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Below is the introduction to KEMET's December 2001 Earnings Release. The full release can be accessed in the Investor Relations portion of the company's web site at

John R. Warner
Director of Investor and Public Relations

Greenville, South Carolina (January 21, 2002) - KEMET Corporation (NYSE:KEM) today reported sales and earnings for the quarter ended December 31, 2001. Net sales of $117.3 million for the December 2001 quarter decreased 69% compared with $374.9 million for the December 2000 quarter, and decreased sequentially 3% from the $120.6 million reported for the September 2001 quarter. Net earnings in the December 2001 quarter, prior to the one-time pretax restructuring charges of $38.5 million, were $0.8 million, or $0.01 per diluted share, down from $97.4 million, or $1.10 per diluted share, in the December 2000 quarter, and sequentially equal to the $0.01 per diluted share reported in the September 2001 quarter. Net loss in the December 2001 quarter, including the restructuring charges, was ($26.9 million), or ($0.31) per diluted share.

For the nine months ended December 31, 2001, sales were $390.7 million and net earnings (loss), prior to the one-time pretax restructuring charges, were $14.9 million, or $0.17 per diluted share, and including the restructuring charges, were ($12.9 million), or ($0.15) per diluted share. "In the December 2001 quarter, total unit shipments increased from the prior quarter for the first time in four quarters, while average selling prices declined approximately 10%," stated David E. Maguire, Chairman and CEO. "We anticipate that unit shipments will continue to increase, which will allow us to reduce inventory and generate cash during calendar 2002. Major cost saving initiatives occurring throughout 2001 have positioned KEMET to maintain a strong financial position and further enhance our earnings capability. We anticipate four drivers of growth for KEMET as we approach the growth phase of the current cycle.

First, our preferred capacitor supplier relationships with the world's most successful electronics companies remain strong. As our customers reduce their capacitor inventory, their purchases of new capacitors in the coming months will approach their consumption. The best visibility we have into customers' inventories is through our distributor channel, where capacitor inventory levels have declined over 60% from their peak in January 2001. We anticipate that customers will have consumed their excess inventory and that unit shipments will increase from the current level of consumption in the first half of 2002.

Second, capacitor shipments will increase as our customers' businesses recover. We note a consensus among analysts that electronic end markets should resume growth by the second half of 2002.

Third, our customer-service-oriented strategy has KEMET particularly well positioned with Electronics Manufacturing Services (EMS) providers, and we believe that we will be net beneficiaries as global electronic manufacturing continues to shift to our large EMS customers. Even during an abysmal year for the technology industry, three of five major EMS customers had net revenue gains during calendar 2001. Many analysts predict that the percentage of global electronics manufacturing that is outsourced will double by 2005.

Finally, we have the world's most complete line of surface-mount capacitor technologies, including innovative high-frequency tantalum,
high-capacitance ceramic, and newly introduced solid aluminum capacitors. These technologies will allow us to continue to earn a greater share of our customers' capacitor business. Our 2001 launch of solid aluminum capacitors has garnered strong early interest from customers, and we anticipate that these products will generate $40 to $50 million of revenue during fiscal 2003. We believe our advances in high-capacitance ceramic technologies will allow us to participate more fully in this high-growth capacitor segment as well."

KEMET had $230.4 million in cash and short-term investments, $100.0 million in long-term debt, and $869.6 million in stockholders' equity as of December 31, 2001. As a percent of total sales, sales of surface-mount capacitors were 80% for the December 2001 quarter, compared to 87% for the same quarter last year. As a percent of net sales, export sales were 56%, compared to 53% for the same quarter last year.

KEMET leads our industry in producing high-performance capacitor solutions, including the world's most complete line of surface-mount tantalum, ceramic, and aluminum capacitor technologies provided with near-perfect quality and on-time delivery at competitive prices to customer locations worldwide. Headquartered in Greenville, South Carolina, KEMET's common stock is listed on The New York Stock Exchange under the symbol KEM.

At the Investor Relations portion of the company's web site at, users can subscribe to KEMET news releases and can
find additional company information, including industry statistics charts, in the company's PowerPoint investor presentation.

KEMET will hold a conference call at 8:30 am ET Tuesday, January 22, 2002, to discuss the earnings release and to provide guidance for future
quarters. To access the call, participants should dial 1-800-540-0559 and reference "KEMET" as the conference call ID. An archived replay of the conference call will be available through midnight on January 29, 2002, by calling 1-888-566-0154.

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