Key Technology Honored with Governor’s Trader of the Year Award

March 22, 2007 – Key Technology announced today that it was selected for the 2007 Governor’s Trader of the Year Award. The award honors one Washington State business each year, recognizing a company with innovative products or services that has demonstrated outstanding success in international market development.

“At Key, technology innovation and a dedication to strong customer service are cornerstones of our business,” noted David Camp, President and CEO of Key Technology. “Many of our customers have an international presence and it is our strategy to support these customers with superior service wherever they are located. This base of multinational customers supports Key in building its sales and service organization around the world and that global presence helps Key reach new customers in a wide number of regional markets. It’s very rewarding to be recognized for our success in these areas.”

Key Technology maintains demonstration and testing facilities, manufacturing, engineering, R&D, parts and service at its headquarters in Walla Walla, Washington and at Key Technology BV in Beusichem, the Netherlands. The Company’s subsidiary, Key Technology Australia Pty. Ltd. provides sales and service to customers in Australia and New Zealand.

Additionally, Key recently opened two new international sales and service offices, one in Santiago de Queretaro, Mexico in 2005, with a staff of local residents, and one in Shanghai, China in 2006, employing a large contingent of Chinese nationals. Key continues to expand its worldwide sales channels, adding representatives during the past year in Egypt, Morocco, Greece, and the Scandinavian countries, as well as expanding sales territory coverage into Israel, Saudi Arabia, and Poland within the last two years. Key employs approximately 480 employees worldwide, with over one-third of these located outside the United States.

Export and international sales for the Company’s fiscal year 2005 accounted for 51 percent of net sales and the Company believes that there is significant potential for continued growth in sales of its products outside the United States.

The Governor’s Trader of the Year Award was presented to Key Technology by Washington State Governor Christine Gregoire during the International Export Symposium hosted by the World Trade Club on March 20, 2007. The judging for the award was based on six criteria: maturity in international trade activities, foreign sales as a percentage of total sales, demonstrated success in international market development, innovation in products or services, contribution to Washington State’s economic growth, and contribution to the local community.

“We are thrilled that the World Trade Club has chosen to recognize Key Technology and to support the Washington-based companies that are developing successful international businesses,” Camp concluded.

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.