Hauni Maschinenbau AG and Key Technology, Inc. Announce OEM Agreement to Bring New Combination of World-class Products and Services to Tobacco Processors

September 7, 2009 – Hauni Maschinenbau AG and Key Technology, Inc. announced the signing of an OEM distribution agreement that gives Hauni exclusive rights to market Key Technology products to the tobacco industry worldwide. Key Technology will now be the sole supplier of optical sorting equipment to Hauni. Key’s Tobacco Sorter™ 3 (TS3) and Optyx® sorter remove NTRM (non-tobacco related materials) from primary processing lines and threshing lines to help tobacco processors maximize product quality.

The new OEM agreement allows Hauni to market, sell, and service Key Technology’s optical sorters and vibratory conveyors to tobacco processors worldwide. Key will focus on R&D and manufacturing and will support Hauni’s activities, as well as providing upgrade opportunities to eliminate the risk of obsolescence.

"This development combines the expertise of two industry leaders into one comprehensive solution to offer tobacco processors a single source for best-in-class products and services," noted Wolfgang Benz, Executive Vice President Tobacco Division responsible for Hauni Primary. "Key brings a powerful technology platform and shares Hauni’s dedication to continuous innovation. Hauni complements Key’s product line with a portfolio that includes machines and systems for every processing step. This relationship strengthens our position as the leading solution provider to the tobacco industry because it gives us a superior technology base and supports the development of joint products."

"We are excited to join forces with Hauni because it creates a winning situation for tobacco processors worldwide and both Key and Hauni," noted John Boutsikaris, Senior Vice President of Global Sales and Aftermarket at Key Technology. "With Hauni’s extensive international sales force bringing Key’s products to market, Key can continue to grow its tobacco business, while maintaining our focus on developing new technologies that will benefit processors in the tobacco industry and beyond."

To achieve superior product quality, tobacco processors rely on Key’s Tobacco Sorter 3 (TS3) and Optyx to detect and remove NTRM including inorganic matter such as cardboard, plastic, metal, string and glass as well as natural materials such as insects, bird feathers and non tobacco plant matter. The high capacity TS3 is ideal for high volume primary processing lines and lamina line applications, while Optyx is ideal for lower volume applications such as inspection of stem, cut tobacco and cigar filler, as well as recovery operations on rejected product for the primary processing lines.

Hauni is the leading systems supplier to the tobacco industry offering technologies and solutions for filter rod and cigarette production, logistics systems, special tobacco products machinery and tobacco processing worldwide. For the tobacco processing Hauni supplies a complete range of equipment, including slicing, conditioning, casing, flavoring, stem flattening, cutting, drying, expansion, cooling, separating, blending, conveying, and handling machinery, offering customers single source responsibility, including turnkey line integration services and after sales service. Headquartered in Hamburg, Germany, Hauni supports customers around the world from its numerous international locations.

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.