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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 GNQLY7P5H4/6+3mfkdQcVDQJrqtKFdgif8G9/XewNfRMtsCYSgJfNcBQC8i5K9PG
 bolrFD7OyBoJaRq/C9H44Q==

<SEC-DOCUMENT>0001179110-03-010927.txt : 20031118
<SEC-HEADER>0001179110-03-010927.hdr.sgml : 20031118
<ACCEPTANCE-DATETIME>20031118183505
ACCESSION NUMBER:		0001179110-03-010927
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20031114
FILED AS OF DATE:		20031118

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			MORTON KIRK W
		CENTRAL INDEX KEY:			0001228399

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-21820
		FILM NUMBER:		031011386

	BUSINESS ADDRESS:	
		STREET 1:		150 AVERY STREET
		CITY:			WALLA WALLA
		STATE:			WA
		ZIP:			99362
		BUSINESS PHONE:		5095292161

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			KEY TECHNOLOGY INC
		CENTRAL INDEX KEY:			0000906193
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY (NO METALWORKING MACHINERY) [3550]
		IRS NUMBER:				930822509
		STATE OF INCORPORATION:			OR
		FISCAL YEAR END:			0930

	BUSINESS ADDRESS:	
		STREET 1:		150 AVERY ST
		CITY:			WALLA WALLA
		STATE:			WA
		ZIP:			99362
		BUSINESS PHONE:		5095292161

	MAIL ADDRESS:	
		STREET 1:		150 AVERY STREET
		CITY:			WALLA WALLA
		STATE:			WA
		ZIP:			99362
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
<periodOfReport>2003-11-14</periodOfReport>
<notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000906193</issuerCik>
        <issuerName>KEY TECHNOLOGY INC</issuerName>
        <issuerTradingSymbol>KTEC</issuerTradingSymbol>
</issuer>
<reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001228399</rptOwnerCik>
            <rptOwnerName>MORTON KIRK W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O KEY TECHNOLOGY, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>150 AVERY STREET</rptOwnerStreet2>
            <rptOwnerCity>WALLA WALLA</rptOwnerCity>
            <rptOwnerState>WA</rptOwnerState>
            <rptOwnerZipCode>99362</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
<isDirector>0</isDirector>
<isOfficer>1</isOfficer>
<isTenPercentOwner>0</isTenPercentOwner>
<isOther>0</isOther>
<officerTitle>President &amp; CEO</officerTitle>
<otherText></otherText>
</reportingOwnerRelationship>
</reportingOwner>
<nonDerivativeTable><nonDerivativeTransaction><securityTitle><value>Common Stock</value>
</securityTitle>
<transactionDate><value>2003-11-14</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>M</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>500</value>
</transactionShares>
<transactionPricePerShare><value>8.19</value>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>A</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>3500</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</nonDerivativeTransaction>
<nonDerivativeTransaction><securityTitle><value>Common Stock</value>
</securityTitle>
<transactionDate><value>2003-11-14</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>S</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>500</value>
</transactionShares>
<transactionPricePerShare><value>15.00</value>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>3000</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</nonDerivativeTransaction>
</nonDerivativeTable>
<derivativeTable><derivativeTransaction><securityTitle><value>Common Stock</value>
</securityTitle>
<conversionOrExercisePrice><value>8.19</value>
</conversionOrExercisePrice>
<transactionDate><value>2003-11-14</value>
</transactionDate>
<transactionCoding><transactionFormType>4</transactionFormType>
<transactionCode>M</transactionCode>
<equitySwapInvolved>0</equitySwapInvolved>
</transactionCoding>
<transactionAmounts><transactionShares><value>500</value>
</transactionShares>
<transactionPricePerShare><value>0</value>
<footnoteId id="F2"></footnoteId>
</transactionPricePerShare>
<transactionAcquiredDisposedCode><value>D</value>
</transactionAcquiredDisposedCode>
</transactionAmounts>
<exerciseDate><footnoteId id="F1"></footnoteId>
</exerciseDate>
<expirationDate><value>2004-01-18</value>
</expirationDate>
<underlyingSecurity><underlyingSecurityTitle><value>Common Stock</value>
</underlyingSecurityTitle>
<underlyingSecurityShares><value>500</value>
</underlyingSecurityShares>
</underlyingSecurity>
<postTransactionAmounts><sharesOwnedFollowingTransaction><value>14500</value>
</sharesOwnedFollowingTransaction>
</postTransactionAmounts>
<ownershipNature><directOrIndirectOwnership><value>D</value>
</directOrIndirectOwnership>
</ownershipNature>
</derivativeTransaction>
</derivativeTable>
<footnotes><footnote id="F1">25 percent of such option became exercisable on January 18, 2000, 2001, 2002,and 2003.</footnote>
<footnote id="F2">Column 8 is not a required reportable field.  New SEC software requires a dollar amount; use zero per SEC.</footnote>
</footnotes>
<ownerSignature><signatureName>Kirk W. Morton</signatureName>
<signatureDate>2003-11-18</signatureDate>
</ownerSignature>
</ownershipDocument>

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