Exhibit 99.1

    Key Technology Promotes Kirk Morton to Chief Executive Officer

    WALLA WALLA, Wash.--(BUSINESS WIRE)--June 9, 2003--Key Technology,
Inc. (Nasdaq:KTEC) announced today that Kirk W. Morton has been
elected to succeed Thomas C. Madsen as Chief Executive Officer of the
Company. Madsen, who has served as Chief Executive Officer since 1982
and Chairman of the Board of Directors since 2000, will retire from
his CEO role in August.
    Morton has served as President and Chief Operating Officer of the
Company since 2001. He joined Key in 1999 as Senior Vice President of
Sales and Marketing and was responsible for worldwide sales and
marketing and had overall responsibility for the Company's European
manufacturing and sales operation, Key Technology BV. Prior to joining
Key, Morton served as Vice President of Sales and Marketing for Stein,
Inc., a business unit of FMC Corporation. He has also held management
positions in the Citrus Systems division of FMC and at Ford Motor
Company. Morton earned his undergraduate degree from Oregon State
University and his MBA from the Darden Graduate School of Business
Administration at the University of Virginia.
    "Kirk has done a great job of managing the Company's operations
during difficult times over the past couple of years. His solid
experience and vision for Key's future make him the ideal person to
lead the Company," commented Thomas C. Madsen, Chairman of the Board
of Directors. "Kirk has played a key role in the Company's current
success and will be instrumental in the Company's focus on profitable
growth going forward. I am very pleased the Board has elected to
transition leadership of Key Technology to a person of Kirk's
caliber."
    Madsen continued, "I look forward to supporting the Company in a
much narrower role and contributing to its success under Kirk's
leadership going forward. I will continue as non-executive Chairman,
with the objective of contributing to Company growth and value
enhancement for our customers and shareholders."
    Commenting on his new appointment, Kirk Morton said, "Key is an
outstanding organization and I am excited to have the opportunity to
lead the Company forward. Under Tom's leadership during the past 23
years, Key Technology has revolutionized the food processing industry
with innovative technology and process automation solutions that
satisfy critical customer needs. I will continue this tradition by
working closely with customers, management and employees, while
maintaining a strong focus on strategy, operations, and execution. I
am pleased that Tom has agreed to make himself available to me and to
our management team for consultation on strategic and business
development issues."
    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:

    --  the effect of adverse economic conditions in markets served by
        the Company and the financial capacity of customers to
        purchase capital equipment;

    --  the ability of new products to compete successfully in either
        existing or new markets;

    --  the effect of increased competition and advances in technology
        on our product pricing and customer capital spending;

    --  risks involved in expanding international operations and
        sales; and

    --  risks associated with adverse fluctuations in foreign currency
        exchange rates.

    For a detailed discussion of these and other cautionary
statements, please refer to the Company's filings with the Securities
and Exchange Commission, particularly Exhibit 99.1 "Forward-Looking
Statement Risk and Uncertainty Factors" to the Company's Annual Report
on Form 10-K for the fiscal year ended September 30, 2002 and the Risk
Factors section of the Company's Registration Statement on Form S-4,
Post-Effective Amendment No. 3, filed August 17, 2001.

    CONTACT: Key Technology, Inc.
             Thomas Madsen, 509/529-2161