Exhibit 99.1

FOR IMMEDIATE RELEASE

KLA-TENCOR REPORTS FISCAL 2007 RESULTS

Revenue of $2.7 billion and EPS of $2.61

SAN JOSE, Calif., July 26, 2007— KLA-Tencor Corporation (NASDAQ: KLAC) today announced operating results for its fourth quarter and fiscal year ended June 30, 2007. The Company reported GAAP net income of $528 million and GAAP earnings per diluted share of $2.61 on revenue of $2.7 billion for fiscal 2007, compared to GAAP net income of $380 million and GAAP earnings per diluted share of $1.86 on revenue of $2.1 billion for fiscal 2006. For the quarter ended June 30, 2007, the Company reported GAAP net income of $147 million, and GAAP earnings per diluted share of $0.75 on revenue of $736 million, compared to GAAP net income of $155 million or $0.76 per diluted share on revenue of $716 million in the third quarter of fiscal 2007, and GAAP net income of $132 million or $0.65 per diluted share on revenue of $579 million in the fourth quarter of fiscal 2006.

Operating income for the fourth quarter of fiscal 2007 includes $75 million in pre-tax charges, as follows:

“KLA-Tencor’s financial performance this quarter was again strong, reflecting our continued focus on supporting our customers with a broad portfolio of inspection and measurement technology,” said Rick Wallace, CEO of KLA-Tencor. “Our product pipeline has never been stronger, with six new products launched in the June quarter. As we go forward, we are developing more innovative and cost-effective solutions to address critical yield challenges facing customers as they transition to 45nm and beyond.”

KLA-Tencor ended fiscal year 2007 with approximately eight months of product-related shipment and revenue backlog.

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The geographic breakdown of system orders in the quarter was:

KLA-Tencor’s financial position remained strong with cash and investments balance at the end of fourth quarter of fiscal 2007 of $1.7 billion. Accounts receivable increased by $82 million compared to the prior quarter to $582 million on strong shipments.

KLA-Tencor will discuss its fiscal 2007 fourth quarter results, along with its outlook for the first quarter of fiscal 2008, on a conference call today beginning at 2:00 p.m. Pacific Daylight Time. A web cast of the call will be available at: www.kla-tencor.com.

Forward Looking Statements: Statements in this press release other than historical facts, such as statements regarding the KLA-Tencor’s future product portfolio, benefit to customers of KLA-Tencor’s products and demand for KLA-Tencor’s products, are forward-looking statements, and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations, and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: the demand for semiconductors; new and enhanced product offerings by competitors; cancellation of orders by customers; and changing customer demand. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this release, please refer to the Company’s Form 10-K, Form 10-Q and other filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein).

About KLA-Tencor: KLA-Tencor is the world leader in yield management and process control solutions for semiconductor manufacturing and related industries. Headquartered in San Jose, Calif., the Company has sales and service offices around the world. An S&P 500 Company, KLA-Tencor is traded on the NASDAQ Global Select Market under the symbol KLAC. Additional information about the Company is available on the Internet at http://www.kla-tencor.com

KLA-Tencor Corporation

Condensed Consolidated Unaudited Balance Sheets

KLA-Tencor Corporation

Condensed Consolidated Unaudited Statements Of Operations