Date: 23/12/2008

KEMET cuts staff and also the salary

KEMET Corp. is taking several initiatives to save itself from the impact of the downturn in the world economy. The Company is eliminating approximately 1,500 manufacturing jobs representing approximately 14% of the Company's total workforce. The job reductions will begin immediately and be completed by mid-January 2009. The total cost savings from these actions will be approximately $4.0 million per quarter or $16.0 million annually.
KEMET will extend its normal holiday plant shutdown schedules at many of its manufacturing facilities between December 23, and January 5, 2009. The Company will continue to ship product from existing inventories during this period.

The Company also announced, where possible, that it will slash ten percent of pay for all salaried employees effective January 1, 2009, excluding those on a commission based salary. To implement this action, negotiations are underway with all labor unions where employees are represented by collective bargaining agreements.