Statement of Changes of Beneficial Ownership

   
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
                                                                                  
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Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(f) of the Investment Company Act of 1940
                      

(Print or Type Responses)
1. Name and Address of Reporting Person *

WALLACE RICHARD P 		2. Issuer Name and Ticker or Trading Symbol

KLA TENCOR CORP [ klac ] 		5. Relationship of Reporting Person(s) to Issuer (Check all applicable)

_____ Director                      _____ 10% Owner
__ X __ Officer (give title below)      _____ Other (specify below)
Executive Vice President
(Last)          (First)          (Middle)

C/O KLA TENCOR, 160 RIO ROBLES 		3. Date of Earliest Transaction (MM/DD/YYYY)

7/30/2003
(Street)

SAN JOSE, CA 95134
(City)        (State)        (Zip)
4. If Amendment, Date Original Filed (MM/DD/YYYY)

 
6. Individual or Joint/Group Filing (Check Applicable Line)

_ X _ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3) 		2. Transaction Date (MM/DD/YYYY) 2A. Deemed Execution Date, if any (MM/DD/YYYY) 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   7/31/2003     M    1292   A $33.75   0   (1) D    
Common Stock   7/31/2003     S    1292   D $52.6275   0   (1) D    
Common Stock   7/31/2003     M    583   A $26.25   0   (1) D    
Common Stock   7/31/2003     S    583   D $52.6275   0   (1) D    
Common Stock   7/31/2003     M    4207   A $32.75   0   (1) D    
Common Stock   7/31/2003     S    4207   D $52.6275   0   (1) D    
Common Stock   7/31/2003     M    13918   A $29.31   0   (1) D    
Common Stock   7/31/2003     S    13918   D $52.6275   1662   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 Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities)
1. Title of Derivate Security
(Instr. 3) 		2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YYYY) 3A. Deemed Execution Date, if any (MM/DD/YYYY) 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 7. Title and Amount of Securities Underlying Derivative Security
(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   $26.25   7/31/2003     M        583    11/10/2001   11/10/2010   Common Stock   583   $52.6275   8167   D    
Non-Qualified Stock Option   $29.31   7/31/2003     M        13918    10/2/2002   10/2/2011   Common Stock   13918   $52.6275   29250   D    
Non-Qualified Stock Option   $32.75   7/31/2003     M        4207    4/4/2002   4/4/2011   Common Stock   4207   $52.6275   9625   D    
Non-Qualified Stock Option   $33.75   7/31/2003     M        1292    10/27/2000   10/27/2009   Common Stock   1292   $52.6275   23708   D    
Non-Qualified Stock Option   $34.67                   11/8/2003   1/28/2013   Common Stock   25000     25000   D    
Non-Qualified Stock Option   $37.05                   11/8/2003   11/8/2012   Common Stock   12500     12500   D    
Non-Qualified Stock Option   $40.14                   5/22/2004   5/22/2013   Common Stock   1000     1000   D    
Non-Qualified Stock Option   $44.6875                   8/13/2001   8/13/2010   Common Stock   21878     21878   D    
Non-Qualified Stock Option   $51.229   7/30/2003     A     12500       11/8/2003   7/30/2013   Common Stock   12500   $0   12500   D    

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
WALLACE RICHARD P
C/O KLA TENCOR
160 RIO ROBLES
SAN JOSE, CA 95134

Executive Vice President

Signatures

Richard P. Wallace 8/1/2003
** 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)  Amount of securities beneficially owned following all reported transactions is equal to 1,662. This total is indicated on the last line on which a transaction is reported for Table I.

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