Article: August Technology Responds to Letter from KLA-Tencor; No Merger Discussions with KLA Underway.

MINNEAPOLIS -- August Technology Corporation (NASDAQ:AUGT), today responded to a letter from Ken Schroeder, Chief Executive Officer of KLA-Tencor, dated July 12, 2005 and publicly released earlier today regarding the closing of the investigation of the Antitrust Division of the U.S. Department of Justice ("DOJ") into KLA-Tencor's proposal to acquire August Technology. Mr. Schroeder repeated statements made in the past regarding KLA's interest in acquiring August Technology.

Jeff O'Dell, August Technology's Chief Executive Officer, said "We have had no discussions with KLA-Tencor regarding any proposed transaction and despite the closing of the DOJ investigation, ...

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