ITEM 8.01 OTHER EVENTS

On March 16, 2009, Key Technology, Inc. (the "Company") announced it has reached an agreement to acquire a minority interest in Proditec SAS, a manufacturer of automated, solid dose pharmaceutical inspection systems based on machine vision technology headquartered in Pessac (Bordeaux), France. The Company will acquire a 15% minority interest for 870,000 Euros, or approximately $1.1 million, within the next 30 days, subject to certain conditions. The Company will also acquire an exclusive option to purchase the remaining interest in Proditec through October 5, 2009. The price and certain of the terms of purchase for the remaining interest are specified in the agreement. The agreement also includes provisions addressing the potential future relationship between the parties, should the Company not exercise its purchase option.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

The following exhibit is furnished with this Current Report on Form 8-K:

99.1 Press Release of Key Technology, Inc., dated March 16, 2009

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