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KIMBALL'S SALES HIGHER, INCOME LOWER

 KIMBALL'S SALES HIGHER, INCOME LOWER
 JASPER, Ind., Oct. 13 /PRNewswire/ -- Kimball International


(NASDAQ: KBALB) told share owners at the annual meeting today that net income in the fiscal first quarter ended Sept. 30 is expected to be down in the range of 7 to 10 percent from the year-earlier $7.9 million, excluding a nonoperating gain in last year's first quarter. The nonoperating gain related to proceeds from a fire that destroyed the company's Chandler Veneers plant.
 Douglas A. Habig, president and chief executive officer, said estimates are based on preliminary figures, which could change. He said Kimball expects to release final results for the quarter in a few days.
 Sales in the quarter are expected to increase 24 percent over the same period of the previous year, according to Habig. Last year, first quarter sales were $138.6 million, and net income, including the nonoperating gain, was $9.2 million.
 Habig described the company's results as "mixed" in the quarter. He said some business groups and units did well, while others struggled in the sluggish economy.
 The lower profitability can be attributed, in part, to a changing sales mix, according to Habig. He said a substantial part of the sales increase was in the Electronics Group, which has a lower profit margin than most of the company's other product lines.
 Also contributing to the decreased income were losses by the International Group and lower sales and income in the Contract and Lodging Groups. Income from cash investments declined as the company's balance of cash investments and interest rates were both lower.
 Habig said the Contract Group's business was slowed by reduced sales of TV and speaker cabinets in wood and vinyl, which continue to feel the effects of the poor economy. He said the Lodging Group's results were negatively impacted as replacement business and expansions in both the hospitality and healthcare industries remained at depressed levels. However, the Lodging Group anticipates a strong increase in volume next spring as their backlog has improved significantly.
 Sales in the Electronics Group were at a record level in the first quarter, Habig said. Income also was up substantially, although profitability was lower than in the preceding quarter.
 The Office Furniture Group's sales and income were higher in the quarter as improvements in operating efficiencies continued. Habig said part of the gains came from Harpers, Inc., the metal office furniture manufacturer that Kimball acquired last January. Harpers' cost structure has been lowered, and the unit continues to operate profitably.
 Kimball's foreign piano operations continued to operate at a loss in the first quarter. But Habig said the domestic piano unit regained profitability through the utilization of excess manufacturing capacity.
 Sales and income were up slightly in the Raw Materials Group. But Habig said a disturbing development is a current trend to higher lumber prices, part of the reason being lower supplies because of adverse weather.
 Habig said Kimball is continuing to broaden its employee involvement and other excellence programs. While the company is seeing many efficiency gains from these programs, the costs associated with educating and training employees continue to negatively impact profits in the short term. Habig said he is confident the long-term result will be a much more efficient and productive company.
 In the chief financial officer's report on the fiscal year ended June 30, 1992, James C. Thyen, senior executive vice president, reported that net income, excluding the nonoperating gain, rose 25 percent to $37.4 million from the prior year's $30.0 million. Including the nonoperating gain, net income was $38.6 million. Thyen said sales increased 11 percent to $617.3 million from the previous year's $555.3 million.
 At Kimball's annual meeting, share owners re-elected all 12 members of the board of directors. The directors are Thomas L. Habig, chairman; Douglas A. Habig, John B. Habig, James C. Thyen, Ronald J. Thyen, John T. Thyen, Anthony P. Habig, Gary P. Critser, Brian K. Habig, Leonard B. Marshall, Jr., Patricia H. Snyder and Jack R. Wentworth.
 -0- 10/13/92
 /CONTACT: Ken Sendelweck of Kimball International, 812-482-1600/
 (KBALB) CO: Kimball International ST: Indiana IN: SU:


BM -- CL014 -- 9309 10/13/92 12:13 EDT
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Date:Oct 13, 1992
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