EXHIBIT 99

July 8, 1996

                                                     Contact: Thomas C. Madsen
                                                              President and CEO
FOR IMMEDIATE RELEASE                                         (509)  529-2161
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       KEY TECHNOLOGY ANNOUNCES THE ACQUISITION OF SUPLUSCO HOLDING B.V.
                               AND SUPERIOR B.V.

WALLA  WALLA,  Washington  -- Key  Technology,  Inc.  (NASDAQ/NMS:  KTEC)  today
announced that it had finalized the acquisition of Suplusco Holding B.V. and its
wholly-owned   subsidiary   Superior  B.V.,  both  located  in  Beusichem,   The
Netherlands.  Superior is a  manufacturer  of high-end  vibratory  and conveying
equipment  for the  food,  plastic  and  recycling  industries  in  Europe.  The
acquisition  includes all Superior  operations and will continue to operate as a
separate division of Key Technology, Inc., led by its existing management team.

Thomas C. Madsen,  President  and CEO of Key  Technology  commented:  "By adding
Superior's  manufacturing  operations to the existing Key Technology  B.V. sales
and  service  office,  we  create  a  significant  market  presence  in  Europe.
Superior's  excellent  reputation  for quality  products and service  makes it a
natural  fit with  Key.  The  acquisition  gives Key the same  unique  strategic
advantage  in Europe  that it enjoys  in the U.S.  by  becoming  a  supplier  of
complete  integrated  optical  inspection and material  handling systems for the
food  processing  industry.  In  addition,  Superior  has  vibratory  processing
products  that Key  Technology  will  manufacture  and  distribute  for the U.S.
market."

For the eleven months ended May 31, 1996,  Suplusco's  consolidated net earnings
were approximately Dfl 795,000 (U.S. $465,000) on sales of approximately Dfl 6.1
million (U.S.  $3.6  million).  For the twelve  months ended June 30, 1996,  net
sales were approximately Dfl 6.7 million (U.S. $3.9 million). The purchase price
for the shares of Suplusco  Holding B.V. was Dfl 5.2 million (U.S. $3.0 million)
cash.  Superior has 25 employees,  bringing Key Technology's  European  staffing
level to a total of 40 employees.

Key  Technology,  an  ISO-9000  certified  company,  is a leading  designer  and
manufacturer  of  process  automation   systems,   integrating   electro-optical
inspection  and  sorting,   specialized   conveying,   and  product  preparation
equipment.  Key(R) systems allow processors to improve  quality,  increase yield
and reduce costs. Headquartered in Walla Walla, Washington,  U.S.A., the Company
oversees a world-wide network of sales  representatives on five continents.  The
Company's  common stock trades on the Nasdaq  National Market tier of The Nasdaq
Stock Market(SM) under the symbol: KTEC.
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