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Stockholm Convention Review Committee Accepts Continued Use of Pentachlorophenol

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KMG-Bernuth, Inc., a subsidiary of KMG Chemicals, Inc. (NYSE:KMG) , announced that the Persistent Organic Pollutants Review Committee of the Stockholm Convention has recommended that pentachlorophenol (penta) may continue to be produced and used for certain key industrial wood preservation applications, specifically the treatment of utility poles and cross-arms. That recommendation will be considered by the Conference of Parties at its next meeting in May 2015. If adopted by the Conference, the decision will apply to Canada and other countries that have ratified the Convention. The United States has not ratified the Convention, and a decision by the Conference will have no binding effect on the United States.

Canada and the United States have concluded comprehensive assessments of penta as an industrial wood preservative, and each country has independently authorized penta for that use. Both Canada and the United States recognized that penta has a long-established use in pressure treating utility poles and cross-arms, and serves a critical role in preserving the uninterrupted delivery of power through the electric grid.

KMG will remain actively engaged in the Convention process, and intends to vigorously assert at the Conference that the use of penta on utility poles, cross-arms and other registered applications should be continued indefinitely, as the current, stringent regulatory practices in North America are protective of human health and the environment. KMG is confident that Canada and the United States will continue to support their previous regulatory decisions, and will strongly support the continued use of penta at the Conference.

About KMG

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to select 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 electronic and industrial wood treatment chemical markets. For more information, visit the Company’s website at

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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