Key Technology Acquires Freshline Machines

February 15, 2005 – Key Technology announces the acquisition of Freshline Machines Pty Ltd., the leading designer and manufacturer of food processing systems for the fresh-cut industry worldwide. With an extensive product line that features patented centrifugal dryers and integrated processing lines, Australian-based Freshline is respected for innovative, reliable technology. Key offers a compatible line of high quality food processing equipment and adds to the value proposition with world-class project engineering and a comprehensive sales and service organization.

“The strengths of Freshline and Key are complementary. Together, we’re offering a service proposition that is unmatched in the fresh-cut industry,” noted Philip Ewen, Director of Freshline Machines. “Key is injecting Freshline with additional financial strength and 50 years of engineering leadership. Key also brings an established global sales and service organization. Blending Freshline’s equipment with Key’s service allows us to deliver added value to our customers.”

“The acquisition of Freshline is an important strategic addition for Key and we’re excited about the opportunities in the fresh-cut market,” noted Kirk Morton, President and CEO of Key Technology. “Freshline has built a solid reputation for top quality equipment and they have achieved great success. Adding Key’s ‘total solutions’ approach to Freshline’s foundation, we‘re positioned to help fresh-cut customers worldwide maximize the effectiveness of their processes.”

Freshline, headquartered in Sydney, Australia, offers a broad product line that includes their core product, high volume automatic dryers, and a range of fresh-cut food processing solutions from individual machines to large-scale turnkey production lines with automated control systems. Fresh-cut customers handling from 500 lbs to over 20,000 lbs per hour rely on Freshline technology to enhance product quality, increase plant efficiencies, reduce product waste, and improve process control.

Key Technology is an international leader in the design and manufacturer of process automation systems for the food processing industry. Key’s specialized conveying systems – Iso-Flo® Vibratory Conveyors and Impulse™ Electromagnetic Shakers – provide gentle handling during product transport and dewatering. Key’s Tegra® and Optyx® optical inspection systems complement the fresh-cut product line, offering automated defect removal to improve product quality and reduce labor costs. To assure final product quality, fresh-cut processors rely on ScanTrac, the x-ray inspection system from InspX that inspects packaged products for foreign contamination; InspX is a joint venture between Key Technology and Peco Controls.

About Freshline Machines Pty Ltd
Freshline designs and manufactures sophisticated, cost-effective food processing systems for the fresh-cut food industry worldwide, which includes pre-prepared, ready-to-eat salads and vegetables, and fresh-cut fruit products for retail and foodservice markets. Operating since 1989, Freshline has developed a strong position in the fresh-cut market with its solutions-based approach and superior design capabilities. Freshline’s flexible processing systems are suitable for a range of different products such as lettuce, spinach and other leafy vegetables as well as onions, carrots, and other select products.

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 Nasdaq National Market tier of The NASDAQ Stock MarketSM under the symbol: KTEC.