Key Technology to Cut 11% of Workforce; Will Buy Back 500K Shares

Key Technology, Inc. KTEC announced today that it is taking cost reduction initiatives during the third quarter of fiscal 2012 that include a planned reduction of approximately 11% of its global workforce. Company earnings for the third quarter will be adversely affected by an estimated pre-tax charge of approximately $1.0 million related to the workforce reduction. Approximately two-thirds of these workforce reductions will reduce future costs in operating expense areas, with the remainder reducing costs in manufacturing operations. In addition, the Company announced that its Board of Directors has authorized the purchase of up to 500,000 shares of the Company's outstanding common stock under a new repurchase program to be managed by Needham & Company and conducted under the guidelines provided by Rule 10b-18 of the Securities Exchange Commission.