Exhibit 99.2

          Key Technology Announces Stock Repurchase Program

    WALLA WALLA, Wash.--(BUSINESS WIRE)--Sept. 26, 2006--Key
Technology, Inc. (NASDAQ:KTEC) announced today that its Board of
Directors has authorized the Company's management to proceed with a
stock repurchase program to be implemented following the release of
the Company's year-end fiscal results in November. As authorized, the
Company may purchase up to 500,000 shares of its Common Stock under a
repurchase program to be managed by Needham & Company and conducted
under the guidelines provided by Rule 10b-18 of the Securities
Exchange Commission.

    "We feel that this program is good use of the Company's capital
given the current trading range of our stock and our assessment of
related factors," commented Thomas C. Madsen, Chairman. "It will
provide increased liquidity opportunities for some of our
shareholders, while also providing what we think is a good investment
for our continuing shareholders."

    A subsequent press release announcing the commencement of the
repurchase will be issued not less than three days prior to the
initiation date.

    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 allows 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.

    CONTACT: Key Technology, Inc.
             Ron Burgess, Sr. Vice President and Chief Financial
             Officer, 509-529-2161
             www.keyww.com