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67 New Jobs for our Community!

July 27, 2010

Governor McDonnell Announces 67 New Jobs in Henry County

~Kimball Hospitality, Inc. to open furniture manufacturing plant ~

RICHMOND-Governor Bob McDonnell today announced that Kimball Hospitality, Inc., a subsidiary of Kimball International, Inc. will invest $1 million to open a hospitality furniture manufacturing plant in Henry County. The project will create 67 new jobs. Virginia successfully competed against Indiana and North Carolina for the project

Speaking about today's announcement, Governor McDonnell said, "Henry County is the perfect fit for Kimball Hospitality due to its rich history in the furniture manufacturing industry. The region has industry-specific trained employees available, which will ensure an efficient start-up for Kimball and give confidence in a highly skilled workforce. I welcome the company to the Commonwealth and am confident of its future success in Henry County."

Kimball International, Inc. (NASDAQ: KBALB) provides a variety of products from its two business segments: the Electronic Manufacturing Services segment and the Furniture segment. The Electronic Manufacturing Services segment provides engineering and manufacturing services which utilize common production and support capabilities to a variety of industries globally. The Furniture segment provides furniture for the office and hospitality industries, sold under the Company's family of brand names.

Jim Thyen, President and Chief Executive Officer of Kimball International said, "This new operation represents our commitment to enhance Kimball Hospitality's capabilities in pursuit of growth and additional market share. We believe this combination of the area's experience and dedication to excellence, along with our existing global presence and financial strength, will not only support our growth strategy but also add increased value to both new and existing customer relationships."

Stan Sapp, President of Kimball Hospitality and Vice President of Kimball International stated, "Our customers demand quality and excellence. We know that focus is shared by the people of the Henry County region. We're opening this new facility with a long-term view, and we're confident in the growth potential for this operation. We look forward to becoming an employer of choice in the Commonwealth".

The Virginia Economic Development Partnership worked with the Martinsville-Henry County Economic Development Corporation to secure the project for Virginia. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $205,000 in Tobacco Region Opportunity Funds for the project. The Virginia Department of Business Assistance will provide training assistance through the Virginia Jobs Investment Program.

Henry County's rich history as a furniture community makes this a natural partnership," said Henry County Board of Supervisors Chairman Debra Buchanan. "We are thrilled that Kimball International will be our newest corporate citizen and we look forward to having them with us for many years."

"One of the main goals of the Tobacco Commission is to bring prosperity back to our part of the Commonwealth," said Delegate Danny Marshall, a member of the Virginia Tobacco Indemnification and Community Revitalization Commission. "This is why we invested $205,000 in Tobacco Region Opportunity Funds. I applaud Kimball International on a $1 million investment and best of all, 67 new jobs for our citizens."

Office of the Governor

Contact: Stacey Johnson

Phone: (804) 225-4260

E-mail: Stacey.Johnson@Governor.Virginia.Gov

Virginia Economic Development Partnership

Contact: Vince Barnett

Phone: (804) 545-5815

E-mail: VBarnett@yesvirginia.org

Kimball Hospitality, Inc.

Contact:  Martin Vaught

Phone: (812) 482-8255

E-mail: Martin.Vaught@Kimball.com