KEMET Exceeds Previously Announced Fourth Quarter Forecast

• Net sales for the fourth quarter of fiscal year 2010 were $213.0 million compared to $199.9 million for the third quarter of fiscal year 2010 up by 6.5%.
• Gross margin as a percentage of net sales for the fourth quarter of fiscal year 2010 was 20.2% compared to 18.2% for the third quarter of fiscal year 2010
• Non-GAAP adjusted net income per basic share of $0.11 and $0.06 per diluted share
• Cash flow from operations for the fourth quarter of fiscal year 2010 was $18.7 million
• Adjusted EBITDA of $25.4 million

GREENVILLE, SC – May 20, 2010 – KEMET Corporation (Other OTC: KEME) today reported preliminary results for the fourth fiscal quarter ended March 31, 2010. Net sales for the quarter ended March 31, 2010 were $213.0 million, which is a 56.6% increase over the same quarter last fiscal year and a 6.5% increase over the prior fiscal quarter ended December 31, 2009.

On a U.S. GAAP basis, net income was $0.3 million, or $0.00 per diluted share for the fourth quarter of fiscal year 2010 compared to net income of $2.4 million or $0.03 per diluted share for the same quarter last year (which included a curtailment gain of $30.8 million) and compared to net loss of $1.8 million or $(0.02) per share for the prior fiscal quarter ended December 31, 2009.

Non-GAAP adjusted net income was $8.8 million or $0.06 per diluted share for the current fiscal quarter compared to an adjusted net loss of $20.1 million, or $(0.24) per share for the same quarter last year and compared to an adjusted net income of $4.0 million, or $0.03 per diluted share for the prior fiscal quarter ended December 31, 2009. Adjusted EBITDA for the current quarter was $25.4 million compared to the company’s forecast of $22.0 to $25.0 million released on April 8, 2010.

We continued to make great progress operationally again this quarter by increasing our gross margins and generating substantial cash from operations, stated Per Loof, KEMET’s Chief Executive Officer. Our efforts to refinance our Balance Sheet were completed recently moving our debt maturities substantially into the future. The operating results and improved cash flows combined with our repositioned debt structure are allowing us to proceed on schedule with the restructuring of our European business. During the course of this restructuring effort, the company expects to spend approximately $35 million to $40 million to reposition our European manufacturing base. Our expectation is an improvement in our European operating results by approximately $10 million in fiscal year 2011 compared to fiscal year 2010, and to improve approximately $42 million in fiscal year 2012 versus fiscal year 2010. In total, we expect this business that has been contributing an average negative ($6.0) million adjusted EBITDA per quarter during fiscal year 2010, to contribute approximately a positive $6.0 million adjusted EBITDA per quarter in the period beginning April 2012, continued Loof.

The current fiscal quarter includes $6.6 million of restructuring charges primarily associated with reductions in force of $5.4 million and $1.2 million related to the relocation of equipment. The current fiscal quarter also includes a gain on sales and disposals of assets of $1.5 million related to proceeds from the sale of wet tantalum assets to Vishay Intertechnology, Inc. which were released from escrow.

In this news release, the Company makes reference to certain Non-GAAP financial measures, including Adjusted net income (loss), Adjusted net income (loss) per share and Adjusted EBITDA. Management believes that investors may find it useful to review the Company’s financial results as adjusted to exclude items as determined by management. Adjusted net income (loss) and Adjusted net income (loss) per share represent net income (loss) and net income (loss) per share excluding an increase in value of warrant which relates to the mark-to-market adjustment for the Platinum Closing Warrants, gain/loss on early extinguishment of debt, impairment charges associated with goodwill and long-lived assets, integration costs related to business acquisitions, restructuring charges related primarily to employee severance and equipment moves, certain inventory adjustments, sales or disposals of assets, amortization related to debt issuance costs and debt discount, a non-cash charge related to the cancellation of an employee incentive plan, pension plan curtailment gains, and the write off of capitalized advisor fees. Management believes that these Non-GAAP financial measures are useful to investors because they provide a supplemental way to possibly better understand the underlying operating performance of the Company. Management uses these Non-GAAP financial measures to evaluate operating performance. Non-GAAP financial measures should not be considered as an alternative to net income, operating income or any other performance measures derived in accordance with GAAP.

About KEMET

QUIET PERIOD

Beginning July 1, 2010, we will observe a quiet period during which the information provided in this news release and our annual report on Form 10-K will no longer constitute our current expectations. During the quiet period, this information should be considered to be historical, applying prior to the quiet period only and not subject to update by management. The quiet period will extend until the day when our next quarterly earnings release is published.