KEMET is excited about the opportunities that this acquisition will provide. The strength of KEMET in North America and Asia, combined with the strong European presence of EPCOS will create a stronger global business for KEMET. It will expand the Company’s market opportunities and provide greater access to customers, especially in the automotive electronics and telecommunication industries. The strength of EPCOS’ manufacturing operations and expertise will further complement KEMET’s already world-class manufacturing organization.

“The EPCOS Tantalum Capacitor Business is an important strategic acquisition for KEMET,” stated Per-Olof Loof, KEMET’s Chief Executive Officer. “It will further strengthen KEMET’s leadership position in the tantalum industry by providing access to new markets and customers leading to continued growth for the Company. We look forward to serving our new customers and providing them the best-in-class KEMET service model.”

The purchase of the Tantalum Capacitor Business includes the EPCOS manufacturing operation in Evora, Portugal, and certain research and development, and marketing and sales functions located in various German locations. KEMET does not plan to continue manufacturing in Heidenheim, Germany, and therefore, those employees are not part of the business being acquired. However, in order to provide a continued supply of product to customers during the transition, KEMET and EPCOS will enter into a Manufacturing and Supply Agreement pursuant to which EPCOS will continue to produce product in Heidenheim which will be sold to KEMET until later in 2006. At that time, KEMET will purchase the equipment in Heidenheim from EPCOS and move the equipment to China.

The total purchase price is €86.5 million, or approximately $101.9 million (as of the December 9, 2005 exchange rate). An amount of €78.5 million (approximately $92.5 million), will be paid at closing and the remaining €8.0 million (approximately $9.4 million) will be paid when the manufacturing agreement expires to purchase the equipment. The acquisition is currently intended to be financed with available cash.

For the fiscal year ended September 30, 2005, the EPCOS Tantalum Capacitor Business generated revenue of approximately €88 million (approximately $103.7 million). After the integration is complete and the synergies are realized, it is expected that the business will be accretive to KEMET’s earnings per share by approximately $0.06 to $0.10. KEMET expects to complete the majority of the operational integration by the end of calendar year 2006, at which time most of the synergies will begin to be realized.

On December 13, 2005, at 8:00 a.m. ET, the Company will hold a conference call to provide additional information regarding the acquisition. After an initial presentation, questions will be taken as time permits.

To access the call via telephone, 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 #3404940. 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 December 27, 2005, at the same link.

About KEMET
KEMET Corporation is the preferred supplier of standardized components among customers demanding the highest standards of quality, delivery and service. KEMET’s common stock is listed on the New York Stock Exchange under the symbol KEM. Additional information can be found at http://www.kemet.com/IR.