Market Wire

Key Technology Announces Appointment of Richard Hebel as Chief Technology Officer

Key Technology Announces Appointment of Richard Hebel as Chief Technology Officer

Key Technology, Inc. (NASDAQ: KTEC) today

announced the appointment of Richard Hebel as Chief Technology Officer

(CTO). Effective immediately, Hebel is responsible for identifying and

commercializing advanced technologies that will expand Key’s range of

customer product solutions and developing new opportunities for corporate

growth and diversification in connection with new inspection technologies.

Craig Miller, Senior Vice President, will assume general management of

Key’s pharmaceutical business, SYMETIX(TM), as well as continue to lead

efforts in developing opportunities for Key’s Service and Aftermarket


“The appointment of Rich to this new position is a clear indication of

Key’s commitment to developing break-through innovations — this is a very

important strategic initiative for Key. We are focused on diversifying

into markets and technologies that will stimulate intellectual property

development to create new opportunities for growth and commercial success,”

noted David Camp, President and CEO of Key Technology. “With Rich’s

technology background, big-picture perspective, and business development

expertise, he is ideally suited to take the lead in extending our

technology leadership into new arenas.”

Hebel brings more than 30 years of business experience to his new position

at Key. Most recently, he served as General Manager of SYMETIX, leading

the successful start-up of Key’s pharmaceutical business. Previously, he

was Vice President, Corporate Marketing and Business Development for Key.

In conjunction with Key Technology, he holds two patents relating to


Prior to joining Key in 1993, Hebel served in a number of technical and

marketing executive positions with companies including: Allen Bradley (now

part of Rockwell Automation), Technicon (now part of Bayer-Technicon

Instruments Corporation), Ball Aerospace Corporation, and Eaton

Corporation. He holds a Bachelor of Arts degree and a Masters of Science

degree, was a Charter Member of the Machine Vision Association, and is a

Senior Member of the Society of Manufacturing Engineers, the Institute of

Electrical and Electronic Engineers, and the International Society of

Pharmaceutical Engineers.

“I am excited to take on such a pivotal role at Key. We are dedicated to

building our technology leadership position through development

partnerships, acquisitions, licensing, and cooperation with academic

research efforts,” noted Hebel. “We are actively searching for new

opportunities to advance our diversification strategy into related

applications for our products.”

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;

— 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; and

— the cost of compliance with the internal control requirements of

Section 404 of the Sarbanes-Oxley Act is expected to materially impact

future earnings.

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,” to the Company’s Annual Report on

Form 10-K for the fiscal year ended September 30, 2006, and Part II, Item

1A, to the Company’s Quarterly Report on Form 10-Q for the quarter ended

March 31, 2007.

Note: News releases and other information on Key Technology, Inc. can be

accessed at .


David Camp

President and Chief Executive Officer

Key Technology, Inc.

(509) 529-2161