Kimball Int'l Offers Plan to Consolidate Manufacturing Capacity

Kimball International, Inc. (NASDAQ: KBAL), today announced the plannedconsolidation of its metal fabrication production from its operation locatedin Post Falls, Idaho, into existing production facilities in Indiana. Citingimprovement of customer delivery, supply chain dynamics, and transportationcosts as key factors in its decision, Kimball noted that eighty percent of itsinstalled base of customers is located east of Denver.The transfer of work will involve the start-up of metal fabricationcapabilities in a company-owned facility, along with the transfer of certainassembly operations into two additional company-owned facilities, all locatedin southern Indiana. The manufacturing capacity realignment will be carefullymanaged over a period of seven to eight quarters to ensure no customerdisruptions. The consolidation activities will begin immediately and thecompany is actively marketing for sale the Post Falls, Idaho facility.Kimball International CEO and Chairman of the Board, Bob Schneider, commentingon the actions, said, “Today's announcement to better optimize our supplychain and manufacturing footprint, and to reduce our cost structure post-spin,reflects our focus on our markets and positions Kimball for long-term growth.Savings from this plan will, in part, be redeployed into enhancing ourmarketing and new product development.” Schneider emphasized that thisdecision was based on economics and was not a reflection on the employees,saying, “Our employees at Post Falls have a great work ethic and an excellentrecord for quality, reliability and dedication. I'm proud of their service toour customers.” Said Schneider, “The timing of the manufacturing realignmentwill allow our Post Falls employees an extended period of time to find otheremployment. Kimball is dedicated to assisting our team members with thistransition.”