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Stockholm Convention Committee Accepts Continued Use of Pentachlorophenol

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KMG-Bernuth, Inc., a subsidiary of KMG Chemicals, Inc. (NYSE:KMG) , announced that the Conference of the Parties (COP) of the Stockholm Convention accepted the recommendation of the Persistent Organic Pollutants Review Committee that pentachlorophenol (penta) can continue to be produced and used as an industrial wood preservative for the treatment of utility poles and cross-arms.

Delegates from several countries supported and defended the use of penta for industrial wood preservation applications and challenged the validity of the scientific review process. However, the COP agreed with the proposal of the Review Committee that penta be listed as a persistent organic pollutant (POP). The United States has not ratified the Stockholm Convention, and thus a decision by the Conference has 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 with Canada and the United States, and intends to vigorously assert that the use of penta on utility poles and cross-arms 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 that allow the use of penta as a wood preservative for utility poles and cross-arms.

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. For more information, visit http://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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