SOURCE: Key Technology, Inc.

June 30, 2008 13:22 ET

Key Technology Joins Russell 2000® Index

WALLA WALLA, WA--(Marketwire - June 30, 2008) - Key Technology, Inc. (NASDAQ: KTEC) today announced that it was added to the Russell 2000® Index when the Russell Investment Group reconstituted its family of U.S. indexes, according to the final list of additions posted by the Russell Group on June 27. Key Technology will also remain on the Russell Microcap® Index, which the Company joined in 2007.

Membership in the Russell Indexes, which remains in place for one year, means automatic inclusion in the appropriate growth and value style indexes. Russell determines membership for its equity indexes primarily by objective, market-capitalization rankings and style attributes.

David Camp, President and CEO of Key Technology, stated, "The addition of Key Technology to the Russell 2000 Index is recognition that Key's strategy has been effective, that our existing products and new developments are valued by our customers and are addressing market requirements, and that Key continues to create value for its shareholders."

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for both passive and active investment strategies. An industry-leading $4 trillion in assets currently are benchmarked to them.

Annual reconstitution of Russell indexes captures the 4,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization to create the Russell 3000 Index and Russell Microcap. The largest 1,000 companies in the ranking comprise the large-cap Russell 1000® Index and the next 2,000 companies become the widely used small-cap Russell 2000 Index. These investment tools originated from Russell's multi-manager investment business in the early 1980s when the company saw the need for a more objective, market-driven set of benchmarks in order to evaluate outside investment managers.

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; and
--  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.
    

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," of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2007.

Note: News releases and other information about Key Technology, Inc. can be accessed at www.key.net.

About Russell Investment Group

Russell Investment Group aims to improve financial security for people by providing strategic advice, world-class implementation, state-of-the-art performance benchmarks, and a range of institutional-quality investment products. With more than $200 billion in assets under management, Russell serves individual, institutional and advisor clients in more than 40 countries. Russell provides access to some of the world's best money managers. It helps investors put this access to work in corporate defined benefit and defined contribution plans, and in the life savings of individual investors.

Founded in 1936, Russell is a subsidiary of Northwestern Mutual Life Insurance Company. Headquartered in Tacoma, Washington, Russell has principal offices in Amsterdam, Auckland, Hong Kong, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Singapore, Sydney, Tokyo and Toronto.

Russell's indexes are unmanaged and cannot be invested in directly. For more information on Russell indexes, go to www.russell.com.

Contact Information

  • CONTACT:
    Jack Ehren
    Sr. Vice President and Chief Financial Officer
    Key Technology, Inc.
    (509) 529-2161