KMG Chemicals
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9555 W. Sam Houston Parkway South
Suite 600
Houston, TX 77099
 
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KMG Chemicals Declares Quarterly Cash Dividend

HOUSTON--Feb. 27, 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 March
28, 2008 to shareholders of record as of March 14, 2008. As of
February 26, 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.

The information in this news release includes certain
forward-looking statements that are based upon assumptions that in the
future may prove not to have been accurate and are subject to
significant risks and uncertainties, including statements as to the
future performance of the company. Although the company believes that
the expectations reflected in its forward-looking statements are
reasonable, it can give no assurance that such expectations or any of
its forward-looking statements will prove to be correct. Factors that
could cause results to differ include, but are not limited to,
successful performance of internal plans, product development
acceptance, the impact of competitive services and pricing and general
economic risks and uncertainties.

###

Contacts: John V. Sobchak
Chief Financial Officer
KMG Chemicals, Inc.
713-600-3814
jsobchak@kmgchemicals.com

Investor Relations Counsel:
The Equity Group Inc.
Melissa Dixon
212-836-9613
mdixon@equityny.com

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