Irvine, California --- July 25th, 2007---SMD Inc. today announced they have signed a North American distributor agreement with KEMET Electronics. SMD Inc. will stock and distribute KEMET’s full line of capacitor components. “We are excited to be able to provide KEMET products to our growing customer base. KEMET is the premier supplier of a wide variety of capacitance solutions and becomes our flagship line immediately. KEMET brings tremendous value to all of our existing supply-chain solutions and value-add programs. SMD is also positioned to aid KEMET’s penetration of new markets and new commodities in the North American customer base.” said Rich Unruh, President of SMD Inc.

"We are pleased to have SMD Inc. selling our complete line of KEMET capacitor solutions,” said Jim Bruorton, Vice President, Channel Marketing for KEMET Electronics. “SMD did a very nice job in their design and selling efforts of Evox Rifa products, which is a company KEMET recently purchased. I believe SMD can now take our total capacitance offering and bring additional value to our mutual customers.”

About SMD Inc.

SMD Inc. is a specialized distributor of passive, interconnect, discrete, opto, and frequency control components to a wide base of original equipment manufacturers (OEM) and electronic manufacturing services (EMS) suppliers in North America. The company adds value to its products through a variety of custom auto inventory replenishment (AIR) programs designed for individual customer needs. They represent approximately 30 world class supplier’s products and distribute and stock their components in one or more of their offices in Irvine and San Jose CA, Nashua NH, Deerfield and Tampa, FL.

About KEMET Electronics:

KEMET Electronics applies world-class service and quality to deliver industry-leading, high-performance capacitance solutions to its customers around the world. KEMET offers the world's most complete line of surface-mount and through-hole capacitor technologies across tantalum, ceramic, aluminum, film and paper dielectrics. KEMET’s common stock is listed on The New York Stock Exchange under the symbol KEM. Additional information can be found at:

http://www.kemet.com

You can contact Rich Unruh at runruh@smdinc.com or contact one of our division offices.