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Kemet Closes Niotan Purchase

GREENVILLE, S.C. — KEMET Corporation (NYSE: KEM), a leading manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, announced today that it has completed its acquisition of all of the outstanding shares of Niotan Incorporated (“Niotan”), a leading manufacturer of tantalum powders, from an affiliate of Denham Capital Management LP.

As previously announced, KEMET paid an initial purchase price of $30 million at the closing of the transaction, and will make additional deferred payments of $45 million over a thirty month period after the closing. KEMET will also be required to make quarterly royalty payments for tantalum powder produced by Niotan after the closing of the transaction, in an aggregate amount equal to $10 million by December 31, 2014.

This new KEMET subsidiary, which will be named KEMET Blue Powder Corp., has its headquarters and principle operating location in Carson City, Nevada. KEMET Blue Powder Corp. is the largest western hemisphere production location for tantalum capacitor powder and has demonstrated world- class powder quality which has resulted in exceptionally high level qualification with the world's capacitor manufacturers.

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