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 *
Chipchase Stephen Arthur
  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)
Vice President, Operations
(Last)
(First)
(Middle)
28775 AURORA RD
3. Date of Earliest Transaction (Month/Day/Year)
11/06/2008
(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 11/06/2008   M   2,300 A (1) 2,300 D  
Common Shares 11/06/2008   F   770 D $ 3.62 1,530 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 Stock Option $ 45.125             08/02/2002(2) 08/01/2010 Common Shares 4,000   4,000 D  
Common Stock Option $ 18.41             07/25/2003(3) 07/24/2011 Common Shares 5,000   5,000 D  
Common Stock Option $ 13.76             07/24/2004(2) 07/23/2012 Common Shares 6,500   6,500 D  
Common Stock Option $ 16.12             08/10/2005(4) 07/18/2013 Common Shares 12,000   12,000 D  
Common Stock Option $ 18.75             02/15/2005(3) 07/16/2014 Common Shares 20,000   20,000 D  
Common Stock Option $ 15.05             10/04/2007(2) 10/03/2015 Common Shares 6,000   6,000 D  
Performance Award Unit (1) 11/06/2008   M     2,300 (1) 09/30/2008(5)   (5) Common Shares 2,300 (1) $ 0 (1) 0 (1) D  
Common Stock Option $ 14             01/30/2009(2) 01/30/2017 Common Shares 7,200   7,200 D  
Performance Award Unit $ 0             09/30/2009(5)   (5) Common Shares 5,500 (5)   5,500 (5) D  
Common Stock Option $ 9.12             11/09/2009(2) 11/09/2017 Common Shares 7,000   7,000 D  
Performance Award Unit $ 0             09/30/2010(5)   (5) Common Shares 5,300 (5)   5,300 (5) D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
Chipchase Stephen Arthur
28775 AURORA RD
SOLON, OH 44139
      Vice President, Operations  

Signatures

 Mark J. Plush, Attorney-in Fact   11/10/2008
**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) Each Performance Award Unit represents a right to receive one common share. The number of Performance Award Units initially granted was a target amount, and the number of Performance Award Units that vested and converted to common shares was based upon: a) the Company's revenue growth as compared to a defined Peer Group; and b)the Company maintaining an acceptable level of profitability during the performance period which ended on September 30, 2008. Performance Award Units that did not vest were forfeited.
(2) Date reported applies to 50% of total, one-half of the balance is then exercisable in each succeeding year
(3) Option became fully vested on February 15, 2005
(4) Option became fully vested on August 10, 2005
(5) Each Performance Award Unit represents the right to receive one common share. The number of units initially awarded, the target, is shown above. The actual number of units that will be awarded and converted to shares is based upon: a) the Company's revenue growth as compared to a defined Peer Group and, b) the Company maintaining an acceptable level of profitability during the performance period which ends on the date exercisable (the "vesting date"). Awarded units are automatically converted to shares under the Plan on or before the December 31st following the Vesting Date.

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