Kimball International Announces Signing of DefinitivePurchase Agreement With Transwall.

JASPER, Ind.--(BUSINESS WIRE)--Aug. 17, 1998--Kimball International, Inc. (NASDAQ:KBALB), today announced the signing of a definitive agreement to acquire the assets of Transwall, Inc. of West Chester, Pennsylvania. Transwall, founded in 1956, is a privately held manufacturer of stackable panel

The addition of these products to the already extensive line of seating and office systems offered by the Kimball Office Group will allow Kimball's customers more options to choose from to fulfill their needs.

"We are very pleased with the addition of Transwall to our Kimball family of brand names. This acquisition is an ideal way to help support and expand the Kimball Office Group customer and dealer base," stated Kimball President Jim Thyen. "We see both the floor-to-ceiling and stackable panel products as major growth areas for the contract furniture industry."

According to Thyen, a key factor in Kimball's decision to acquire Transwall was the cultural similarities between the two companies. Transwall will continue to operate under their current management structure as an independent entity of Kimball International.

"As with all divisions under the Kimball umbrella of companies, we expect Transwall to help grow our economic profit for our share owners by providing alternative solutions for customer satisfaction in office environments. We are very pleased with the addition of Transwall and will continue to look for other opportunities to improve our long-term growth for our Share Owners," said Thyen.

Certain statements contained within this document are forward looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties such as the successful closing of the proposed acquisition of Transwall, Inc., fluctuations in market demands and general economic conditions.

Kimball International, Inc., founded in 1950, produces a wide variety of consumer durable goods including office, residential, hospitality and healthcare furniture sold under the Company's family of brand names. Kimball also manufactures products for other companies such as electronic contract assemblies, television cabinets and audio speaker systems on an original equipment manufacturer basis. Kimball also produces plywood, veneer, and other wood components for use in our own products as well as for other companies.

To learn more about Kimball International, Inc., we invite you to visit our web site on the Internet at www.kimball.com.

CONTACT: Kimball International, Inc.

Ken Sendelweck, 812/482-1600