KMG Chemicals Named To Forbes List Of “100 Best Small Companies In America”

KMG Chemicals, Inc. (NASDAQ GS: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has been named one of “America's 100 Best Small Companies” by Forbes magazine. KMG was ranked #68. The entire list can be viewed at http://www.forbes.com/best-small-companies/list/.

To qualify for inclusion, companies must be publicly traded for at least a year, generate annual revenues of between $5 million and $1 billion, and have a stock price of at least $5 per share. The rankings are based on measures that include earnings growth, sales growth, and return on equity in the past 12 months and over five years, as well as stock performance relative to each company’s peer group.

Neal Butler, President and CEO of KMG, commented, “We are honored to once again be recognized by Forbes as one of the best small companies in America. This distinction is a direct result of the dedication and hard work of the entire KMG team. We remain confident in our ability to report improved results in fiscal 2012, driven by the successful conclusion of the integration initiative associated with our most recent Electronic Chemicals acquisition, as well as the benefits of the actions we have taken to improve results in our Electronic Chemicals and Wood Treating Chemicals businesses.”

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.

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