KMG Chemicals Signs Exclusive Distribution Agreement With Solvay Chemicals, Inc. For Farm Hygiene Product

HOUSTON, TX – June 14, 2010 – KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has signed an exclusive distribution agreement with Solvay Chemicals, Inc., a member of the Solvay Group, the Brussels based global producers of a wide range of chemicals, to distribute the Proxitane® AHC product line for animal hygiene in the United States.

The Proxitane® brand signals KMG’s entrance into the farm and ranch hygiene sector of Animal Health products.  Proxitane® AHC is a patented peracetic acid-based broad spectrum disinfectant that is specially formulated to optimize its disinfectant action via its strong oxidizing action, with no known risk of resistance build-up.  Its efficacy is enhanced by the specially formulated surfactant which provides better stability, penetration, surface retention and added detergent action.  Proxitane® AHC has cleaning and disinfecting applications for all buildings, vehicles and containers used by poultry, cattle, swine and sheep growers.  The product is currently marketed in Europe and Asia and this exclusive agreement represents Solvay’s expansion into the U.S. farm and ranch hygiene market. 

 Randy Berry, General Manager of KMG Chemicals’ Animal Health business commented, "KMG was selected as the exclusive distributor for this product due to our broad national network of distribution channel partners.  This is a new product initiative and we expect that results will be modest in the first year, but anticipate that this agreement will be the first step towards a bigger position in the farm hygiene market, which is closely aligned with our traditional ectoparisiticide market.”

 Jason Muessig, Product Manager for Solvay Chemicals’ Proxitane peracetic acid line stated, “We are very excited to broaden our PAA disinfection applications into the farm and ranch hygiene market in the U.S.  Proxitane® AHC has been successfully used around the world for biosecurity requirements in animal facilities.  This market is rapidly moving toward an active disease control strategy requiring the use of innovative, environmentally compatible disinfectants such as Proxitane® AHC.  We are proud to be launching our EPA registered product with KMG Chemicals.”

About Solvay Chemicals, Inc.
Solvay Chemicals, Inc. is part of the Solvay Group, an international industrial group active in Chemistry.  It offers a broad range of products and solutions aimed at improving quality of life.  The Group is headquartered in Brussels and its companies employ about 19,000 people in 50 countries.  In 2009, the Group’s consolidated sales amounted to EUR 8.5 billion.  Solvay is listed on the NYSE Euronext stock exchange in Brussels (NYSE Euronext: SOLB.BE - Bloomberg: SOLB.BB - Reuters: SOLBt.BR).  Details are available at www.solvay.com.  

About KMG
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets.  The Company grows by acquiring and optimizing stable chemical product lines and businesses with established production processes.  Its current operations are focused on the wood treatment, electronic, and agricultural chemical markets.  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.