KEMET Announces Consolidation of Ceramic and Film & Electrolytics Business Groups

GREENVILLE, S.C., March 22 /PRNewswire-FirstCall/ -- KEMET Corporation (KEME.OB), a leading manufacturer of tantalum, multilayer ceramic, solid aluminum, plastic film, paper and electrolytic capacitors, announced today that it will combine its Ceramic and Film and Electrolytics business groups to generate synergies and accelerate the activities needed to enhance the operational performance of the former Film and Electrolytic (F&E) Business Group.  

Chuck Meeks, formerly Senior Vice President of the Ceramic Business Group, has been appointed to lead the newly organized group effective immediately.

"We believe that the consolidation of these two businesses will capitalize on the Ceramic team's proven track record of consistently demonstrated restructuring capabilities, enabling it to continue to manage the successful performance of the Ceramic business unit while also applying its experience to the planned restructuring activities of the F&E business unit," stated  Per Loof, KEMET's Chief Executive Officer.  "The Ceramic Business Group has been able to maintain and even improve its performance during the recent challenging business cycle and this combination will bring a strong management team to our plan to bolster the operating results of the F&E unit, strengthening our overall financial performance and providing additional shareholder value," continued Loof.

The Company reported net sales of $199.9 million for the quarter-ended December 31, 2009. The Ceramics and F&E business groups reported $45.8 million and $60.3 million respectively. The Tantalum Business Group reported net sales of $93.8 million for the same period.  

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

This news release contains or incorporates by reference documents containing certain statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements.  Words such as "expects," "anticipates," "believes," "estimates" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could" are intended to identify such forward-looking statements.  Readers should not rely solely on the forward-looking statements and should consider all uncertainties and risks. The statements are representative only as of the date they are made, and we undertake no obligation to update any forward-looking statement.  All forward-looking statements, by their nature, are subject to risks and uncertainties.  Our actual future results may differ materially from those set forth in our forward-looking statements.  We face risks that are inherent in the businesses and the market places in which we operate.  While management believes these forward-looking statements are accurate and reasonable, uncertainties, risks and factors, including those described below, could cause actual results to differ materially from those reflected in the forward-looking statements.

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 our 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 fiscal year 2009 audited financial statements; (iv) reevaluation of the fair value of our reporting segments and potential write downs of long-lived assets resulting from adverse economic conditions; (v) the cost and availability of raw materials; (vi) changes in our competitive environment; (vii) economic, political, or regulatory changes in the countries in which we operate; (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 that apply to our business, including those related to environmental matters; (xii) our ability to finance and achieve the expected benefits of our manufacturing relocation plan or other restructuring plans; (xiii) volatility of financial and credit markets which would affect our access to capital; (xiv) increased difficulty or expense in accessing capital because of the delisting of our 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 Equity, LLC; and (xix)  the possible existence of a controlling shareholder resulting from the exercise of the warrant by K Equity, LLC.

SOURCE KEMET Corporation

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