FORM 5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
Form 3 Holdings Reported
Form 4 Transactions Reported
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person *
BARNHOLT EDWARD W
 2. Issuer Name and Ticker or Trading Symbol
KLA TENCOR CORP [klac] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
_____ Officer (give title below) _____ Other (specify below)
(Last)
(First)
(Middle)

160 RIO ROBLES		 3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
06/30/2004
(Street)


SAN JOSE, CA 95134		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Reporting
(check applicable line)

_X_ Form Filed by One Reporting Person
___ Form Filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned at end of Issuer's Fiscal Year
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Amount (A) or (D) Price

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 2270 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned at End of Issuer's Fiscal Year
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Qualified Stock Option $ 10.63           04/25/1997 10/25/2006 Common Stock
10,000
  10,000
D
 
Non-Qualified Stock Option $ 11.66           09/21/1999 09/21/2008 Common Stock
5,000
  5,000
D
 
Non-Qualified Stock Option $ 17.59           11/17/1998 11/17/2008 Common Stock
5,832
  5,832
D
 
Non-Qualified Stock Option $ 23.28           09/20/2000 09/20/2005 Common Stock
10,000
  10,000
D
 
Non-Qualified Stock Option $ 26.25           11/10/2000 11/10/2010 Common Stock
10,000
  10,000
D
 
Non-Qualified Stock Option $ 34.94           09/19/1998 09/19/2007 Common Stock
5,000
  5,000
D
 
Non-Qualified Stock Option $ 37.05           11/08/2002 11/08/2012 Common Stock
10,000
  10,000
D
 
Non-Qualified Stock Option $ 46.28           11/16/1999 11/16/1999 Common Stock
10,000
  10,000
D
 
Non-Qualified Stock Option $ 47.23           11/09/2001 11/09/2011 Common Stock
10,000
  10,000
D
 
Non-Qualified Stock Option $ 59.44           11/05/2003 11/05/2013 Common Stock
10,000
  10,000
D
 

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
BARNHOLT EDWARD W
160 RIO ROBLES
SAN JOSE, CA 95134		   X      

Signatures

Edward W. Barnholt 08/11/2004
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
 
Remarks:
Form 5 filed to voluntarily report all holdings.  No transactions to report.

Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.