Key Technology Appoints Edward A. Wagner as Senior Vice President of Global Operations

WALLA WALLA, WA, Jul 23 (MARKET WIRE) --
Key Technology, Inc. (NASDAQ: KTEC) today announced the appointment of
Edward A. Wagner as Senior Vice President of Global Operations. Effective
July 28, 2008, Wagner will have responsibility for driving new products
to market, expanding the Company's global manufacturing capabilities and
effectiveness, and providing analysis and leadership for all aspects of
operations in support of the Company's overall strategic direction.

David Camp, President and Chief Executive Officer of the Company,
commented: "Ed brings an unusual and impressive breadth of knowledge and
experience to this critical position. His career spans the automation and
semiconductor industries, with executive-level experience in sales,
operations, product development and launch, global business development,
and general management. He has lead turnarounds, restructurings,
acquisitions, alliances, and major growth strategies in highly competitive
markets for early stage and emerging technology companies. He has
significant international experience and knows production from the ground
up. We are excited to add his energy and leadership strength to our
management team."

During the past several years, Wagner has served in a consulting capacity
as an operations specialist for Amtech Systems, Inc., as Vice President
and General Manager of VEECO Instruments' Slider Division, Intel World
Wide Account Director for MEMC Electronic Materials, Inc., and President
and CEO of Intrabay Automation in Santa Clara, California. Previously, he
was with Credence Systems in Hillsboro, Oregon, serving as Senior Vice
President of Sales and Operations, and Senior Vice President and General
Manager of the CMS product line division. Wagner's prior career
experience with PRI Automation included the positions of Group Vice
President of the OEM and Factory Systems Divisions in Billerica,
Massachusetts, Vice President and General Manager of the OEM Division of
PRI based in Mountain View, California, and Vice President of U.S. Sales
and Service for Factory Systems. Wagner also held senior management
positions with Metron Technology and BGL, Inc.

Commenting on his new appointment, Wagner said, "I am very pleased to
become a part of Key's management team. The Company's growth strategy is
exciting and solid. There are many challenges to operating a global
company, and I look forward to the contribution I can make in helping
direct the Company successfully through these challenges, and expand on
the momentum of this unfolding strategy."

Wagner holds a BS degree in Business Administration from the University of
California, Berkley, and a MBA degree in Marketing from Golden Gate
University in San Francisco, California.

About Key Technology

Key Technology, Inc., headquartered in Walla Walla, Washington, is a
worldwide leader in the design and manufacture of process automation
systems for the food processing and industrial markets. The Company's
products integrate electro-optical inspection and sorting, specialized
conveying and product preparation equipment, which allow processors to
improve quality, increase yield and reduce cost. Key has manufacturing
facilities in Washington, Oregon, and the Netherlands, and worldwide sales
and service coverage.

This release contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current expectations
or beliefs and are subject to a number of factors and uncertainties that
could cause actual results to differ materially from those described in
the forward-looking statements. The forward-looking statements in this
release address future financial and operating results.

The following factors, among others, could cause actual results to differ
materially from those described in the forward-looking statements:

-- adverse economic conditions, particularly in the food processing
industry, either globally or regionally, may adversely affect the Company's
revenues;
-- competition and advances in technology may adversely affect sales and
prices;
-- failure of the Company's new products to compete successfully in
either existing or new markets;
-- the limited availability and possible cost fluctuations of materials
used in the Company's products could adversely affect the Company's gross
profits;
-- the inability of the Company to protect its intellectual property,
especially as the Company expands geographically, may adversely affect the
Company's competitive advantage; and
-- intellectual property-related litigation expenses and other costs
resulting from infringement claims asserted against the Company by third
parties may adversely affect the Company's results of operations and its
customer relations.

For a detailed discussion of these and other cautionary statements,
please refer to the Company's filings with the Securities and Exchange
Commission, particularly Item 1A, "Risk Factors," of the Company's Annual
Report on Form 10-K for the fiscal year ended September 30, 2007.

Note: News releases and other information about Key Technology, Inc. can
be accessed at www.key.net.

CONTACT:
David M. Camp
President and Chief Executive Officer
Key Technology, Inc.
(509) 529-2161

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