“This acquisition is in keeping with our announced strategic direction to vertically integrate operations and to better control supply sources as well as to contain our cost structure,” said Per Loof, Chief Executive Officer of KEMET. “Acquiring Niotan is a significant step in securing and stabilizing our tantalum powder resources. Additionally, we recently announced a comprehensive plan for sourcing conflict free tantalum ore from the Democratic Republic of Congo (DRC). We will continue to purchase a portion of our tantalum powder needs from our existing supply base. Together, these actions have put in place a supply chain that provides customers with confidence in the long-term viability of our tantalum capacitance solutions and will allow for faster to market development of specialty powders from KEMET,” continued Loof.

KEMET will pay an initial purchase price of $30 million at the closing of the transaction and additional deferred payments of $45 million over a thirty month period after the closing. KEMET will also be required to make quarterly royalty payments for tantalum powder produced by Niotan after the closing of the transaction, in an aggregate amount equal to $10,000,000 by December 31, 2014. The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Act, and is expected to close in March 2012.

Niotan’s headquarters and principal operating location is in Carson City, Nevada. Niotan is the largest western hemisphere production location for tantalum capacitor powder and has demonstrated world- class powder quality which has resulted in exceptionally high level qualification with the world’s capacitor manufacturers.

Additional information regarding this acquisition will be provided this Thursday, February 2, at 9 AM EST, during KEMET’s Third Quarter Earnings conference call. Details on how to access the call can be found on kemet.com on the Investor Relations page.

About KEMET

KEMET’s common stock is listed on the NYSE under the symbol “KEM.” At the Investor Relations section of our web site at http://ir.kemet.com/, users may subscribe to KEMET news releases and find additional information about our Company. KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and offers the world’s most complete line of surface mount and through-hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. Additional information about KEMET can be found at http://www.kemet.com.

Cautionary Statement on Forward-Looking Statements

Certain statements included herein contain forward-looking statements within the meaning of federal securities laws about KEMET Corporation’s (the “Company”) financial condition and results of operations that are based on management’s current expectations, estimates and projections about the markets in which the Company operates, as well as management’s beliefs and assumptions. Words such as “expects,” “anticipates,” “believes,” “estimates,” variations of such words and other similar expressions are intended to identify such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in, or implied by, such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s judgment only as of the date hereof. The Company undertakes no obligation to update publicly any of these forward-looking statements to reflect new information, future events or otherwise.

Factors that may cause actual outcome and results to differ materially from those expressed in, or implied by, these forward-looking statements include, but are not necessarily limited to the following: (i) adverse economic conditions could impact the Company’s ability to realize operating plans if the demand for the Company’s products declines, and such conditions could adversely affect the Company’s liquidity and ability to continue to operate; (ii) adverse economic conditions could cause further reevaluation and the write down of long-lived assets; (iii) an increase in the cost or a decrease in the availability of the Company’s principal raw materials; (iv) changes in the competitive environment of the Company; (v) uncertainty of the timing of customer product qualifications in heavily regulated industries; (vi) economic, political, or regulatory changes in the countries in which the Company operates; (vii) difficulties, delays or unexpected costs in completing the Company’s restructuring plan; (viii) the inability to attract, train and retain effective employees and management; (ix) the inability to develop innovative products to maintain customer relationships and offset potential price erosion in older products; (x) exposure to claims alleging product defects; (xi) the impact of laws and regulations that apply to the Company’s business, including those relating to environmental matters; (xii) volatility of financial and credit markets affecting the Company’s access to capital; (xiii) the need to reduce the total costs of the Company’s products to remain competitive; (xiv) potential limitation on the use of net operating losses to offset possible future taxable income; (xv) restrictions in the Company’s debt agreements that limit the Company’s flexibility in operating its business; and (xvi) additional exercise of the warrant by K Equity, LLC which could potentially result in the existence of a significant stockholder who could seek to influence our corporate decisions. Other risks and uncertainties may be described from time to time in the Company’s other reports and filings with the Securities and Exchange Commission.

PRESS RELEASE
H.I.G. Capital LLC, a leading international private equity firm based in Miami, Florida, announced today that it has completed the sale of Service Net (the “Company”) to Chartis U.S., Inc. (”Chartis”), a wholly owned subsidiary of American International Group, Inc. (”AIG”). Service Net is a leading service management company that creates, administers and markets service warranty solutions for original equipment manufacturers (”OEMs”) and specialty retailers covering a wide array of consumer durable products.

Service Net, based in Jeffersonville, Indiana, offers its clients a comprehensive suite of customized service and extended warranty programs for a variety of products including major appliances, consumer electronics, personal computers, handheld devices, mobile phones and heating and ventilation equipment. The Company uniquely focuses on a blue-chip base of OEMs and specialty retailers that utilize warranty and value added service programs as a means to build consumer and brand loyalty.

H.I.G. has partnered with the Service Net executive team on two separate occasions. H.I.G. recapitalized Service Net in 2004 and successfully exited its investment in 2007. In 2009, H.I.G. re-acquired the Company and worked closely with the Service Net team to create material value. Since 2009, the Company has successfully grown through the recruitment of new blue-chip clients, acquisition of a niche third-party administrator and focus on emerging industry verticals. H.I.G. has provided financial support to further invest in Service Net’s world class operating platform. Lansdon Robbins, Founder and Chairman of Service Net, commented, “H.I.G. has been incredibly supportive of our growth strategy, and has been a value-added partner during a key stage of Service Net’s development. Their continued support has been instrumental to our growth.”

Doug Berman, Executive Managing Director of H.I.G., commented, “Our partnership with Service Net’s outstanding management team has been a tremendous success. The organization executed on its well defined growth strategy and extended its leadership position in the industry.”

About H.I.G. Capital

H.I.G. Capital is a leading global private equity investment firm with more than $8.5 billion of equity capital under management, and a team of more than 225 investment professionals. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg, Madrid, and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 50 companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com .

About Bayside Capital

Bayside Capital is a credit oriented investment firm with more than $4.5 billion under management. Focused on middle market companies, Bayside invests across several segments of the primary and secondary debt capital markets with an emphasis on long term returns. With eleven offices throughout the U.S. and Europe and over 225 investment professionals to draw upon, Bayside Capital has the experience, resources, and flexibility required to provide capital solutions quickly, and the strategic and operational expertise to help support its investments.

PRESS RELEASE

Harris Williams & Co., a preeminent middle market investment bank focused on the advisory needs of clients worldwide, announces the sale of Paradigm Management Services (Paradigm), a leading provider of healthcare management services, to Lightyear Capital (Lightyear). Paradigm was a portfolio company of Sterling Partners (Sterling). The transaction closed on February 1, 2012 and was led by the firm’s Healthcare & Life Sciences (HCLS) Group. Harris Williams & Co. acted as an advisor to Paradigm.

“We are thrilled to have represented Paradigm and Sterling in this transaction. Paradigm is a unique business that produces better clinical outcomes for severely injured workers at significantly lower medical cost. The transaction exemplifies the demand for companies with innovative business models that drive better results and have the potential to change the cost equation in healthcare,” said Todd Morris, a managing director in Harris Williams & Co.’s San Francisco office.

Headquartered in Walnut Creek, CA, Paradigm is a growing provider of catastrophic and pain care management services designed to dramatically improve clinical outcomes for injured workers and significantly reduce costs. Paradigm has a specialized network and acts as a medical hub connecting people with catastrophic injuries and chronic pain to nationally recognized expert doctors and specialists, best-in-class care facilities, and robust clinical data to guide decisions that deliver superior results. The company primarily provides its services to workers’ compensation insurance carriers and self insured companies and municipalities.

Sterling is a leading private equity firm with over 25 years of experience partnering with entrepreneurs to build market-leading businesses. With approximately $5 billion of assets under management, Sterling invests growth capital in industries with positive, long-term trends and provides ongoing support to management through a dedicated team of industry veterans, operators, strategy experts and human capital professionals. Sterling is a leader in education, healthcare and business services and has offices in Chicago, Baltimore, and Miami.

Lightyear is a leading private equity firm primarily making control investments in North America-based, middle market financial services companies. Based in NY, Lightyear, through its affiliated funds, has managed approximately $3 billion of committed capital with investments across the financial services spectrum, including asset management, banking, brokerage, financial technology, insurance and specialty finance.

Harris Williams & Co. (www.harriswilliams.com), a member of The PNC Financial Services Group, Inc. (NYSE:PNC), is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

The firm’s HCLS Group focuses on transactions across the spectrum of healthcare market segments. For more information, contact Todd Morris in San Francisco at +1 (415) 288-4260 or Turner Bredrup, James Clark or Cheairs Porter in Richmond at +1 (804) 648-0072.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Services Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.

PRESS RELEASE

H.I.G. Capital LLC, a leading international private equity firm based in Miami, Florida, announced today that it has completed the sale of Service Net (the “Company”) to Chartis U.S., Inc. (“Chartis”), a wholly owned subsidiary of American International Group, Inc. (“AIG”). Service Net is a leading service management company that creates, administers and markets service warranty solutions for original equipment manufacturers (“OEMs”) and specialty retailers covering a wide array of consumer durable products.

Service Net, based in Jeffersonville, Indiana, offers its clients a comprehensive suite of customized service and extended warranty programs for a variety of products including major appliances, consumer electronics, personal computers, handheld devices, mobile phones and heating and ventilation equipment. The Company uniquely focuses on a blue-chip base of OEMs and specialty retailers that utilize warranty and value added service programs as a means to build consumer and brand loyalty.

H.I.G. has partnered with the Service Net executive team on two separate occasions. H.I.G. recapitalized Service Net in 2004 and successfully exited its investment in 2007. In 2009, H.I.G. re-acquired the Company and worked closely with the Service Net team to create material value. Since 2009, the Company has successfully grown through the recruitment of new blue-chip clients, acquisition of a niche third-party administrator and focus on emerging industry verticals. H.I.G. has provided financial support to further invest in Service Net’s world class operating platform. Lansdon Robbins, Founder and Chairman of Service Net, commented, “H.I.G. has been incredibly supportive of our growth strategy, and has been a value-added partner during a key stage of Service Net’s development. Their continued support has been instrumental to our growth.”

Doug Berman, Executive Managing Director of H.I.G., commented, “Our partnership with Service Net’s outstanding management team has been a tremendous success. The organization executed on its well defined growth strategy and extended its leadership position in the industry.”

About H.I.G. Capital

H.I.G. Capital is a leading global private equity investment firm with more than $8.5 billion of equity capital under management, and a team of more than 225 investment professionals. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York, and San Francisco in the U.S., as well as affiliate offices in London, Hamburg, Madrid, and Paris in Europe, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable and well managed manufacturing or service businesses. Since its founding in 1993, H.I.G. has invested in and managed more than 200 companies worldwide. The firm’s current portfolio includes more than 50 companies with combined revenues in excess of $8 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

About Bayside Capital

Bayside Capital is a credit oriented investment firm with more than $4.5 billion under management. Focused on middle market companies, Bayside invests across several segments of the primary and secondary debt capital markets with an emphasis on long term returns. With eleven offices throughout the U.S. and Europe and over 225 investment professionals to draw upon, Bayside Capital has the experience, resources, and flexibility required to provide capital solutions quickly, and the strategic and operational expertise to help support its investments.

Platinum acquired controlling interest in Canvas in 2009 from OHC, LLC. OHC retained a minority interest in Canvas under Platinum’s ownership and has also sold its position to Avnet in connection with the transaction announced today.

“We are proud of what we accomplished at Canvas over the past three years in collaboration with the company’s management team and hard-working employees,” said Jacob Kotzubei, partner at Platinum who led the team that acquired Canvas. “The company has grown steadily under Platinum’s ownership and is operationally sound with a culture committed to delivering high levels of customer service. Canvas is well positioned to continue thriving under new ownership.”

Mr. Kotzubei said the Canvas investment was a natural fit for Platinum, given the firm’s history in the IT equipment and services industry.

“We have had a lot of success building and supporting businesses in the IT space,” explained Mr. Kotzubei. “We will continue looking for opportunities to apply our expertise and operations-focused approach.”

Platinum currently owns Pomeroy, a provider of managed IT infrastructure services, professional and staffing services, and procurement and logistics services to Fortune 500 corporations, global outsourcers and the public sector throughout the U.S., Canada and Europe. Platinum acquired Pomeroy in 2009.

About Platinum Equity Platinum Equity ( www.platinumequity.com ) is a global M&A&O(R) firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, transportation and logistics, metals services and manufacturing. Since its founding in 1995 by Tom Gores, Platinum Equity has completed more than 130 acquisitions.

PRESS RELEASE
Wellspring Capital Management LLC (”Wellspring”) today announced that it has acquired ThermaSys Corporation (”ThermaSys” or the “Company”), a leading manufacturer of a wide range of heat exchangers and heat exchange equipment, from an affiliate of Sun Capital Partners, Inc. Financial terms of the transaction were not disclosed.

Founded in 1971 in Montgomery, Alabama as Thermal Components, Inc., ThermaSys has one of the broadest product offerings in the industry, supplying a diverse range of highly engineered, custom-designed heat exchangers and heat exchanger components, including aluminum and brass seam-welded tubing. The Company is uniquely positioned to supply highly engineered heat exchanger products for a wide variety of applications, either as single components or combined in complex systems incorporating multiple heat exchanger products. ThermaSys has expanded its operations through both acquisitions and organic growth initiatives.

William F. Dawson, Jr., a Managing Partner of Wellspring, said, “We are delighted to invest in ThermaSys, which has a long tradition as a market leader in the low volume, highly engineered segment of the heat exchanger industry. This established platform has a proven track record of performance and is recognized by customers for its exceptional product and service offerings. We are excited to further enhance the value of ThermaSys through organic initiatives and acquisitions.”

Paul Schmitz, President and CEO of ThermaSys, said, “ThermaSys is proud to become a portfolio company of Wellspring Capital, which has a successful track record supporting growing businesses. Our team has accomplished a great deal in recent years and we look forward to continuing to grow and provide our customers with new products and services under Wellspring’s ownership.”

“ThermaSys represents a true team effort in which Sun Capital leveraged its deep operating and transaction teams to carry out operational improvements and strategic add-on acquisitions. As a result, ThermaSys has been built into a global market leader,” said Marc Leder, co-CEO of Sun Capital Partners. “Wellspring Capital Management is purchasing a great business with a strong management team, and it will be an excellent partner that will further enhance ThermaSys’s position in the market.”

John E. Morningstar, a Partner of Wellspring, said, “We were attracted to ThermaSys for the quality of its strong management team led by Paul Schmitz. The team is committed to continuous operational improvement and to expanding its world-class offerings to customers. We are very excited to partner with this team to capitalize on ThermaSys’ many attractive growth opportunities.”

Wellspring has significant experience investing in industrial businesses. In 2008 the firm acquired Cleaver-Brooks, Inc., one of the world’s largest manufacturers of fully integrated boiler and burner systems, which as a heat technology-related business serves end markets similar to ThermaSys. Wellspring has also invested in Tube City IMS, a leading provider of outsourced services to the global steel industry, and JW Aluminum, a leading producer of specialty flat-rolled aluminum products.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Wellspring with respect to the transaction, and Alvarez and Marsal Transaction Advisory Group provided finance, accounting and tax advice.

About ThermaSys Corporation Founded in 1971 in Montgomery, Alabama as Thermal Components, Inc., ThermaSys is a leading manufacturer of low volume, short run, highly-engineered copper/brass and aluminum heat exchanger components and assemblies. The Company’s low/medium volume products consist of radiators, condensers, charge air coolers, oil coolers, shell/tube heat exchangers, and modules. Its higher unit volume products include seam welded aluminum and brass tubing. Solutions are customized for clients in a diverse set of end markets, including electric power generation, industrial and construction equipment, oil and gas, automotive and truck, HVACR and marine. ThermaSys operates from facilities in Alabama, Wisconsin, Germany, the United Kingdom, and China.

About Wellspring Capital Management Wellspring Capital Management, founded in 1995, is a leading middle-market private equity firm that manages more than $3 billion of private equity capital. The firm’s objective is to bring partnership, experience and value creation to each investment. By teaming up with strong management, Wellspring is able to unlock underlying value and pursue new growth opportunities through strategic initiatives, operating improvements and add-on acquisitions. The firm functions as a strategic rather than tactical partner, providing management teams with top-line support, M&A experience and financial expertise, and access to resources.

Reuters - U.S. private equity giants Carlyle Group and Warburg Pincus took advantage of India’s recent stock market gains to reduce stakes in two financial firms in separate deals on Wednesday, a sign of investor wariness about the sustainability of the current rally.

Carlyle CYL.UL sold a quarter of its stake in India’s top mortgage lender, Housing Development Finance Corp (HDFC.NS), two sources with direct knowledge of the matter said, raising about $270 million and nearly doubling their money from a 2007 investment.

In an unrelated deal, Warburg Pincus sold about 17.5 million shares in lender Kotak Mahindra Bank (KTKM.NS) through stock market deals to raise about $170 million, three sources with direct knowledge of the matter said.

The two block deals came after India’s main market finance/markets/index?symbol=in%21sen”>.BSESN rose 11.3 percent in January, its first rise in three months, and the best month since September 2010. It was the best January

rise for the index since a 19.4 percent rise in 1994.

India’s stock market dropped nearly 25 percent in 2011, making it one of the worst global performers and leaving few options for private equity firms to exit from their portfolio companies either through IPOs or block deals.

“Many financial investors who have completed their four to five year investment cycle in the Indian companies are rushing to exit through market deals,” said the India equity capital markets head at a European bank in Mumbai who was not authorized to speak to the media.

“We will see more blocks and follow-on share sales in the first half of this year than IPOs. Investors, who had put in money four, five years back will make good profits by exiting in this market,” he said.

Private equity exits through the Indian IPO market dropped 66 percent last year to $85 million in 15 deals, according to data from VCCircle.

KPMG expects that roughly $95 billion in Indian private equity investments made during the bull market years of 2006 to 2008 will come up for sale over the next three years.

DOUBLING MONEY

Carlyle, which owned about 5.2 percent of mortgage lender HDFC before Wednesday’s block deals, sold about 20 million shares at an average 677.25 rupees apiece, one source said.

The Washington-based private equity heavyweight will retain nearly 4 percent of HDFC after the deal. The exit is the first from the Indian market by Carlyle Asia Partners, a buyout fund, a source said.

At the current price, Carlyle has nearly doubled the return on its 2007 investment, one source said. Deutsche Bank (DBKGn.DE) was the sole manager of the block deal, sources said.

Before Wednesday, Carlyle was the No. 2 shareholder in HDFC after Citigroup (C.N), which owns 8.8 percent.

In June 2011, Citigroup (C.N) sold a 1.5 percent holding in HDFC. The sale was done ahead of the adoption of a global accord on banking that discourages large holdings by banks in other financial institutions.

Carlyle last month sold 18 million shares in China Pacific Insurance (Group) Co Ltd (601601.SS) (CPIC), taking its holding below 5 percent.

Warburg Pincus sold 17.5 million shares in Kotak Mahindra, which represent 2.4 percent of the bank’s outstanding equity, at 490 rupees each, said the sources who declined to be identified as the matter was not public yet.

Warburg Pincus, which manages about $30 billion globally, held nearly 6 percent of Kotak Mahindra, stock exchange data showed, before the block deal through two investment vehicles.

A spokesman for Kotak Mahindra Bank in Mumbai declined to comment on the deal. Warburg Pincus officials did not immediately respond to calls for comment.

Shares in HDFC, which the market values at roughly $21 billion, were trading down 1.3 percent at 688.8 rupees on Wednesday afternoon, while the main Mumbai market .BSESN was up 0.49 percent. Kotak Mahindra was up 2.2 percent at 509.4 rupees.

($1=49.6 rupees)

(Additional reporting by Abhishek Vishnoi and Prashant Mehra; Editing by Tony Munroe)