Kimball Electronics Acquires Bayer Healthcare Manufacturing Operation; Wales, U.K. Facility Supports Growth and Diversification

Kimball Electronics Group, Inc., through its relatedsubsidiaries, has announced the acquisition of the manufacturingoperation for Bayer HealthCare's Diagnostics Division located inBridgend, Wales, UK. Bayer HealthCare's Diagnostics Division operatesas part of Bayer Healthcare LLC, a member of the worldwide Bayer Group(NYSE:BAY). Kimball purchased the equipment and inventory, and hiredthe 164 experienced Bayer employees working at the site, which Kimballwill lease from Robert Hitchins Ltd., a local property developer andthe new site owner. Kimball Electronics Group, Inc., a subsidiary ofKimball International, Inc. (NASDAQ:KBALB) is a global contractelectronics manufacturing services (EMS) company that specializes indurable electronics with applications in the medical, industrialcontrols, public safety and automotive industries.

"We are very excited about the growth opportunities in the medicalmarket, and the Bridgend team and their capabilities willsignificantly add to our package of value that we offer to our medicalcustomers," stated Don Charron, President, Kimball Electronics Group.

Kimball will continue to provide manufacturing services to Bayerfor the products Bayer currently manufactures at the plant as well asseek new medical customers for the facility. "Bayer and Kimball havehad an excellent partnership over the past eight years and ourBridgend agreement further deepens our relationship," added Charron.

Kimball International President and Chief Executive Officer JimThyen commented, saying, "This acquisition is one more visible step inour strategy to advance our global capabilities and responsiveness inelectronics." Thyen added "We are proud of the reputation earned byour Electronics Group, and we are committed to serving our customers'needs, both as a partner as well as a supplier."

About Kimball Electronics:

Kimball Electronics Group is well recognized for its excellence inquality, reliability and innovative service. The September 2005 issueof "Electronic Business" magazine ranked Kimball Electronics as # 26among the global Top 100 Contract Manufacturers. In June 2005,"Electronics Supply & Manufacturing" magazine rated KimballElectronics #20 among the Top 50 Electronics Manufacturing ServicesCompanies. Kimball Electronics Group has manufacturing operations inthe U.S., Mexico, Thailand, Poland, and a soon to be completed newfacility in China.

About Bayer HealthCare, Diagnostics Division:

Bayer HealthCare, Diagnostics Division (www.bayerdiag.com), basedin Tarrytown, New York, U.S.A., is one of the largest diagnosticbusinesses in the world. The organization supports customers in 100countries through an extensive portfolio of laboratory testing,molecular testing and near patient care diagnostics systems andservices for use in the assessment and management of health, includingthe areas of cardiovascular and kidney disease, oncology, virology andwomen's health. Bayer HealthCare, Diagnostics Division's globalheadquarters in the United States operates as part of Bayer HealthCareLLC, a member of the worldwide Bayer HealthCare group.

About Bayer HealthCare AG:

Bayer HealthCare, a subsidiary of Bayer AG, is one of the world'sleading, innovative companies in the healthcare and medical productsindustry, based in Leverkusen, Germany. In 2005, the Bayer HealthCaresubgroup generated sales amounting to some 9.4 billion Euro. BayerHealthCare employed 33,800 people worldwide in 2005. The companycombines the global activities of the divisions Animal Health,Consumer Care, Diabetes Care, Diagnostics and Pharmaceuticals. SinceJanuary 1, 2006 the new Pharmaceutical Division consists of the formerBiological Products and Pharmaceutical Division and now comprisesthree business units: Hematology/Cardiology, Oncology and PrimaryCare. Bayer HealthCare's aim is to discover and manufacture productsthat will improve human and animal health worldwide. The productsenhance well-being and quality of life by diagnosing, preventing andtreating diseases.

About Kimball International:

Kimball International, Inc. (NASDAQ:KBALB) provides a variety ofproducts from its two business segments: the Furniture and Cabinetssegment and the Electronic Contract Assemblies segment. The ElectronicContract Assemblies segment provides engineering and manufacturingservices which utilize common production and support capabilities to avariety of industries globally. The Furniture and Cabinets segmentprovides furniture for the office and hospitality industries, soldunder the Company's family of brand names. The Furniture and Cabinetssegment also provides engineering and manufacturing services whichutilize common production and support capabilities on a contract basisto customers in the office furniture and residential furniture andcabinets industries.

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

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