KMG CHEMICALS ANNOUNCES THIRD QUARTER FISCAL 2003 RESULTS

HOUSTON, June 3, 2003 – KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets; today announced its unaudited financial results for the third fiscal 2003-quarter and nine months ended April 30, 2003.

For the third fiscal 2003 quarter, net income was $0.53 million or $0.07 per diluted share, down from $0.80 million or $0.11 per diluted share reported for the same quarter in fiscal 2002. Fiscal third quarter net sales were $8.98 million, up from $8.78 million in the year earlier quarter.

For the nine months ended April 30, 2003, net income was $1.17 million or $.15 per diluted share, off from $1.61 million or $.21 per diluted share for the same period last year. Net sales were $23.32 million compared to $24.45 million last year.

At the end of the third fiscal 2003 quarter, KMG had total assets of $32.98 million and long-term debt of $5.81 million. The company had approximately $1.74 million of cash and cash equivalents at April 30, 2003.

David Hatcher, chairman and president of KMG Chemicals, said, “We continued to experience the same slump in our wood treating chemical sales during the first part of the third quarter as we did in the second quarter. However, these sales started to turn around in April. The quarter’s drop in wood treating chemical sales was more than offset by an increase in pre-season sales of MSMA (Bueno® 6) and Rabon. MSMA is our herbicide that serves the cotton market. Rabon, acquired in December 2002, is our insecticide for the livestock and poultry markets. We are also beginning to realize our stated goal of expanding our MSMA sales into important international markets. Shipments to Mexico from our Matamoros plant began earlier this year and we expect to begin selling to Brazilian markets this summer.”

The company’s year-to-date earnings suffered from higher raw material prices and non-cash fixed charges related to the MSMA plant that started up in January 2002. “High raw material costs have had a negative impact on our pentachorophenol (penta) business, particularly in the third quarter of this year. A price increase for penta that went into effect on June 1 should help its performance,” said Hatcher. “We also continue to execute our short-term strategy of reduced production of MSMA to work down inventory levels. This will translate into lower working capital requirements, but it also means less production in fiscal 2003 over which to spread our fixed plant costs.” Hatcher also noted that the company is currently entering the main selling season for both MSMA and Rabon, which will skew annual earnings toward the fourth quarter.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. 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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Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

KMG CHEMICALS ANNOUNCES
SECOND QUARTER FISCAL 2003 RESULTS

HOUSTON, March 11, 2003 – KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the second fiscal 2003 quarter and six months ended January 31, 2003.

For the second fiscal 2003 quarter, net income was $0.15 million or $0.02 per diluted share, down from $0.39 million or $0.05 per diluted share reported for the same quarter in fiscal 2002. Fiscal second quarter net sales were $6.3 million, off from $7.6 million in the year earlier period.

For the six months ended January 31, 2003, net income was $.64 million or $.08 per diluted share, down from $.81 million or $.11 per diluted share for the same period last year. Net sales were $14.3 million compared to $15.7 million last year.

At the end of the second fiscal 2003 quarter, KMG had total assets of $30.0 million and long-term debt of $4.5 million. The company had approximately $1.9 million of cash and cash equivalents at January 31, 2003.

David Hatcher, chairman and president of KMG Chemicals, said, “Wood treating chemical sales declined significantly in our second fiscal quarter. We don’t believe the market has contracted, but rather that we have experienced disruptions in parts of our supply and customer base that were particularly evident during our second fiscal quarter. These results are unsatisfactory and we have reassigned responsibilities within the organization to rectify the situation.”

Additionally, the company’s earnings in the second fiscal 2003 quarter versus the same quarter of last year have been burdened by higher raw material prices and non-cash fixed charges related to the new plant started in January 2002 to produce the MSMA herbicide Bueno® 6. “We ended fiscal 2002 with inventory levels that were too high,” continued Hatcher. “Our strategy for this fiscal year has been to throttle back production and work down our inventory levels. This makes good business sense. However, it also means that in the short term we will have less production in fiscal 2003 over which to spread our fixed plant costs.”

On December 30, 2002, the company acquired the Rabon product line (previously announced), which is used by domestic livestock and poultry growers to protect their animals from flies and other pests. The acquisition was financed with senior bank debt. The company’s existing term note was amended to a five year note with a ten year amortization period, and the principal amount was increased to include the Rabon acquisition cost. The interest rate on the amended note has since been fixed at 5.0% for the remainder of the term via an interest rate swap with the bank.

With the Rabon acquisition, KMG now offers a portfolio of oral larvicides, insecticidal powders and sprays. Management is very excited about the upside potential and future growth prospects offered by Rabon. The acquisition is expected to initially add about $4 million in annualized revenues and be accretive to earnings in fiscal 2003. The main selling season for Rabon products is in the second half of the fiscal year – the same as for the company’s herbicide sales. This will cause earnings to be even more skewed toward the second half of the fiscal year than previously.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. 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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Company contact:
John V. Sobchak
Chief Financial Officer
(713) 600-3814
jsobchak@kmgchemicals.com

KMG CHEMICALS, INC. DECLARES
SEMI-ANNUAL CASH DIVIDEND

HOUSTON, February 28, 2003 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, announced that its Board of Directors has declared a semi-annual cash dividend of $0.03 per common share. It is payable on March 28, 2003 to shareholders of record as of March 14, 2003. As of January 31, 2003, there were approximately 7.5 million common shares outstanding.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com

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KMG CHEMICALS ANNOUNCES
LOWER EARNINGS EXPECTATIONS FOR SECOND FISCAL QUARTER
Wood treatment revenues declined, but Rabon earnings anticipated

HOUSTON, February 5, 2003 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it expects earnings for the three months ended January 31, 2003 to be in the range of $.01 to $.02 per share. Earnings for the same quarter in fiscal 2002 were $.05 per share.

David Hatcher, chairman and president of KMG Chemicals, said, "The decline in earnings we are expecting for the second quarter of this fiscal year versus the same quarter last year was primarily a result of fixed, non-cash charges related to our MSMA facility. Although we did not operate the MSMA plant during the quarter while we worked down inventories, we still incurred the non-cash charges. Our operating plan for the year anticipated these fixed charges for MSMA in the second quarter, but assumed that they would be offset by increased wood treating chemicals revenues. However, sales of wood treating chemicals began to fall significantly behind plan beginning in November 2002, and continue to be behind plan. Until November we were tracking our plan numbers. We are not at all satisfied with these results and are addressing the situation."

With respect to the second half of this fiscal year, the company noted that the Rabon acquisition, which closed on December 30, 2002, has now been successfully integrated into its operations. "The selling season for Rabon pesticide products begins in our third fiscal quarter," continued Hatcher. "We anticipate seeing a significant contribution to revenues and earnings from Rabon during the second half of this fiscal year."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG-Bernuth, Inc., is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

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KMG CHEMICALS ANNOUNCES ACQUISITION OF RABON PRODUCT LINE ASSETS

Expected to add $4 million in annualized revenue
and be immediately accretive to earnings

HOUSTON, January 2, 2003 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its acquisition of the Rabon insecticidal product lines of Boehringer Ingelheim Vetmedica, Inc. Boehringer Ingelheim Vetmedica, Inc. is an affiliate of the Boehringer Ingelheim group of companies headquartered in Ingelheim, Germany. The acquisition is effective as of December 30, 2002.

The Rabon product lines are used by domestic livestock and poultry growers to protect animals from flies and other pests. With this acquisition, KMG will offer the market a portfolio of oral larvicides, insecticidal powders and sprays, all containing the active ingredient tetrachlorvinphos. Rabon Oral Larvicide is the leading oral larvicide product in the United States.

As part of the transaction, KMG has also acquired the product registration for Ravap® Insecticide Spray. Both KMG and Boehringer Ingelheim Vetmedica will produce and market this spray composed of Rabon and other ingredients. Boehringer Ingelheim Vetmedica will continue to market the product under its Ravap trademark. Other assets acquired in the transaction include equipment, certain inventory, product registrations for other Rabon products, and other intangible assets.

David Hatcher, chairman and president of KMG, said, "This is our second step forward into the agricultural chemicals sector, and it further diversifies our overall revenue stream. We are excited about expanding our company with the Rabon product line, and with the potential for future growth this acquisition offers. Unlike other products in our portfolio, this product offers the opportunity for some organic growth. We will be actively looking for partnerships to expand the growth of the Rabon product lines both domestically and internationally. We intend to be the major supplier to the oral larvicide market worldwide."

Management anticipates that the acquisition should add approximately $4 million in annualized revenues, and that it should be immediately accretive to earnings. The purchase is being financed with a senior credit facility from KMG's long-time banking partner, SouthTrust Bank of Birmingham, Alabama.

"KMG has sufficient financial capacity to close more acquisitions using senior debt while still maintaining a conservative balance sheet," continued Hatcher. "Due to current economic conditions we are seeing more attractively priced acquisition prospects than we have seen in several years. Because of this, we are investigating financing alternatives in anticipation of the time when we have appropriately leveraged our balance sheet with senior debt. We are continuing ahead with our growth strategy that has served us well — targeting attractive acquisitions that meet our criteria of being immediately accretive financially and which serve narrowly focused markets. Our discipline, patience, and conservative approach to the acquisitions process is paying off. We have never subscribed to the fantasy of large 'synergies' through acquisitions. While our approach has been out of favor for several years, our patience now has the potential to be rewarded, to the benefit of our shareholders."

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of products to the lumber treating and agricultural industries. For more information, visit the company's web site at www.kmgchemicals.com.

The Boehringer Ingelheim group of companies, headquartered in Ingelheim, Germany, is one of the 20 leading pharmaceutical corporations in the world. It has some 140 affiliated companies in 42 countries worldwide and focuses on human pharmaceuticals and animal health. For more information

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KMG CHEMICALS FIRST QUARTER FISCAL 2003 RESULTS

Results meet expectations

HOUSTON, November 26, 2002 — KMG Chemicals, Inc. (NASDAQ Small Cap: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced its unaudited financial results for the first fiscal 2003 quarter ended October 31, 2002.

For the first fiscal 2003 quarter, net income was $0.48 million or $0.06 per diluted share, up from $0.42 million or $0.06 per diluted share reported for the same quarter in fiscal 2002. Fiscal first quarter net sales were $8.1 million or essentially flat with the year earlier period.

At the end of the first fiscal 2003 quarter, KMG had total assets of $27.3 million and long-term debt of $0.24 million. The company had approximately $3.0 million of cash and cash equivalents at October 31, 2002.

David Hatcher, chairman and president of KMG Chemicals, said, “A key part of the KMG strategy is that we serve stable niche markets. Even in this challenging economic environment, our core markets continue to exhibit relative stability. Cash flow from operations remains strong.”

“Agricultural chemical sales are seasonal, which causes our earnings to be skewed toward the second half of the fiscal year. Our current earnings per share estimate for the second quarter of fiscal 2003 is in the range of $.04 to $.05.”

“We are continuing to work hard at identifying and closing acquisitions that would be accretive to KMG’s profitability,” continued Hatcher. “Rest assured that our management team is fully focused on building the company. KMG’s strong balance sheet, healthy cash position and experienced employee base are proving to be a competitive advantage in this business environment.”

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc. is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural industry. For more information, visit the company's web site at www.kmgchemicals.com.

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