”Wood treating also contributed to the shortfall, but to a much lesser extent. Creosote sales in the fourth quarter rebounded as anticipated; however, cost increases from creosote suppliers continued, pressuring margins. Pricing actions have been implemented that we expect will capture those cost increases in the first quarter of fiscal 2012.”Mr. Butler concluded, “While we were disappointed in fiscal fourth quarter earnings, we are encouraged by the strong demand environment in our Wood Treating and Electronic Chemicals business units, and we are optimistic that this will continue through fiscal 2012. Combined with the successful completion of our plant consolidation initiative and associated synergies, as well as the implementation of our pricing strategies across all products, we expect fiscal 2012 will be a year of record earnings for KMG. Additionally, we have a very active acquisition pipeline, and are excited about the various opportunities we are pursuing.” Fourth Quarter Results & Conference Call KMG will elaborate further on its fourth quarter financial results on Thursday, October 13, 2011, when it issues a news release prior to the open of the stock market, and in its quarterly conference call, hosted by Neal Butler, and John Sobchak, CFO, at 10:00 a.m. ET. Interested parties may participate in the call by dialing 877-423-9820 (domestic) or 201-493-6749 (international). Please call in 10 minutes before the call is scheduled to begin, and ask for the KMGB call. The conference call will also be webcast live via the “Investor Relations” section of the Company’s website at www.kmgchemicals.com. To listen to the live call please go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to listen live, the conference call will be archived on the website. 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.