SAN JOSE, Calif., July 13, 2004--Marking its first "Legends of the Industry" Award, Needham & Company named semiconductor equipment industry veteran and KLA-Tencor (NASDAQ: KLAC) Chairman, Ken Levy, as the inaugural recipient. Selected for his outstanding contribution to the industry, Levy was presented with the award last night at Needham's SEMICON West Technology Dinner in San Francisco.

Levy's association with the semiconductor capital equipment industry spans more than three decades. After founding KLA Instruments Corporation in 1976, he oversaw the company's leadership in new market areas in the semiconductor manufacturing instrumentation field, innovating technologies in areas such as reticle inspection, wafer defect inspection, wafer metrology, and yield management software. In 1997, KLA Instruments merged with Tencor Instruments to become KLA-Tencor Corporation--a multi-billion dollar company that has become a world leader in process control solutions for the semiconductor manufacturing and related industries.

Needham & Company's semiconductor capital equipment analyst, Robert Maire, cited Levy's pioneering technology innovations and exceptional business accomplishments as key factors in the nomination decision. "While this industry boasts an extraordinary number of talented individuals, Ken Levy stands apart as an executive with a combination of technology genius and outstanding business acumen. His contributions over the past 30 years have done much to advance the progress of the semiconductor industry. We are honored tonight to name him as a "legend" of the industry."

In presenting the award, George Needham, founder & chairman of Needham & Company, added, "We are proud to have worked with Ken and KLA-Tencor through all these exciting years of growth and change. Ken's foresight and leadership have produced huge benefits that have extended well beyond the industry itself."

Said KLA-Tencor chief executive, Ken Schroeder, "This is a well-deserved tribute to Ken, and a great honor for our company. KLA-Tencor has benefited greatly from Ken's technology vision, leadership and wisdom. We are proud to see him honored by Needham & Company and congratulate him on this industry accolade."

Contact:
Meggan Powers
Director Corporate Communications