MILPITAS, Calif., July 13, 2010 –KLA-Tencor Corporation® (NASDAQ: KLAC) today announced that its board of directors has authorized an increase of the level of the company's quarterly dividend from $0.15 to $0.25 per share. This increase is expected to take effect beginning with KLA-Tencor's quarterly dividend to be declared in August 2010. This represents a 67% increase compared to the prior quarterly dividend and is the second dividend increase since KLA-Tencor first instituted its dividend in April 2005.

"KLA-Tencor's strong cash flows and solid balance sheet provide us the financial flexibility to return significant cash to our shareholders while also providing the capacity to fuel our growth initiatives," said Rick Wallace, president and chief executive officer of KLA-Tencor.

"We remain committed to increasing shareholder value through executing our strategic objectives of customer focus, growth, operations excellence, and talent development," Wallace added. "This increase in the level of the dividend reflects our confidence in the outlook for KLA-Tencor and our commitment to rewarding our shareholders for their continued investment."

This announcement and other news regarding KLA-Tencor will be discussed later today, July 13, 2010, at the company's annual SEMICON West analyst briefing at the Westin San Francisco Market Street Hotel, with a live webcast beginning at 12:30 p.m. Pacific Daylight Time. The live webcast can be accessed through the Investors page of the KLA-Tencor web site at

About KLA-Tencor:
KLA-Tencor Corporation, a leading provider of process control and yield management solutions, partners with customers around the world to develop state-of-the-art inspection and metrology technologies. These technologies serve the semiconductor, data storage, LED, photovoltaic, and other related nanoelectronics industries. With a portfolio of industry-standard products and a team of world-class engineers and scientists, the company has created superior solutions for its customers for more than 30 years. Headquartered in Milpitas, California, KLA-Tencor has dedicated customer operations and service centers around the world. Additional information may be found at (KLAC-F)

Forward Looking Statements:
Statements in this press release other than historical facts, such as statements regarding the anticipated future level of KLA-Tencor's quarterly dividend, the company's commitment to continue paying dividends at any level in the future, and KLA-Tencor's future operating results and financial strength (including without limitation the company's future cash flows and availability of cash for the payment of dividends), are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Actual future results and/or events may differ

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Investor Relations:
Ed Lockwood
Sr. Director, Investor Relations
(408) 875-9529


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