Keithley Instruments Announces Additional Cost Reduction Actions

Keithley Instruments, Inc. (NYSE:KEI), a leader in solutions for emerging measurement needs, today announced further cost reduction measures designed to improve the Company’s financial results. Effective immediately, the Company has suspended all salary increases and has implemented a hiring freeze with the exception of a few critical replacements. The Company has also reduced plans for capital expenditures, as well as travel and other discretionary spending. It is estimated that these actions will reduce expenses by approximately $2 million during fiscal 2009. The Company continues to review other actions it may take in response to the current economic environment.

"We believe it was necessary to act in response to the current downturn in the industries we serve,” stated Joseph P. Keithley, the Company’s Chairman, President and Chief Executive Officer. "The Company anticipates that these actions will have a minimal impact on new product development activities.”

Forward Looking Statements

Statements in this release that are not historical facts, including those relating to cost reduction measures and cost savings, are "forward-looking statements”, as defined in the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties. Actual results may differ materially from the results stated or implied in the forward-looking statements as a result of a number of factors that include, but are not limited to: worldwide economic conditions; uncertainties in the credit and capital markets; business conditions in the semiconductor, wireless, precision electronics and other segments of the worldwide electronics industry; timing of recognizing shipments to revenue; the Company's ability to develop new products in a timely fashion and gain market acceptance of those products to remain competitive and gain market share; competitive factors, including pricing pressures, loss of key employees, technological developments and new products offered by competitors; and the Company’s ability to implement planned cost savings initiatives without adversely affecting the Company’s product development program. Further information on factors that could cause actual results to differ from those anticipated is included in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q which are filed with the Securities and Exchange Commission. In light of these uncertainties, the inclusion of forward-looking information should not be regarded as a representation by the Company that its plans or objectives will be achieved. Further, the Company is not obligating itself to revise forward-looking statements contained herein to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events.

About Keithley Instruments, Inc.

With more than 60 years of measurement expertise, Keithley Instruments has become a world leader in advanced electrical test instruments and systems from DC to RF (radio frequency). Our products solve emerging measurement needs in production testing, process monitoring, product development, and research. Our customers are scientists and engineers in the worldwide electronics industry involved with advanced materials research, semiconductor device development and fabrication, and the production of end products such as portable wireless devices. The value we provide them is a combination of precision measurement technology and a rich understanding of their applications to improve the quality of their products and reduce their cost of test.