http://starwars.com/news/the-legendary-star-wars-expanded-universe-turns-a-new-page.html
Before the announcement, there used to be multiple tiers of SW canon. Now there is only one canon: the six movies, plus Clone Wars, while the rest has been tossed to non-canon. The entire EU is now little more than glorified fan fiction, to the despair of the hardcore fans and the delight of those who, like me, hated those books and their overpowered mary sues and the poorly written plots.
So, KOTOR and the Timothy Zahn books are dead, but at least Chewbacca lives . So... hooray?