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

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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(Print or Type Responses)
1. Name and Address of Reporting Person *
URBANEK LIDA
  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)
C/O KLA-TENCOR CORPORATION, 160 RIO ROBLES
3. Date of Earliest Transaction (Month/Day/Year)
08/01/2006
(Street)

SAN JOSE, CA 95130
4. If Amendment, Date Original Filed(Month/Day/Year)
6. Individual or Joint/Group Filing(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 Following Reported Transaction(s)
(Instr. 3 and 4)
6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)
7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               1,946 D  
Common Stock               29,555 I Family Foundation
Common Stock               1,271,414 I by Trust
Common Stock-Restricted Stock Units (1)               1,000 D  

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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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 Following Reported Transaction(s)
(Instr. 4)
10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)
11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Qualified Stock Option (right to buy) $ 41.45 08/01/2006   A   1,250   08/01/2006 08/01/2013 Common Stock 1,250 $ 0 1,250 D  
Non-Qualified Stock Option (right to buy) $ 13.44             07/22/1999 07/22/2008 Common Stock 5,000   5,000 D  
Non-Qualified Stock Option (right to buy) $ 17.59             11/17/1998 11/17/2008 Common Stock 6,666   6,666 D  
Non-Qualified Stock Option (right to buy) $ 26.25             11/10/2000 11/10/2010 Common Stock 10,000   10,000 D  
Non-Qualified Stock Option (right to buy) $ 29             07/22/1998 07/22/2007 Common Stock 5,000   5,000 D  
Non-Qualified Stock Option (right to buy) $ 37.05             11/08/2002 11/08/2012 Common Stock 10,000   10,000 D  
Non-Qualified Stock Option (right to buy) $ 40.24             05/11/2005 05/11/2015 Common Stock 2,500   2,500 D  
Non-Qualified Stock Option (right to buy) $ 40.68             10/18/2004 10/18/2014 Common Stock 2,500   2,500 D  
Non-Qualified Stock Option (right to buy) $ 44.76             01/25/2005 01/25/2015 Common Stock 2,500   2,500 D  
Non-Qualified Stock Option (right to buy) $ 46.28             11/16/1999 11/16/2009 Common Stock 10,000   10,000 D  
Non-Qualified Stock Option (right to buy) $ 47.23             11/09/2001 11/09/2011 Common Stock 10,000   10,000 D  
Non-Qualified Stock Option (right to buy) $ 47.86             05/02/2006 05/02/2013 Common Stock 1,250   1,250 D  
Non-Qualified Stock Option (right to buy) $ 49.99             11/04/2005 11/04/2012 Common Stock 1,250   1,250 D  
Non-Qualified Stock Option (right to buy) $ 51.35             08/02/2005 08/02/2015 Common Stock 2,500   2,500 D  
Non-Qualified Stock Option (right to buy) $ 51.98             01/31/2006 01/31/2013 Common Stock 1,250   1,250 D  
Non-Qualified Stock Option (right to buy) $ 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
URBANEK LIDA
C/O KLA-TENCOR CORPORATION
160 RIO ROBLES
SAN JOSE, CA 95130
  X      

Signatures

 By: Stuart J. Nichols For: Lida Urbanek   08/01/2006
**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).
(1) Each restricted stock unit represents a contingent right to receive one share of KLAC common stock.

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

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