Kimball International Culture • Our People — At Kimball International, we believe that Our People are our most important asset. Kimball has been built upon the tradition of mutual trust, personal integrity, a spirit of cooperation, respect for dignity of the individual, a sense of family and good humor. Our People are the company. We are dedicated to Kimball's commitment to excellence, our belief in team work and our dedication to make our environment and communities better places in which to live and work.     • Our Customers — We seek to consistently demonstrate a sense of warmth, humor and mutual respect in our relationships with Our Customers, to be the company with which they most enjoy working.     • Our Community — The environment is our home. We will be leaders in not only protecting, but enhancing our world. We seek to share, but not impose our values within the communities in which we live. We strive to help Our Communities be great places to live. We believe the greatest contribution we can make to the prosperity and quality of life of the communities in which we operate lies in being a dynamic, growing company.     • Our Share Owners — Kimball is committed to providing Our Share Owners an excellent return on their investment. Profits are the ultimate measure of how effectively and efficiently we serve our customers and are the only source of long term stability. Profitability and financial resources give us and Our Share Owners the freedom to shape our future and achieve our vision.

Vision Statement

Strategy Statement — We will grow and diversify our business by continuing to build on our core competency of durable electronics and Kimball's 50 year history of establishing long lasting relationships that create more value for our customers, our suppliers, our employees, and our shareowner's. By standardizing, centralizing and localizing for efficiency, leverage and scaleability, we will provide our customers with world class services by executing our strategies with a focus on Quality, Reliability, Value and Speed in these key areas:

People and Systems

• Our strategy to invest in our people through training and development.
• Our strategy for employee total compensation, performance feedback, and structured panel interview to build long-term employee relationships.
• Our strategy to create a discipline for business that is based on economic profit.
• Our Information Technology strategy to make our people more effective by providing easy access to business information real time.
• Our strategy to leverage common equipment and integrated system platforms.
• Our e-Business strategy is to better link the supply chain and improve overall agility.

Communications

• Our strategy to have the best-informed customers, suppliers, employees and shareowner's.
• Our strategy for open communication to serve as the foundation of our customer relationships and to encourage candid feedback through the use of customer scorecards and quarterly business reviews.

Growth and Diversification

• Our sales and marketing strategy to focus on the customer relationship first and the market segment second.
• Our strategy to maintain our leadership position as a Contract Electronics Manufacturer (CEM) that serves the transportation and industrial market segments.
• Our diversification strategy to not only balance business portfolio, but to recognize the need to engage with customers that have established best practices involving the outsourcing model and supply chain management that serves the Automotive, Medical, Industrial and Public Safety market segments.
• Our acquisition strategy to focus on our customers needs.

Operational Excellence

• Build on our core competency of durable electronics.
• Our strategy to establish a global footprint by expanding our operations to Asia and Europe and by extending our global reach with International Purchasing Offices (IPO's).
• Our global procurement strategy that is based on the adoption of a hybrid model of centralization functions for leverage and de-centralized functions for customer responsiveness.
• Our program management strategy to provide flexibility to meet individual customers' needs including the ability to provide our customer with a single point of contact for multiple products manufactured in multiple locations.
• Our strategy is to provide a standardized global quote and proposal process that is based on customer responsiveness, quality and speed.
• Our strategy to support the New Product Introduction process by locating people and New Product Introductions Centers (NPIC's) close to customers for speed and efficiency.
• Our strategy to improve and expand our existing capabilities through the effective use of tools and processes such as Creative Problem Solving (CPS), Lean/Six Sigma, and Technology Road Mapping.