Exhibit 99.1

Key Technology Appoints Two New Members to Board of Directors

    WALLA WALLA, Wash.--(BUSINESS WIRE)--July 20, 2004--Key
Technology, Inc. (Nasdaq:KTEC) announced today that it has appointed
Charles H. Stonecipher and Kirk W. Morton to the Key Technology Board
of Directors.
    Mr. Stonecipher has served in a number of executive positions at
Advanced Digital Information Corporation (ADIC) since joining the
Redmond, Washington-based company in 1995. He currently serves as
Executive Vice President, Product Development and Strategy. From 1994
to 1995, Stonecipher served as Vice President, Finance and
Administration and Chief Financial Officer of Interpoint. Before
joining Interpoint, Stonecipher worked as a manager at Bain & Company
and as an engineer at The Boeing Company. He holds B.S. and M.S.
degrees in Mechanical Engineering from Stanford University, where he
graduated Phi Beta Kappa, and an M.B.A. from Harvard Business School.
    "Chuck's strong background in general corporate management, his
expertise in strategic planning and technology development, and his
experience with public company investor relations will complement our
existing Board composition," commented Thomas C. Madsen, Chairman of
Key Technology. "We are excited that Chuck has joined our Board and we
look forward to his future input as we develop the long-term strategic
direction of the Company."
    Mr. Morton was appointed Chief Executive Officer of the Company in
August 2003, and has served as President since 2001. He served as
Chief Operating Officer from 2001 to 2003. Morton 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 M.B.A. from
the Darden Graduate School of Business Administration at the
University of Virginia.
    Madsen said, "Kirk is a valuable addition to the Board and we
believe it is appropriate for him to participate with the other
directors as we craft the long-term strategic direction of Key. His
industry knowledge and experience will be an important component of a
successful plan."
    Key also announced the resignation of two members of its Board,
Peter van Oppen and Gordon Wicher. These changes maintain the number
of Board members at six. Wicher will continue to serve as Corporate
Secretary.
    "We appreciate the many years of service that Peter and Gordon
have provided to our Board. Their strong leadership and guidance have
been key factors in the success and growth of Key Technology," said
Madsen.

    About Key Technology, Inc.

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

    CONTACT: Key Technology, Inc.
             Phyllis Best, 509-529-2161