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KIMBALL INTERNATIONAL SUBSIDIARY ANNOUNCES RELOCATION

 KIMBALL INTERNATIONAL SUBSIDIARY ANNOUNCES RELOCATION
 JASPER, Ind., Aug. 25 /PRNewswire/ -- Harpers, Inc., a wholly owned


subsidiary of Kimball International (NASDAQ: KBALB), announced plans for the relocation of their operations currently located in Torrance, Calif.
 Following a two and a half year study of various states, Harpers, a manufacturer of steel office furnishings, will move their company headquarters and manufacturing facilities to Northern Idaho.
 The planned move comes as a result of reviewing Harpers' operating costs and the need to lower those costs to thrive in a highly competitive office systems furniture market. Southern California's high price of real estate, escalating leasing rates, and the spiraling costs of workers' compensation insurance, utility rates, and emission permits combined to spur the decision to relocate.
 Not to be underestimated, however, were the aggressive recruiting efforts by the economic development councils of Idaho and Washington. These two states joined forces to create an extensive job training and relocation package. In what is perhaps an unprecedented program, two governors, two states, two economic development organizations, and two community colleges came together to convince a single manufacturer to relocate in their area.
 The man who was instrumental in orchestrating the overall package was Bob Potter, president of Jobs Plus, Inc./Coeur D'Alene Economic Development Corporation. According to Potter, "As far as we know, this was truly a 'first'. I'm not aware of two economic developers coming together anywhere else in the nation. Alone, we could never afford to recruit Harpers. By joining forces across communities and state lines, we were able to compete effectively against other states."
 In the final analysis, Idaho beat eight other states to win the selection. The move is projected to create hundreds of new jobs in the area of Kootanai County, Idaho and Spokane, Wash. Three communities vied for the site, with 100 percent of each city council voting in support of the relocation program.
 The city of Post Falls, Idaho was chosen for the actual 30 acre site for the new Harpers plant and offices. An additional 30 acres, adjacent to the first site, has been obtained under a first purchase option for possible future expansion by Kimball International. Speaking on behalf of Harpers, Joe Wisniewski, executive vice president and general manager, stated, "We feel extremely confident in reserving this site as a reciprocal gesture on our part, of our commitment to and interest in further economic development."
 The fact that Harpers was considered a highly desirable company for the area is underscored by the substantial vocational training funds committed by both Idaho and Washington. Spokane Community College and North Idaho Community College have already begun development of the Harpers Pre-Employment Training Program to teach basic skills in welding, metal bending, sheet-metal, and industrial painting to potential new factory workers. All new applicants will be required to have successfully completed this training program prior to consideration for employment by Harpers, Inc. In addition, the schools will provide computer and office training for personnel needed to work with Harpers' sophisticated computer systems.
 Public announcements, to be made later, will clarify where those interested in applying for jobs at Harpers may call to inquire about making applications or to set up interviews. At this time, Harpers is not accepting calls or applications.
 Since the relocation of Harpers includes the headquarters' office staff as well as the manufacturing plants, with new hires and relocated families among both skilled and professional workers, a variety of economic benefits will be realized in the area.
 "Harpers and Kimball represent the best qualities of what we are looking for in new employers for Idaho," stated Gov. Cecil Andrus of Idaho. "Everything we saw at Harpers was quality: the product, the people, the management, and the way they treat their people. We're not interested in recruiting a minimum wage-type company. Harpers and Kimball will offer career paths for the youth of our area."
 Among the factors of major concern to state and community officials in considering Harpers' relocation was the environmental record of the company. Before serious negotiations were started, officials thoroughly checked records and made plant visits in Torrance. Recalls Potter of Jobs Plus, Inc., "Harpers is very strong on its air quality and pollution controls. They do things right."
 After further reviewing the environmental record of the parent corporation, Kimball International, there were no reservations. "Once we found out more about Kimball, there was no question of their record as a good corporate citizen," added Potter.
 Doug Habig, president and CEO of Kimball International, Inc., added, "We recognize that pride in one's company and one's community are intertwined. Citizenship is a basic tenet of Kimball's guiding principles. For nearly 30 years, Kimball has put a priority upon the health and safety of our employees, enhancing the communities in which we work and live, and proving ourselves to be a pacesetter, not a follower, in regards to making environmentally responsible decisions about products and manufacturing processes. We pledge to give more than we take."
 Careful logistic planning will be used to orchestrate moving the high-tech manufacturing facilities without interruption of Harpers' standard three lead times for office systems furniture orders.
 Until the July 1994 move, Torrance will remain home to Harpers. Torrance has been home to Harpers since 1968. Harpers is working with the City of Torrance to arrange training programs and funds to train employees wishing to remain in the community for their next employment opportunities in the Southern California area.
 John Thyen, senior executive vice president of marketing and sales for Kimball International, summed up the relocation in this way. "We have been impressed by the strong sense of community, quality employee pool and the support of state and local officials. The cooperative spirit displayed by all players in putting this whole program together has just been tremendous. We look forward to a long and prosperous future."
 Harpers and Kimball appreciate the cooperation and support provided by these key people, who played a major role in the decision process:
 Gov. Cecil D. Andrus, Idaho; Gov. Booth Gardner, Washington; Mayor Jim Hammond, Post Falls, Idaho; Dr. Terry Brown, president, Spokane Community College; Dr. C. Robert Bennett, president, North Idaho College;
 Dr. Trudy Anderson, state administration division of vocational education, State of Idaho; Merritt D. Long, acting executive director, work force training and education coordinating board, State of Washington; State of Washington;
 Board of directors of Jobs Plus, Inc., a non-profit economic development organization of Coeur D'Alene, Idaho; board of directors of Spokane Momentum Group, a non-profit economic development organization of Spokane, Wash.;
 Jim Hawkins, director, Idaho Department of Commerce; Paul Isaki, director, Department of Trade & Economic Development, State of Washington; Peter Kerwien, Washington Water & Power Business Development Group;
 Gary Schneidmiller, broker and owner, Caldwell Banker Schneidmiller Realty, commercial services division; and the mayors and all city council members of Post Falls, Coeur D'Alene and Rathdrum, Idaho.
 -0- 8/25/92
 /CONTACT: Martin Vaught or Ken Sendelweck, both of Kimball International, 800-482-1616/
 (KBALB) CO: Kimball International; Harpers ST: Indiana, California IN: SU:


BM -- CL014 -- 3058 08/25/92 13:12 EDT
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Date:Aug 25, 1992
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