Kimball Electronics split to occur by October 31

Jasper — Kimball International, Inc. (NASDAQ: KBALB) (“Kimball International” or the “Company”), an Indiana-based manufacturer, today announced that the U.S. Securities and Exchange Commission (the “SEC”) has declared effective the Form 10 Registration Statement filed by Kimball Electronics, Inc. (“Kimball Electronics”), regarding the Company’s spin-off of its Electronic Manufacturing Services (“EMS”) business. Kimball International anticipates the completion of the separation of Kimball Electronics on October 31, 2014.

A copy of the Kimball Electronics Registration Statement on Form 10 is available for review at www.sec.gov and also on the Company’s investor relations page on its website at www.kimball.com.

Today’s announcement follows the approval last week by the Kimball International Board of Directors of the final distribution ratio and the declaration of a pro rata dividend in the amount of three shares of Kimball Electronics common stock for every four shares of Kimball International Class A or Class B common stock. Following the distribution of Kimball Electronics common stock shares on October 31, 2014, Kimball Electronics will be an independent, publicly-traded company.

Kimball International will continue to operate its furniture business under the Kimball brand names of Kimball Office, National Office Furniture and Kimball Hospitality.

Kimball International anticipates that, at least two days prior to the record date of October 22, 2014, trading of shares of Kimball Electronics common stock on The NASDAQ Stock Market will begin on a “when-issued” basis, under the ticker symbol “KEIVV,” and will continue up to and including the distribution date, and that “regular-way” trading of Kimball Electronics common stock, under the ticker symbol “KE,” will begin the first trading day after the distribution date.

Kimball International also anticipates that, at least two trading days prior to the record date and through the distribution date, there will be two markets in its common stock: a “regular-way” market, under the ticker symbol “KBALB,” on which shares of its common stock will trade with an entitlement to shares of Kimball Electronics common stock, to be distributed pursuant to the distribution, and an “ex-distribution” market, under the ticker symbol “KBALV,” on which shares of its common stock will trade without an entitlement to shares of Kimball Electronics common stock. Kimball International plans to change its NASDAQ trading ticker symbol from KBALB to KBAL as of the first trading day after the distribution date.

Kimball International and Kimball Electronics will share their respective company’s strategy and future outlook in a series of investor meetings starting next week.[hr]

Kimball International Board of Directors of the final distribution ratio and the declaration of a pro rata

On the distribution date of October 31, 2014, Kimball International shareholders of record as of 5:00 p.m., New York Time, October 22, 2014, the record date for the distribution, will receive three (3) shares of Kimball Electronics, Inc. common stock for every four (4) shares of Kimball International Class A or Class B common stock they hold on the record date.

Fractional shares of Kimball Electronics, Inc. common stock will not be distributed to Kimball International shareholders. Instead, the fractional shares of Kimball Electronics, Inc. common stock will be aggregated and sold in the open market, with the net proceeds distributed ratably in cash payments to the Kimball International shareholders who would otherwise receive a fractional share of Kimball Electronics, Inc. common stock.

No action or payment is required by Kimball International shareholders to receive the shares of Kimball Electronics, Inc. common stock. Shareholders who hold Kimball International common stock on the record date will receive a book-entry account statement reflecting their ownership of Kimball Electronics, Inc. common stock. Kimball Electronics, Inc. will not issue paper stock certificates. An Information Statement containing details regarding the distribution, tax implications, business and management of Kimball Electronics, Inc. following the spin-off, or a Notice of Internet Availability of Information Statement Materials containing instructions on how to access such Information Statement, will be mailed to Kimball International shareholders prior to the distribution date.

Kimball International shareholders are urged to consult with their tax and/or financial advisors with respect to the tax and investment consequences, as applicable, of the spin-off.