-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 TrpwKERzZl8BPMt5LX/p4MuyxOtLaz+HmvvdSKrpja1vAkTEQ72AeMWscYaYR99e
 Uk0qIKAGC1xrKi4qW8K19g==

<SEC-DOCUMENT>0001181431-04-011621.txt : 20040224
<SEC-HEADER>0001181431-04-011621.hdr.sgml : 20040224
<ACCEPTANCE-DATETIME>20040224140320
ACCESSION NUMBER:		0001181431-04-011621
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20040224
FILED AS OF DATE:		20040224

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			RUDOLPH RICHARD S
		CENTRAL INDEX KEY:			0001187984

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-27241
		FILM NUMBER:		04624345

	BUSINESS ADDRESS:	
		STREET 1:		C/O KEYNOTE SYSTEMS
		STREET 2:		777 MARINERS ISLAND BLVD
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94404
		BUSINESS PHONE:		6504033298

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KEYNOTE SYSTEMS INC
		CENTRAL INDEX KEY:			0001032761
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-BUSINESS SERVICES, NEC [7389]
		IRS NUMBER:				943226488
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		777 MARINERS ISLAND BLVD.
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94404
		BUSINESS PHONE:		650-403-2400

	MAIL ADDRESS:	
		STREET 1:		777 MARINERS ISLAND BLVD.
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94404
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>rrd34476.xml
<DESCRIPTION>ESPP SALE 2.24.04
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2004-02-24</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001032761</issuerCik>
        <issuerName>KEYNOTE SYSTEMS INC</issuerName>
        <issuerTradingSymbol>KEYN</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001187984</rptOwnerCik>
            <rptOwnerName>RUDOLPH RICHARD S</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O KEYNOTE SYSTEMS, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>777 MARINERS ISLAND BLVD.</rptOwnerStreet2>
            <rptOwnerCity>SAN MATEO</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>94404</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>VP of Worldwide Sales</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <transactionDate>
                <value>2004-02-24</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6102</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>12.75</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1658</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">Includes 1,658 shares of Common Stock acquired under the Issuer's Employee Stock Purchase Plan on January 31, 2004.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Richard Rudolph</signatureName>
        <signatureDate>2004-02-24</signatureDate>
    </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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