Ownership Submission
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, Section 17(a) of the Public Utility Holding Company Act of 1935 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 *
ETSLER PHILIP
  2. Issuer Name and Ticker or Trading Symbol
KEITHLEY INSTRUMENTS INC [KEI]
5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP Human Resources
(Last)
(First)
(Middle)
KEITHLEY INSTRUMENTS, INC., 28775 AURORA ROAD
3. Date of Earliest Transaction (Month/Day/Year)
02/26/2007
(Street)

SOLON, OH 44139
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 Shares 02/26/2007   M   7,000 A $ 5.7188 43,449 D  
Common Shares 02/26/2007   M   12,000 A $ 2.5313 55,449 D  
Common Shares 02/26/2007   M   27,000 A $ 4.125 82,449 D  
Common Shares 02/26/2007   S   200 D $ 15.36 82,249 D  
Common Shares 02/26/2007   S   2,000 D $ 15.37 80,249 D  
Common Shares 02/26/2007   S   200 D $ 15.38 80,049 D  
Common Shares 02/26/2007   S   4,300 D $ 15.4 75,749 D  
Common Shares 02/26/2007   S   10,300 D $ 15.41 65,449 D  
Common Shares 02/26/2007   S   7,700 D $ 15.42 57,749 D  
Common Shares 02/26/2007   S   1,200 D $ 15.43 56,549 D  
Common Shares 02/26/2007   S   2,200 D $ 15.44 54,349 D  
Common Shares 02/26/2007   S   1,100 D $ 15.45 53,249 D  
Common Shares 02/26/2007   S   100 D $ 15.46 53,149 D  
Common Shares 02/26/2007   S   200 D $ 15.47 52,949 D  
Common Shares 02/26/2007   S   100 D $ 15.53 52,849 D  
Common Shares 02/26/2007   S   100 D $ 15.57 52,749 D  
Common Shares 02/26/2007   S   100 D $ 15.63 52,649 D  
Common Shares 02/26/2007   S   700 D $ 15.64 51,949 D  
Common Shares 02/26/2007   S   100 D $ 15.65 51,849 D  
Common Shares 02/26/2007   S   100 D $ 15.67 51,749 D  
Common Shares 02/26/2007   S   100 D $ 15.68 51,649 D  
Common Shares 02/26/2007   S   200 D $ 15.71 51,449 D  
Common Shares 02/26/2007   S   9,400 D $ 15.74 42,049 D  
Common Shares 02/26/2007   S   4,600 D $ 15.75 37,449 D  
Common Shares 02/26/2007   S   200 D $ 15.76 37,249 D  
Common Shares 02/26/2007   S   100 D $ 15.77 37,149 D  
Common Shares 02/26/2007   S   400 D $ 15.78 36,749 D  
Common Shares 02/26/2007   S   300 D $ 15.85 36,449 D  
Restricted Common Shares (1)               6,016 D  

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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
Common Share Option $ 5.7188 02/26/2007   M     7,000 09/20/1999 09/19/2007 Common Shares 7,000 $ 0 0 D  
Common Share Option $ 2.5313 02/26/2007   M     12,000 09/12/2000 09/11/2008 Common Shares 12,000 $ 0 0 D  
Common Share Option $ 4.125 02/26/2007   M     27,000 07/17/2001 07/16/2009 Common Shares 27,000 $ 0 0 D  
Common Share Option $ 45.125             08/02/2002 08/01/2010 Common Shares 24,000   24,000 D  
Common Share Option $ 18.41             07/25/2003(2) 07/24/2011 Common Shares 22,000   22,000 D  
Common Share Option $ 13.76             07/24/2004(3) 07/23/2012 Common Shares 22,000   22,000 D  
Common Share Option $ 16.12             08/10/2005(4) 07/18/2013 Common Shares 24,000   24,000 D  
Common Share Option $ 18.75             02/15/2005(2) 07/16/2014 Common Shares 21,000   21,000 D  
Common Share Option $ 15.05             10/04/2007(3) 10/03/2015 Common Shares 6,400   6,400 D  
Performance Award Unit $ 0             09/30/2008 02/01/2012 Common Shares 5,000 (5)   5,000 (5) D  
Performance Award Unit $ 0             09/30/2009 02/01/2012 Common Shares 4,000 (5)   4,000 (5) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
ETSLER PHILIP
KEITHLEY INSTRUMENTS, INC.
28775 AURORA ROAD
SOLON, OH 44139
      VP Human Resources  

Signatures

 Mark J. Plush, Attorney-in Fact   02/28/2007
**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) Restricted Shares will become fully vested on January 1, 2012
(2) Option became fully vested on February 15, 2005
(3) Date reported applies to 50% of total, one-half of the balance is then exercisable in each succeeding year.
(4) Option became fully vested on August 10, 2005
(5) Each Performance Award Unit represents the right to receive one common share at the end of the applicable performance period. The number of units actually earned is subject to adjustment based upon the Company's revenue growth versus that of a defined Peer Group, as well as the Company maintaining an acceptable level of profitability. Minimum number of units is 0 while the maximum number of units is two times the target number shown.

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