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KMG CHEMICALS NAMED TO FORBES & FORTUNE SMALL BUSINESS LISTS

HOUSTON, TX – October 15, 2007– KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has been included on Forbes’ list of the 200 Best Small Companies, ranking #130, and on FORTUNE Small Business’ “FSB 100” list of America’s fastest-growing small public companies, ranking #57.

Forbes judged candidates with revenue of $5 million - $750 million and share prices above $5 according to return on equity, as well as sustained sales and net profit growth over 12-month and five-year periods. Banks, utilities and REITs were excluded. The complete list is available at http://www.forbes.com/2007/10/11/best-small-companies-biz-07200best-cz_jg_cs_1011bestsmall_land.html.

FORTUNE Small Business asked financial research firm Zacks to rank public companies with revenues less than $200 million and a stock price of more than $1, based on the past three years’ earnings growth, revenue growth, and stock performance. Banks and real estate firms were excluded. The complete list is available at http://money.cnn.com/magazines/fsb/fsb100/2007/.

Neal Butler, President and CEO of KMG, stated, “We are proud that the Company’s financial record has been recognized by these two well-regarded publications. All of us at KMG share in this recognition.”

About KMG

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 products to the wood treating and agricultural industries.

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. 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.

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Contacts: John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-988-9252 (x.114)
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Loren G. Mortman
212-836-9604
LMortman@equityny.com

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