Key Technology Introduces Powerful New Optical Sorting System.

Business Editors

WALLA WALLA, Wash.--(BUSINESS WIRE)--Sept. 20, 2001

Key Technology, Inc. (Nasdaq:KTEC) introduced its new Optyx(TM) automated inspection system last week at the International Exposition for Food Processors in Las Vegas, Nevada.

Optyx is an economical, compact system that offers the same power and sorting capabilities of large-scale automated inspection systems such as the Tegra(R) and Prism(R) sorters offered by Key.

The new product is ideal for smaller processors and lower volume processing lines and provides excellent sorting results for a variety of applications ranging from green beans to packaged candies and snacks. The system can easily be inserted into existing processing lines and is designed for simple set-up by the customer. Optyx allows processors to achieve cost efficiency, fast payback, excellent product quality, increased profits and a significant competitive advantage.

Commenting on the new product, Thomas C. Madsen, Chairman and CEO, said, "We see a tremendous amount of potential for Optyx in our traditional fruit and vegetable markets. In these very competitive markets, many smaller processors are unable to justify the expense of a larger sorter. The low-cost Optyx enables them to provide their customers with a higher quality product at reduced operating costs.

"While we will initially concentrate on our existing customer base, we also plan to introduce Optyx into new markets. The addition of Optyx to our family of optical products gives Key a sorter solution for a broad spectrum of customer needs and product applications which will allow us to further strengthen our position in the sorter market."

Key has been operating the Optyx sorter at several beta site locations over the past couple of months with exceptional results. The system has successfully proven its technical capabilities and has performed superbly on the applications at each site. After only eight weeks of testing at West Michigan Processing Co-op, Inc., a cooperative of blueberry growers in Holland, Michigan, the company has committed to purchase two Optyx sorters. Commenting on the new sorter's performance, Carl Nelson, West Michigan Processing Co-op President, said, "The technology is amazing and the sorting precision is beyond our expectations. Optyx has significantly improved the quality of our product and is definitely superior to any other sorter we have tested. We are proud to be the first blueberry processor to install Key's new Optyx sorter."

The Optyx system was developed by the combined research and development organizations of Key Technology and SRC Vision. Key acquired SRC Vision when it merged with Advanced Machine Vision Corporation in July 2000. The merged R&D team was successful in utilizing the best technologies of both companies to create a sorter that maintains the power of a large sorter in a smaller machine. The new sorter employs the advanced camera, lighting, image processing, and ejection technologies used in the renowned Tegra and Prism products. By incorporating components from other Key systems, the Company has gained significant economies of scale in purchasing power, as well as efficiencies in the production of sub-assemblies.

"The R&D teams from Key and SRC have done an outstanding job of combining their engineering talents and technical knowledge to collectively develop the Optyx. The development cycle for this product was the fastest in Key's history for a system as advanced as Optyx and demonstrates the synergy we gained by merging with AMVC," said Madsen.

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, forest products, 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 the following subjects: future financial and operating results; and new markets, products, services, features and content.

The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements:

-- further deterioration of general economic conditions and the impact of
rising energy-related costs on customers;

-- ability of the Company to access new capital required to finance future
redemption obligations;

-- inability to further identify, develop and achieve commercial success for
new products and services;

-- increased competition and its effects on pricing and customer capital
spending;

-- risks associated with adverse fluctuations in foreign currency exchange
rates; and

-- inability to penetrate anticipated new markets.

For a detailed discussion of these and other cautionary statements, please refer to the Company's filings with the Securities and Exchange Commission, particularly in Exhibit 99.1 "Forward-Looking Statement Risk and Uncertainty Factors" of the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2000 and the Risk Factors sections of the Company's Registration Statement on Form S-4, Post-Effective Amendment No. 1, filed March 23, 2001.

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

--30--CER/RYG/se*

    CONTACT: Key Technology, Inc.
             Ted R. Sharp, 509/529-2161
             www.keyww.com

    KEYWORD: WASHINGTON NEVADA
    INDUSTRY KEYWORD: FOODS/BEVERAGES FOREST PRODUCTS MANUFACTURING
PRODUCT
    SOURCE: Key Technology, Inc.