Keithley Instruments Restores Employee Compensation; Updates First Quarter Fiscal 2010 Guidance

Keithley Instruments today announced that it will restore employee compensation to full pay effective January 1, 2010. The Company had previously reduced compensation by ten percent for the majority of U.S. exempt employees and by twelve percent for the Company’s three senior officers, and had implemented unpaid days off for U.S. non-exempt employees, effective January 1, 2009. The Company anticipates that the salary restoration will increase fiscal 2010 annualized operating costs by approximately three percent.

Keithley has restored compensation as a result of improved global economies and the Company’s expectation that it will be profitable in fiscal year 2010. Although the Company’s visibility beyond a quarter is extremely limited, it is the Company’s goal to achieve a minimum pre tax return on sales of four percent for fiscal year 2010 after the restoration of compensation and before the gain on sale of the Company’s RF measurement product line. The Company expects to report net sales for the first quarter of fiscal 2010 in the range of $27 to $28 million and expects to be profitable from operations during the first quarter, excluding the impact of the gain on sale of the Company’s RF measurement product line.

The Company will provide more details regarding results for its first quarter ended December 31, 2009, when it reports its complete results on Monday, February 1, 2010, before the stock market opens. The Company will host a conference call which will be broadcast over the Internet that same day at 10 a.m. Eastern Standard Time. This call is being webcast by Thomson and can be accessed from the Investor section of Keithley’s website at www.keithley.com.

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