KMG Chemicals Announces Direct Stock Purchase Plan


HOUSTON, Feb. 14, 2002 (PRIMEZONE) -- KMG Chemicals, Inc. (Nasdaq:KMGB), a global provider of specialty chemicals in carefully focused markets, has implemented a Direct Stock Purchase Plan as a service to registered shareholders, customers, employees and other investors.

The Plan allows participants to:

-- Invest in KMG's common stock at current market prices without service fees or brokerage commissions.

-- Automatically reinvest dividends paid by the company in additional KMG common stock without charge.

-- Automatically, on a monthly basis, invest in KMG electronically from a pre-designated checking or savings account.

-- Use the plan to provide gifts of the company's common stock to children, grandchildren or anyone else designated by the participant.

-- Deposit existing stock certificates in the Plan for safekeeping.

-- Sell KMG shares through the plan.

Securities Transfer Corporation, KMG's transfer agent, will serve as Administrator for the Plan. The Administrator will purchase shares of KMG's common stock for the Plan at current prices on the open market. The prospectus for the Plan can be obtained from the company's Website at www.kmgchemicals.com, or by calling the company at 713-988-9252 (x100). Non-shareholders must make an initial investment of at least $200, but not more than $100,000. Once in the Plan, investments must be at least $25, and may not exceed $100,000 in each calendar year.

KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to carefully focused markets. The company grows by acquiring and managing stable chemical product lines and businesses with established production processes. Its wholly owned subsidiary, KMG Bernuth, Inc., is a global provider of wood preservation chemicals to the lumber treatment industry and herbicides to the agricultural markets. For more information, visit the company's Website at www.kmgchemicals.com.

This is not an offer to sell or a solicitation to buy any securities of KMG. Shares of KMG common stock purchased through the KMG Direct Stock Purchase Plan will be offered by Prospectus.


            

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