KEMET will provide Vishay with certain manufacturing and otherservices

Tag : capacitance
KEMET Announces the Sale of Its Wet Tantalum Assets GREENVILLE, S.C. September 15, 2008 - KEMET Corporation (NYSE:KEM)today announced that it has sold its Wet Tantalum assets to awholly-owned subsidiary of Vishay Intertechnology, Inc. (NYSE:VSH)for $35.2 million and other consideration in the form of athree-year term loan of $15 million.

Sales generated by these assets during the Company's fiscal yearended March 31, 2008 were approximately $16.0 million and $4.4million during the quarter ended June 30, 2008. Closing isscheduled to occur by the close of business today.

"During our process of exploring various alternatives forrepositioning our capital structure, we were able to complete thistransaction at an opportune time to allow the Company to use theproceeds of the asset sale and loan to redeem its outstandingSenior Notes with an outstanding principal balance of forty milliondollars in an expeditious manner. This transaction will allow us toreduce our total debt outstanding; however, we are continuing topursue financing alternatives that might provide greaterflexibility and liquidity for the future compared to our currentcapital structure. We have also identified certain non-core assetsthat will be held for sale that are not in line with the Company'sstrategic direction," said Per Loof, KEMET's Chief ExecutiveOfficer. "Regarding our current operating environment, we believein our plans for building our business.

The integration efforts are on track, we continue to service ourcustomers globally, and I am confident that the integration andrestructuring actions we have taken will improve our results. I cannow redirect my focus to helping KEMET leverage its position as the"easy-to-buy-from" capacitance company. We believe there are manyopportunities to build market share in areas where we see realpotential for growth such as the emerging green technologies,"continued Loof.

KEMET will provide Vishay with certain manufacturing and otherservices during a transition period. Terms of the secured loan of$15 million to KEMET from Vishay include: a three-yearnon-amortizing maturity, an interest rate of LIBOR plus fourpercent, security consisting of accounts receivable currently inthe amount of approximately $34 million, and certain limited eventsof default.

KEMET Corporation (KEM) applies world-class service and quality todeliver industry-leading, high-performance capacitance solutions toits customers around the world. KEMET offers the world's mostcomplete line of surface-mount and through-hole capacitortechnologies across tantalum, ceramic, film, aluminum,electrolytic, and paper dielectrics. KEMET's common stock is listedon The New York Stock Exchange under the symbol KEM.

Additional information about KEMET can be found at http:// www.kemet.com .

Please follow this link http:// www.kemet.com/page/new2008530 to read the latest news from KEMET.

Below is contact information in the KEMET releases database. Makecorrections by replying to this message or contactingNewsReleases@kemet.com.

Contact: William M. Lowe, Jr. Executive Vice President and ChiefFinancial Officer 864-963-6484 billlowe@kemet.com

Dean W. Dimke Director of Corporate and Investor Communications954-766-2806 deandimke@kemet.com