Kimball Electronics Forms Relationship with Magna Donnelly

Under the terms of the agreement, Kimball Electronics acquiredMagna Donnelly's PCB (Printed Circuit Board) assembly operation inLongford, Ireland. The two companies have agreed to combine theirefforts in a long term manufacturing strategy to support the needs ofthe Magna Donnelly automotive mirror business.

Shane Caher, General Manager, Magna Donnelly Ireland, said "Withthis agreement, we have charted a longer term future for the Longfordoperation, while securing a world class partner in automotiveelectronic manufacturing, giving Magna Donnelly access to high qualityelectronic assemblies at a competitive cost."

Don Charron, President, Kimball Electronics Group, stated, "MagnaDonnelly is a worldwide leader in automotive mirrors and we areexcited to offer them access to our own global footprint of certifiedautomotive manufacturing facilities." As of 2005, all of KimballElectronics' facilities have achieved TS16949 Certification. AddedCharron, "We are very happy to have the Longford team become part ofthe Kimball family, and we look forward to a relationship thatcontinues to build success."

Kimball International President and Chief Executive Officer JimThyen commented, saying, "This important agreement follows closely onour recent announcement of a major Kimball Electronics acquisition inWales, and emphasizes our strategic expansion of global capabilitiesand responsiveness in serving our customers. The Kimball package ofvalue is well served by accelerated growth that complements ourunwavering commitment to be both a business partner as well as asupplier."

About Kimball Electronics:

Kimball Electronics Group is well recognized for its excellentquality, 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 Magna Donnelly:

Magna Donnelly is part of the Magna International Inc. group ofcompanies. Magna, the most diversified automotive supplier in theworld, designs, develops and manufactures automotive systems,assemblies, modules and components, and engineers and assemblescomplete vehicles, primarily for sale to original equipmentmanufacturers (OEMs) of cars and light trucks in North America,Europe, Asia and South America. Magna has over 82,000 employees in 224manufacturing operations and 60 product development and engineeringcentres in 22 countries.

To learn more about Magna International Inc., visit the Company'swebsite on the Internet at: www.magna.com

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 primarily in the residential furniture and cabinetsindustry.

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

"Kimball International ... We Build Success!"