KMG Chemicals Declares Quarterly Cash Dividend

HOUSTON, TX – December 4, 2008– KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in niche markets, today announced that its Board of Directors declared a quarterly cash dividend of $0.02 per common share. The dividend is payable on January 5, 2009 to shareholders of record as of December 16, 2008. As of December 3, 2008, there were approximately 11.0 million common shares outstanding.

About KMG
KMG Chemicals, Inc., through its subsidiaries, produces and distributes specialty chemicals to niche markets.  The Company grows by acquiring and optimizing stable chemical product lines and businesses with established production processes.  Its current operations are focused on the wood treatment, electronic, and agricultural chemical markets.  For more information, visit the Company's web site at www.kmgchemicals.com.

Contacts
KMG Chemicals, Inc.
John V. Sobchak, 713-600-3814
Chief Financial Officer
JSobchak@kmgchemicals.com
www.kmgchemicals.com
or
Investor Relations Counsel:
The Equity Group Inc.
Melissa Dixon, 212-836-9613
MDixon@equityny.com
or
Linda Latman, 212-836-9609
LLatman@equityny.com
www.theequitygroup.com

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