Exhibit 99.1

FOR IMMEDIATE RELEASE

KEY TRONIC CORPORATION ANNOUNCES THIRD QUARTER RESULTS

Quarterly Revenue Up 23% Year-over-Year;

Continued Increase in Revenue Contribution from New Programs;

More New Customer Wins

Spokane Valley, WA— May 3, 2011 — Key Tronic Corporation (Nasdaq: KTCC), a provider of electronic manufacturing services (EMS), today announced its results for the quarter ended April 2, 2011.

For the third quarter of fiscal 2011, Key Tronic reported total revenue of $63.4 million, up 23% from $51.7 million in the same period of fiscal 2010. For the first nine months of fiscal 2011, total revenue was $187.8 million, up 36% from $137.8 million in the same period of fiscal 2010.

Net income for the third quarter of fiscal 2011 was $0.7 million or $0.07 per diluted share, compared to $4.4 million or $0.43 per diluted share for the same period of fiscal 2010. Results for the third quarter of fiscal 2011 reflect increased material, freight and operational expenses associated with the Company’s new product mix and program startups. Results for the third quarter of fiscal 2010 included a net deferred tax benefit of $2.2 million or approximately $0.22 per diluted share. For the first nine months of fiscal 2011, net income was $4.2 million or $0.40 per diluted share, compared to $6.4 million or $0.63 per diluted share for the same period of fiscal 2010.

“We’re pleased with our strong year-over-year revenue growth for the third quarter and for the first nine months of fiscal 2011, driven primarily by the production ramp ups of new programs,” said Craig Gates, President and Chief Executive Officer, “During the third quarter of fiscal 2011, the revenue contribution from those of our new programs that have been ramped was mostly offset by forecast reductions in some longstanding customer programs. At the same time, we have continued to diversify our future revenue base by winning new programs involving mobile device accessories, aerospace and household products.

“Moving into the fourth quarter of fiscal 2011, we are seeing some increased demand in the forecasts from our longstanding customers, and we continue to focus on moving the new programs into production.

We expect to be generating revenue from 30 EMS customers in the fourth quarter compared to 20 EMS customers contributing to fourth quarter revenue in fiscal year 2010.”

Business Outlook

For the fourth quarter of fiscal 2011, the Company expects to report revenue in the range of $61 million to $65 million, and earnings in the range of $0.07 to $0.12 per diluted share.

Conference Call

Key Tronic will host a conference call today to discuss its financial results at 2:00 PM Pacific (5:00 PM Eastern). A broadcast of the conference call will be available at www.keytronic.com under “Investor Relations” or by calling 866-225-8754 or +1 480-629-9692. A 48-hour replay will be available by calling 800-406-7325 or +1 303 590 3030 (Access Code: 4422531). A replay will also be available on the Company’s Web site.

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 2011. 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 future of the global economic environment and its impact on our customers and suppliers, the availability of parts from the supply chain, 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.

KEY TRONIC CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

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KEY TRONIC CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

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