KMG Chemicals Provides Update On Successful Launch Of New AVENGER Insecticide Ear Tag

Houston, TX - KMG Chemicals, Inc., one of the global provider of specialty chemicals in carefully focused markets, recently provided an update on the successful launch its new AVENGER insecticide cattle ear tag. The AVENGER ear tag is used for the prevention and aid in control of damaging flies and pests in cattle and dairy cows. AVENGER uses the new Ectoran Technology, and represents an entirely new class of chemical never before used in animal health.

Neal Butler, KMG's President and COO, stated "Our 2007 Ear Tag Marketing Program has been very successful with participation by 100% of our distributors. We are beginning to see follow-up orders as early shipments move to the field. We anticipate that AVENGER will become the leading insecticidal ear tag in this, its first year of introduction, and that revenues in our Animal Health segment will exceed $15 million for fiscal 2007, up from $8.7 million last year." Butler continued, "It is important to keep in mind that our Animal Health sales are seasonally weighted to the second half of our fiscal year. We have been building inventory and receivables associated with this segment of our business, and will continue to do so until our fourth fiscal quarter when payments are due and those receivables convert to cash."

Randy Berry, Business Manager – Animal Health, added, "We believe cattle producers and dairymen who have run into resistance issues with conventional insecticidal ear tags will find AVENGER to be a highly effective ear tag choice that provides season-long protection against a wide variety of pests. With KMG's launch of AVENGER, we further solidify our position as one of the industry leaders in insecticidal ear tags, building upon the success of our already established Patriot ear tag."

KMG entered the insecticide ear tag market with its February 2006 acquisition of the U.S. - based animal health pesticide business of Boehringer Ingelheim.

SOURCE: KMG Chemicals, Inc.