KMG Chemicals Named to Forbes and Fortune Small Business Lists

HOUSTON, TX – October 15, 2007– KMG Chemicals, Inc. (NASDAQ: KMGB), a global provider of specialty chemicals in carefully focused markets, today announced that it has been included on Forbes’ list of the 200 Best Small Companies, ranking #130, and on FORTUNE Small Business’ “FSB 100” list of America’s fastest-growing small public companies, ranking #57.

Forbes judged candidates with revenue of $5 million - $750 million and share prices above $5 according to return on equity, as well as sustained sales and net profit growth over 12-month and five-year periods. Banks, utilities and REITs were excluded. The complete list is available at http://www.forbes.com/2007/10/11/best-small-companies-biz-07200best-cz_jg_cs_1011bestsmall_land.html.

FORTUNE Small Business asked financial research firm Zacks to rank public companies with revenues less than $200 million and a stock price of more than $1, based on the past three years’ earnings growth, revenue growth, and stock performance. Banks and real estate firms were excluded. The complete list is available at http://money.cnn.com/magazines/fsb/fsb100/2007/.

Neal Butler, President and CEO of KMG, stated, “We are proud that the Company’s financial record has been recognized by these two well-regarded publications. All of us at KMG share in this recognition.”

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.

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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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