Kimball Electronics Signs Danish Pumpmaker Grundfos; New Contract to Make Assemblies of Electronic Pumps

Kimball Electronics Group, Inc., a subsidiary of Kimball International, Inc., (NASDAQ: KBALB) has signed a long term partnership agreement to manufacture electrical devices for Grundfos, one of the world’s leading manufacturers of pumps. The long term agreement was awarded for assemblies that will be used in energy saving pumps and pump systems throughout the North American, European and Asian markets. Grundfos is committed to development of sustainable solutions and was a pioneer in the introduction and launch of A-labeled circulator pumps which reduce energy consumption and CO2 emissions. Kimball Electronics Group (KEG) is a global contract electronic manufacturing services (EMS) company that specializes in durable electronics with applications in the medical, automotive, industrial controls, and public safety industries.

Grundfos, a Danish company with operations worldwide, is a leading global supplier of pumps and pumping systems to both the commercial and residential markets. The company anticipates continued world growth and demand for its products, particularly as the need for clean and sustainable water supplies increases. “We have an ability to make a difference to this planet and society by contributing to solving serious environmental problems,” said Hans Verner Mohr, Director of Electronics Sourcing, Grundfos Group. “As leaders in technology and innovative thinking, we seek to apply new technologies to meet real needs. We are delighted that Kimball shares our vision and values.”

Don Charron, President, Kimball Electronics Group, stated, “We are honored to be chosen as the strategic manufacturing partner for Grundfos, and to have earned the opportunity this brings for growth and cooperation in addressing significant environmental issues and improving quality of life for people around the world.”

Kimball’s performance culture and quality record in the industrial market combined with its global footprint of operations enabled the company to secure this program award from Grundfos. Team members from Grundfos toured the Kimball manufacturing facilities in Thailand, Poland, and southern Indiana, as they assessed Kimball’s abilities to transfer production across operations and continents. Ultimately, Grundfos was impressed with KEG’s package of value and demonstrated proven ability to provide a common and consistent working experience and excellent support, regardless of location. Grundfos will eventually utilize the expanse of Kimball’s global footprint of operations, as the company manufactures its products within the regional markets where they are sold.

Prototype activity will likely begin later this calendar year or beginning of next year, with initial production to start during 2010. Initial production is scheduled for the Kimball Electronics-Poland facility. Incremental volume growth over the coming years has the potential to spread production to other Kimball operations in Asia and North America.

About Grundfos Pumps:

Grundfos Pumps Corporation, part of the Grundfos Group, is a global pumps and pumping systems leader serving the residential, commercial building and process industry markets, as well as being a major supplier to the water supply and water treatment industries. Grundfos is known for advanced products, technology and brands, including: Peerless, PACO, Alldos, Hilge, and Yeomans. Producing more than 16 million pumps each year, Grundfos strives to improve reliability and energy savings, and to exceed customer needs wherever water moves. Grundfos is focused on innovative, sustainable solutions while maintaining the highest ethical standards. Founded in 1945 in Bjerringbro, Denmark, The Grundfos Group is a world-wide enterprise that employs more than 18,000 people in 45 countries with North American headquarters in Olathe, Kansas.

For more information, visit the website at www.grundfos.com

About Kimball Electronics:

Kimball Electronics Group is a global contract electronics manufacturing services company that specializes in durable electronics for the automotive, medical, industrial and public safety markets. Kimball Electronics Group is well recognized by customers and industry trade publications for its excellent quality, reliability and innovative service. Kimball Electronics Group has manufacturing operations in the U.S., Mexico, Thailand, Poland, Wales, and China. Kimball Electronics Group is a business unit of Kimball International, a $1.3 billion dollar publicly held company headquartered in Jasper, Indiana.

To learn more about Kimball Electronics Group, visit our website at: www.kegroup.com

About Kimball International:

Recognized with a reputation for excellence, Kimball International is committed to a high performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball employees know they are part of a corporate culture that builds success for Customers while enabling employees to share in the Company’s success through personal, professional and financial growth.

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.

To learn more about Kimball International, Inc., visit the Company’s website on the Internet at: www.kimball.com

“Kimball International … We Build Success!”