KEY TRONIC CORPORATION WINS NEW BUSINESS WITH IMATION CORP

New Customer Program Expected to Contribute

Approximately $20 Million Annually

Spokane, WA— May 7, 2007 -- Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced that it plans to enter into an agreement with Imation Corp (NYSE: IMN), a worldwide leader in removable data storage, that when implemented is expected to contribute approximately $20 million to Key Tronic’s annual revenue.

In July, 2007, Key Tronic expects to begin to provide the product assembly for Imation’s tape-based data storage cartridges.  Key Tronic intends to perform the assembly operations in its primary manufacturing facility in Juarez, Mexico.  

“We are very pleased to be working with a world-class customer like Imation,” said Jack Oehlke, President and Chief Executive Officer. “This important new relationship represents the kind of quality programs we are pursuing and winning, which leverage our vertical integration capabilities to expand our customer base and contribute to profitable long-term growth.”

About Imation Corp

Imation Corp is the only company in the world solely focused on the development, manufacture and supply of removable data storage products spanning the four pillars of magnetic, optical, flash and removable hard disk storage. With more than 50 years of data storage leadership beginning with the development of the world's first computer tape, Imation proudly marked its tenth anniversary as an independent company during 2006. In addition to the Imation brand, Imation Corp's global brand portfolio includes the Memorex brand, one of the most widely recognized names in the consumer electronics industry, famous for the slogan, "Is it live or is it Memorex?". Additional information about Imation is available at http://www.imation.com or by calling 1-888-466-3456.

About Key Tronic

Key Tronic is a leading contract manufacturer offering value-added design and manufacturing services from its facilities in the United States, Mexico and China.  The Company provides its customers full engineering services, materials management, worldwide manufacturing facilities, assembly services, in-house testing, and worldwide distribution.  Its customers include some of the world's leading original equipment manufacturers.  For more information about Key Tronic visit: www.keytronic.com.

Some of the statements in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Forward-looking statements include all passages containing verbs such as ‘aims, anticipates, believes, estimates, expects, hopes, intends, plans, predicts, projects or targets’ or nouns corresponding to such verbs.  Forward-looking statements also include other passages that are primarily relevant to expected future events or that can only be fully evaluated by events that will occur in the future.  Forward-looking statements in this release include, without limitation, the Company’s statements regarding its expectations with respect to quarterly revenue and earnings during fiscal 2007. There are many factors, risks and uncertainties that could cause actual results to differ materially from those predicted or projected in forward-looking statements, including but not limited to the accuracy of customers’ forecasts; success of customers’ programs; timing of new programs; success of new-product introductions; acquisitions or divestitures of operations or facilities; technology advances; changes in pricing policies by the Company, its competitors, customers or suppliers; and the other risks and uncertainties detailed from time to time in the Company’s SEC filings.