Server: Netscape-Commerce/1.12 Date: Friday, 21-Nov-97 04:13:21 GMT Last-modified: Tuesday, 29-Jul-97 12:31:13 GMT Content-length: 4914 Content-type: text/html KEMET Corporation to invest $72 million in surface-mount manufacturing capacity


KEMET CORPORATION TO INVEST $72 MILLION IN
SURFACE-MOUNT MANUFACTURING CAPACITY
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Expanding Global Sales to Mainland China

Greenville, South Carolina (July 24, 1997) - KEMET Corporation (Nasdaq/NM:KMET) announced at the Company's Annual Meeting that it plans to invest approximately $72 million in fiscal 1998 in its surface-mount manufacturing capacity to meet growing worldwide demand for its ceramic and tantalum capacitors. It was also announced that the Company has established direct sales offices in both Shanghai and Beijing, as well as a new global logistics hub in Shanghai to serve the rapidly growing mainland China electronics market.

"KEMET plans to expand its manufacturing capacity for surface-mount capacitors to meet growing world-wide demand from our key customers," stated KEMET Chairman and Chief Executive Officer David E. Maguire. "Over 75% of our current manufacturing capacity of 65 million capacitors a day is focused on surface-mount technology. We plan to increase our production capacity of surface-mount capacitors with the expansion of three plants.

"We are adding 70,000 square feet to our Ceramic Technology Center in Fountain Inn, South Carolina, and are doubling the manufacturing clean rooms at our ceramic surface-mount plant in Shelby, North Carolina. These investments will complement and support our recently completed 240,000 square-foot ceramic surface-mount manufacturing plant in Monterrey, Mexico. In addition, we are doubling our anode manufacturing capacity at our Simpsonville, South Carolina, tantalum surface-mount plant to maintain our position as the number one supplier of tantalum capacitors in the world.

"The expansion of our Ceramic Technology Center will allow KEMET to reduce the lead time from development to full-scale production of new products. In addition, we plan to invest approximately $23 million in research and development in fiscal 1998. We believe this increased level of investment will expand our leadership in 'first-to-market' new products."

"We believe our increased manufacturing capacity will allow us to aggressively expand our sales and logistics networks into mainland China," continued Mr. Maguire. "Our just-in-time delivery network will allow us to supply our capacitors to China, or virtually anywhere in the world, within one to two days. We believe our added capacity, combined with our continued focus on quality, delivery and service, will result in KEMET's gaining market share on a world-wide basis in the coming year."

The Company also reported that stockholders elected the following directors to serve three-year terms:

Charles E. Volpe - retired President and Chief Operating Officer of KEMET Corporation

Charles E. Corpening - Vice President of Citicorp Venture Capital, Ltd., a subsidiary of Citibank

KEMET Corporation, headquartered in Greenville, South Carolina, is the largest manufacturer of solid tantalum capacitors in the world and the second largest manufacturer of multilayer ceramic capacitors in the United States. KEMET's common stock is listed on The Nasdaq Stock Market's National Market under the symbol KMET. Company information is available via the Internet (http://www.kemet.com).

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 involving risks and uncertainties discussed in detail in the Company's Securities and Exchange Commission filings and reports, including the Company's 1997 Annual Report to Stockholders. Actual results may vary due to these or other risks and uncertainties.


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