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KIMBALL SALES, EARNINGS INCREASE

 KIMBALL SALES, EARNINGS INCREASE
 JASPER, Ind., April 16 /PRNewswire/ -- Kimball International


(NASDAQ: KBALB) reported today that sales and earnings in the fiscal third quarter ended March 31 increased significantly over the depressed year-earlier quarter.
 Douglas A. Habig, president, said the improvement was largely caused by stronger results in the Electronics and Office Furniture divisions. He said many other areas of the company's business began to improve with the gradual strengthening of the economy.
 For the fourth consecutive quarter, sales and income, excluding the effect of a non-operating gain, were higher than in the preceding three-month period, according to Habig.
 During the third quarter, Kimball acquired certain assets and assumed certain liabilities of Harpers, a manufacturer of metal office furniture. This investment is intended to build Kimball's west coast presence in the company's attempt to increase overall market share, Habig said.
 Third quarter sales were $162,524,000, an increase of 24 percent over the previous year's $131,353,000. Net income was $8,892,000, or 42 cents per share of Class B common stock, up 68 percent over last year's $5,179,000, or 25 cents per Class B share.
 For this fiscal year's first nine months, sales were $449,308,000, an increase of 7 percent over last year's $420,303,000. Net income, excluding the effect of a non-operating gain, was $24,971,000, or $1.18 per Class B share, a gain of 9 percent over last year's $22,622,000, or $1.08 per Class B share.
 The non-operating gain, which related to insurance claims from the fire that destroyed the Chandler Veneers plant last July, increased net income in this year's first quarter by $1,228,000, or 6 cents per Class B share. Including the gain, nine months net income was $26,199,000, or $1.24 per Class B share.
 The company's Electronics Division continued its recovery from last year's depressed levels. A 91 percent increase in sales combined with efficiency improvements and higher capacity utilization resulted in higher income.
 Office Furniture Division sales were up slightly and income was substantially higher (excluding Harpers for comparative purposes). The increased income was largely due to efficiency improvements and cost reductions, especially in marketing and sales expenses. Office Furniture Manufacturing is continuing to maintain and improve their low cost structure.
 Piano sales increased and contract business was steady in the Piano Division. Profitability improved due to the increased sales and efficiency gains resulting from last year's consolidation of the piano production, marketing and sales operations.
 The Contract Division, which encompasses TV cabinets, home furniture and home office furniture, had lower sales and income in the third quarter. The lower income was a result of reduced sales of TV cabinets and home furniture along with additional new product development costs. The division produced the initial run of home office furniture in the third quarter. Habig said the company sees good prospects for this product line.
 Kimball Hospitality Furniture and Kimball Healthcare Furniture were merged in the third quarter and are now operating as the Kimball Lodging Group. Although the group's sales and profits were down in the quarter, Habig said a new marketing and manufacturing plan for the two products is aimed at increasing sales while lowering operating costs.
 Foreign Division sales when converted to dollars were down and the division continues to operate at depressed levels. Plastics Division sales and income were higher.
 Habig said education and training of employees continues to be a high priority in Kimball's commitment to continuously improve its processes. He said the company has expanded those activities, along with its employee involvement programs, in spite of the difficult economic period.
 KIMBALL INTERNATIONAL, INC.
 FINANCIAL HIGHLIGHTS
 (dollars in thousands, except for per share amounts)
 (Unaudited)
 For the three months ended March 31: 1992 1991
 Net Sales $162,524 $131,353
 Cost of Sales 112,111 90,773
 Gross Profit 50,413 40,580
 Selling, Administrative & General
 Expenses 38,399 34,189
 Operating Income 12,014 6,391
 Other Income -- Net 2,206 2,094
 Income Before Taxes on Income 14,220 8,485
 Taxes on Income 5,328 3,306
 Net Income $8,892 $5,179
 Earnings Per Share:
 Class A $.41 $.24
 Class B $.42 $.25
 Average Shares Outstanding (in thousands) 21,146 21,145
 For the nine months ended March 31:
 Net Sales $449,308 $420,303
 Cost of Sales 311,593 284,605
 Gross Profit 137,715 135,698
 Selling, Administrative & General
 Expenses 104,979 105,176
 Operating Income 32,736 30,522
 Other Income -- Net 9,348 6,538
 Income Before Taxes on Income 42,084 37,060
 Taxes on Income 15,885 14,438
 Net Income $26,199 $22,622
 Earnings Per Share:
 Class A $1.23 $1.07
 Class B $1.24 $1.08
 Average Shares Outstanding (in thousands) 21,146 21,171
 -0- 4/16/92
 /CONTACT: Ken Sendelweck of Kimball International, 812-482-1600/
 (KBALB) CO: Kimball International, Inc. ST: Indiana IN: SU: ERN


KK -- CL008 -- 9241 04/16/92 11:30 EDT
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