of $.35 per share. The current earnings per share estimate for the third quarter of fiscal 2002 is in the $0.09 to $0.10 range, up from the $.03 per share earned in the third quarter of fiscal 2001. Hatcher commented that because of the board's confidence in the company's improving performance, it elected to increase the cash dividend, as previously announced, by 12.5 percent to $0.045 annually.

The company's MSMA (agricultural herbicide) plant in Matamoros continues to produce on schedule for the upcoming spring planting in the domestic cotton markets. Production should be sufficient for all customer needs. The selling season for the Bueno® 6 herbicide occurs in the company's third and fourth fiscal quarters, so fiscal 2002 earnings will be skewed toward the second half of the fiscal year.

"We are continuing the aggressive acquisition initiative implemented at the beginning of this fiscal year," continued Hatcher. "We are greatly encouraged by the results thus far, and are actively pursuing several attractive opportunities. Our cash flow and strong balance sheet continue to provide us with a significant competitive advantage in the process."

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES DIRECT STOCK PURCHASE PLAN

HOUSTON, February 14, 2002 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, has implemented a Direct Stock Purchase Plan as a service to registered shareholders, customers, employees and other investors.

The Plan allows participants to:

• Invest in KMG's common stock at current market prices without service fees or brokerage commissions.
• Automatically reinvest dividends paid by the company in additional KMG common stock without charge.>
• Automatically, on a monthly basis, invest in KMG electronically from a pre-designated checking or savings account.
• Use the plan to provide gifts of the company's common stock to children, grandchildren or anyone else designated by the participant.
• Deposit existing stock certificates in the Plan for safekeeping.
• Sell KMG shares through the plan.

Securities Transfer Corporation, KMG's transfer agent, will serve as Administrator for the Plan. The Administrator will purchase shares of KMG's common stock for the Plan at current prices on the open market. The prospectus for the Plan can be obtained here, or by calling the company at 713-988-9252 (x100). Non-shareholders must make an initial investment of at least $200, but not more than $100,000. Once in the Plan, investments must be at least $25, and may not exceed $100,000 in each calendar year.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc., is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural markets. For more information, visit the company's website at www.kmgchemicals.com.

This is not an offer to sell or a solicitation to buy any securities of KMG. Shares of KMG common stock purchased through the KMG Direct Stock Purchase Plan will be offered by Prospectus.

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KMG CHEMICALS, INC. ELECTS CHARLES L. MEARS TO BOARD OF DIRECTORS

Industrial chemicals expertise augments company’s acquisition strategy

HOUSTON, December 18, 2001 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that Charles L. Mears was elected to the company’s board of directors.

David Hatcher, chief executive officer of KMG, said, “On behalf of the board I welcome Chuck to the KMG team. He brings to the table extensive experience and broad industry contacts in the industrial chemicals sector. As per our stated strategy, our acquisitions program is currently concentrated in two primary chemical market segments -- agricultural and industrial. Chuck adds new strength in our ability to grow in the key industrial chemicals segment.”

Mears, 62, retired in 2000 from Occidental Chemical Company (Oxy Chem), of Dallas, as executive vice president of the Chlor-Alkali business. This operation had annual sales of approximately $700 million. Prior to that, from 1991 until 1995, he was senior vice president of the Industrial Chemicals Division, with responsibility for the chlor-alkali business, in addition to the chrome and sodium silicate businesses for a portion of that time. Before that and since 1987, Mears held various other management positions within Oxy Chem.

Mears served in various capacities with Diamond Shamrock Corporation from 1965 until 1987. He began with the company in industrial chemical sales and advanced to vice president for the Industrial Chemicals Group, where he had full P&L responsibility. He graduated from Stephen F. Austin University in 1965 with a bachelor of science degree. Mears served on the boards of several international chlor-alkali and potassium carbonate joint ventures, as well as on boards of various industry associations, including the Chlorine Institute and the Chlorine Chemistry Counsel.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully-focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural markets.

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KMG CHEMICALS FIRST QUARTER FISCAL 2002 RESULTS

First quarter results meet expectations

HOUSTON, November 29, 2001 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2002 quarter ended October 31, 2001.

For the first fiscal 2002 quarter, net income was $0.42 million or $0.06 per diluted share, down from $0.95 million or $.12 per diluted share reported for the same quarter in 2001. Fiscal first quarter net sales were $8.1 million, down 2.5 percent from $8.3 million in the year earlier period.

At the end of the first fiscal 2002 quarter, KMG had total assets of $25.8 million and long-term debt of $1.4 million. Long-term debt to total assets has been decreasing annually from 26.2 percent at fiscal year-end 1998, and was 5.3 percent on October 31, 2001. The company had approximately $3.2 million of cash and cash equivalents at October 31, 2001.

David Hatcher, chief executive officer and president of KMG Chemicals, said, "We continue to maintain strong and profitable positions in stable markets, in spite of the current recessionary environment. Our MSMA (agricultural herbicide) plant in Matamoros was recently completed and is producing product. Sales of our Bueno® 6 herbicide should contribute significantly to profitability during the upcoming spring selling season to the domestic cotton-growing markets, which straddles our third and fourth fiscal quarters. Agricultural chemical sales tend to be much more seasonal, so our new MSMA product line will cause our earnings to be skewed toward the second half of our fiscal year. However, based on our existing business, we are well positioned to achieve an increase in earnings for fiscal 2002 compared to the 2001 fiscal year of $.35 per share. Our current earnings per share estimate for the second quarter of fiscal 2002 is in the range of $.04 to $.05.

"We have made significant progress in implementing our new merger and acquisition initiative," Hatcher concluded. "To give this perspective, since the beginning of our fiscal year on August 1st., We have evaluated over 20 potential acquisition candidates, and are currently pursuing a select number of those. Our strong balance sheet, healthy cash position and experienced management team will give us an edge in closing accretive acquisitions."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's Web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

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KMG CHEMICALS ANNOUNCES STARTUP OF MSMA (BUENO® 6) PLANT

Business model validated; international expansion anticipated

HOUSTON, November 15, 2001 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that its MSMA plant in Matamoros, Mexico is completing final tests and is expected to begin commercial production in late November, 2001. The herbicide MSMA, or monosodium methanearsonate, protects cotton crops from undesirable weed and grass growth. It will be marketed under the trade names Bueno® 6 and Ansar ® 6.6, primarily to the cotton-growing regions of the southern states and California.

KMG purchased the plant in October 2000 from GB Biosciences Corporation, an affiliate of Zeneca Ag Products Inc. It was relocated and reconstructed on the Matamoros site, on schedule and within budget. Worldwide pesticide registrations and trademarks were included in the acquisition.

The company will begin producing MSMA in commercial quantities shortly, in anticipation of the spring 2002 planting season. Wholesale product will be supplied to distribution points in Georgia, South Carolina, Mississippi, California and Texas, and will continue to be packaged in the familiar 2.5-gallon containers. MSMA inventory for 2001 sales had been provided under a tolling agreement with the seller.

David Hatcher, chief executive officer and president of KMG Chemicals, said, "Our strategy is to be a very efficient and low-cost producer of quality product. We are the only North American plant producing MSMA and expect to be a major player in the market. Our domestic MSMA sales are projected to be in the $6 million range. Additionally, we expect to become more active in the international MSMA market during 2002, and are currently transferring product registrations in other countries to our name.

"We consider this profitable plant acquisition an unqualified success and a tangible validation of our business model. In keeping with our key strategic initiative of growing and diversifying our revenue stream," Hatcher added, "we have already accelerated our search for other niche-market agricultural and industrial chemicals. We are screening many more deals now and the acquisition environment has improved. Our strong balance sheet and cash position give us a definite leg up in our hunt for additional accretive acquisitions. With this in mind, we can confidently say that KMG Chemicals is poised for further growth."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's Web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.###

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KMG CHEMICALS REPORTS FOURTH QUARTER AND 2001 RESULTS

Revenues up, earnings off, financial flexibility for growth

HOUSTON, September 6, 2001 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully-focused markets, today announced its unaudited financial results for the fiscal fourth quarter and fiscal year ended July 31, 2001.

For the fiscal fourth quarter 2001, net income was $0.9 million or $.12 per share, off from $1.1 million or $.14 per share for the same quarter in 2000, after adjusting for the 10% stock dividend declared in March 2001. Fiscal fourth quarter net sales were $11.2 million, an increase of 25% from $9.0 million in the year earlier quarter.

For the fiscal year 2001, net income decreased to $2.6 million or $.35 per share, from $3.8 million or $.50 per share for 2000, after adjusting for the 10% stock dividend. Net sales increased to $35.8 million for the 2001 fiscal year from $33.8 million in the prior year.

At the end of fiscal 2001, KMG had total assets of $27.0 million, up 6.7% from the previous year. Long-term debt decreased to $1.6 million or 36.8% lower than a year earlier, to 6.0% of total assets. The company had approximately $3.1 million of cash and cash equivalents at July 31, 2001.

"KMG's successful MSMA acquisition (the agricultural herbicide Bueno® 6) in October, 2000 contributed to revenue growth and helped offset market declines in the wood treating business," said David Hatcher, chief executive officer and president of KMG Chemicals. "Commercial demand for treated wood in the United States was below historical levels during the year, as a result of deferred maintenance on the part of the utilities and railroads that use treated wood products in their infrastructure. Despite our 7.4% net profit margin, which outperformed our peer group, we are still not satisfied with our financial results. During the year management completed significant cost control measures, including shift reductions at our Matamoros, Mexico facility, and we continue to pursue other opportunities to increase profitability."

During fiscal 2001 the relocation and reconstruction of the MSMA plant to KMG's Matamoros facility continued on schedule and within budget. Hatcher stated that KMG has accelerated its search for other mature, niche-market agricultural and industrial chemicals, and that the number of deals being screened has increased significantly. He further noted that continued industry consolidation and weak overall economic conditions have created an even more attractive acquisition environment.

"We have made progress in our key strategic initiative to diversify our revenue stream and are poised for more growth," concluded Hatcher. "Although we know that demand in the wood treatment markets is stable over the long-term, our near-term forecast in the current down cycle is for earnings per share in the range of $.04 to $.05 for the first quarter of fiscal 2002.

With our entrance into the agricultural chemicals market, our earnings will be more skewed toward the second half of our fiscal year due to the seasonal nature of that market's sales. Fundamentally, we have strong positions in stable markets and we operate profitably. KMG's strong balance sheet and cash position going forward give our management team a competitive edge in growing the company through additional accretive acquisitions."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully-focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's website at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

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KMG CHEMICALS, INC. DECLARES CASH DIVIDEND

HOUSTON, August 29, 2001 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully-focused markets, today announced that its Board of Directors has declared a semiannual $0.02 per common share cash dividend. It is payable on September 28, 2001 to shareholders of record as of September 17, 2001. This is in addition to the semiannual cash dividend of $0.02 per share paid on March 30, 2001. KMG's annual dividend rate is $0.04 per common share. As of August 28, 2001, there were approximately 7.5 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully-focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's website at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

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KMG CHEMICALS HIRES CHIEF FINANCIAL OFFICER
Move strengthens management team, boosts growth-by-acquisitions effort

HOUSTON, August 9, 2001 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully-focused markets, announced that John V. Sobchak has joined the company as chief financial officer. Sobchak brings 20 years of experience in chemicals and energy to KMG, including 13 years of mergers and acquisitions, strategic business planning, corporate finance and capital markets experience. Jack Vernie will remain in his position as controller and continue to manage accounting operations for the company.

In his capacity as CFO, Sobchak becomes a key member of the executive team that will lead the company in its strategic acquisitions efforts and implementation of its business model. David Hatcher, chief executive officer of KMG, said, "We warmly welcome John to the KMG management team. With his broad and valuable financial experience, we believe that he will significantly contribute to our acquisitions success and to growth in shareholder value."

Sobchak was the CFO of Novistar, Inc., a joint venture between Torch Energy Advisors and Oracle Corporation, where his responsibilities included corporate finance, accounting and administration. He played an integral role in the creation and growth of Novistar, as well as structuring the relationship with Oracle.

From 1997 to 2000, Sobchak served as treasurer for Torch Energy Advisors, a financial and operations service provider to the energy industry. At Torch he was involved in business planning, capital markets work, mergers and acquisitions, cash management and investor relations for the company and its clients.

For nine years prior to joining Torch, Sobchak was employed by Mesa Inc., a publicly traded oil and gas company. In his role as treasurer, he was involved in the $1.3 billion recapitalization of the firm, as well as that company's merger to form Pioneer Natural Resources. Sobchak graduated from Cooper Union with a bachelor's degree in chemical engineering and completed his masters of business administration at the Stern School of Business at New York University.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully-focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural markets. For more information, visit the company's website at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

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KMG CHEMICALS ANNOUNCES THIRD QUARTER FISCAL 2003 RESULTS

HOUSTON, June 3, 2003 – KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets; today announced its unaudited financial results for the third fiscal 2003-quarter and nine months ended April 30, 2003.

For the third fiscal 2003 quarter, net income was $0.53 million or $0.07 per diluted share, down from $0.80 million or $0.11 per diluted share reported for the same quarter in fiscal 2002. Fiscal third quarter net sales were $8.98 million, up from $8.78 million in the year earlier quarter.

For the nine months ended April 30, 2003, net income was $1.17 million or $.15 per diluted share, off from $1.61 million or $.21 per diluted share for the same period last year. Net sales were $23.32 million compared to $24.45 million last year.

At the end of the third fiscal 2003 quarter, KMG had total assets of $32.98 million and long-term debt of $5.81 million. The company had approximately $1.74 million of cash and cash equivalents at April 30, 2003.

David Hatcher, chairman and president of KMG Chemicals, said, “We continued to experience the same slump in our wood treating chemical sales during the first part of the third quarter as we did in the second quarter. However, these sales started to turn around in April. The quarter’s drop in wood treating chemical sales was more than offset by an increase in pre-season sales of MSMA (Bueno® 6) and Rabon. MSMA is our herbicide that serves the cotton market. Rabon, acquired in December 2002, is our insecticide for the livestock and poultry markets. We are also beginning to realize our stated goal of expanding our MSMA sales into important international markets. Shipments to Mexico from our Matamoros plant began earlier this year and we expect to begin selling to Brazilian markets this summer.”

The company’s year-to-date earnings suffered from higher raw material prices and non-cash fixed charges related to the MSMA plant that started up in January 2002. “High raw material costs have had a negative impact on our pentachorophenol (penta) business, particularly in the third quarter of this year. A price increase for penta that went into effect on June 1 should help its performance,” said Hatcher. “We also continue to execute our short-term strategy of reduced production of MSMA to work down inventory levels. This will translate into lower working capital requirements, but it also means less production in fiscal 2003 over which to spread our fixed plant costs.” Hatcher also noted that the company is currently entering the main selling season for both MSMA and Rabon, which will skew annual earnings toward the fourth quarter.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

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Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

KMG CHEMICALS ANNOUNCES
SECOND QUARTER FISCAL 2003 RESULTS

HOUSTON, March 11, 2003 – KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal 2003 quarter and six months ended January 31, 2003.

For the second fiscal 2003 quarter, net income was $0.15 million or $0.02 per diluted share, down from $0.39 million or $0.05 per diluted share reported for the same quarter in fiscal 2002. Fiscal second quarter net sales were $6.3 million, off from $7.6 million in the year earlier period.

For the six months ended January 31, 2003, net income was $.64 million or $.08 per diluted share, down from $.81 million or $.11 per diluted share for the same period last year. Net sales were $14.3 million compared to $15.7 million last year.

At the end of the second fiscal 2003 quarter, KMG had total assets of $30.0 million and long-term debt of $4.5 million. The company had approximately $1.9 million of cash and cash equivalents at January 31, 2003.

David Hatcher, chairman and president of KMG Chemicals, said, “Wood treating chemical sales declined significantly in our second fiscal quarter. We don’t believe the market has contracted, but rather that we have experienced disruptions in parts of our supply and customer base that were particularly evident during our second fiscal quarter. These results are unsatisfactory and we have reassigned responsibilities within the organization to rectify the situation.”

Additionally, the company’s earnings in the second fiscal 2003 quarter versus the same quarter of last year have been burdened by higher raw material prices and non-cash fixed charges related to the new plant started in January 2002 to produce the MSMA herbicide Bueno® 6. “We ended fiscal 2002 with inventory levels that were too high,” continued Hatcher. “Our strategy for this fiscal year has been to throttle back production and work down our inventory levels. This makes good business sense. However, it also means that in the short term we will have less production in fiscal 2003 over which to spread our fixed plant costs.”

On December 30, 2002, the company acquired the Rabon product line (previously announced), which is used by domestic livestock and poultry growers to protect their animals from flies and other pests. The acquisition was financed with senior bank debt. The company’s existing term note was amended to a five year note with a ten year amortization period, and the principal amount was increased to include the Rabon acquisition cost. The interest rate on the amended note has since been fixed at 5.0% for the remainder of the term via an interest rate swap with the bank.

With the Rabon acquisition, KMG now offers a portfolio of oral larvicides, insecticidal powders and sprays. Management is very excited about the upside potential and future growth prospects offered by Rabon. The acquisition is expected to initially add about $4 million in annualized revenues and be accretive to earnings in fiscal 2003. The main selling season for Rabon products is in the second half of the fiscal year – the same as for the company’s herbicide sales. This will cause earnings to be even more skewed toward the second half of the fiscal year than previously.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

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Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

KMG CHEMICALS, INC. DECLARES
SEMI-ANNUAL CASH DIVIDEND

HOUSTON, February 28, 2003 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.03 per common share. It is payable on March 28, 2003 to shareholders of record as of March 14, 2003. As of January 31, 2003, there were approximately 7.5 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com

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KMG CHEMICALS ANNOUNCES
LOWER EARNINGS EXPECTATIONS FOR SECOND FISCAL QUARTER
Wood treatment revenues declined, but Rabon earnings anticipated

HOUSTON, February 5, 2003 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it expects earnings for the three months ended January 31, 2003 to be in the range of $.01 to $.02 per share. Earnings for the same quarter in fiscal 2002 were $.05 per share.

David Hatcher, chairman and president of KMG Chemicals, said, "The decline in earnings we are expecting for the second quarter of this fiscal year versus the same quarter last year was primarily a result of fixed, non-cash charges related to our MSMA facility. Although we did not operate the MSMA plant during the quarter while we worked down inventories, we still incurred the non-cash charges. Our operating plan for the year anticipated these fixed charges for MSMA in the second quarter, but assumed that they would be offset by increased wood treating chemicals revenues. However, sales of wood treating chemicals began to fall significantly behind plan beginning in November 2002, and continue to be behind plan. Until November we were tracking our plan numbers. We are not at all satisfied with these results and are addressing the situation."

With respect to the second half of this fiscal year, the company noted that the Rabon acquisition, which closed on December 30, 2002, has now been successfully integrated into its operations. "The selling season for Rabon pesticide products begins in our third fiscal quarter," continued Hatcher. "We anticipate seeing a significant contribution to revenues and earnings from Rabon during the second half of this fiscal year."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

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KMG CHEMICALS ANNOUNCES ACQUISITION OF RABON PRODUCT LINE ASSETS

Expected to add $4 million in annualized revenue
and be immediately accretive to earnings

HOUSTON, January 2, 2003 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its acquisition of the Rabon insecticidal product lines of Boehringer Ingelheim Vetmedica, Inc. Boehringer Ingelheim Vetmedica, Inc. is an affiliate of the Boehringer Ingelheim group of companies headquartered in Ingelheim, Germany. The acquisition is effective as of December 30, 2002.

The Rabon product lines are used by domestic livestock and poultry growers to protect animals from flies and other pests. With this acquisition, KMG will offer the market a portfolio of oral larvicides, insecticidal powders and sprays, all containing the active ingredient tetrachlorvinphos. Rabon Oral Larvicide is the leading oral larvicide product in the United States.

As part of the transaction, KMG has also acquired the product registration for Ravap® Insecticide Spray. Both KMG and Boehringer Ingelheim Vetmedica will produce and market this spray composed of Rabon and other ingredients. Boehringer Ingelheim Vetmedica will continue to market the product under its Ravap trademark. Other assets acquired in the transaction include equipment, certain inventory, product registrations for other Rabon products, and other intangible assets.

David Hatcher, chairman and president of KMG, said, "This is our second step forward into the agricultural chemicals sector, and it further diversifies our overall revenue stream. We are excited about expanding our company with the Rabon product line, and with the potential for future growth this acquisition offers. Unlike other products in our portfolio, this product offers the opportunity for some organic growth. We will be actively looking for partnerships to expand the growth of the Rabon product lines both domestically and internationally. We intend to be the major supplier to the oral larvicide market worldwide."

Management anticipates that the acquisition should add approximately $4 million in annualized revenues, and that it should be immediately accretive to earnings. The purchase is being financed with a senior credit facility from KMG's long-time banking partner, SouthTrust Bank of Birmingham, Alabama.

"KMG has sufficient financial capacity to close more acquisitions using senior debt while still maintaining a conservative balance sheet," continued Hatcher. "Due to current economic conditions we are seeing more attractively priced acquisition prospects than we have seen in several years. Because of this, we are investigating financing alternatives in anticipation of the time when we have appropriately leveraged our balance sheet with senior debt. We are continuing ahead with our growth strategy that has served us well — targeting attractive acquisitions that meet our criteria of being immediately accretive financially and which serve narrowly focused markets. Our discipline, patience, and conservative approach to the acquisitions process is paying off. We have never subscribed to the fantasy of large 'synergies' through acquisitions. While our approach has been out of favor for several years, our patience now has the potential to be rewarded, to the benefit of our shareholders."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The Boehringer Ingelheim group of companies, headquartered in Ingelheim, Germany, is one of the 20 leading pharmaceutical corporations in the world. It has some 140 affiliated companies in 42 countries worldwide and focuses on human pharmaceuticals and animal health. For more information

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KMG CHEMICALS FIRST QUARTER FISCAL 2003 RESULTS

Results meet expectations

HOUSTON, November 26, 2002 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2003 quarter ended October 31, 2002.

For the first fiscal 2003 quarter, net income was $0.48 million or $0.06 per diluted share, up from $0.42 million or $0.06 per diluted share reported for the same quarter in fiscal 2002. Fiscal first quarter net sales were $8.1 million or essentially flat with the year earlier period.

At the end of the first fiscal 2003 quarter, KMG had total assets of $27.3 million and long-term debt of $0.24 million. The company had approximately $3.0 million of cash and cash equivalents at October 31, 2002.

David Hatcher, chairman and president of KMG Chemicals, said, “A key part of the KMG strategy is that we serve stable niche markets. Even in this challenging economic environment, our core markets continue to exhibit relative stability. Cash flow from operations remains strong.”

“Agricultural chemical sales are seasonal, which causes our earnings to be skewed toward the second half of the fiscal year. Our current earnings per share estimate for the second quarter of fiscal 2003 is in the range of $.04 to $.05.”

“We are continuing to work hard at identifying and closing acquisitions that would be accretive to KMG’s profitability,” continued Hatcher. “Rest assured that our management team is fully focused on building the company. KMG’s strong balance sheet, healthy cash position and experienced employee base are proving to be a competitive advantage in this business environment.”

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's web site at www.kmgchemicals.com.

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KMG CHEMICALS ADDED TO THE NEW RUSSELL MICROCAPT INDEX

HOUSTON, TX - July 5, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it was added to the new Russell MicrocapT Index. The Russell Microcap Index is comprised of the smallest 1,000 securities in the Russell 2000® Index plus the next 1,000 companies below the Index based on total market capitalization. More than $2.5 trillion in assets are benchmarked to Russell Indexes, including more than $450 billion invested in passive index funds that use them as a model.

David Hatcher, KMG's Chairman and CEO, stated, "We are pleased to be added to the Russell Microcap Index. KMG's inclusion in this Index will increase our visibility with investors and institutions that rely on the Russell Indexes as a key part of their investment strategy."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ACQUIRES PENTACHLOROPHENOL ASSETS FROM OCCIDENTAL CHEMICAL CORPORATION

HOUSTON, TX - June 7, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has acquired certain assets used in the manufacture and sale of pentachlorophenol ("penta") from a wholly owned subsidiary of Occidental Chemical Corporation. Terms were not disclosed.

"Occidental acquired these penta assets when it recently purchased Vulcan Chemicals, but decided against entering the penta business. We believe our acquisition of certain manufacturing equipment and intangible assets associated with the penta business is indicative of the commitment we have to this market," said David Hatcher, KMG's Chairman and CEO.

Penta is currently manufactured and sold by KMG to the majority of wood treaters in North America who use the product to treat utility poles that are then sold to electric and telecommunications companies.

"We believe our penta revenues are going to increase by over $3 million per year. More importantly, we anticipate achieving greater operating efficiencies as a result of increased throughput at our penta plant," continued Hatcher. "The equipment included in this acquisition will be used to back-up KMG's existing penta plant, thereby assuring security-of-supply for this important wood preservative."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ANNOUNCES THIRD QUARTER RESULTS WITH NET INCOME UP 61% ON 24% SALES INCREASE

HOUSTON, TX - May 19, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the third quarter and nine-month period ended April 30, 2005.

Third Quarter Financial Highlights - versus fiscal 2004 third quarter

• Net sales increased 24% to $15.4 million.
• Operating income was up 57% to $1.8 million.
• Net income rose 61% to $1.0 million or $0.13 per diluted share.

Nine-month Financial Highlights - versus the first nine months of 2004

• Net sales grew 41% to $41.4 million.
• Operating income increased 160% to $3.9 million.
• Net income was up 161% to $2.2 million or $0.27 per diluted share.

Due to the seasonality of sales, particularly the Company's agricultural and animal health products, revenue and earnings are typically skewed to the second half of the fiscal year. As of April 30, 2005, KMG had cash of $6.9 million, total assets of $50.4 million, long-term debt of $10.0 million, and no borrowings outstanding under its $5.0 million credit facility.

David Hatcher, KMG's Chairman and CEO, stated, "We are very pleased with the results for the third quarter, which marked the highest quarterly sales level in the Company's history, as well as our fifth consecutive quarter of comparable period earnings growth. We have achieved higher sales across our entire product portfolio thus far this year. Demand by the railroads for crossties treated with creosote has been particularly strong, a trend we see continuing through the fourth quarter of fiscal 2005."

Mr. Hatcher continued, "We are proud to note that these financial results were realized despite record high raw material costs. This performance was the result of our successful acquisition program and the efforts of our management team."

Mr. Hatcher also stated, "On April 21st, we completed a $6.0 million private equity placement that strengthened our balance sheet and broadened our institutional shareholder base. The capital infusion enables us to continue to execute our growth-through-acquisitions strategy. We continue to work our pipeline of acquisition opportunities and are hopeful we will complete another transaction in the near term. We look forward to updating you on our progress."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS COMPLETES $6 MILLION PRIVATE EQUITY PLACEMENT

HOUSTON, TX - April 21, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that the Company completed a $6.0 million private equity placement.

Tontine Capital Partners, L.P., an institutional investor based in Greenwich, CT, invested $5.0 million in KMG, while Terrier Partners L.P., a New York City-based fund that has taken significant positions in peer companies, invested $1.0 million. Both Tontine and Terrier were shareholders of KMG prior to this transaction. The transaction consisted of 1.2 million shares of KMG common stock priced at $5.00 per share.

This financing enhances KMG's capital base and enables the Company to take advantage of the acquisition opportunities available in the marketplace. Additionally, the transaction represents a key step toward building institutional ownership in the Company's stock.

David Hatcher, KMG's Chairman and CEO, stated, "I am delighted that Tontine and Terrier have increased their positions in the Company substantially. We see it as a vote of confidence in KMG, our business model and the management team."

Mr. Hatcher continued, "There is no shortage of attractive acquisition opportunities and we fully intend to put this additional capital to work in fairly short order. We have successfully completed four acquisitions over the past 28 months, and remain very enthusiastic about KMG's near and long-term growth prospects."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS PROMOTES NEAL BUTLER TO PRESIDENT

Move positions company for its next stage of growth.

HOUSTON, February 28, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced today that J. Neal Butler has been promoted to the position of president.

Neal Butler joined KMG Chemicals in March 2004 as chief operating officer. He will retain that title in addition to being named president, and will continue to report to chairman and chief executive officer David Hatcher.

"Neal has done an outstanding job managing our operations and directing the integration of our acquisitions," Hatcher said. "The results of his leadership are reflected in the solid earnings growth KMG has delivered for its shareholders this past year. Over the last 14 months, we have completed three acquisitions. Integrating acquisitions while maintaining our cost-conscious focus and lean operations is a core competency necessary to maintaining the 20 percent-plus compound annual growth rate our shareholders have enjoyed since 1988."

Hatcher called Butler's appointment the "final step" in building the management team for the company's next stage of growth. With Butler as president, Hatcher will dedicate more time to strategic efforts, including growing the company.

"The company has a full acquisition pipeline and consistent deal flow due to the creation of a professional acquisition program by our CFO," he said. "This fiscal year, KMG will exceed $50 million in sales. Our next goal is to pass the $100 million mark, while delivering corresponding increases in profits and shareholder value."

In addition to Hatcher and Butler, KMG Chemicals' senior management team includes John Sobchak, chief financial officer, and Roger Jackson, general counsel.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. SobchakBack
To Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES STRONG SECOND QUARTER RESULTS, WITH EARNINGS UP 526% FOR THE FIRST HALF OF FISCAL 2005

Successful acquisition program continues to fuel growth

HOUSTON, February 17, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal 2005 quarter ended January 31, 2005.

For the second fiscal 2005 quarter, net income was $0.44 million or $0.06 per diluted share, up from a loss of ($0.14 million) or ($0.02) per diluted share reported for the same period last year. Fiscal second quarter net sales were $12.48 million, up from $8.54 million during the year earlier period.

For the first six months ended January 31, 2005, net income was $1.12 million or $0.14 per diluted share, up from $0.18 million, or $0.02 per diluted share for the first half of fiscal 2004. Net sales were $26.07 million for the first half of the year versus $16.91 million last year. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year.

At the end of the second fiscal quarter for 2005, KMG had total assets of $42.87 million and long-term debt of $10.44 million. The company had $1.96 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $5.0 million revolving credit facility.

"The four acquisitions we have closed over the last 26 months have all been successful and are continuing to provide growth to the bottom line," said David Hatcher, KMG's chairman and president. "In addition, the demand for treated wood crossties by the railroads remains strong and is expected to continue at these above average levels through the rest of the fiscal year, significantly impacting our financial results."

"This is KMG's fourth quarter of comparable period earnings growth. Over the last two years, we have expanded our management team significantly, bringing on the talent necessary to take this company to the next level," continued Hatcher. "The ongoing improvement in our financial performance has been achieved during a period when the company has experienced record high raw material prices, and is indicative of what our management team can accomplish."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDEND

HOUSTON, February 16, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on March 15, 2005 to shareholders of record as of February 28, 2005. The company's current annual dividend rate is $0.07 per common share. As of January 31, 2005, there were approximately 7.58 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. SobchakBack
Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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FEDERAL AGENCY FOR ENVIRONMENTAL PROTECTION IN MEXICO AWARDS KMG CHEMICALS WITH A "CLEAN INDUSTRY CERTIFICATE"

Second consecutive award earned by KMG's Matamoros plant

HOUSTON, January 18, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its plant in Matamoros, Mexico has recently been awarded a Clean Industry Certificate by PROFEPA, the Federal Agency for Environmental Protection in Mexico. The Clean Industry Certificate requires that plants meet the highest environmental standards for chemical plants available worldwide.

Neal Butler, chief operating officer of KMG, said, "We are delighted to have won this important award for the second consecutive review period. KMG takes its environmental responsibility very seriously. The tone is set at the top and it is a part of our corporate culture."

Butler continued, "Our employees in Matamoros, Mexico have done an exemplary job. It is gratifying to see that the investment of time, money and resources the company has made in this area has been so effective and duly recognized."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. SobchakBack
Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS SECURES NEW REVOLVING CREDIT FACILITY

HOUSTON (Dec. 16, 2004) -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced that it obtained a $5.0 million revolving credit facility with a three-year term from SouthTrust Bank. The new revolver replaces the $3.5 million facility set to mature on January 31, 2005. The company intends to use the new credit facility as needed for general corporate purposes and working capital requirements.

"KMG has a long history with SouthTrust Bank and we value that relationship," said Vice President and Chief Financial Officer, John V. Sobchak. "Currently we have no borrowings under our revolving credit facility, and we have a growing cash position. However, this facility provides KMG with greater financial flexibility as we continue to execute our growth strategy."

South Trust Bank is a wholly owned subsidiary of the Wachovia Corporation. Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve approximately 14 million client relationships (including households and businesses), primarily in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states and Washington, D.C. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through wachovia.com.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. SobchakBack
Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES FIRST QUARTER NET INCOME UP 111% OVER PREVIOUS YEAR, WITH A 62% INCREASE IN REVENUE

Company posts third consecutive quarter of comparable period earnings growth.

HOUSTON (November 18, 2004) - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2005 quarter ended October 31, 2004.

For the first fiscal 2005 quarter, net income was $0.67 million or $0.09 per diluted share, up from $0.32 million or $0.04 per diluted share reported for the same quarter in fiscal 2004. Fiscal first quarter net sales were $13.59 million, up from $8.37 million during the year earlier period.

At the end of the first fiscal quarter for 2005, KMG had total assets of $44.17 million and long-term debt of $10.84 million. The company had $2.57 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $3.5 million revolving credit facility. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year.

David Hatcher, chairman and president of KMG Chemicals, said, "Our first quarter's growth was driven by the three successful acquisitions completed last fiscal year, as well as strong demand by the railroads for treated wooden crossties. Additionally, we introduced a new product in the first quarter named Beetle Shield to help poultry growers with their insect infestation problems. The product is filling an important niche in that market, with very encouraging initial results and a promising future."

"I have previously stated that we anticipate fiscal 2005 will be a very successful year with regards to sales and earnings growth, despite the continued pressure we are facing from high raw material prices," continued Hatcher. "KMG's first-quarter results are a strong first step in proving that to be true, and represent our third consecutive quarter of comparable period earnings growth. We continue working to increase shareholder value, pursuing acquisitions that are accretive to earnings and cash flow, and striving to maximize the profitability of our existing business."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. SobchakBack
Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES NEW INSECTICIDE PRODUCT FOR POULTRY

Rabon 3% Beetle Shieldä is launched to combat litter beetle problem in poultry houses

HOUSTON, October 28, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced the introduction of its new insecticide dust, Rabon 3% Beetle Shield, for use in poultry houses to control darkling litter beetles.

The introduction of Rabon 3% Beetle Shield is in response to the increasing resistance of darkling litter beetles to pyrethroid insecticides and the rising demand for dust formulations in poultry houses. KMG is committed to working closely with the poultry industry and also offers the liquid spray, Ravap, as well as Rabon 50WP, to poultry growers.

KMG's Beetle Shield product can be used as an alternative to the commonly used pyrethroid products, or in rotation with them, to counter the build-up of resistance to pyrethroids. Beetle Shield has proven to be effective on darkling litter beetles in several trials conducted across the United States and is cost competitive with alternative products.

KMG's Rabon products now include:

• Rabon Oral Larvicide for blending into livestock feeds
• Rabon 50WP, a wettable powder applied to premises and directly to animals
• Ravap liquid spray applied to premises and directly to animals
• Rabon 3% Beetle Shield dust for poultry house application

For more information on Rabon 3% Beetle Shield, or any other of KMG's animal health products, please contact:

Randy Berry,
Rabon Product Manager
Voice: (713) 988-9252 ext.126
Cell: (832) 368-8275
Fax: (713) 988-9298
rberry@kmgbernuth.com

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS REPORTS FISCAL 2004 RESULTS AND SECOND CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH

Record sales and three successful acquisitions achieved in 2004. Significant growth projected for fiscal 2005.

HOUSTON, October 12, 2004 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the fourth fiscal quarter and year ended July 31, 2004.

For the fourth quarter of the 2004 fiscal year, net income was $934 thousand or $.12 per diluted share versus $752 thousand or $.10 per diluted share in the fourth quarter of 2003. Fiscal fourth quarter sales were $14.3 million, up from $12.2 million in the same quarter a year earlier.

For fiscal 2004, net income was $1.8 million or $.23 per diluted share compared to $1.9 million or $.25 per diluted share in fiscal 2003. Net sales increased to a record $43.6 million for the year, up 23% from the $35.5 million in net sales for the previous fiscal year. The increase in sales was largely the result of higher sales volumes of industrial wood treating chemicals, resulting from the acquisition of two key distributors during the year, as well as increased demand by railroads for treated crossties. Gross profit margins declined to 29.2% from 31.8% due to higher raw material costs, as well as a shift in the product mix of the company's sales.

At the end of fiscal 2004, the company had total assets of $43.2 million, a 34% increase over the $32.3 million in assets a year earlier. Cash and cash equivalents on July 31, 2004 totaled approximately $974 thousand. Long-term debt had increased to $11.2 million from $4.3 million last year. The additional long-term debt was used to partially fund the company's acquisition program in 2004. A distributor of pentachlorophenol, a wood treating chemical, was acquired in December 2003. In June 2004, a distributor of the wood treating chemical, creosote, was acquired. Also in June, an insecticidal spray used on poultry and livestock, Ravap, was acquired to expand the company's animal health product portfolio.

David Hatcher, Chairman and President of KMG Chemicals, said, "KMG turned the corner in 2004. The second half of the fiscal year marked an upswing in the company's sales and profitability. At the same time, we have greatly strengthened our management team with the addition of Neal Butler as our new Chief Operating Officer, Randy Berry as our animal health product manager, and David Bullock as our product manager for penta. These three new hires in 2004 increase the depth and capabilities of our management group and position us well for the future growth we see. Both the third and the fourth quarters of 2004 were significantly more profitable than the same quarters in 2003 despite the increased overhead of our expanded management team."

" We completed three strategic acquisitions in 2004 that are each accretive to cash flow and earnings. We are now positioned to reap the rewards of the investments we have made over the last two years. Sales in 2005 are projected to exceed $50 million, and we anticipate significant double-digit growth in earnings," continued Hatcher. "However, the variable that is most difficult to predict is raw material pricing."

Hatcher concluded, "We have significantly grown the company over the last two years, despite difficult market conditions, while maintaining a conservative balance sheet, as well as positive earnings and cash flow. We continue to pay a dividend, which has steadily increased over the last five years. We returned over 8% to shareholders during 2004 in dividends and increased shareholder equity. While this is below our long-term historical 20% rate, we anticipate this improving significantly in 2005."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Top Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDEND

HOUSTON, August 18, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on September 15, 2004 to shareholders of record as of September 2, 2004. This increases the company's annual dividend rate to $0.07 per common share. As of January 31, 2004, there were approximately 7.55 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ADDED TO THE NEW RUSSELL MICROCAPT INDEX

HOUSTON, TX - July 5, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it was added to the new Russell MicrocapT Index. The Russell Microcap Index is comprised of the smallest 1,000 securities in the Russell 2000® Index plus the next 1,000 companies below the Index based on total market capitalization. More than $2.5 trillion in assets are benchmarked to Russell Indexes, including more than $450 billion invested in passive index funds that use them as a model.

David Hatcher, KMG's Chairman and CEO, stated, "We are pleased to be added to the Russell Microcap Index. KMG's inclusion in this Index will increase our visibility with investors and institutions that rely on the Russell Indexes as a key part of their investment strategy."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ACQUIRES PENTACHLOROPHENOL ASSETS FROM OCCIDENTAL CHEMICAL CORPORATION

HOUSTON, TX - June 7, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has acquired certain assets used in the manufacture and sale of pentachlorophenol ("penta") from a wholly owned subsidiary of Occidental Chemical Corporation. Terms were not disclosed.

"Occidental acquired these penta assets when it recently purchased Vulcan Chemicals, but decided against entering the penta business. We believe our acquisition of certain manufacturing equipment and intangible assets associated with the penta business is indicative of the commitment we have to this market," said David Hatcher, KMG's Chairman and CEO.

Penta is currently manufactured and sold by KMG to the majority of wood treaters in North America who use the product to treat utility poles that are then sold to electric and telecommunications companies.

"We believe our penta

revenues are going to increase by over $3 million per year. More importantly, we anticipate achieving greater operating efficiencies as a result of increased throughput at our penta plant," continued Hatcher. "The equipment included in this acquisition will be used to back-up KMG's existing penta plant, thereby assuring security-of-supply for this important wood preservative."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ANNOUNCES THIRD QUARTER RESULTS WITH NET INCOME UP 61% ON 24% SALES INCREASE

HOUSTON, TX - May 19, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the third quarter and nine-month period ended April 30, 2005.

Third Quarter Financial Highlights - versus fiscal 2004 third quarter

• Net sales increased 24% to $15.4 million.
• Operating income was up 57% to $1.8 million.
• Net income rose 61% to $1.0 million or $0.13 per diluted share.

Nine-month Financial Highlights - versus the first nine months of 2004

• Net sales grew 41% to $41.4 million.
• Operating income increased 160% to $3.9 million.
• Net income was up 161% to $2.2 million or $0.27 per diluted share.

Due to the seasonality of sales, particularly the Company's agricultural and animal health products, revenue and earnings are typically skewed to the second half of the fiscal year. As of April 30, 2005, KMG had cash of $6.9 million, total assets of $50.4 million, long-term debt of $10.0 million, and no borrowings outstanding under its $5.0 million credit facility.

David Hatcher, KMG's Chairman and CEO, stated, "We are very pleased with the results for the third quarter, which marked the highest quarterly sales level in the Company's history, as well as our fifth consecutive quarter of comparable period earnings growth. We have achieved higher sales across our entire product portfolio thus far this year. Demand by the railroads for crossties treated with creosote has been particularly strong, a trend we see continuing through the fourth quarter of fiscal 2005."

Mr. Hatcher continued, "We are proud to note that these financial results were realized despite record high raw material costs. This performance was the result of our successful acquisition program and the efforts of our management team." Mr. Hatcher also stated, "On April 21st, we completed a $6.0 million private equity placement that strengthened our balance sheet and broadened our institutional shareholder base. The capital infusion enables us to continue to execute our growth-through-acquisitions strategy. We continue to work our pipeline of acquisition opportunities and are hopeful we will complete another transaction in the near term. We look forward to updating you on our progress."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com
Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS COMPLETES $6 MILLION PRIVATE EQUITY PLACEMENT

HOUSTON, TX - April 21, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that the Company completed a $6.0 million private equity placement.

Tontine Capital Partners, L.P., an institutional investor based in Greenwich, CT, invested $5.0 million in KMG, while Terrier Partners L.P., a New York City-based fund that has taken significant positions in peer companies, invested $1.0 million. Both Tontine and Terrier were shareholders of KMG prior to this transaction. The transaction consisted of 1.2 million shares of KMG common stock priced at $5.00 per share.

This financing enhances KMG's capital base and enables the Company to take advantage of the acquisition opportunities available in the marketplace. Additionally, the transaction represents a key step toward building institutional ownership in the Company's stock.

David Hatcher, KMG's Chairman and CEO, stated, "I am delighted that Tontine and Terrier have increased their positions in the Company substantially. We see it as a vote of confidence in KMG, our business model and the management team."

Mr. Hatcher continued, "There is no shortage of attractive acquisition opportunities and we fully intend to put this additional capital to work in fairly short order. We have successfully completed four acquisitions over the past 28 months, and remain very enthusiastic about KMG's near and long-term growth prospects."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact: John V. Sobchak Chief Financial Officer (713) 600-3814 jsobchak@kmgchemicals.com Investor Relations Counsel: The Equity Group Inc. Loren G. Mortman 212-836-9604 Lauren Barbera 212-836-9610 LBarbera@equityny.com www.theequitygroup.com

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KMG CHEMICALS PROMOTES NEAL BUTLER TO PRESIDENT

Move positions company for its next stage of growth.

HOUSTON, February 28, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced today that J. Neal Butler has been promoted to the position of president.

Neal Butler joined KMG Chemicals in March 2004 as chief operating officer. He will retain that title in addition to being named president, and will continue to report to chairman and chief executive officer David Hatcher.

"Neal has done an outstanding job managing our operations and directing the integration of our acquisitions," Hatcher said. "The results of his leadership are reflected in the solid earnings growth KMG has delivered for its shareholders this past year. Over the last 14 months, we have completed three acquisitions. Integrating acquisitions while maintaining our cost-conscious focus and lean operations is a core competency necessary to maintaining the 20 percent-plus compound annual growth rate our shareholders have enjoyed since 1988."

Hatcher called Butler's appointment the "final step" in building the management team for the company's next stage of growth. With Butler as president, Hatcher will dedicate more time to strategic efforts, including growing the company.

"The company has a full acquisition pipeline and consistent deal flow due to the creation of a professional acquisition program by our CFO," he said. "This fiscal year, KMG will exceed $50 million in sales. Our next goal is to pass the $100 million mark, while delivering corresponding increases in profits and shareholder value."

In addition to Hatcher and Butler, KMG Chemicals' senior management team includes John Sobchak, chief financial officer, and Roger Jackson, general counsel.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact: John V. SobchakBack To Top Chief Financial Officer (713) 600-3814 jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES STRONG SECOND QUARTER RESULTS, WITH EARNINGS UP 526% FOR THE FIRST HALF OF FISCAL 2005

Successful acquisition program continues to fuel growth

HOUSTON, February 17, 2005 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal 2005 quarter ended January 31, 2005.

For the second fiscal 2005 quarter, net income was $0.44 million or $0.06 per diluted share, up from a loss of ($0.14 million) or ($0.02) per diluted share reported for the same period last year. Fiscal second quarter net sales were $12.48 million, up from $8.54 million during the year earlier period.

For the first six months ended January 31, 2005, net income was $1.12 million or $0.14 per diluted share, up from $0.18 million, or $0.02 per diluted share for the first half of fiscal 2004. Net sales were $26.07 million for the first half of the year versus $16.91 million last year. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year.

At the end of the second fiscal quarter for 2005, KMG had total assets of $42.87 million and long-term debt of $10.44 million. The company had $1.96 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $5.0 million revolving credit facility.

"The four acquisitions we have closed over the last 26 months have all been successful and are continuing to provide growth to the bottom line," said David Hatcher, KMG's chairman and president. "In addition, the demand for treated wood crossties by the railroads remains strong and is expected to continue at these above average levels through the rest of the fiscal year, significantly impacting our financial results."

"This is KMG's fourth quarter of comparable period earnings growth. Over the last two years, we have expanded our management team significantly, bringing on the talent necessary to take this company to the next level," continued Hatcher. "The ongoing improvement in our financial performance has been achieved during a period when the company has experienced record high raw material prices, and is indicative of what our management team can accomplish."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDEND

HOUSTON, February 16, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on March 15, 2005 to shareholders of record as of February 28, 2005. The company's current annual dividend rate is $0.07 per common share. As of January 31, 2005, there were approximately 7.58 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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FEDERAL AGENCY FOR ENVIRONMENTAL PROTECTION IN MEXICO AWARDS KMG CHEMICALS WITH A "CLEAN INDUSTRY CERTIFICATE"

Second consecutive award earned by KMG's Matamoros plant

HOUSTON, January 18, 2005 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its plant in Matamoros, Mexico has recently been awarded a Clean Industry Certificate by PROFEPA, the Federal Agency for Environmental Protection in Mexico. The Clean Industry Certificate requires that plants meet the highest environmental standards for chemical plants available worldwide.

Neal Butler, chief operating officer of KMG, said, "We are delighted to have won this important award for the second consecutive review period. KMG takes its environmental responsibility very seriously. The tone is set at the top and it is a part of our corporate culture."

Butler continued, "Our employees in Matamoros, Mexico have done an exemplary job. It is gratifying to see that the investment of time, money and resources the company has made in this area has been so effective and duly recognized."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS SECURES NEW REVOLVING CREDIT FACILITY

HOUSTON (Dec. 16, 2004) -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced that it obtained a $5.0 million revolving credit facility with a three-year term from SouthTrust Bank. The new revolver replaces the $3.5 million facility set to mature on January 31, 2005. The company intends to use the new credit facility as needed for general corporate purposes and working capital requirements.

"KMG has a long history with SouthTrust Bank and we value that relationship," said Vice President and Chief Financial Officer, John V. Sobchak. "Currently we have no borrowings under our revolving credit facility, and we have a growing cash position. However, this facility provides KMG with greater financial flexibility as we continue to execute our growth strategy."

South Trust Bank is a wholly owned subsidiary of the Wachovia Corporation. Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve approximately 14 million client relationships (including households and businesses), primarily in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states and Washington, D.C. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through wachovia.com.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES FIRST QUARTER NET INCOME UP 111% OVER PREVIOUS YEAR, WITH A 62% INCREASE IN REVENUE

Company posts third consecutive quarter of comparable period earnings growth.

HOUSTON (November 18, 2004) - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2005 quarter ended October 31, 2004.

For the first fiscal 2005 quarter, net income was $0.67 million or $0.09 per diluted share, up from $0.32 million or $0.04 per diluted share reported for the same quarter in fiscal 2004. Fiscal first quarter net sales were $13.59 million, up from $8.37 million during the year earlier period.

At the end of the first fiscal quarter for 2005, KMG had total assets of $44.17 million and long-term debt of $10.84 million. The company had $2.57 million of cash and cash equivalents at the end of the quarter, with no outstanding borrowings on its $3.5 million revolving credit facility. Due to the seasonality of the company's sales, earnings are typically skewed toward the second half of the fiscal year.

David Hatcher, chairman and president of KMG Chemicals, said, "Our first quarter's growth was driven by the three successful acquisitions completed last fiscal year, as well as strong demand by the railroads for treated wooden crossties. Additionally, we introduced a new product in the first quarter named Beetle Shield to help poultry growers with their insect infestation problems. The product is filling an important niche in that market, with very encouraging initial results and a promising future."

"I have previously stated that we anticipate fiscal 2005 will be a very successful year with regards to sales and earnings growth, despite the continued pressure we are facing from high raw material prices," continued Hatcher. "KMG's first-quarter results are a strong first step in proving that to be true, and represent our third consecutive quarter of comparable period earnings growth. We continue working to increase shareholder value, pursuing acquisitions that are accretive to earnings and cash flow, and striving to maximize the profitability of our existing business."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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ANNOUNCES NEW INSECTICIDE PRODUCT FOR POULTRY

Rabon 3% Beetle Shieldä is launched to combat litter beetle problem in poultry houses

HOUSTON, October 28, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals to carefully focused markets, announced the introduction of its new insecticide dust, Rabon 3% Beetle Shield, for use in poultry houses to control darkling litter beetles.

The introduction of Rabon 3% Beetle Shield is in response to the increasing resistance of darkling litter beetles to pyrethroid insecticides and the rising demand for dust formulations in poultry houses. KMG is committed to working closely with the poultry industry and also offers the liquid spray, Ravap, as well as Rabon 50WP, to poultry growers.

KMG's Beetle Shield product can be used as an alternative to the commonly used pyrethroid products, or in rotation with them, to counter the build-up of resistance to pyrethroids. Beetle Shield has proven to be effective on darkling litter beetles in several trials conducted across the United States and is cost competitive with alternative products.

KMG's Rabon products now include:

• Rabon Oral Larvicide for blending into livestock feeds
• Rabon 50WP, a wettable powder applied to premises and directly to animals
• Ravap liquid spray applied to premises and directly to animals
• Rabon 3% Beetle Shield dust for poultry house application

For more information on Rabon 3% Beetle Shield, or any other of KMG's animal health products, please contact:

Randy Berry,
Rabon Product Manager
Voice: (713) 988-9252 ext.126
Cell: (832) 368-8275
Fax: (713) 988-9298
rberry@kmgbernuth.com

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS REPORTS FISCAL 2004 RESULTS AND SECOND CONSECUTIVE QUARTER OF COMPARABLE PERIOD GROWTH

Record sales and three successful acquisitions achieved in 2004. Significant growth projected for fiscal 2005

HOUSTON, October 12, 2004 - KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the fourth fiscal quarter and year ended July 31, 2004.

For the fourth quarter of the 2004 fiscal year, net income was $934 thousand or $.12 per diluted share versus $752 thousand or $.10 per diluted share in the fourth quarter of 2003. Fiscal fourth quarter sales were $14.3 million, up from $12.2 million in the same quarter a year earlier.

For fiscal 2004, net income was $1.8 million or $.23 per diluted share compared to $1.9 million or $.25 per diluted share in fiscal 2003. Net sales increased to a record $43.6 million for the year, up 23% from the $35.5 million in net sales for the previous fiscal year. The increase in sales was largely the result of higher sales volumes of industrial wood treating chemicals, resulting from the acquisition of two key distributors during the year, as well as increased demand by railroads for treated crossties. Gross profit margins declined to 29.2% from 31.8% due to higher raw material costs, as well as a shift in the product mix of the company's sales.

At the end of fiscal 2004, the company had total assets of $43.2 million, a 34% increase over the $32.3 million in assets a year earlier. Cash and cash equivalents on July 31, 2004 totaled approximately $974 thousand. Long-term debt had increased to $11.2 million from $4.3 million last year. The additional long-term debt was used to partially fund the company's acquisition program in 2004. A distributor of pentachlorophenol, a wood treating chemical, was acquired in December 2003. In June 2004, a distributor of the wood treating chemical, creosote, was acquired. Also in June, an insecticidal spray used on poultry and livestock, Ravap, was acquired to expand the company's animal health product portfolio.

David Hatcher, Chairman and President of KMG Chemicals, said, "KMG turned the corner in 2004. The second half of the fiscal year marked an upswing in the company's sales and profitability. At the same time, we have greatly strengthened our management team with the addition of Neal Butler as our new Chief Operating Officer, Randy Berry as our animal health product manager, and David Bullock as our product manager for penta. These three new hires in 2004 increase the depth and capabilities of our management group and position us well for the future growth we see. Both the third and the fourth quarters of 2004 were significantly more profitable than the same quarters in 2003 despite the increased overhead of our expanded management team."

" We completed three strategic acquisitions in 2004 that are each accretive to cash flow and earnings. We are now positioned to reap the rewards of the investments we have made over the last two years. Sales in 2005 are projected to exceed $50 million, and we anticipate significant double-digit growth in earnings," continued Hatcher. "However, the variable that is most difficult to predict is raw material pricing."

Hatcher concluded, "We have significantly grown the company over the last two years, despite difficult market conditions, while maintaining a conservative balance sheet, as well as positive earnings and cash flow. We continue to pay a dividend, which has steadily increased over the last five years. We returned over 8% to shareholders during 2004 in dividends and increased shareholder equity. While this is below our long-term historical 20% rate, we anticipate this improving significantly in 2005."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS, INC. DECLARES SEMI-ANNUAL CASH DIVIDEND

HOUSTON, August 18, 2004 -- KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.035 per common share. It is payable on September 15, 2004 to shareholders of record as of September 2, 2004. This increases the company's annual dividend rate to $0.07 per common share. As of January 31, 2004, there were approximately 7.55 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

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KMG CHEMICALS ANNOUNCES EXERCISE OF OVER-ALLOTMENT OPTION

HOUSTON, TX - July 21, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that the underwriters of its recent public offering have exercised their over-allotment option in full to purchase an additional 420,000 shares of common stock. Including the over-allotment shares, the offering consisted of 1,710,000 shares from KMG, 1,263,735 from David Hatcher, Chairman and CEO and 246,265 from Valves Incorporated of Texas, whose President is Fred C. Leonard, an outside director of KMG, at the public offering price of $7.00 per share, before underwriting discounts or commissions. Upon completion of the offering and exercise of the over-allotment option, as of July 21, 2006, KMG had 10,532,856 shares outstanding.

KMG currently intends to use the net proceeds of this offering for working capital, to fund future acquisitions and for general corporate purposes.

Boenning & Scattergood, Inc. served as lead book-running manager of the offering and Sterne, Agee & Leach, Inc. acted as co-manager.

A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (File No. 333-133901). Copies of the final prospectus relating to the offering may be obtained from Boenning & Scattergood, Inc. at 4 Tower Bridge 200 Barr Harbor Drive, Suite 300 West Conshohocken, PA 19428 or Sterne, Agee & Leach, Inc. at 800 Shades Creek Parkway, Suite 700 Birmingham, Alabama 35209.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Contacts:
John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
LMortman@equityny.com

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KMG CHEMICALS NAMED TO THE 2006 FORTUNE SMALL BUSINESS LIST OF AMERICA'S 100 FASTEST GROWING SMALL COMPANIES

HOUSTON, TX - July 10, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has been included on FORTUNE Small Business' FSB 100 list of the fastest growing small public companies in America, ranking #86. The list appears in the July/August issue of the magazine and is currently available at www.fsb.com.

To compile the list, FORTUNE Small Business asked financial research firm Zacks to rank public companies with revenues less than $200 million and a stock price of more than $1, based on their percentage growth in earnings, revenue, and stock performance over the past three years. Banks and real estate firms were excluded.

David Hatcher, Chairman and CEO of KMG, stated, "We are proud of the Company's financial record, which was the basis for KMG's inclusion in the list. The acknowledgment of the Company's success and growth is certainly gratifying, and all of us at KMG share in this recognition."

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Contacts:

John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
12-836-9604
LMortman@equityny.com

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KMG CHEMICALS ANNOUNCES PRICING OF PUBLIC OFFERING

HOUSTON, TX - June 30, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that a public offering of 2,800,000 shares of its common stock has been priced at $7.00 per share, before underwriting discounts or commissions. The offering consists of 1,500,000 shares from KMG, 1,087,984 from David Hatcher, Chairman and CEO and 212,016 from Valves Incorporated of Texas, whose President is Fred C. Leonard, an outside director of KMG. KMG and the selling shareholders have granted the underwriters an option to purchase up to an additional 420,000 shares solely to cover over-allotments, if any. A registration statement relating to these securities has been filed with and declared effective by the Securities and Exchange Commission (File No. 333-133901). The transaction is expected to close on July 6, 2006, subject to customary closing conditions.

KMG currently intends to use the net proceeds of this offering for working capital, to fund future acquisitions and for general corporate purposes.

Boenning & Scattergood, Inc. served as lead book-running manager of the offering and Sterne, Agee & Leach, Inc. acted as co-manager.

Copies of the final prospectus relating to the offering may be obtained from Boenning & Scattergood, Inc. at 4 Tower Bridge 200 Barr Harbor Drive, Suite 300 West Conshohocken PA 19428 or Sterne, Agee & Leach, Inc. at 800 Shades Creek Parkway, Suite 700 Birmingham, Alabama 35209.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Contacts:

John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
LMortman@equityny.com

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KMG CHEMICALS REPORTS STRONG RESULTS FOR ITS THIRD QUARTER AND YEAR-TO-DATE; NINE-MONTH NET INCOME UP 51% ON 23% SALES GROWTH

HOUSTON, TX - June 9, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the third quarter and nine-month period ended April 30, 2006.

Third Quarter Financial Highlights - versus fiscal 2005 third quarter

• Net sales rose 37% to $21.0 million.
• Net income grew 77% to $1.9 million or $0.20 per diluted share versus $1.0 million or $0.13 per diluted share in fiscal 2005. Net earnings per diluted share were calculated on 15% more shares outstanding principally due to the successful completion of a 1.2 million-share private placement in April 2005.

Nine-month Financial Highlights - versus first nine months of fiscal 2005

• Net sales increased 23% to $50.9 million.
• Net income rose 51% to $3.3 million or $0.35 per diluted share from $2.2 million or $0.27 per diluted share. Net earnings per diluted share were calculated on 18% more shares outstanding than in the 2005 period primarily due to the aforementioned private placement.

The Company continued to experience strong sales of its wood treating chemicals. Penta revenues were up 27% to $6.5 million in the third quarter and 37% to $20.3 million in the first nine months of fiscal 2006, driven by greater demand from utilities for treated poles. Creosote sales increased 29% to $9.0 million in the third quarter and 11% to $23.4 million in the year-to-date period. As previously stated, after being negatively impacted by disruptions in operations caused by the 2005 hurricanes, KMG's creosote volume returned to pre-hurricane levels at the end of the first quarter of fiscal 2006; the demand for creosote from major railroads remains strong.

Sales of KMG's animal health pesticides were $3.9 million in the 2006 third quarter versus $1.7 million the same period last year, and $4.8 million in the 2006 nine-month period versus $3.0 million in the comparable 2005 period. Approximately $1.2 million of the $2.2 million third quarter increase in the segment's sales is due to the Company's February 2006 acquisition of the U.S.-based animal health pesticide business of Boehringer Ingelheim.

Neal Butler, President and COO of KMG, commented, "All of our business areas have performed well thus far this year and have exceeded our expectations. The recent expansion of our penta plant in Matamoros, Mexico, which added 30% more capacity, was integral to that segment's growth. Penta demand remains strong, as does the market for creosote. We are progressing with the integration of our most recent acquisition, which will not have a material impact on fiscal 2006 earnings due to the distribution agreement in place with the seller, but this animal insecticide business should contribute substantially to fiscal 2007 earnings."

David Hatcher, Chairman and CEO of KMG, stated, "We are extremely pleased with our third quarter and year-to-date results. During the quarter, net income grew at more than twice the rate of sales due to increased sales of higher margin penta products and from improved creosote pricing." Mr. Hatcher continued, "We have always stated that our shareholders should expect year-over-year growth in sales and earnings, which management strives to deliver, but we do not manage the Company on a quarter-by-quarter basis. While we anticipate growth in the final quarter of fiscal 2006, investors should not expect the growth levels achieved in the third quarter. Based on our strong results for the first nine months of fiscal 2006, we remain confident that we will achieve our goal of double-digit EPS growth for fiscal year 2006. Additionally, we remain enthusiastic about the Company's prospects for 2007 and beyond, and are firmly focused on executing our proven growth strategy."

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. . The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Contacts:

John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Lauren Till
212-836-9610
LTill@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ANNOUNCES PROPOSED PUBLIC OFFERING OF COMMON STOCK

HOUSTON, TX - May 8, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has filed a registration statement with the Securities and Exchange Commission for a public offering of 3,000,000 shares of its common stock. Of the shares being offered, 1,500,000 are being offered by KMG, 1,260,000 are being offered by David L. Hatcher, KMG's Chairman & CEO, and 240,000 are being offered by Valves Incorporated of Texas, whose president is Fred C. Leonard, an outside director of KMG. The shares that Mr. Hatcher intends to sell represent approximately 23% of his stock in KMG. After the completion of the offering, he would still own approximately 4,130,000 shares, or about 40% of KMG's outstanding common stock, after giving effect to the offering. The underwriters will have an option to purchase up to an additional 450,000 shares of common stock from KMG and the selling shareholders to cover over-allotments, if any.

KMG intends to use the net proceeds of this offering to provide capital for its acquisition program, for working capital and other general corporate purposes.

Boenning & Scattergood, Inc. is serving as lead book-running manager of the offering and Sterne, Agee & Leach, Inc. is acting as co-manager.

When available, copies of the preliminary prospectus relating to the offering may be obtained from Boenning & Scattergood, Inc. at 4 Tower Bridge 200 Barr Harbor Drive, Suite 300 West Conshohocken, PA 19428 or Sterne, Agee & Leach, Inc. at 800 Shades Creek Parkway, Suite 700 Birmingham, Alabama 35209.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct.

Contacts:

John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com

Counsel: The Equity Group Inc.
Lauren Till
212-836-9610
LTill@equityny.com
www.theequitygroup.com

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KMG CHEMICALS SHARES TO BEGIN TRADING ON THE NASDAQ NATIONAL MARKET, MONDAY MAY 1ST

HOUSTON, TX - April 27, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that its common stock, which has been trading on the NASDAQ Capital Market, will begin trading on the NASDAQ National Market effective Monday May 1, 2006. KMG's trading symbol will remain "KMGB."

According to David Hatcher, Chairman and CEO of KMG, "Listing on the NASDAQ National Market is an important step for our Company. KMG's stock will be eligible for purchase by a broader range of investment management funds, and will able to be purchased on margin. Additionally, the NASDAQ National Market listing will afford wider exposure to KMG."

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com www.theequitygroup.com

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KMG CHEMICALS SECOND QUARTER NET INCOME UP 62% ON 25% SALES GROWTH

HOUSTON, TX - March 6, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the second quarter and six-month period ended January 31, 2005.

Second Quarter Financial Highlights - versus fiscal 2005 second quarter

• Net sales rose 25% to $15.5 million.
• Net income grew 62% to $719,000 or $0.08 per diluted share versus $444,000 or $0.06 per diluted share in fiscal 2005. Net earnings per diluted share were calculated on 17% more shares outstanding principally due to the successful completion of a 1.2 million-share private equity placement in April 2005.

First Half Financial Highlights - versus first half of fiscal 2005

• Net sales increased 15% to $29.9 million.
• Net income rose 26% to $1.4 million or $0.15 per diluted share from $1.1 million or $0.14 per diluted share. Net earnings per diluted share were calculated on 19% more shares outstanding than in the 2005 period principally due to the aforementioned private equity placement.

Segment Performance
Pentachlorophenol ("penta"), an industrial wood preservative used to treat utility poles, was the key driver of the Company's strong second quarter results. Penta revenues were up 46% to $7.0 million in the quarter, and rose 42% to $14.0 million in the first half of fiscal 2006. During the second quarter, KMG completed the expansion of its penta plant in Matamoros, Mexico, which added 30% more capacity and enabled KMG to ship against the backlog generated by the 2005 hurricane season. Also contributing to the strong penta performance was the Company's June 2005 acquisition of penta assets from Occidental Chemical.

Sales of creosote, an industrial wood preservative used by wood treaters that mainly process crossties for railroads, were $8.1 million in the second quarter, a 26% increase over the same quarter of last year. The greater creosote demand KMG experienced during the quarter largely offset hurricane-related sales disruptions in the first quarter. As a result, creosote sales for the first half of 2006 were essentially even with last year's period.

With regard to KMG's insecticide product line, revenues declined $427,000 in the first six months of 2006 to $914,000 due to the timing of certain sales that the Company now expects to ship in its fiscal third quarter. Management anticipates strong performance from this product line in the balance of fiscal 2006. Revenues from MSMA, the Company's herbicide product, were relatively even with the second quarter of last year. The selling season for both of these product lines is mainly in the second half of KMG's fiscal year.

Neal Butler, President and COO of KMG, commented, "Our Matamoros facility is consistently producing penta at 30% greater capacity due to the recent plant expansion. I am pleased to report that while we fulfilled our backlog of orders, there remains strong market demand for this product, which we will be able to meet. Additionally, the integration of our most recent acquisition is underway and has been progressing very well. As previously announced, the newly acquired animal insecticide business will not have a material impact on earnings in fiscal 2006 due to the distribution agreement in place with the seller, but it should be a significant contributor to the bottom-line in fiscal 2007."

David Hatcher, Chairman and CEO of KMG, stated, "We are very pleased with the results for the quarter, which surpassed our expectations. Net income grew at a substantially faster rate than sales for the quarter due to a shift in our product mix towards higher margin penta sales, as well as the positive impact the June 2005 acquisition of penta assets has had on our business. Based on our strong results for the first half of 2006 and our outlook for the second half of the year, we are confident that we will achieve our goal of double-digit EPS growth for fiscal year 2006. Looking further ahead, we are optimistic about continued growth in 2007, especially considering our most recent acquisition. We remain committed to our growth strategy, a proven model for the Company, and believe it will continue to build value for our shareholders."

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ACQUIRES ANIMAL INSECTICIDE ASSETS FROM BOEHRINGER INGELHEIM VETMEDICA

Expected to Contribute Approximately $8 Million of Annual Revenues

HOUSTON, TX - February 22, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it acquired the U.S. based animal insecticide business of Boehringer Ingelheim Vetmedica, Inc.

For a 23-week transition period ending July 31, 2006, Boehringer will be KMG's exclusive U.S. distributor for the acquired product line. "During that period, we expect the acquisition to add approximately $4 million of revenues, and to have a minor positive effect on earnings due to the terms of the transitional distribution agreement. However, KMG will begin managing the entire sales function for this business on August 1, 2006, the start of our 2007 fiscal year. We expect the acquired business to contribute annual revenues of approximately $8 million during fiscal 2007 and to be significantly accretive to earnings per share," said John Sobchak, CFO of KMG.

The acquisition consists of:

• The leading brand of insecticidal ear tags for cattle in the U.S., as well as an insecticidal ear tag that uses an innovative ingredient awaiting final approval from the EPA, which KMG expects to market in fiscal 2007.
• A product line consisting of several liquid and dust formulations of insecticides for cattle, swine, poultry, and other animals, as well as applications for the premises used to house such animals. The products are registered in the U.S., Canada, Mexico, Latin America and Australia.
• An 84,000 square foot manufacturing, warehouse and office facility in Elwood, Kansas, including manufacturing, formulation and packaging equipment.
• An experienced work force with backgrounds in manufacturing, product development, and regulatory support associated with the acquired products.

Neal Butler, President and COO of KMG, stated, "The animal health sector of the agricultural chemicals market holds significant opportunity to contribute to KMG's continued growth. Combined with our Rabon/Ravap business, this acquisition provides KMG with an estimated 20% market share of the U.S. livestock and poultry insecticide business. Additionally, the purchase effectively provides us with an animal health platform upon which to further grow our presence in this market through continued prudent acquisitions."

David Hatcher, Chairman and CEO of KMG Chemicals, commented, "This purchase invests most of our current cash position, including the remainder of the $6 million raised through the sale of common stock last April. In fiscal 2002, we established an objective of completing one or two acquisitions each year that would be immediately accretive to EPS; this transaction represents our sixth successful acquisition over that four-year time frame. We continue to pursue additional acquisitions that will have a meaningful positive impact to our bottom-line and enable us to capture a major position in attractive markets. Our pipeline remains very compelling and we are optimistic about our prospects for continued external growth. We continue to believe that our strategy will achieve attractive growth rates for our shareholders."

About Boehringer Ingelheim Boehringer Ingelheim Vetmedica, Inc.
is an affiliate of the Boehringer Ingelheim group of companies headquartered in Ingelheim, Germany. The Boehringer Ingelheim group is one of the world's 20 leading pharmaceutical companies. Headquartered in Ingelheim, Germany, it operates globally with 144 affiliates in 45 countries and nearly 36,000 employees. Since it was founded in 1885, the family-owned company has been committed to researching, developing, manufacturing and marketing novel products of high therapeutic value for human and veterinary medicine. In 2004, Boehringer Ingelheim posted net sales of 8.2 billion euro. For more information, see www.boehringer-ingelheim.com.

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG-Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS DECLARES SEMI-ANNUAL CASH DIVIDEND

HOUSTON, TX - February 21, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that its Board of Directors has declared a semi-annual cash dividend of $0.0375 per common share. The dividend is payable on March 15, 2006 to shareholders of record as of March 1, 2006. As of January 31, 2006, there were approximately 8.8 million common shares outstanding.

David Hatcher, Chairman and CEO of KMG Chemicals, commented, "We believe it is important to share the Company's profits with our shareholders, and are pleased to declare this cash dividend. The continuation and steady increase in KMG's dividend distribution illustrates the Board of Directors' confidence in the Company's prospects for the balance of fiscal 2006 and beyond."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ADDS 30% CAPACITY TO PENTACHLOROPHENOL PLANT

HOUSTON, TX - January 26, 2006 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that the expansion of its pentachlorophenol ("penta") plant in Matamoros, Mexico is fully operational. The expansion, an investment of approximately $1 million, adds a minimum of 30% more penta production capacity.

Penta is currently manufactured and sold by KMG to wood treaters who use the product to treat utility poles that are then sold to electric and telecommunications companies. KMG is the only producer of penta in North America.

Neal Butler, President and COO of KMG, stated, "We moved up the plant expansion by two months in response to greater penta demand from the restoration taking place in the wake of Hurricanes Katrina and Rita. While the plant has been operating at record production levels for several months, we are now operating at sufficiently high levels as to reduce our backlog of penta orders and ensure our ability to meet market demand going forward. For over 20 years, KMG has been a reliable source of quality penta to wood treaters supplying the utility pole market; we are more committed than ever to servicing this market."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:

John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS ANNOUNCES FIRST QUARTER RESULTS

Plant Expansion Near Completion

HOUSTON, TX - December 1, 2005 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the first quarter ended October 31, 2005.

First quarter net sales increased 6% to $14.4 million, while net income increased 2% to $686 thousand. Earnings per basic and diluted share were $0.08 and $0.07, respectively, versus $0.09 per basic and diluted share in the first quarter of fiscal 2005. Earnings per diluted share was calculated on 22% more shares outstanding than the first quarter of last year, principally due to a 1.2 million-share private equity placement in April 2005.

During the first quarter, the Company began expensing stock options in accordance with FAS 123(R). The unvested portion of KMG's previously awarded options, along with its new Long-Term Incentive Plan, added non-cash G&A expense of $40,000 in the quarter.

KMG closed the first quarter of fiscal 2006 with $10.0 million of cash and cash equivalents, working capital of $12.6 million, total assets of $61.9 million, shareholders' equity of $33.3 million and long-term debt of $17.2 million.

Segment Performance
Sales of our creosote industrial wood treating chemical, were $1.5 million below the first quarter of last year due to disruption caused by Hurricanes Katrina and Rita. In September 2005, KMG entered a short-term storage agreement to address temporary disruption caused by Hurricane Katrina to its bulk storage terminal in Avondale, Louisiana, which is used primarily for creosote imported from Europe. Creosote's operating income contribution was impacted by the lower sales volumes, as well as a $50,000 charge for the future estimated cost of cleaning the temporarily leased terminal, and increased storage, handling and freight charges associated with the temporary facility. Creosote sales volumes have now returned to pre-hurricane levels.

Revenues from KMG's other industrial wood treating chemical, pentachlorophenol, increased 38% to $6.9 million as compared to the first quarter of 2005, due primarily to sales associated with the acquisition of penta assets formerly owned by Vulcan Chemicals, as well as greater demand from utilities in the aftermath of the hurricanes. Of note, the Company's penta plant operated at full capacity during the first quarter, and is currently in the final stages of an expansion that will increase penta production capacity significantly. The plant expansion was originally scheduled to be completed at the end of the second quarter, but was accelerated by two months in response to the increased demand generated by the hurricanes. The amortization of intangible assets associated with the Vulcan acquisition added more than $400,000 of non-cash G&A expense in the first quarter of 2006. KMG remains on-track to achieve the full projected annual benefit from the Vulcan acquisition in fiscal 2006, but as anticipated, the Vulcan acquisition had a small net positive impact on first quarter earnings for 2006 versus 2005. More specifically, the Company anticipates annual revenue contribution of at least $3 million from the acquisition, as well as greater operating efficiencies stemming from increased throughput at its penta plant.

The Company's Rabon insecticide product line continued to perform well in its off-season, with revenue of $602,000 in the first quarter, a 72% increase over the first quarter of 2005. Revenues from KMG's herbicide product, MSMA, also were up in the off-season, increasing 24% over the first quarter of last year to $536,000.

David Hatcher, Chairman and CEO of KMG Chemicals, commented, "Our first quarter performance was in line with our expectations. We are optimistic about the Company's prospects for the balance of fiscal 2006 and beyond. The additional penta production capacity coming on-line in the second quarter will enable us to realize the full benefits of our most recent acquisition. We believe we will achieve double-digit EPS growth in fiscal 2006 based on our existing product lines alone, despite the greater number of shares outstanding. As we have stated before, our earnings are skewed to the second half of our fiscal year. We anticipate good results for the next quarter and a strong second half. Additionally, our pipeline of acquisition prospects is the most exciting in the Company's history, and we are working hard to deliver continued long-term growth for our shareholders. We look forward to reporting on KMG's continued development."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact: John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS 2005 NET INCOME UP 73% ON 36% SALES INCREASE

HOUSTON, TX - October 11, 2005 - KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced unaudited financial results for the fiscal fourth quarter and year ended July 31, 2005.

• Net sales rose 36% to a record $59.2 million.
• Net income grew 73% to $3.1 million or $0.39 per basic share and $0.37 per diluted share versus $1.8 million or $.23 per basic and diluted share in fiscal 2004. Net earnings per diluted share were calculated on 8% more shares outstanding principally due to the successful completion of a 1.2 million-share private equity placement in April 2005.

Fourth Quarter Financial Highlights - versus fiscal 2004 fourth quarter

• Net sales increased 24% to $17.7 million.
• Net income was $890 thousand or $0.10 per basic and diluted share versus $934 thousand or $0.12 per basic and diluted share in the fourth quarter of 2004. Net earnings per diluted share were calculated on 21% more shares outstanding than in the 2004 quarter principally due to the aforementioned private equity placement.

The Company closed the year with total assets of $61.1 million, a 41% increase over $43.2 million a year earlier. Cash and cash equivalents on July 31, 2005 totaled approximately $8.8 million, up from $974 thousand at the end of last year. Long-term debt increased to $17.6 million from $11.2 million last year. In fiscal 2005, the Company acquired from Occidental Chemical pentachlorophenol assets formerly owned by Vulcan Chemicals. The acquisition was partially funded by a $10.0 million note payable to the seller, which accounted for the increase in the Company's long-term debt. The note is to be repaid over a five-year term and bears interest at a fixed 4% rate.

David Hatcher, Chairman and CEO of KMG Chemicals, said, "We are very pleased with the 2005 financial results, which we achieved in the face of record high raw material prices. Sales were up in all product lines, with wood treating chemical sales particularly strong as we benefited from a full year's contribution from two acquisitions completed during fiscal 2004. Our acquisition program is continuing to deliver growth and build value for our shareholders. We completed a highly strategic acquisition in the fourth quarter of fiscal 2005 when we acquired pentachlorophenol assets from Occidental Chemical, which solidified our position as the largest commercial provider of industrial wood treating chemicals in North America. Fourth quarter earnings were unimpressive, but we anticipate attractive growth in fiscal 2006, principally in the second half of the year."

Hatcher continued, "As I have stated previously, the variables most difficult to predict are our costs for raw materials, particularly chlorine and phenol, which are currently at all-time high levels. These feedstocks are commodity chemicals that historically have been quite cyclical. With this latest acquisition, KMG is positioned for significant bottom-line growth should these commodity chemical feedstocks return to their long-term average price levels. We anticipate, however, that these high raw material prices will continue through 2006, exerting pressure on our margins. Additionally, while our facilities were spared any serious damage by Hurricanes Katrina and Rita, we are continuing to incur additional expenses particularly related to maintaining the supply of wood treating chemicals to our customers in the aftermath of these disasters. These factors will impact results in fiscal 2006, particularly in the first quarter, during which EPS may be down slightly versus the first quarter of 2005. Still, we expect low double digit growth in EPS from our current business for 2006 overall."

Hatcher concluded, "We finished fiscal 2005 with an $8.8 million cash position and a conservative debt level, after completing the biggest acquisition in the Company's history. We closed our first equity offering in April, raising $6.0 million and expanding the institutional ownership of our stock. We are well positioned to grow the Company with additional accretive acquisitions, and are hard at work to continue to implement that strategy."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The Company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the wood treating and agricultural industries. For more information, visit www.kmgchemicals.com.

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact: John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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KMG CHEMICALS DECLARES SEMI-ANNUAL CASH DIVIDEND

Dividend increased to an annual amount of $.075 per share

HOUSTON, TX - August 23, 2005 - KMG Chemicals, Inc. (NASDAQ:KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that its Board of Directors has declared a semi-annual cash dividend of $0.0375 per common share. It is payable on September 16, 2005 to shareholders of record as of August 31, 2005. As of July 31, 2005, there were approximately 8.8 million common shares outstanding.

David Hatcher, Chairman and CEO said, "This increase demonstrates the Board's confidence in the Company's outlook, based on our strong results for the first nine months of fiscal 2005, and expectations for continued growth. Additionally, it represents a continuation of our policy of sharing our success with our shareholders through increased dividends."

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements as to the future performance of the company. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development acceptance, the impact of competitive services and pricing and general economic risks and uncertainties.

Company contact:

John V. Sobchak
Chief Financial Officer
713) 600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
Lauren Barbera
212-836-9610
LBarbera@equityny.com
www.theequitygroup.com

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News Releases

Fiscal Year 2007 News Releases

• August 22, 2007 — KMG Chemicals Declares Quarterly Cash Dividend
• July 5, 2007 — KMG Chemicals Files Resale Registration Covering a Portion of Chairman David Hatcher's Shares
• June 4, 2007 — KMG Chemicals Third Quarter Net Income Up 104% on 33% Sales Increase
• June 4, 2007 — KMG Chemicals President & COO Neal Butler Promoted to CEO Postion; David Hatcher Retains Chairman Position
• May 30, 2007 — KMG Chemicals to Announce Third Quarter Financial Results on Monday, June 4
• May 22, 2007 — KMG Chemicals Names Stephen Thorignton to Board of Directors
• April 24, 2007 — KMG Chemicals Provides Update on Successful Launch of New Avenger® Insecticide Ear Tag
• March 2, 2007 — KMG Chemicals Announces Strong Results for its Second Quarter and First Half
• February 28, 2007 — KMG Chemicals to Announce Second Quarter Financial Results on Friday, March 2
• February 26, 2007 — KMG Chemicals' COO Neal Butler Appointed to Board of Directors
• February 21, 2007 — KMG Chemicals Declares Semi-Annual Cash Dividend
• December 6, 2006 — KMG Chemicals Announces Strong First Quarter Results
• December 4, 2006 — KMG Chemicals to Announce First Quarter Financial Results on Wednesday, December 6th
• October 17, 2006 — KMG Chemicals Announces Strong Operating Results for the Fourth Quarter and Fiscal Year 2006
• October 16, 2006 — KMG Chemicals to Announce Fourth Quarter and Fiscal Year 2006 Financial Results Tomorrow, October 17th
• August 23, 2006 — KMG Chemicals Declares Semi-Annual Cash Dividend