Kemet will acquire Arcotronics Italia from Blue Skye, a company owned by the special opportunities funds managed by D.B. Zwirn & Co. Arcotronics is a manufacturer of plastic film and metallized plastic film capacitors and wet tantalum capacitors, of battery and film capacitor machinery. Arcotronics has manufacturing facilities in Italy, Germany, the United Kingdom, Bulgaria and China. In the year ended December 2006 the company had total consolidated sales of approximately euro 150 million. Kemet has agreed to pay euro 17.5 million for 100% of the outstanding share capital of Arcotronics. Kemet will assume or refinance approximately Euro98 million of net financial debt and assume certain other liabilities of the company. The transaction is expected to close in early October 2007.