Key Technology Acquires Minority Interest in PRODITEC S.A.S.

March 16, 2009 – Key Technology announced today it has reached an agreement to acquire a minority interest in Proditec SAS.  Proditec is a leading manufacturer of automated, solid dose pharmaceutical inspection systems based on machine vision technology.  Proditec is headquartered in Pessac (Bordeaux), France.

Key Technology, Inc. will acquire a 15% minority interest within the next 30 days, subject to certain conditions.  Key will also acquire an exclusive option to purchase the remaining interest in Proditec through October 5, 2009.

David Camp, President and Chief Executive Officer of Key Technology, Inc., commented, “Acquiring an equity position in Proditec will strengthen our strategic initiatives in the pharmaceutical market. Our ultimate objective is to provide a comprehensive set of solutions to pharmaceutical solid dose manufacturers to improve their production efficiencies while delivering the highest level of diligence related to product safety and security.  Proditec offers an impressive product portfolio primarily focused on tablets and two-piece capsules, while Key’s current pharmaceutical products primarily serve the softgel market.”

Symetix, the pharmaceutical business unit of Key Technology, and Proditec will exhibit jointly in the upcoming INTERPHEX trade show in New York City, March 17-19, 2009.

About Key Technology, Inc.

Key Technology, an ISO-9001 certified company, is a leading designer and manufacturer of process automation systems, integrated electro-optical inspection and sorting systems, and processing systems. Key® systems help processors to improve quality, increase yield, and reduce cost. With worldwide sales representation, the company maintains demonstration and testing facilities at its headquarters and manufacturing divisions in Walla Walla, Washington, USA, and at Key Technology BV in Beusichem, the Netherlands.  The company's common stock trades on the Global Market tier of The NASDAQ Stock MarketSM under the symbol: KTEC.

Contact:

David Camp
President and Chief Executive Officer
Key Technology, Inc.
509-529-2161