KEMET Announces Reorganization of Its Film and Electrolytic Business Group

KEMET Corporation (OTC Bulletin Board: KEME), a leading manufacturer of tantalum, multilayer ceramic, solid aluminum, plastic film, paper and electrolytic capacitors, today announced the restructuring of one of its three business groups. Effective immediately the Film and Electrolytic Business Group will be realigned into two Business Units: the Standard Film and Paper Products Business Unit and the Power and Specialty Products Business Unit.

"This reorganization is an important step in positioning this business group to be a competitive part of our organization," stated Per Loof, KEMET's Chief Executive Officer. "There is great potential for growth in the markets we serve with the products we manufacture in this part of our business. The changes we are making will allow us to better serve our customers and compete more effectively in the marketplace," continued Loof.

"Through this reorganization we are streamlining our manufacturing operations thereby allowing us to improve our alignment with our customers' businesses earlier in the design phase," stated Kirk Shockley, KEMET's Vice President, Film and Electrolytic Business Group. "Additionally, we are reducing our operating cost by consolidating the manufacturing of our products and other leaning initiatives," continued Shockley.

The Standard Film and Paper Products Business Unit will be managed by Andreas Floegel, Senior Director, Standard Film & Paper Business Unit, and the Power and Specialty Products Business Unit will be managed by Dr. Werner Lohwasser, Vice President, Power and Specialty Products Business Unit. Both Floegel and Lohwasser will report directly to Shockley.

About KEMET

KEMET Corporation (KEME.OB) applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers around the world. KEMET offers the world's most complete line of surface-mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about KEMET Corporation's (the "Company") financial condition and results of operations that are based on management's current expectations, estimates and projections about the markets in which the Company operates, as well as management's beliefs and assumptions. Words such as "expects," "anticipates," "believes," "estimates," variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.

Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to the following: (i) generally adverse economic and industry conditions, including a decline in demand for the Company's products; (ii) the ability to maintain sufficient liquidity to realize current operating plans; (iii) the effect of receiving a going concern statement in our auditor's report on our 2009 audited financial statements; (iv) adverse economic conditions could cause further reevaluation of the fair value of our reporting segments and the write down of long-lived assets; (v) the cost and availability of raw materials; (vi) changes in the competitive environment of the Company; (vii) economic, political, or regulatory changes in the countries in which the Company operates; (viii) the ability to successfully integrate the operations of acquired businesses; (ix) the ability to attract, train and retain effective employees and management; (x) the ability to develop innovative products to maintain customer relationships; (xi) the impact of environmental issues, laws, and regulations; (xii) the Company's ability to finance and achieve the expected benefits of its manufacturing relocation plan or other restructuring plan; (xiii) volatility of financial and credit markets which would affect access to capital for the Company; (xiv) increased difficulty or expense in accessing capital because of the Company's delisting of common stock from the New York Stock Exchange; (xv) exposure to foreign exchange (gains) and losses; (xvi) need to reduce costs to offset downward price trends; (xvii) potential limitation on use of net operating losses to offset possible future taxable income; (xviii) dilution as a result of the issuance of a warrant to K Financing, LLC; and (xix) exercise of the warrant by K Financing, LLC may result in the existence of a controlling shareholder. Other risks and uncertainties may be described from time to time in the Company's other reports and filings with the Securities and Exchange Commission.

SOURCE KEMET Corporation

http://www.kemet.com

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