For the 4^th Quarter:

• Net Sales were $133.4 million, up 32% over same quarter last year and 6% sequentially
• Gross Margin increased to 21%
• Net Income before special charges improved to $10.7 million, or $0.12 per share

• Net Sales were $490.1 million, up 15% over fiscal 2005
• Net Income before special charges improved to $17.7 million, or $0.20 per share, compared to a net loss of $51.2 million, or ($0.59) per share, in fiscal 2005

Greenville, South Carolina (May 4, 2006) - KEMET Corporation (NYSE:KEM) today reported that net sales for the quarter ended March 31, 2006, were $133.4 million, which represents a 6% increase over the previous quarter and a 32% increase over the same quarter last year. Net income before special charges improved to $10.7 million, or $0.12 per share, compared to $6.1 million, or $0.07 per share, last quarter and a net loss of $16.7 million, or ($0.19) per share, for the same quarter last year. On a GAAP basis, there was a net loss of $2.3 million, or ($0.03) per share, for the quarter compared to the previous quarter’s net income of $1.5 million and a net loss of $125.9 million for the same quarter last year. KEMET also reports results before special charges because the results offer an alternative depiction of normal operations. Comparisons to prior periods are as follows:



“I have now completed my first year with KEMET, and I’m very proud of our fiscal 2006 results,” stated Mr. Per Loof, Chief Executive Officer. “It was a year of change, transition, and new opportunities, and I am extremely pleased with the way the organization responded to these challenges. Our financial performance improved steadily throughout the year as we focused our energies on initiatives to grow revenue and increase our profitability. This focus, combined with a stronger market and an improving pricing environment, resulted in significant financial improvement for our shareholders.

“In addition to the efforts undertaken to optimize our business operations, we also signed a major strategic alliance during the year and, on April 13, 2006, we closed on a significant acquisition in Europe, both of which we believe will produce positive results in the future. As we move into fiscal 2007, we will continue to build on our fiscal 2006 successes, allowing us to provide the highest quality products and services for our customers and even better financial results for our shareholders.”

The Company will hold a conference call at 9:00 am ET Thursday, May 4, 2006, to discuss the earnings release. To access the call, participants in the United States should dial 1-800-416-8033, and participants outside the United States should dial 1-706-643-0979. Participants should reference "KEMET Corporation" and the Conference ID #: 7589096. In conjunction with the conference call, there will be a simultaneous live broadcast over the Internet, which can be accessed at http://www.KEMET.com/IR. A replay of the conference call will be available until midnight May 18, 2006, at the same link.

KEMET's common stock is listed on The New York Stock Exchange under the symbol KEM. At the Investor Relations portion of the Company’s web site at http://www.KEMET.com/IR, users can subscribe to KEMET news releases and can find additional Company information.

OUR BUSINESS

The following statements are based on current expectations. These statements may contain forward-looking information, and consequently actual results may differ materially. Current global economic conditions make it particularly difficult at present to predict product demand and other related matters.

• Sales of surface-mount capacitors were 84.2% of net sales, and sales of leaded parts were 15.8% of net sales for the March 2006 quarter.
• By region, 40.6% of net sales for the March 2006 quarter were to customers in North America, 37.9% were to Asia, and 21.5% were to Europe.
• By channel, 58.9% of net sales for the March 2006 quarter were to distribution customers, 20.0% were to Electronics Manufacturing Services customers, and 21.1% were to Original Equipment Manufacturing customers. Average selling prices for the March 2006 quarter, adjusted for changes in product mix, were basically flat.
• Cash and short- and long-term investments in marketable securities increased $27.0 million to $235.9 million during the March 2006 quarter, from $208.9 million at December 31, 2005. The increase was related primarily to improved operating performance and working capital management. During the quarter, the Company changed its accounting treatment of investments from “investments held to maturity” to “investments held for sale.” As a result of this change, the cash balance was negatively impacted by $3 million.
• During the March 2006 quarter, inventories increased $3.1 million to $125.1 million from $122.0 million at December 31, 2005. Raw materials and supplies decreased $3.8 million in the March 2006 quarter, and work-in-process and finished goods increased $6.9 million. Since March 2005, inventories have decreased by $8.8 million and inventory turns have improved to over 3.4 times per year.

• Capital expenditures for the March 2006 quarter were $7.8 million. Depreciation and amortization expense in the quarter was $8.9 million.

• For fiscal 2006, KEMET anticipates continuing our investments in key customer relationships through our direct sales and customer service professionals, as well as our investments in research and development, to maintain our competitive position in the capacitor industry. We continue to enhance research and development focused on organic polymer tantalum and high-capacitance ceramic capacitor technologies. The selling, general and administrative expenses for the March 2006 quarter included $0.5 million of integration costs related to the acquisition of the EPCOS tantalum business unit.

QUIET PERIOD

Beginning July 1, 2006, KEMET will observe a Quiet Period during which the information provided in this news release and the Company’s annual report on Form 10-K will no longer constitute the Company’s 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 the Company. The Quiet Period will extend until the day when KEMET’s next quarterly earnings release is published.

This release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. We intend that these forward-looking statements be subject to the safe harbor created by that provision. These forward-looking statements involve risks and uncertainties and include, but are not limited to, statements regarding future events and our plans, goals, and objectives. Our actual results may differ materially from these statements. These risks, trends, and uncertainties, which in some instances are beyond our control, include: risks associated with the cyclical nature of the electronics industry, the requirement to continue to reduce the cost of our products, the competitiveness of our industry, an increase in the cost of our raw materials, the location of several of our plants in Mexico, China, and Portugal, and the possible loss of key employees. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove to be inaccurate. Therefore, we can give no assurance that the results contemplated in these forward-looking statements will be realized. The inclusion of this forward-looking information should not be regarded as a representation by our Company or any person that the future events, plans, or expectations contemplated by our Company will be achieved. Furthermore, past performance in operations and share price is not necessarily predictive of future performance.