Key Technology to Acquire Minority Interest in Proditec

Key Technology, Inc. (Nasdaq:KTEC) 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 for 870,000 Euros, or approximately $1.1 million, within the next 30 days, subject to certain conditions. The Company will also acquire an exclusive option to purchase the remaining interest in Proditec through October 5, 2009. The agreement includes provisions addressing the potential future relationship between the parties, should the Company not exercise its purchase option.