WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported): August 15, 2002

                              KEY TECHNOLOGY, INC.
             (Exact name of registrant as specified in its charter)

           OREGON                       0-21820               93-0822509
(State or other jurisdiction   (Commission File Number)     (IRS Employer
      of incorporation)                                   Identification No.)

                                150 Avery Street
                          Walla Walla, Washington 99362
               (Address of principal executive offices) (Zip Code)

                                 (509) 529-2161
              (Registrant's telephone number, including area code)

Item 5. Other Events and Regulation FD Disclosure.

     On August 15, 2002, Key  Technology,  Inc. (the  "Company")  issued a press
release  announcing  the receipt of a $5.0 million  order from the J.R.  Simplot
Company. A copy of the press release issued in connection with this announcement
is attached as Exhibit 99.1.

Item 7. Financial Statements and Exhibits.

(c)  Exhibits.

     Exhibit No.      Description

     99.1             Key Technology, Inc. Press Release, dated August 15, 2002


Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the registrant has duly caused this current report on Form 8-K to be signed on
its behalf by the undersigned thereunto duly authorized.

                                                     KEY TECHNOLOGY, INC.

                                                     /s/ TED R. SHARP
                                                     Ted R. Sharp
                                                     Chief Financial Officer

Dated:  August 15, 2002


    Exhibit No.      Description
    --------------   ----------------------------------------------------

    99.1             Key Technology, Inc. Press Release, dated August 15, 2002

CONTACT: Ted R. Sharp
         Chief Financial Officer
         Key Technology, Inc.
         (509) 529-2161

                   Key Technology Receives $5.0 million order
                          from The J.R. Simplot COMPANY

     WALLA WALLA, WA -- Key Technology,  Inc. (NASDAQ:KTEC) announced today that
it has  received  orders  totaling  approximately  US$5.0  million from the J.R.
Simplot  Company to supply  optical  inspection  systems and  material  handling
equipment for Simplot's new potato processing plant currently under construction
near Portage la Prairie,  Manitoba.  The  equipment,  included in the  Company's
backlog  of  $18.9  million  at the end of the June 30,  2002  quarter,  will be
delivered in the early part of Key's fiscal 2003.
     The  J.R.  Simplot  Company  is a $3  billion  privately-held  agribusiness
corporation  with  headquarters  in Boise,  Idaho that  produces more than three
billion pounds of french fries  annually,  making it one of the world's  largest
manufacturers  of frozen food products.  The Simplot Food Group is recognized as
an  international  leader in new products  and  production  efficiency  and uses
sophisticated  processing  equipment to produce hundreds of different  products,
including frozen and fresh potatoes, and frozen vegetables and fruit.
     The state-of-the-art  Portage la Prairie plant, which is scheduled to start
up in early summer of 2003,  will have an initial  production  capacity of about
300 million  pounds of french fries and other frozen potato  products,  and will
accommodate  expansion up to twice that  capacity.  Key  Technology  will play a
major  role in  supplying  process  automation  equipment  for the  plant and in
systems engineering of the plant layout and integration of Key equipment.
     Rick Fisch,  Vice  President  Special  Projects of the Simplot  Food Group,
said,  "Key  Technology is considered one of our top  suppliers.  Their customer
service truly sets them apart, and in today's business  environment,  it is very
refreshing  to work with a company that takes care of its  customers  even after
the order is placed.  With Key's advanced  technologies,  expertise in efficient
processing  methods,  and  process  automation  equipment,  we are able to offer
superior quality food products to our customers at competitive prices."

     The order  from  Simplot  includes  multiple  units of Key's  Tegra(R)  and
ADR(R)4 optical  inspection  systems and an Optyx(TM) quality monitoring system,
together  with a  significant  amount of material  handling  equipment  used for
sizing,  grading and conveying  food  product.  The  inspection  systems will be
installed with Key's  proprietary  data management  software  product,  Key Data
Manager,  which will  allow  Simplot to improve  process  control  and  maximize
productivity  through  real-time quality analysis and feedback to the processing
     "The  J.R.  Simplot  Company  has  demonstrated  their  confidence  in  Key
Technology's products and services with their recent capital investment.  Key is
committed to providing  engineering  expertise  and creative  solutions to their
processing needs which will allow Simplot to maximize efficiencies, reduce costs
and improve the quality of their food  products,"  commented  Thomas C.  Madsen,
Chairman and CEO of Key Technology.
     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.
     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  future
financial and operating results.

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

o    the effect of adverse economic  conditions in markets served by the Company
     and the financial capacity of customers to purchase capital equipment;
o    the ability of new products to compete  successfully  in either existing or
     new markets;
o    increased  competition  and its effects on our product pricing and customer
     capital spending;
o    risks involved in expanding international operations and sales; and
o    risks  associated with adverse  fluctuations in foreign  currency  exchange

     For a detailed discussion of these and other cautionary statements,  please
refer to the  Company's  filings with the  Securities  and Exchange  Commission,
particularly  Exhibit  99.1  "Forward-Looking  Statement  Risk  and  Uncertainty
Factors" to the  Company's  Annual Report on Form 10-K for the fiscal year ended
September 30, 2001 and the Risk Factors  section of the  Company's  Registration
Statement on Form S-4, Post-Effective Amendment No. 3, filed August 17, 2001.

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