KLA-Tencor Receives Training Magazine's Coveted "Top 100 Training Companies" Award For Second Consecutive Year
Company rated number five for training and developing its employees to be the most qualified in the industry

SAN JOSE, Calif., May 12, 2003--In recognition of its successful workforce development initiative, KLA-Tencor (NASDAQ: KLAC) received the fifth-highest ranking in Training Magazine's prestigious "Top 100 Training Companies" annual ranking of public and private companies. Recognized as one of the top five training programs in North America, KLA-Tencor's program focuses on grooming its personnel to be the most competent in the industry with the ability to optimize the performance of KLA-Tencor systems. Amid today's increasingly complex semiconductor manufacturing environment, KLA-Tencor's commitment to having a highly skilled, productive workforce has helped customers to increase their productivity and focus on what they do best--chip making--while helping KLA-Tencor to maintain its competitive advantage.

"Perhaps some of the best productivity improvement achievements gained exclusively through training are those found at KLA-Tencor," the editors of Training Magazine commented, while also noting that, "KLA-Tencor has an impressive track-record of workforce development initiatives that align with the company's strategic goals." According to KLA-Tencor, this alignment has enabled the company to help its customers optimize their KLA-Tencor equipment better than KLA-Tencor's competitors, resulting in highly productive systems and reduced costs.

Highlighting the importance of increasing employee and customer productivity, Ken Schroeder, chief executive officer of KLA-Tencor, said, "As the leader in process control technologies for the global semiconductor industry, KLA-Tencor is focused on enhancing the productivity of some of the most challenging manufacturing processes ever conceived. Helping our customers overcome these process challenges allows them to concentrate on maintaining their manufacturing success in today's dynamic semiconductor market. Our focus on having the strongest training program in the semiconductor equipment industry is also an important way in which we extend our own market leadership. This recognition is just one more sign of how our focus on employee productivity is creating value for both our customers and shareholders."

Three years ago, KLA-Tencor implemented the industry's first performance-based training program that holds employees accountable for their skill development. The program provides KLA-Tencor's employees with the knowledge and hands-on skill set needed to help customers optimize the use of their systems and provide tool maintenance and other product support requirements at all levels.

As a result of its industry-leading training efforts, this is the second year in a row that KLA-Tencor has been recognized as having one of the top five training programs in North America, while remaining the top ranked Silicon Valley company. It is also one of only two semiconductor equipment companies named to the list of 100 companies, and the only one whose training program ranked in the top half of the list.

The annual "Top 100 Training Companies" survey was conducted by Training Magazine, a monthly professional development magazine with a 32-year history of writing for training, human resources and business management professionals in all industries. The Top 100 list is determined through a nomination, application review and extensive interview process.

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., with operations around the world, KLA-Tencor ranked #6 on S&P's 2002 index of the top 500 companies in the U.S. KLA-Tencor is traded on the Nasdaq National Market under the symbol KLAC. Additional information about the company is available on the Internet at http://www.kla-tencor.com

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