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                  United States Securities and Exchange Commission
                             Washington, D.C. 20549
                        -------------------------------
                                   FORM 10-K
(Mark One)
     [ x ]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                       SECURITIES EXCHANGE ACT OF 1934
          For the fiscal year ended March 31, 2007
                                      OR
     [    ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                      SECURITIES EXCHANGE ACT OF 1934
          For the transition period from                      to

                        Commission file number 0-23898
                        -------------------------------
                            MITY ENTERPRISES, INC.
          (Exact name of registrant as specified in its charter)

       Utah                                            87-0448892
(State or other jurisdiction of                     (I.R.S. Employer
incorporation or organization)                      Identification No.)

                            1301 West 400 North
                             Orem, Utah 84057
           (Address of principal executive offices, zip code)
     Registrant's telephone number, including area code:  (801) 224-0589
                        -------------------------------
         Securities registered pursuant to Section 12(b) of the Act:
                                Title of class
                       Common Stock, par value $.01
       Securities registered pursuant to Section 12(g) of the Act: None
                        -------------------------------
     Indicate by check mark if the registrant is a well-known seasoned issuer,
as defined in Rule 405 of the Securities Act.    Yes        No   x
     Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act. Yes        No   x
     Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.  Yes   x    No
     Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein and will not be contained,
to the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. [ x ]
     Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer.  See definition of
"accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange
Act. (Check one): Large Accelerated Filer       Accelerated Filer
Non-Accelerated Filer   x
     Indicate by check mark whether the registrant is a shell company (as
defined in Rule 12b-2 of the Exchange Act).  Yes        No   x
     The aggregate market value of the registrant's voting Common Stock held
by non-affiliates of the registrant was approximately $42,607,000 (computed
using the closing price of $18.20 per share of Common Stock on September 29,
2006 as reported by Nasdaq).  Shares of Common Stock held by each officer and
director (and their affiliates) and each person who owns 5 percent or more of
the outstanding Common Stock have been excluded in that such persons may be
deemed affiliates for purposes of this calculation.  The determination of
affiliate status is not necessarily a conclusive determination for other
purposes.
     There were 3,337,928 shares of the registrant's Common Stock, par value
$.01 per share, outstanding on June 28, 2007.
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                       FORWARD LOOKING STATEMENTS

This Annual Report on Form 10-K, in particular "Item 1. Business" and "Item 7.
Management's Discussion and Analysis of Financial Condition and Results of
Operations," contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended.  These statements
represent the Company's expectations or beliefs concerning, among other
things, future revenue, earnings and other financial results, new products,
marketing, operations and manufacturing.  The Company wishes to caution and
advise readers that these statements involve risks and uncertainties that
could cause actual results to differ materially from the expectations and
beliefs contained herein.  For a summary of certain risks related to the
Company's business see "Item 1A. Risk Factors" beginning on page 8 and "Item
7. Management's Discussion and Analysis of Financial Condition and Results of
Operations - Forward-Looking Statements and Factors That May Affect Future
Results of Operations" beginning on page 26.

Unless the context otherwise requires, references to the Company or MITY
Enterprises are to MITY Enterprises, Inc. and its subsidiaries.  Mity-Lite(R),
MityTuff(R), MityStack(R), MityHost(R), MityBrite(R), SwiftSet(R),
Xpeditor(TM), Xtreme Edge(TM), Summit(TM) Lectern, MitySnap(TM), Elite(TM),
Mity(TM), Mobile Buffet(TM), Lightweight Tables Designed for Strength(TM), The
Leader in Lightweight Durability(TM), Privacy Panel(TM), VersiTruck(TM),
VersiFold(TM), BRODA(R), Versipanel(TM), Intellicore(R), SwiftSet(R) HD(TM),
SwiftSet(R) Courtside(TM), VersiGlide(R), VersiFoot(R), Broda Design(R),
Comfort Tension Seating(R), and Pedal Chair(R) are trademarks or trade names
of the Company.


                                    PART I

ITEM 1.  BUSINESS

BACKGROUND

MITY Enterprises, Inc. (the "Company", "we" or "us") designs, manufactures and
markets premium quality, innovative institutional furniture created to meet
the efficiency needs of its customers.  The Company's product lines include
multipurpose room furniture, healthcare seating and fence products.  The
Company's line of multipurpose room furniture is sold both domestically and
internationally in educational, recreational, hotel and hospitality,
government, office, healthcare, church and other public assembly markets.  The
Company's healthcare seating is sold mainly in Canada and the United States in
the long-term healthcare market.  The Company's fence products consist of a
line of rotomolded fence panel products to be used in commercial and
residential fencing applications.  These products are currently sold primarily
in the United States.  A summary of our net sales, income from continuing
operations and assets for our business segments is found in Note 13 to the
Consolidated Financials Statements in Item 8, which is included herein.

INSTITUTIONAL FURNITURE PRODUCTS

MULTIPURPOSE ROOM FURNITURE.  The Company's multipurpose room furniture
consists of lightweight, durable, folding leg tables, stacking chairs, folding
chairs, lecterns, portable partitions and other related products used in
multipurpose rooms.

Lightweight, highly durable tables.  The Company has developed and currently
manufactures and markets more than 50 different plastic table sizes.  The
Company has successfully applied engineering grade plastics and sophisticated
manufacturing and assembly methods to the production of tables that weigh less
and are more durable than competing particle board or plywood table products
of similar size.  The Company's plastic tables are manufactured using
abrasion, stain and water resistant materials.  The Company's cornered tables
are constructed using its proprietary high-impact corners which can withstand
a two-foot drop without sustaining debilitating damage.  All of the Company's
plastic tables include reinforced edging.  Cornered tables are equipped with
non-skid pads which facilitate stacking and storage.  Management believes the
Company's plastic table products appeal to its customers because they are
durable, lightweight, easy to handle and attractive.

Folding and stacking chairs.  The Company currently offers four lines of
stacking chairs and three lines of folding chairs:  MityHost, SwiftSet
Stacking, Steelcore Chiavari, and SwiftSet HD  chair lines and the SwiftSet
Folding, Duramax Resin, and SwiftSet Courtside folding chair lines.  The
MityHost and most of the SwiftSet  lines are manufactured in-house while the
Steelcore Chiavari, Duramax Resin chair lines, and a portion of the SwiftSet
line are purchased from suppliers and marketed under the Mity-Lite name.
These chair lines are designed with various high-performance characteristics
including improved comfort and durability, lighter weight and improved
stackability as compared to other chair lines.

Other multipurpose room products.  The Company markets the Summit lectern, a
line of lightweight, durable lecterns.  The lecterns are made of high quality
polyethylene and can withstand abusive environments.  The Company offers these
lecterns in a variety of colors, with custom inserts that allow customers to
match decor.  On April 1, 2004, the Company acquired the assets of Versipanel
LLC ("Versipanel"), a marketer of a variety of portable partitions.  The
Company has added this  line of partitions to its product offering.  This
product line includes room dividers, portable partitions, moveable walls and
acoustic panels.  In addition to lightweight, durable tables, chairs,
lecterns, and partitions, the Company manufactures and/or markets accessory
products including table and chair carts, tablecloths, skirting and skirt
clips.

HEALTHCARE SEATING.  Through its wholly owned subsidiary, Broda Enterprises,
Inc. (Broda), the Company designs, manufactures and markets healthcare seating
and accessories used in long-term healthcare facilities located primarily in
the United States and Canada.  The Company also markets its healthcare seating
products through distributors in Germany and Australia.  Broda has developed
and manufactures a line of premium wheeled and stationary specialty chairs.
Most chair models come in two standard seat widths and six standard colors.
The Company also manufactures chairs with custom seat widths, seat depths, and
seat heights to accommodate special needs of residents, including bariatric
sizes.  Heavy gauge steel tube chair frames and large wheels and casters allow
for greater weight capacity and maneuverability.  In addition, a powder coated
finish provides a scratch-resistant surface.  Broda's high end seating
products offer a combination of features that differentiate them from the
competition. Broda chairs have been tested for interface pressures and
stability that, combined with their rigid and durable design, make Broda
chairs suitable seating for long-term care residents including those with
Huntington's Chorea Disease, Alzheimer's or Acquired Brain Injury.  In
addition, nursing home residents susceptible to skin breakdown, suffering from
loss of upper body strength, or with other conditions that might otherwise
restrict them to bed or place them at risk of self injury or falls, can be
safely and comfortably seated in a Broda chair.

FENCE PRODUCTS

During the fiscal year ended March 31, 2005, the Company discontinued
development work on a next generation table project.  In its place, the
Company began to explore how it might use its equipment and technology
developed on that project towards other products that do not require the same
level of precision as tables.  As a result of this process, during the fiscal
year ended March 31, 2006, the Company developed a fence panel that is
rotationally molded so that each side is in the shape of real rock.  The
initial product line has the look of stacked rock, but the Company believes
that it can also create the look of other styles as well.  The Company's fence
product is manufactured using plastic resins which are more durable under
extended ultraviolet light exposure than vinyl.  By using granite-colored
resins, a panel is able to be produced that has the look of real stone.  This
product provides the advantages of low maintenance and ease of assembly
combined with added aesthetics and increased durability as compared to other
products.

MARKET OVERVIEW

Based upon management's analysis of companies known to sell multipurpose room
furniture and based upon management's experience and contacts in its industry,
management estimates that the domestic market for multipurpose room furniture
exceeds $1.3 billion annually.  It is estimated that folding tables alone make
up more than $300 million of this domestic market.  Chairs and other related
seating products are estimated to account for approximately $900 million of
the domestic multipurpose room furniture market.  Other products such as
staging, risers, partitions, lecterns, and flooring account for the balance of
the estimated domestic market.

In the healthcare seating market, management estimates that in the United
States and Canada there are more than 28,000 nursing homes with over 1.8
million beds.  Nursing homes and their residents represent the typical Broda
customer.  In addition, Broda's market also includes chronic care, psychiatric
care or long-term care facilities.  Management estimates that the North
American market for its current healthcare seating products is approximately
$60 million.

Based upon management's analysis, in 2003, the fence market represented a $4.3
billion industry in the United States, of which $2.3 billion was at the
manufacturer level, and has been growing at 8 percent per year since 1997.
The fence industry is heavily dependent upon residential home construction and
remodeling for growth.  One of the fastest growing product segments in the
fencing industry is vinyl, which in 2003 was 18 percent of the total fence
market and grew at a 37 percent compounded annual growth rate between 1997 and
2003.  This rapid growth is expected to continue.

SALES AND MARKETING

MULTIPURPOSE ROOM FURNITURE.  The Company primarily markets its multipurpose
room products directly to end users in the educational, recreational, hotel
and hospitality, governmental, office products, healthcare, public assembly
and church markets.  This strategy enables the Company to manage selling costs
more effectively and maintain direct contact with its customers.  The Company
currently employs 59 full-time in-house sales and customer service employees.
The Company's sales and customer service personnel are compensated on a salary
or commission basis and may qualify for other incentive bonuses based on
individual, sales team and Company performance.  Each sales and customer
service employee receives training in product attributes, customer service,
use of the Company's computerized sales management system and all aspects of
the sales cycle.

The Company typically markets its products by first identifying customers
through internal market research, referrals, trade shows, customer networking
and test marketing.  Once a market has been identified, the Company's sales
and marketing staff will attempt to generate leads for prospective purchasers
in such markets by attending trade shows, performing mass mailings and using
lead-oriented advertising.  The Company uses a proprietary, computer-based
sales management system to qualify, track and manage sales leads for
prospective and existing customers and to compile customer feedback.  While
each sales and customer service employee maintains some in-person contact with
such employee's assigned customers, most of the Company's sales efforts are
pursued using the telephone, fax machine, e-mail, internet, videotapes, DVDs
and mail services.

The Company's plastic table, SwiftSet chair, cart, and lectern products are
sold with a twelve-year pro-rata warranty covering materials and workmanship.
The MityHost is sold with a fifteen-year warranty covering the structural
integrity of the metal frame and a one-year warranty covering the upholstery.
Versipanel partitions are sold with a one-year warranty covering materials and
workmanship.  The Company's Steelcore Chiavari and Duramax Resin chairs are
sold with three-year warranties covering materials and workmanship.

HEALTHCARE SEATING.  The Company markets its healthcare seating products to
end users and care givers in healthcare markets through its own sales
representatives, distributors and retailers of durable medical equipment.  The
Company currently employs 24 full-time sales and customer service employees
and 20 independent distributors in its healthcare seating operations.  The
Company's internal sales and customer service employees are compensated with a
base salary and may qualify for commission, incentive or bonus pay.  The
Company promotes its products through print advertising, trade shows, mass
mailings and telephone solicitations targeted to healthcare professionals.
The Company has a sampling program and provides many prospective purchasers
with product samples for 14-day trial periods.  All of Broda's chairs carry a
limited three-year warranty on the steel frame and a limited one year warranty
on the other components for defects and failure in normal use.

FENCE PRODUCTS.  The Company markets its fence products to dealers and
installers in the residential and non-residential property markets.  The
Company currently employs 2 full-time sales and customer service employees and
has dealer relationships with 25 dealers in 15 states.  Most of the Company's
business is currently conducted in the western United States although the
Company does have dealers in selected locations nationwide.  The Company's
internal sales and customer service employees are compensated with a base
salary and may qualify for commission, incentive or bonus pay.  The Company
promotes its products through trade and consumer shows, as well as supporting
dealers in their marketing efforts.  The Company has a limited lifetime
warranty on the materials for defects and failure in normal use.

INTERNATIONAL SALES

Since its inception in 1987, the Company has focused its marketing efforts
primarily on domestic markets.  The Company has, however, sold its products in
Canada, Latin America, Europe, Asia, the Middle East and Australia.  For the
fiscal years ended March 31, 2005, 2006, and 2007, the Company's international
sales accounted for 14.7 percent, 15.1 percent and 14.8 percent of the
Company's total sales, respectively.  The Company has been successful in
establishing distributor relationships in Canada, Australia, Mexico, the
United Kingdom, France, Spain, Portugal, Italy, Qatar, and Saudi Arabia.  For
the fiscal years ended March 31, 2005, 2006, and 2007, approximately 31
percent, 28 percent, and 27  percent, respectively, of healthcare seating
sales are in Canada, and 4 percent, 5 percent, and 3 percent, respectively,
are in other countries outside of the United States.  All of the Company's
fence sales have been in the United States.

MANUFACTURING AND MATERIALS

MULTIPURPOSE ROOM FURNITURE.  The Company's manufacturing process for its
plastic table products consists principally of bonding a thermoformed ABS
plastic shell to a wood core frame.  Metal legs, which are manufactured and
painted in-house, and edge trim are then attached to the table to complete the
process.  Since its inception, the Company has implemented a number of changes
to its manufacturing process and product design which have resulted in
increased production volumes, improved production quality and increased
on-time shipping performance.  The Company has designed and manufactured
certain proprietary equipment used in its manufacturing process.  The Company
believes that its manufacturing innovations give it a competitive advantage,
allowing the Company to reduce production costs and increase productivity.
The Company's typical order to delivery lead time is between three and five
weeks.

The Company's manufacturing process for its multipurpose chair products
consists principally of the manufacturing and painting of legs and frames,
upholstering seat and back cushions for the MityHost and SwiftSet upholstered
chairs, injection molding the seat and back for the SwiftSet chairs, and final
assembly of the components.  The Chiavari and Duramax chairs are distributed
by the Company under original equipment manufacturer (OEM) arrangements with
the chair manufacturers.  The MityHost stacking chair, most of the SwiftSet
folding chairs, and all of the SwiftSet stacking chair are manufactured
in-house at the Company's facility in Orem, Utah.  The frame for the SwiftSet
HD chair is outsourced with final assembly occurring at the Company's facility
in Orem, Utah.  The Company's manufacturing process for its lectern products
consists primarily of manufacturing the plastic shell, assembling electronic
components, attaching the laminated insert to the shell, and final assembly of
the components.  The manufacturing process for the Company's portable
partitions involves principally cutting and forming an internal foamed
structure, laminating an acoustical fabric onto the structure and attaching
additional hardware components.

HEALTHCARE SEATING.  The Company's manufacturing process for its healthcare
seating products includes such metal fabricating processes as welding,
bending, punching, drilling and painting.  The Company also performs cut and
sew operations to produce its chair cushions and accessories.  Metal
components are typically powder coated or painted for corrosion protection.
Components purchased for assembly into chairs includes casters, gas springs,
cables, vinyl fabric, strapping, and plastic parts.

FENCE PRODUCTS.  The Company's manufacturing process for its fence products
relies primarily on a plastic  rotomolding process to create the fence panels,
posts, and caps.  Additional small hardware pieces such as brackets are
purchased from external sources and included in the final product.

Raw materials used in all of the Company's products such as plastic, wood,
metal and fabric are generally available from a number of suppliers.  The
plastic used in the Company's multipurpose room products and tubing used in
the metal legs are manufactured according to the Company's specifications.
Certain parts of the multipurpose room operations operate without a
substantial raw materials inventory by depending on certain key suppliers to
provide raw materials on a "just-in-time" basis.  Other raw material items are
purchased in larger quantities and stored at the Company's location in order
to take advantage of price discounts.  Component parts are provided by a
number of suppliers to the Company's specifications.  The Company's other raw
materials such as wood, formed metal, laminate, fabric and certain welding
compounds are commodity items.  The Company believes that most of its raw
materials are available from alternative suppliers.  However, any significant
interruption in delivery of such items could have a material adverse effect on
the Company's operations.

COMPETITION

The markets in which the Company participates are highly competitive.  The
institutional furniture industry consists of a fragmented group of large
manufacturers and a host of smaller manufacturers.  The healthcare seating
industry also includes a fragmented group of major medical device
manufacturers and many small manufacturers.

MULTIPURPOSE ROOM FURNITURE.  The Company markets its table products based
primarily on product performance (lightweight and durable) and reputation, not
price.  The Company's average table price is generally higher than the average
price of competing particle board, plywood, plastic or metal table products of
its competitors.  The Company believes that it has a respected reputation for
product quality, convenience and customer service and that for these reasons,
end users often choose its table products over competitors' lower cost table
products. Because only certain elements of the Company's table design are
patented, the Company's tables may be reverse engineered and duplicated by
competitors who are able to develop the manufacturing equipment and processes
to do so.  In the past few years, several competitors have introduced other
thermoformed plastic tables with many similar characteristics to the Company's
products.  More recently, other competitors have introduced blow molded
plastic tables that, although not currently as durable, are cheaper than the
Company's table products.  These introductions have increased price and profit
margin pressures on the Company's products.  Further improvements in these
products or introductions of new competing products by lower cost producers
would put additional price and profit margin pressure on the Company which
could have a material adverse effect on the Company's results of operations.

Among the Company's primary competitors in the table market are Palmer-Snyder,
Inc., McCourt Manufacturing, Inc., Midwest Folding Products, Krueger
International, Inc., SICO and Virco Manufacturing Corporation, which market a
thermoformed plastic table; Southern Aluminum, Inc., which produces an
aluminum table; Lifetime Products, McCourt Manufacturing, Krueger
International, Inc., which market a blow molded plastic table; Krueger
International, Inc., Bevis Custom Furniture, Inc., Globe Business Furniture
and Virco Manufacturing Corporation, Inc., which produce particle board
tables; and Midwest Folding Products, Maywood Furniture, Corp., and
Palmer-Snyder, Inc., which produce plywood tables.

Management believes that customers purchase the Company's multipurpose room
chair products primarily because of product performance, reputation, warranty
service and convenience.  The market for institutional chairs is highly
competitive and fragmented.  The Company believes that its SwiftSet folding
chair and stacking chair lines have technological and performance advantages
over their competitors.  Although the Company's other chair lines do not offer
the same  advances as the Company's table and SwiftSet chair products, the
Company believes they do have distinct selling features.  Among the Company's
primary competitors in the multipurpose chair market are Commercial Furniture
Group, Virco Manufacturing Corporation, Artco-Bell Corporation, Globe Business
Furniture, Shelby Williams Industries, Inc., MTS Seating, Daniel Paul Chairs,
Krueger International, Inc., Clarin, a division of Greenwich Industries, Meco
Corporation, Gasser Chair Company, Inc., Bertolini, Inc., and Church Chair
Industries, Inc.  Management believes that the primary competitors for its new
portable partition product include ScreenFlex, SICO, Bertolini, Inc.,
Panelfold, Inc., Curtition, Inc., Hufcor, Inc., Modernfold, Inc., and Clone
Office Cubicles.

HEALTHCARE SEATING.  Management believes that customers purchase the Company's
healthcare seating products primarily because of product performance,
reputation and service, not price.  The Company's average healthcare chair
price is generally higher than the average price of competing chairs.  The
Company's chairs generally offer significantly greater performance in terms of
function and durability and for these reasons are chosen over lower cost
competitors' products.  Among the Company's primary competitors in the
healthcare seating market are Invacare Corp., L.P.A. Medical Inc.,
Graham-Field Inc., Maple Leaf Wheelchair Manufacturing Inc., Sunrise Medical
Inc., Hillenbrand Industries Inc., Winco Inc., Dolomite, Homecrest Industries
Incorporated, and Future Mobility.

FENCE PRODUCTS.  Management believes that its fence products fill a product
niche in the fence marketplace that has previously not been addressed.
Although the Company's rotomolded plastic products are priced higher than
vinyl and wood fence solutions, the Company believes that the aesthetics and
product performance are superior to vinyl and wood products.  In addition, the
Company's products have the look of real stacked rock, but are priced less
than either real stacked rock or simulated concrete panels.  Among the
Company's primary competitors in the vinyl fencing market with national
distribution are Bufftech (CertainTeed), Royal Group Technologies, Thermal
Industries, Veka, Crane Plastics, Outdoor Technologies, Tenax, Associated
Materials, U.S. Plastic Lumber, Nortek, L.B. Plastics, and Nebraska Plastics.

INTELLECTUAL PROPERTY

The Company has been granted two utility patents relating to the construction
of its table tops.  A design patent and six utility patents have been granted
on the SwiftSet chair.  A utility patent has been granted on a flex mechanism
for the Host chair.  The Company has been granted a design patent related to
its SwiftSet Stacking chair.  The Company has been granted two utility patents
related to its rotationally molded products.  The Company has filed seven
other patents related to its furniture and rotationally molded products. At
this time, the Company has chosen not to apply for international patent
protection for any of these concepts.  The Company does not believe this will
have a material adverse effect on the Company.  The Company also has several
trademarks and trade names as referenced on page (i) of this report.

Utility patents relating to the function of one of its healthcare chair models
have been granted to the Company in the United States, Canada and Europe.  A
utility patent on its flipdown footrest has been granted in the United States
and Canada.  A utility patent has been granted in Canada for a self locking
mechanism on the Company's glider chair as well as a backrest for its
bariatric chair.  Patents are pending in the United States for both of these
products.  The Company has been granted design patents on its geriatric
accessory tray, healthcare chair back, flipdown footrest, and healthcare chair
for Canada and the United States.  The Company has two design patents in the
United States on its commode chair seat.  The stylized word "BRODA" has been
trademarked for Canada and the United States and trademark registration has
been applied for in Europe.  Broda's "Comfort Tension Seating" has been
trademarked in Canada and the United States.  The "Pedal Chair" trademark has
been registered in the United States and Canada.

The Company believes that aspects of its manufacturing processes are trade
secrets of the Company.  The Company relies on trade secret law and
nondisclosure agreements to protect its trade secrets.  The Company believes
that its patents and trade secrets provide it with competitive advantages.

GOVERNMENT REGULATION

The Company is subject to various local, state, provincial and federal laws
and regulations including, without limitation, regulations promulgated by
federal, state and provincial environmental and health agencies, the Federal
Occupational Safety and Health Administration, the Food and Drug
Administration, North American Free Trade Agreement, and laws pertaining to
the hiring, treatment, safety and discharge of employees.  The Company's
manufacturing operations must also meet federal, state, provincial and local
regulatory standards in the areas of labor, safety and health.  Historically,
the cost of regulatory compliance has not had a material adverse effect on the
Company's sales or operations.

EMPLOYEES

As of March 31, 2007, the Company had approximately 418 full-time and 15
part-time employees.  No employees have union representation.  The Company
believes that its relationship with its employees is good.

SUBSEQUENT EVENT

On May 2, 2007, the Company announced that it had entered into an Agreement
and Plan of Merger dated as of May 2, 2007 (the Merger Agreement) with MLE
Holdings, Inc. (Parent) and FP Merger Sub, Inc., a wholly owned subsidiary of
Parent (Merger Sub).  Parent is an affiliate of Sorenson Capital Partners L.P.
(Sorenson) and Peterson Partners LP (Peterson).

Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and
into the Company, with the Company as the surviving corporation of the merger
(the Merger).  At the effective time of the Merger, each share of common stock
of the Company then outstanding, other than those held by any wholly-owned
subsidiary of the Company and those owned by Parent or Merger Sub, and other
than those with respect to which dissenters' rights are properly exercised,
will be converted into the right to receive $21.50 per share in cash, without
interest (the Merger Consideration) and each option to purchase common stock
of the Company then outstanding will be cancelled and option holders will
receive the excess, if any, of the Merger Consideration over the option
exercise price for each share subject to the option, less any applicable
withholding taxes.

The Board of Directors of the Company unanimously approved the Merger
Agreement, the Merger and the transactions contemplated thereby.  Completion
of the transaction is subject to the affirmative vote of the Company's
shareholders and other customary closing conditions.

The Merger Agreement contains certain termination rights for both the Company,
Merger Sub and Parent.  Among other things and subject to certain conditions,
(1) the Company may terminate the Merger Agreement if Merger Sub and Parent
fail to close when the closing conditions are otherwise satisfied, (2) the
Company may terminate the Merger Agreement to accept a superior proposal, and
(3) Merger Sub and Parent may terminate the Merger Agreement if the Company
changes its recommendation, recommends another proposal or fails to include
its recommendation in the proxy statement.  The Merger Agreement further
provides that, upon termination of the Merger Agreement under certain
circumstances, (1) the Company may be obligated to pay Parent a termination
fee of $1,450,000 or reimburse Parent and Merger Sub for their transaction
expenses up to $700,000, and (2) Parent may be obligated to pay the Company a
termination fee of $815,000.

In connection with the execution of the Merger Agreement, certain officers and
directors of the Company holding approximately 28% of the outstanding shares
of common stock of the Company entered into a voting agreement with Parent and
Merger Sub, in which such officers and directors agreed to vote their
respective shares of Company common stock in favor of the Merger.

The Parent has received commitment letters pursuant to which (1) CIT Lending
Services Corporation has agreed, on terms and subject to the conditions in the
commitment letter, to provide a $35,000,000 first-lien senior secured credit
facility in connection with the Merger and the other transactions contemplated
by the Merger Agreement, (2) CIT CRE, LLC has agreed, on the terms and subject
to the conditions in the commitment letter, to purchase the Company's real
property for $18,370,000 in cash as a source of funds required to consummate
the Merger and to lease such real property back to the Company, (3) Sankaty
Advisors, LLC has agreed, on the terms and subject to the conditions in the
commitment letter, to provide an $18,000,000 second-lien subordinated term
loan facility in connection with the Merger and the other transactions
contemplated by the Merger Agreement and (4) Sorenson Capital Partners, L.P.
has agreed, on the terms and subject to the conditions in the commitment
letter, to invest up to $22,500,000 in cash as a source of funds required to
consummate the Merger and the other transactions contemplated by the Merger
Agreement.

Pursuant to the Company's entering into the Merger Agreement on May 2, 2007,
the Company was in violation of one of the covenants in its Loan with Zions
First National Bank.  The Company has received a waiver of this covenant
violation from Zions First National Bank dated May 16, 2007.  In addition, the
Company would again be in violation of one of the terms of this Loan upon
closing the transaction.  However, the Company has notified Zions First
National Bank of this expected event and anticipates being able to obtain a
waiver of this covenant.

AVAILABLE INFORMATION

Information regarding the Company's annual reports on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, and any amendments to these
reports, are available, free of charge, at the Company's internet website at
www.mityenterprises.com, as soon as reasonably practicable after the Company
electronically files such reports with or furnishes them to the Securities and
Exchange Commission.

ITEM 1A.  RISK FACTORS

THE SALE OF THE BUSINESS MAY NOT OCCUR.  Although the Company has entered into
a merger agreement to be acquired and the shareholders have approved of the
merger, the transaction is still subject to customary closing conditions and
has not closed and still may not occur.  If the transaction does not close,
depending upon the reasons for the transaction not occurring, the Company may
be obligated to pay a termination fee of $1,450,000 or reimburse the buyer for
their transaction expenses up to $700,000.  Either of these events would
reduce the Company's profitability.

WE MAY NOT BE ABLE TO DEVELOP NEW PRODUCTS.  The Company's expansion of its
current product lines is contingent, among other things, upon the Company's
ability to develop and/or acquire additional lines of complementary
institutional furniture which can be purchased or manufactured in a cost
efficient manner and sold at competitive prices in the Company's markets.
Developing viable new products requires capital and takes time.  The Company
may not be able to develop new products at a speed or cost that allow us to
timely capitalize on market opportunities or counter competition.  Over the
past few years, the Company worked at developing a new generation multipurpose
room table and invested substantial capital resources in its development.  The
Company ultimately was unsuccessful at developing a cost-effective repeatable
process to manufacture the table and in January 2005, terminated further
development.   The Company cannot guarantee that it will be successful in
developing new products to expand its product line.

OUR NEW FENCE PRODUCT MAY NOT BE ACCEPTED BY THE MARKET.  The Company has
recently begun manufacturing a fence product using the assets initially
purchased for its next generation table line.  This is a new product line and
market for the Company.  Further, the Company does not have previous
experience with this new product line or product market.  Developing viable
new products requires capital and takes time.  The Company may not be able to
launch this new product at a speed or cost that will allow us to timely
capitalize on market opportunities or counter competition and customers may
not be willing to accept the new product.  Also, since this is a new product
line, the Company cannot predict the long-term product performance.  Although
the Company has performed testing on the product and believes that its
performance will be better than competitive products, it cannot ensure that
this will be the case.

A DOWNTURN IN THE FURNITURE INDUSTRY WOULD HARM OUR BUSINESS.  Beginning in
fiscal 2002, and continuing through fiscal 2004, the Company faced one of the
most significant down-turns ever in the global furniture industry.  Industry
analysts reported declines in the United States office furniture market of 18%
for calendar year 2001, 19% in  2002, and 4% in 2003.  These years constitute
an unprecedented three consecutive year decline in an industry that only had
three down years between 1971 and 2000.  Companies throughout the world
reduced their spending across many capital goods categories, including
furniture.  Revenue and order rates across the industry fell throughout
calendar 2001, 2002, and 2003 as customers delayed and canceled orders.
Demand for furniture products continued to soften as corporate profits
remained under pressure during recent years.  Demand for the Company's
products was also adversely impacted by declines after September 11, 2001 in
the hospitality and recreational markets.  Terror threats, war, economic
uncertainty, and related uncertainties contributed to the downturn.  Although
the outlook has improved, if conditions do not continue to improve, or begin
to decline again, the Company would be negatively impacted.

INFLATION AND INCREASING RAW MATERIAL COSTS COULD HARM OUR BUSINESS.  During
the fiscal years ended March 31, 2005, the Company experienced rapidly
increasing costs in most of its raw materials, including steel, plastic, and
wood.  During the fiscal years ended March 31, 2006 and 2007, these increases
continued although at a reduced rate.  However, rising fuel costs have
continued to increase transportation costs.  In response to these increases,
the Company implemented price increases on most of its product lines.  The
Company has been able to achieve most of the price increases, but some product
lines have been slower in responding to the price increase.  However, the
Company cannot predict whether it will be able to achieve the implemented
price increases or what effects the price increases might have on sales
volumes.  Sales may decline.  Although the Company is unable to predict
whether the price of its raw materials will continue to increase, further
increases would erode the Company's gross margin without additional price
increases for the Company's products.

COMPETITION COULD HARM OUR BUSINESS.  The Company is facing increased
competition because of innovations in competitors' products and lower pricing
brought on by the general down-turn in the furniture industry.  More of the
Company's competitors have begun introducing products that directly compete
with the products offered by the Company, including competitors who are
manufacturing their products offshore at a lower cost. The Company's products
are generally more expensive than products sold by the Company's competitors
in the same markets.  The Company believes that competition for its products
is generally based on product quality and characteristics, service and price.
Unless the Company adapts and responds to these competitive threats, the
Company will face margin pressure from low cost producers.  Only certain
elements of the Company's products are patented, so unpatented elements could
be reverse engineered and duplicated by competitors who are able to develop
the manufacturing equipment and processes to do so.  The Company's continued
success will depend upon, among other things, its ability to continue to
manufacture and market high quality, high performance products at prices
competitive in the markets served by the Company.  Although the Company is
developing new products, it is uncertain at this time what the marketplace
acceptance will be for these products.

OFF-SHORE MANUFACTURING BY COMPETITORS IS PUTTING INCREASED MARGIN PRESSURE ON
US.  The Company is facing increased competition, particularly in its chair
product lines, from off-shore manufacturing, primarily from Asia.  These lower
cost producers are putting margin pressure on us.  There can be no assurance
that the Company will be successful in countering this competition through its
own offshore manufacturing efforts.

A POTENTIAL DECREASE IN DEMAND FOR HEALTHCARE SEATING PRODUCTS WOULD HARM OUR
BUSINESS.  Although the Company believes that the specialty healthcare seating
market is less subject to economic pressures than the Company's multipurpose
room operations, the medical and healthcare industry is more subject to
regulatory changes that could affect the demand for Broda's products.  Recent
changes in the durable medical equipment marketplace relating to government
reimbursements for these products in the United States at the federal and
state level has negatively impacted Broda's business.  The Company is not
currently aware of any other regulatory changes in the near future that would
have a substantial and negative impact on this business.  During the past few
years, the Company has hired direct employees in the United States to market
its healthcare seating products, replacing some of the dealers and
distributors that it previously had in those areas.  Although the Company
intends to expand this presence in coming years, the Company may be unable to
expand its geographic markets for healthcare seating products.

THE LOSS OF KEY CUSTOMERS COULD HARM OUR BUSINESS.  The loss of any key
customers of the Company would decrease the Company's revenue.  Given the
current environment in the furniture industry, the Company cannot assure that
it would be able to replace such revenue or reduce its costs and, therefore,
the Company's profitability would be adversely impacted.

THE LOSS OF KEY RAW MATERIAL SOURCES COULD HARM OUR BUSINESS. Both the plastic
used in the Company's products and the tubing used in its table legs and
chairs are manufactured according to Company specifications.  Portions of the
Company's multipurpose room operations operate without substantial inventory
levels of raw materials by depending on certain key suppliers to provide raw
materials on a "just-in-time" basis.  The Company believes that necessary
materials are generally available from alternate suppliers.  However, any
shortages or significant interruptions in the delivery of raw materials could
have a material adverse effect on the Company's production schedule and
operations.

AN INCREASE IN WARRANTY SERVICE COSTS COULD HARM OUR BUSINESS. The Company
intends to continue to offer warranties covering materials and workmanship on
its existing products and anticipates providing a warranty covering materials
and workmanship for all complementary product lines developed or acquired by
the Company.  While the Company has implemented improved quality control
measures that it expects will reduce warranty claims, it is possible that
warranty servicing costs will increase in future periods.  Furthermore, the
Company is not in a position to anticipate the additional warranty service
costs that may be incurred as a result of the Company's expansion into new or
complementary product lines.

WE COULD BE SUBJECT TO FUTURE VARIATIONS IN OPERATING RESULTS.  The Company's
short-term profitability could be adversely affected by its decision to
develop or acquire complementary product lines, hire additional sales staff,
and pursue additional acquisitions.  Various factors, including acquisition
related expenses, the ability to find and train qualified personnel,
operational transitions, timing of new product introductions and the cost of
developing and marketing new products and penetrating new markets as well as
changes in product mix, may have an adverse effect on the Company's results of
operations.  There can be no assurance that the Company will continue to
experience profitability at historical rates.  The Company may experience
temporary fluctuations in operations and quarterly variations in the future.

FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS OF
OPERATIONS.  Forward-looking statements contained herein include plans and
objectives of management for future operations, including plans and objectives
relating to the products, marketing, customers, product line expansions,
warranty expense, and cost reductions to preserve margins.  These
forward-looking statements involve risks and uncertainties and are based on
certain assumptions that may not be realized.  Actual results and outcomes may
differ materially from those discussed or anticipated.

All forward-looking statements involve predictions and are subject to known
and unknown risks and uncertainties, including, without limitation, those
discussed above as well as general economic and business conditions, that
could cause actual results to differ materially from historical results and
those presently anticipated or projected.  Readers should not place undue
reliance on any such forward-looking statements, which speak only as of the
date made.  The considerations described above and elsewhere in this filing
could affect the Company's financial performance and could cause the Company's
actual results for future periods to differ materially from any views or
statements expressed with respect to future periods.  Important factors and
risks that might cause such differences, include, but are not limited to those
factors referenced above and in "Item 7.  Management's Discussion and Analysis
of Financial Condition and Results of Operations - Forward Looking Statements
and Factors That May Affect Future Operating Results."


ITEM 1B.  UNRESOLVED STAFF COMMENTS

None


ITEM 2.  PROPERTIES

The Company's corporate headquarters and multipurpose room furniture
manufacturing facilities are located in Orem, Utah (approximately 40 miles
south of Salt Lake City).  The Company's headquarters and multipurpose room
table and cart manufacturing facility consists of approximately 71,000 square
feet of manufacturing, office, research and development and storage space
located on approximately four acres of land.  In addition, the Company owns
approximately ten acres of land across the street from its corporate
headquarters.  On a portion of this property, the Company has built a 79,000
square foot office and manufacturing facility to house its sales force and
multipurpose room chair operations.  The Company has also built a 63,000
square foot facility which was anticipated to be used for the manufacturing of
its next generation of multipurpose room tables.  However, with the decision
to discontinue development on that product line, the Company is currently
using the facility for warehousing some of its raw materials as well as
manufacturing space for its new fence product line.  The Company estimates
this property includes enough real estate to build approximately an additional
140,000 square feet of facility to support the future growth of the Company.
The Company also owns an adjacent 2,400 square foot building that sits on this
property.

At the end of fiscal 2006, the Company purchased approximately 2 acres located
adjacent to its corporate headquarters.  The Company is currently constructing
a 47,000 square foot manufacturing and warehousing facility on this land and
anticipates completing the construction of this facility in July 2007.  The
Company believes that by adding this new facility as well as additional
equipment and production shifts, its existing facilities will serve its
current product lines for at least the next year.  However, if the operation
adds additional product lines and/or significantly modifies its existing
products lines, additional facilities may need to be constructed on the
Company's existing land.

As of March 31, 2007, the Company's healthcare seating manufacturing
facilities were located in Waterloo, Ontario, Canada (approximately 60 miles
west of Toronto).  These facilities consisted of two adjacent buildings with
approximately 30,000 square feet of leased manufacturing, office, research and
development and storage space.  During the year ended March 31, 2007, the
Company purchased approximately 4 acres in Kitchener, Ontario, Canada for
$570,000.  The Company began construction on a 42,000 square foot facility
containing office warehousing, and manufacturing floorspace.  In May 2007, the
Company relocated its healthcare seating operation to this new facility.  The
Company believes that this new facility will serve its current production
lines for at least the next year.  However, if the operation adds additional
product lines and/or significantly modifies its existing products lines,
additional facilities may need to be constructed on the Company's existing
land.

ITEM 3.  LEGAL PROCEEDINGS

From time to time, the Company is subject to legal proceedings and other
claims arising in the ordinary course of its business. The Company maintains
insurance coverage against potential claims in an amount which it believes to
be adequate.   There are no material pending legal proceedings against the
Company, other than routine litigation incidental to the business.


ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

No matters were submitted to a vote of security holders during the fourth
quarter of the fiscal year ended March 31, 2007.


                                     PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company's common stock is traded on the Nasdaq Global Market System under
the symbol "MITY".  The Company's common stock first began trading on April
29, 1994.  The following table outlines the Company's quarterly stock price
performance during the last two years.



                                              HIGH             LOW
                                           ----------       ----------

Fiscal Year Ended March 31, 2007:

  First Quarter . . . . . . . . . . . . . .  $19.50           $17.85

  Second Quarter. . . . . . . . . . . . . .   19.20            16.75

  Third Quarter . . . . . . . . . . . . . .   18.40            17.10

  Fourth Quarter. . . . . . . . . . . . . .   19.93            17.61


Fiscal Year Ended March 31, 2006:

  First Quarter . . . . . . . . . . . . . .  $17.53           $13.72

  Second Quarter. . . . . . . . . . . . . .   17.59            14.99

  Third Quarter . . . . . . . . . . . . . .   18.74            16.55

  Fourth Quarter. . . . . . . . . . . . . .   19.58            17.05

There were 133 security holders of record as of June 28, 2007.  In addition,
management estimates that there were approximately 2,000 beneficial
shareholders.  Since the closing of its public offering, the Company has not
declared dividends and does not currently anticipate paying dividends.

ITEM 6.  SELECTED FINANCIAL DATA

The following selected financial data should be read in conjunction with the
consolidated financial statements and the notes thereto included in this
Annual Report on Form 10-K.  The statement of income data set forth below with
respect to the fiscal years ended March 31, 2007, 2006 and 2005 and the
balance sheet data at March 31, 2007 and 2006 are derived from, and should be
read in conjunction with the audited consolidated financial statements
included in this Annual Report on Form 10-K.  The statement of income data set
forth below with respect to the fiscal year ended March 31, 2004 and 2003 and
the balance sheet data at March 31, 2005, 2004 and 2003 are derived from
audited consolidated financial statements not included in this Annual Report
on Form 10-K.

STATEMENT OF INCOME DATA


Year Ended March 31,     2007      2006      2005      2004      2003
                       -------   -------   -------   -------   -------
                       (in thousands, except share and per share data)

Net sales              $60,338   $55,701   $50,272   $45,210   $40,965
Cost of products sold   40,793    35,947    33,537    28,037    24,457
                       -------   -------   -------   -------   -------
Gross profit            19,545    19,754    16,735    17,173    16,508

Expenses:
 Selling                 8,760     7,903     7,427     6,452     6,172
 General and
  administrative         2,538     2,012     1,980     1,787     2,504
 Research and
  development            1,548     1,734     1,265     1,393     1,541
 Asset impairment           -         -      2,226        -         -
                       -------   -------   -------   -------   -------
Income from continuing
 operations              6,699     8,105     3,837     7,541     6,291
Interest and other, net     50       247        58      (101)      132
                       -------   -------   -------   -------   -------
Income before provision
 for income taxes and
 minority interest       6,749     8,352     3,895     7,440     6,423
                       -------   -------   -------   -------   -------
Provision for income
 taxes                   2,302     2,811     1,448     2,766     2,367
                       -------   -------   -------   -------   -------
Net income from
 continuing operations
 before minority
 interest                4,447     5,541     2,447     4,674     4,056
Minority interest           -         -         22        79         7
                       -------   -------   -------   -------   -------
Net income from
 continuing operations   4,447     5,541     2,469      4,753    4,063
Gain on disposal, net
 of applicable income
 tax                        -         -         -          -       745
                       -------   -------   -------   -------   -------
Net income             $ 4,447   $ 5,541   $ 2,469   $ 4,753   $ 4,808
                       =======   =======   =======   =======   =======

Basic earnings per
 share from continuing
 operations              $1.26     $1.34     $0.57     $1.14     $0.90
Basic gain per share
 on disposal of
 discontinued
 operations                 -         -         -         -       0.17
                       -------   -------   -------   -------   -------
Basic earnings per
 share                   $1.26     $1.34     $0.57     $1.14     $1.07
                       =======   =======   =======   =======   =======
Weighted average common
 shares outstanding -
 basic               3,519,942 4,124,189 4,296,525 4,157,081 4,501,342
                     ========= ========= ========= ========= =========

Diluted earnings per
 share from
 continuing
 operations              $1.23     $1.30     $0.55     $1.09     $0.86
Diluted gain per
 share on disposal
 of discontinued
 operations                 -         -         -         -       0.16
                       -------   -------   -------   -------   -------
Diluted earnings per
 share                   $1.23     $1.30     $0.55     $1.09     $1.02
                       =======   =======   =======   =======   =======
Weighted average
 common and common
 equivalent shares
 outstanding -
 diluted             3,617,907 4,270,962 4,474,111 4,364,683 4,711,420
                     ========= ========= ========= ========= =========


BALANCE SHEET DATA

March 31,                2007      2006      2005      2004      2003
                       -------   -------   -------   -------   -------
                                  (in thousands)
Working capital         $8,098   $15,230   $16,732   $13,060   $ 8,069

Total assets            33,604    34,819    35,616    31,956    25,402

Stockholders' equity    23,342    30,403    31,264    27,799    21,454


ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS

GENERAL

The Company designs, manufactures, and markets institutional furniture.  The
Company's current business segments consist of multipurpose room furniture,
healthcare seating, and fence products.  In addition, the Company continues to
pursue development of new products and the acquisitions of product lines or
companies that will be complementary to the Company's businesses.

MULTIPURPOSE ROOM FURNITURE.  The Company's multipurpose room furniture line
consists of lightweight, durable, folding leg tables; stacking and folding
chairs; lecterns; portable partitions; dance floors; and other related
products.  These products are used in multipurpose rooms of educational,
recreational, hotel and hospitality, government, office, healthcare, religious
and other public assembly facilities.  Historically, growth in this segment
has come from an expanding base of new customers, from increasing sales to
existing customers and from expansion of the Company's multipurpose room
product line.  The current and future growth of the Company's multipurpose
room furniture operations is largely dependent upon its ability to
successfully introduce and market new product lines of multipurpose room
furniture and its ability to profitably increase its market penetration into
existing and new markets.

MULTIPURPOSE ROOM FURNITURE OUTLOOK.  After three years of declines in the
institutional furniture marketplace due to the downturn in the domestic and
international economy, the institutional furniture marketplace started to grow
again in calendar year 2004.  This accelerated in calendar year 2005 and
growth has continued through 2007.  For the Company's fiscal year ending March
31, 2007, the Company experienced growth of 4 percent in its multipurpose room
furniture segment which was slightly lower than the industry growth during the
same time period of 6 percent.  Industry analysts are expecting growth for
calendar year 2007 of 7 percent as compared to calendar year 2006.  The
Company is encouraged by these forecasts as well as the strengthening of the
economy in general, and is cautiously optimistic that the industry will
continue its rebound and that the Company's multipurpose room sales volumes
will likewise continue to grow.

In January 2005, the Company announced its intention to cut off funding on its
current next generation table.  The Company had been working on developing a
table with improved performance characteristics than its existing table.  With
the decision to discontinue funding on the new table, the Company has
refocused its efforts on the existing table to enhance its performance as well
as attempt to further drive down costs.  The Company is also focused on
increasing its chair offerings.

During the past few years, chair sales have begun to make up a larger portion
of the sales of the Company's multipurpose room operations.  Although table
sales still predominate the volume of this operation, much  of the increases
in sales can be attributed to increases in chair sales.  The Company
anticipates developing additional complementary chair lines to continue to
grow this portion of its business as well as further penetrating its existing
marketplace with its current lines of chairs.  However, the Company cannot
guarantee that it will be able to successfully develop and launch such chair
lines or further penetrate its existing marketplace.

HEALTHCARE SEATING.  Through Broda, the Company markets a line of healthcare
seating products primarily to customers in Canada and the United States.
Broda's operations are based in Kitchener, Ontario, Canada.  Broda focuses on
providing products which assist long-term care patients with advanced needs
due to a debilitating condition or disease, and has developed a line of
premium-priced geriatric seating products.  Broda chairs are serving a very
specific niche in the healthcare market and thus are not competing in the
commodity-oriented general healthcare seating market.

HEALTHCARE SEATING OUTLOOK.  The Company believes that the specialty
healthcare seating market is less subject to economic pressures than the
Company's multipurpose room furniture operations.  However, the medical and
healthcare industry is more subject to regulatory changes that could affect
the demand for Broda's products.  The Company is not aware of any regulatory
changes in the near future that would have a substantial and negative impact
on this business.  The Company's healthcare seating operation's future growth
depends largely upon increasing its market penetration into the U.S. market
and other foreign markets as well as its ability to successfully introduce new
product lines.

FENCE PRODUCTS.  During the fiscal year ended March 31, 2005, the Company
discontinued development work on a next generation table project.  In its
place, the Company began to explore how it might use its equipment and
technology developed on that project towards other products that do not
require the same level of precision as tables.  As a result of this process,
during the fiscal year ended March 31, 2006, the Company started using its
facility and equipment for the manufacture of fence panels and posts, which
are outside of its current institutional furniture market.  The Company is
encouraged by the response from customers who have purchased the product, as
well as the response from potential customers who have viewed and handled the
product.  The Company plans to continue building its capacity and refining its
manufacturing techniques as it breaks into this marketplace and is hopeful
that fencing will continue to contribute to its sales growth in the upcoming
year.  However, the Company cannot guarantee that it will be successful in
marketing these fencing products or in utilizing its existing capacity.

FENCE PRODUCTS OUTLOOK.  The Company believes that although its fence products
operations is susceptible to recent downturns in the housing market, due to
the new and unique nature of its offering, it is less susceptible than most
building products.  The Company believes that it will continue to see growth
in its fence products offering despite the recent downturns in the housing
market, although it cannot guarantee its success.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

This discussion and analysis of financial condition and results of operations
is based upon the Company's consolidated financial statements which have been
prepared in accordance with accounting principles generally accepted in the
United States of America.  These principles require the use of estimates and
assumptions that affect amounts reported and disclosed in the consolidated
financial statements and footnotes.  The critical accounting policies for the
Company which require management to make judgments and assumptions about
matters that are uncertain at the time of the estimate include the allowance
for doubtful accounts receivable, the reserve for obsolete inventory, accruals
for warranty expense, valuation of assets related to the discontinued next
generation table line (see Note 4, Impairment of Assets), goodwill and other
intangible assets, notes receivable, income taxes, and revenue recognition.

ALLOWANCE FOR DOUBTFUL ACCOUNTS RECEIVABLE: The Company exercises considerable
judgment in determining the ultimate collectibility of its accounts
receivable.  Several factors are used in making these judgments including the
customer credit quality, historical write-off experience and current economic
trends.  The Company reviews these factors quarterly, and the allowance is
adjusted accordingly.  If the financial condition of the Company's customers
were to deteriorate, an additional allowance may be required.

RESERVE FOR OBSOLETE INVENTORY: Inventories are stated at the lower of cost,
on a first in, first out basis, or market.  Additionally, the Company
evaluates its inventory reserves in terms of excess and obsolete exposures.
This evaluation includes such factors as anticipated usage, inventory turnover
and ultimate product sales value (see Note 4, Impairment of Assets).

ACCRUALS FOR WARRANTY EXPENSE:  The Company's warranty service costs for
fiscal years ended March 31, 2007, 2006, and 2005 totaled 1.4 percent of net
sales or $850,000, 1.6 percent of net sales or $869,000 and 1.3 percent of net
sales or $637,000, respectively.  The Company provides for the estimated cost
of product warranties at the time revenue is recognized.  This warranty
obligation is affected by failure rates, the introduction of new products, and
the costs of material and labor to repair or replace the product.  The Company
regularly assesses the adequacy of its accrual for warranty expense based upon
historical warranty rates and anticipated future warranty rates.

ASSETS RELATED TO THE DISCONTINUED NEXT GENERATION TABLE LINE: Due to the
decision by the board of directors in January 2005 to discontinue the next
generation table project, the Company recorded impairment charges associated
with certain long-term assets during the quarter ending March 31, 2005.  The
Company utilized an outside specialist to help management establish the fair
value of the assets which involved considerable judgment.  This resulted in an
impairment charge of $2.0 million related to the fixed assets (see Note 4,
Impairment of Assets).

GOODWILL AND OTHER INTANGIBLE ASSETS: The Company reviews annually the
carrying value of its goodwill during the first quarter of each fiscal year.
The goodwill arose from its acquisitions of Broda Enterprises and Versipanel.
During the quarter ended June 30, 2006, the Company reviewed the goodwill
related to the Broda and Versipanel acquisitions and determined that there was
no impairment.  This review was performed using estimates of future cash
flows.  If the carrying value of the goodwill is considered impaired, an
impairment charge is recorded for the amount by which the carrying value of
the goodwill exceeds its fair value.  During the years ended March 31, 2007
and 2006, the change in the carrying value of the goodwill is related to
foreign currency translation gains.  The Company recorded an intangible asset
of $85,000 (net of $5,000 in accumulated amortization) related to a license
agreement entered into during the year ended March 31, 2007 for the Company's
dance floor product line which is included in other assets.  The term of this
license agreement extends through the life of the patent which expires in June
2016.  For the year ended March 31, 2007, the Company amortized $5,000 related
to this intangible asset.  The Company anticipates annual amortization expense
related to this intangible asset of $12,000.

NOTES RECEIVABLE: The Company reviews its notes receivable to determine likely
collectibility.  Since the notes are with entities without a long history of
an ability to create future cash flows, the Company bases its belief in their
collectibility upon its understanding of what the liquidation value of the
operation would be and the likelihood of the Company being able to recover the
outstanding balances.  Due to the level of uncertainty in the success of these
entities, these notes receivable ultimately may not be fully realized.

INCOME TAXES: The Company evaluates quarterly the realizability of its
deferred tax assets based upon expected future taxable income.  Management
believes that it is more likely than not that future earnings will be
sufficient to recover deferred tax assets.

REVENUE RECOGNITION:  The Company recognizes revenue in accordance with Staff
Accounting Bulletin (SAB) No. 101, "Revenue Recognition," as revised by SAB
No. 104. Sales are recorded when title passes and collectibility is reasonably
assured under its various shipping terms.  Revenue is normally recognized upon
shipment of goods to customers. In certain circumstances revenue is not
recognized until the goods are received by the customer based on the terms of
the sale agreement.  Discounts directly related to the sale are recorded as a
reduction to net sales.

SHARE-BASED COMPENSATION: Effective April 1, 2006, the Company adopted
Statement of Financial Accounting Standards (SFAS) No. 123R, "Share-Based
Payment," which requires that the fair value compensation cost relating to
share-based payment transactions be recognized in financial statements.  Under
the provisions of SFAS No. 123R, share-based compensation cost is measured at
the grant date, based on the fair value of the award, and is recognized over
the employee's requisite service period.  The fair value of the Company's
stock options is estimated using a Black-Scholes option valuation model.  The
Company adopted the fair value recognition provisions of SFAS No. 123R using
the modified prospective transition method and accordingly, prior years have
not been restated.  Under this method, stock-based compensation cost is
recognized beginning April 1, 2006 for all options granted after the date of
adoption as well as the unvested portion of previously granted options based
on the estimated fair value.  Prior to April 1, 2006 the Company accounted for
employee stock option grants using the intrinsic method in accordance with
Accounting Principles Board (APB) Opinion No. 25, "Accounting for Stock Issued
to Employees," and included disclosures of pro forma information in its
footnotes to the consolidated financial statements.  The Company elected to
adopt the alternative transition method provided in the Financial Accounting
Standards Board (FASB) Staff Position No. 123R-3, "Transition Election to
Accounting for the Tax Effects of the Share-based Payment Awards," for
calculating the tax effects of stock-based compensation pursuant to SFAS No.
123R.  The alternative transition method includes a simplified method to
establish the beginning balance of the Additional Paid-In Capital (APIC) pool
related to the tax effects of employee stock-based compensation, and to
determine the subsequent APIC pool and consolidated statements of cash flows
of the tax effects of employee stock-based compensation awards that are
outstanding upon adoption of SFAS No. 123R.  Pro forma net income and pro
forma net income per share disclosed in Note 8, Common Stock Options, were
determined using a Black-Scholes option valuation model.  The impact of
adopting SFAS No. 123R resulted in additional compensation expense of $307,000
in the fiscal year ended March 31, 2007.  The Company recognizes stock-based
compensation expense (net of a forfeiture rate) for those awards which are
expected to vest on a straight-line basis over the requisite service period.
The forfeiture rate is based on historical experience and expectations about
future forfeitures.

RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS

In November 2004, the FASB issued SFAS No. 151, "Inventory Costs."  SFAS No.
151 amends the guidance in ARB No. 43, Chapter 4, "Inventory Pricing," to
clarify the accounting for abnormal amounts of idle facility expense, freight,
handling costs, and wasted material. SFAS No. 151 requires that those items be
recognized as current-period charges regardless of whether they meet the
criterion of "so abnormal."  In addition, this Statement requires that
allocation of fixed production overheads to the costs of conversion be based
on the normal capacity of the production facilities.  SFAS No. 151 is
effective for fiscal years beginning after June 15, 2005.  The Company adopted
SFAS No. 151 on April 1, 2006.  The adoption of SFAS No. 151 did not have any
impact on the Company's consolidated financial statements.

In December 2004, the FASB issued SFAS No. 153, "Exchange of Nonmonetary
Assets."  SFAS No. 153 addresses the measurement of exchanges of nonmonetary
assets.  It eliminates the exception from the fair value measurement for
nonmonetary exchanges of similar productive assets and replaces it with a
general exception for exchanges that do not have a commercial substance.  This
Statement specifies that a nonmonetary exchange has commercial substance if
the future cash flows of the entity are expected to change significantly as a
result of the exchange.  SFAS No. 153 is effective for annual periods
beginning after June 15, 2005.  The Company adopted SFAS No. 153 on April 1,
2006.  The adoption of SFAS No. 153 did not have any impact on the Company's
consolidated financial statements.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections," a replacement of APB Opinion No. 20 and FASB Statement No. 3.
SFAS No. 154 requires retrospective application to prior periods financial
statements for changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change.  SFAS No. 154 also requires that retrospective application of a change
in accounting principle be limited to the direct effects of the change.
Indirect effects of a change in accounting principle should be recognized in
the period of the accounting change.  SFAS No. 154 further requires a change
in depreciation, amortization or depletion method for long-lived,
non-financial assets to be accounted for as a change in accounting estimate
affected by a change in accounting principle.  SFAS No. 154 is effective for
accounting changes and corrections of errors made in fiscal years beginning
after December 31, 2005.  The Company adopted SFAS No. 154 on April 1, 2006.
The adoption of SFAS No. 154 did not have any impact on the Company's
consolidated financial statements.

In July 2006, the FASB issued FASB Interpretation No. (FIN) 48, "Accounting
for Uncertainty in Income Taxes," which clarifies the accounting for
uncertainty in income taxes recognized in the financial statements in
accordance with FASB No. 109, "Accounting for Income Taxes."  Under FIN 48,
tax positions shall initially be recognized in the financial statements when
it is more likely than not the position will be sustained upon examination by
the tax authorities.  Such tax positions shall initially and subsequently be
measured as the largest amount of tax benefit that is greater than 50% likely
of being realized upon ultimate settlement with a tax authority that has full
knowledge of the position and all relevant facts.  FIN 48 also revises
disclosure requirements to include an annual tabular reconciliation of
unrecognized tax benefits.  The provisions of this interpretation are required
to be adopted for fiscal years beginning after December 15, 2006. The Company
will be required to apply the provisions of FIN 48 to all tax positions upon
initial adoption with any cumulative effect adjustment to be recognized as an
adjustment to retained earnings.   The Company is required to adopt FIN 48 for
its fiscal year beginning April 1, 2007.  The Company does not expect the
adoption of FIN 48 to have a material impact on its consolidated financial
statements.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements,"
which defines fair value, establishes guidelines for measuring fair value and
expands disclosure regarding fair value measurements.  SFAS No. 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, on a prospective basis.  The Company does not expect the
adoption of SFAS No. 157 to have a material effect on its consolidated
financial statements.

In September 2006, the Securities and Exchange Commission issued SAB No. 108,
"Financial Statements - Considering the Effects of Prior Year Misstatements
When Quantifying Misstatements in Current Year Financial Statements."  SAB No.
108 provides interpretive guidance on how the effects of prior-year
uncorrected misstatements should be considered when quantifying misstatements
in the current year financial statements.  SAB No. 108 requires registrants to
quantify misstatements using both the income statement and balance sheet
approach and evaluate whether either approach results in a misstatement that,
when all relevant quantitative and qualitative factors are considered, is
material.  SAB No. 108 is effective for years ending after November 15, 2006
and the adoption had no impact on the Company's consolidated financial
statements.

During 2006, the FASB issued Emerging Issues Task Force (EITF) Issue No. 06-3,
"How Taxes Collected from Customers and Remitted to Governmental Authorities
Should Be Presented in the Income Statement (That Is, Gross versus Net
Presentation)". This Issue addresses the presentation in the income statement
of taxes collected from customers and remitted to governmental authorities
(including but not limited to sales, use, value added, and some excise taxes).
The Task Force reached a consensus that the presentation of taxes within the
scope of this issue on either a gross basis (included in revenues and costs)
or a net basis (excluded from revenues) is an accounting policy decision that
should be disclosed pursuant to APB Opinion 22. EITF Issue No. 06-3 is
effective for reporting periods beginning after December 15, 2006. The Company
currently presents such taxes on a net basis and does not expect the adoption
of EITF Issue No. 06-3 to have a material effect on its consolidated financial
statements.

RESULTS OF OPERATIONS

The following table sets forth, for the periods indicated, the percentage of
net sales represented by items included in or derived from the Company's
consolidated statements of income.


Year Ended March 31,            2007     2006     2005     2004     2003
                               ------   ------   ------   ------   ------
  Net sales                    100.0%   100.0%   100.0%   100.0%   100.0%
  Cost of products sold         67.6     64.5     66.7     62.0     59.7
                               ------   ------   ------   ------   ------
  Gross profit                  32.4     35.5     33.3     38.0     40.3
  Operating expenses:
    Selling                     14.5     14.2     14.9     14.2     15.1
    General and administrative   4.2      3.6      3.9      4.0      6.1
    Research and development     2.6      3.1      2.5      3.1      3.7
    Asset impairment              -        -       4.4       -        -
                               ------   ------   ------   ------   ------
  Income from continuing
   operations                   11.1     14.6      7.6     16.7     15.4
  Interest and other, net        0.1      0.4      0.2     (0.1)     0.3
                               ------   ------   ------   ------   ------
  Income before provision for
    income taxes                11.2     15.0      7.8     16.6     15.7
                               ------   ------   ------   ------   ------
  Provision for income taxes     3.8      5.1      2.9      6.1      5.8
                               ------   ------   ------   ------   ------
  Net income from continuing
   operations                    7.4%     9.9%     4.9%    10.5%     9.9%
                               ======   ======   ======   ======   ======


COMPARISON OF FISCAL YEARS 2007, 2006 AND 2005

NET SALES

The Company's fiscal 2007 net sales of $60.3 million were up 8 percent or $4.6
million as compared to net sales in fiscal 2006.  The increase in net sales in
fiscal 2007 resulted primarily from increased sales in both the Company's
healthcare seating and  multipurpose room furniture segments.  For fiscal
2007, the multipurpose room furniture segment experienced a sales increase of
4 percent due primarily to market growth and the healthcare seating segment
experienced sales growth of 19 percent due to increased penetration into its
markets.  In addition, the Company's new fence products segment reported sales
totaling $1.3 million as compared to none in the prior fiscal year.  Within
the multipurpose room furniture segment, chair sales accounted for most of the
increase, as sales of this product line were 9 percent higher than the prior
year.  Table sales also increased by 2 percent.  Other sales, consisting
primarily of sales of portable partitions, lecterns, and carts, increased 8
percent.  International sales for all segments represented 15 percent of net
sales for both fiscal 2007 and 2006.

The Company's fiscal 2006 net sales of $55.7 million were up 11 percent or
$5.4 million as compared to net sales in fiscal 2005.  The increase in sales
in fiscal 2006 resulted primarily from increased sales in both the Company's
healthcare seating and multipurpose room furniture segments.  For fiscal 2006,
the multipurpose room furniture segment experienced a sales increase of 12
percent and the healthcare seating segment experienced sales growth of almost
4 percent.  Within the multipurpose room furniture segment, chair sales
accounted for most of the increase, as sales of this product line were 34
percent higher than the prior year.  Table sales also increased by 4 percent.
Other sales, consisting primarily of sales of portable partitions, lecterns,
and carts, increased 11 percent.  International sales for all segments
represented 15 percent of net sales for both fiscal 2006 and 2005.

GROSS PROFIT

Fiscal 2007 gross profit as a percentage of net sales decreased to 32 percent
from 36 percent in the prior fiscal year.  Of this decrease, approximately one
and one half percentage points were due to higher labor costs at the Company's
multipurpose room segment.  During fiscal 2007, due to local economic
conditions, employee turnover at the Company's multipurpose room operations
increased significantly.  The Company's response to these conditions has been
to increase production wages which has caused labor costs to increase.  In
addition, due to the high level of turnover, the Company has more new
production employees which has reduced labor efficiencies.  Material costs at
the multipurpose room operations have also increased, as a percent of sales,
contributing to one half of one percentage point of the decline in gross
margin.  Gross margin declined by an additional one and one half percentage
point as a result of the material, labor and overhead costs related to the
continued startup of the fence products operations.  The Company also incurred
$107,000 in stock-based compensation expense during fiscal 2007, and none in
fiscal 2006 recorded in cost of goods sold.

Fiscal 2006 gross profit as a percentage of net sales increased to 36 percent
from 33 percent in the prior fiscal year.  Of this increase, approximately two
percentage points were due to lower overhead costs associated primarily with
the unsuccessful startup of the manufacturing operation for the Company's next
generation table in the prior fiscal year and approximately one percentage
point was due to an inventory charge in fiscal 2005 of $324,000 related to the
decision to discontinue funding the next generation table project.  No similar
charge occurred in fiscal 2006.  The gross margin increase was partially
offset by approximately one percentage point in higher material costs at the
Company's multipurpose room operations due to the higher volume of chair sales
in the period.  The Company also experienced higher material costs as a
percentage of sales at the health care seating operations in fiscal 2006 as
compared to fiscal 2005.

OPERATING EXPENSES

For fiscal 2007, selling expenses were 15 percent of net sales as compared to
14 percent in the prior fiscal year.  Actual expenses increased by $0.86
million, or 11 percent. Multipurpose room furniture selling costs increased by
$0.48 million over the prior fiscal year.  This increase resulted primarily
from higher commission costs, new representative salary costs and trade show
costs.  This increase was partially offset by lower salary costs for new sales
representatives.  Selling expenses at the healthcare seating segment increased
by $0.20 million over the prior fiscal year due primarily to the increase in
sales volume.  In addition, the Company incurred $0.11 million in selling
expenses related to the new fence products operation and $0.07 million related
to stock-based compensation expense.

For fiscal 2006, selling expenses were down at 14 percent of net sales as
compared to 15 percent in the prior fiscal year.  Actual expenses increased by
$0.48 million, or 6 percent. Multipurpose room furniture selling expenses
increased by $0.46 million over the prior fiscal year primarily due to higher
commission costs due to the higher sales volume, partially offset by lower
salary costs for new sales representatives.  Selling expenses at the
healthcare seating operations increased by $0.02 million over the prior fiscal
year due to higher commission costs related to the higher sales volume.

General and administrative expenses were 4 percent of net sales in fiscal
2007, 2006 and 2005.  Actual expenses increased by 26 percent, or $0.53
million, in fiscal 2007 as compared to fiscal 2006.  The increase was due to
higher legal and professional fees as well as $0.10 million in stock-based
compensation expense.

General and administrative expenses increased by 2 percent, or $0.03 million,
in fiscal 2006 as compared to fiscal 2005.  The increase was due to higher
outside services, training and professional fees partially offset by lower
personnel costs.

Research and development expenses were 3 percent of net sales in fiscal 2007,
2006, and 2005.  For fiscal 2007, spending decreased by 11 percent, or $0.19
million, as compared to fiscal 2006.  This decrease was primarily due to lower
outside services costs, lower testing costs, and lower deprecation costs due
to classifying the fence products related expenses in the current year as a
production expense rather than a research and development expense due to the
launch of the fence product line in the current year.  These decreases were
partially offset by stock-based compensation expense of $33,000 recorded in
fiscal 2007 with none in fiscal 2006.

For fiscal 2006,  research and development expenses increased by 37 percent,
or $0.47 million, as compared to fiscal 2005.  This increase was primarily due
to higher personnel costs and prototyping costs related primarily to efforts
to utilize the existing rotomolding equipment. This increase was partially
offset by lower costs for outside services.

For fiscal 2005, the Company recorded an impairment charge of $2.2 million
related to the Company's decision to discontinue funding its next generation
table.  The Company recorded an impairment on some of the assets involved in
the project to reduce their carrying amounts to their estimated fair value.
The fair value was determined by the amount at which the assets could be
bought or sold in a current transaction between willing parties.  The Company
utilized an outside specialist to help establish the fair value of the assets.
The impairment charge consisted of $2.0 million in impairment of fixed assets
and $0.2 million in impairment of other intangible assets.  No impairment
charge occurred in fiscal 2007 or fiscal 2006.

OTHER INCOME/EXPENSE

Other income/expense netted to $0.05 million in income in fiscal 2007.
Investment income was $0.11 million, a decrease of $0.20 million from the
prior fiscal year due to a lower average balance of cash and cash equivalents
and available-for-sale securities in the current fiscal year.  Interest
expense was $0.12 million in the current year as compared to $0 in the prior
fiscal year due to borrowings on the Company's line of credit in the current
fiscal year.  Other income in fiscal 2007, which totaled $0.05 million,
consisted of $0.04 million in realized foreign currency exchange gains and
$0.01 million in other income.

Other income netted to $0.25 million in income in fiscal 2006.  Investment
income was $0.31 million, an increase of $0.14 million from the prior fiscal
year due to a higher average balance of cash and cash equivalents and
available-for-sale securities in the current fiscal year as well as higher
rates of return.  Other expenses in fiscal 2006, which totaled $0.06 million,
consisted of $0.05 million in realized foreign currency exchange losses and
$0.02 million in net losses on asset disposals, partially offset by $0.01
million in other income.

INCOME TAXES

Provision for income taxes was $2.30 million in fiscal 2007 as compared to
$2.81 million in fiscal 2006 and $1.45 million in fiscal 2005.  The effective
tax rates for these years were 34 percent, 34 percent, and 37 percent,
respectively.  The reduction in effective rate for fiscal 2007 and 2006 as
compared to fiscal 2005 was due primarily to increases in tax exempt interest
income, a research and development tax credit associated with the Company's
healthcare seating operations, benefits resulting from the implementation of
the American Jobs Creation Act of 2004, and a reversal of a previously
recorded tax reserve.

NET INCOME

For reasons stated above, the Company's net income for fiscal 2007 was $4.45
million, a decrease of $1.09 million or 20 percent compared to fiscal 2006.
For fiscal 2006, net income was $5.54 million, an increase of $3.07 million or
124 percent compared to net income in fiscal 2005.

QUARTERLY RESULTS OF OPERATIONS

The following table sets forth selected unaudited quarterly financial data for
the most recent twelve quarters.  This quarterly financial data reflects, in
the opinion of management, all adjustments necessary to present fairly the
results of operations for such periods.   The operating results for any
quarter are not necessarily indicative of results for any future period.   The
Company anticipates that operating results may fluctuate on a quarterly basis
depending upon a number of factors including those described in "Risk
Factors."  Earnings per share information may not add to match annual earnings
per share information due to rounding.

UNAUDITED QUARTERLY FINANCIAL INFORMATION:
(in thousands, except per share amounts)

                                Q1 2005     Q2 2005     Q3 2005     Q4 2005
                                -------     -------     -------     -------
     Net sales                  $12,046     $13,378     $11,872     $12,976
     Gross profit                 4,141       4,602       4,005       3,987
     Income (loss) before
      provision for income tax    1,666       1,815       1,254        (840)
     Net income (loss) from
      operations                  1,071       1,140         795        (537)
     Basic earnings (loss) per
      share                        0.25        0.27        0.18       (0.12)
     Diluted earnings (loss)
      per share                    0.24        0.25        0.18       (0.12)


                                Q1 2006     Q2 2006     Q3 2006     Q4 2006
                                -------     -------     -------     -------
     Net sales                  $14,384     $14,053     $13,408     $13,856
     Gross profit                 5,319       5,124       4,546       4,765
     Income before provision
      for income tax              2,380       2,188       1,720       2,064
     Net income from operations   1,518       1,445       1,199       1,379
     Basic earnings per share      0.36        0.35        0.29        0.34
     Diluted earnings per share    0.34        0.34        0.28        0.33


                                Q1 2007     Q2 2007     Q3 2007     Q4 2007
                                -------     -------     -------     -------
     Net sales                  $14,702     $15,781     $15,242     $14,613
     Gross profit                 5,053       5,075       4,707       4,710
     Income before provision
      for income tax              1,922       2,022       1,627       1,178
     Net income from operations   1,269       1,334       1,074         770
     Basic earnings per share      0.33        0.38        0.32        0.23
     Diluted earnings per share    0.32        0.37        0.32        0.22

The Company's quarterly operating results can fluctuate significantly
depending on factors such as timing of new product introductions, market
acceptance of new products, increased competitive pressures, growth in the
institutional furniture market, acquisitions, expansion of international
operations, timing and expansion into complementary products such as chairs,
changes in raw material sources and costs, and adverse changes in general
economic conditions in any of the countries in which the Company does
business.   The Company may experience quarterly variations in operating
results in the future.

LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents, which consist primarily of high-quality commercial
paper and repurchase agreements collateralized with U.S. Treasury securities,
totaled $0.30 million at March 31, 2007 which compared to $4.79 million at
March 31, 2006.   In addition, the Company held no available-for-sale
securities at March 31, 2007 as compared to $4.55 million at March 31, 2006.

The following table highlights certain key cash flow and capital information
pertinent to the discussion that follows:


YEAR ENDED MARCH 31,                              2007           2006
                                               ----------     ----------
Net cash provided by operations                $3,706,000     $7,245,000
Net sales of available-for-sale securities      4,551,000      2,612,000
Purchases of property and equipment            (4,589,000)    (2,236,000)
Net proceeds from lines of credit               3,731,000           -
Net proceeds from exercise of stock options
 and issuance of shares to the 401(k) plan        242,000      1,123,000
Purchase and retirement of common stock       (12,124,000)    (8,035,000)

The decrease in cash and cash equivalents for fiscal 2007 as compared to
fiscal 2006 was due primarily to purchases of property and equipment of $4.59
million, and the purchase and retirement of common stock of  $12.12 million.
This decrease was partially offset by cash from operations of $3.71 million,
net sales of available-for-sale securities of $4.55 million, the net proceeds
from lines of credit of $3.73 million, and the net proceeds related to the
exercise of stock options of $0.24 million.

Historically, the Company has financed its growth primarily through cash from
operations.  The Company has two lines of credit.  On August 21, 2006, the
Company entered into an agreement for an unsecured line of credit of up to
$5.0 million.  The agreement contains certain negative and affirmative
covenants.  As of March 31, 2007, the Company had $3.15 million of borrowings
on this line of credit.  As of March 31, 2007, the Company is in compliance
with all debt covenants (See Note 14, Subsequent Event).  The Company's
subsidiary, Broda Enterprises, also has a line of credit.  The limit on this
facility is $1.21 million.  As of March 31, 2007, $0.59 million was drawn
under this facility.  Among other restrictions, this credit facility requires
the maintenance of certain financial ratios and levels of working capital.  As
of March 31, 2007,  the Company is in compliance with all debt covenants
related to this credit facility (See Note 14, Subsequent Event).

The Company's material cash commitments at March 31, 2007 consisted primarily
of current liabilities of $7.11 million to be paid from funds generated from
operations.  Current liabilities consisted of the following:

YEAR ENDED MARCH 31,                        2007            2006
                                         ----------      ----------
Accounts payable                         $2,956,000      $1,989,000
Accrued payroll and payroll taxes         1,887,000       1,080,000
Accrued warranty                            485,000         470,000
Deferred revenue                            485,000         492,000
Income taxes payable                         85,000          88,000
Net borrowing on line of credit, current    589,000            -
Other                                       624,000         297,000
                                         ----------      ----------
Total current liabilities                $7,111,000      $4,416,000
                                         ==========      ==========

The Company's contractual commitments consisted of two lease agreements for
Broda's production and office facilities under which it is obligated to pay
$16,000 Canadian (approximately US $14,000 as of March 31, 2007) per month
through April 2007.  These lease agreements expired in April 2007.  Management
continued these leases on a month-to-month basis through June 2007 at which
time it completed its move into its new facility.  At March 31, 2007, the
Company also has fixed price commitments to purchase $273,000 in raw material
inventory during the following year.

On June 7, 2005, the Company announced its intention to repurchase up to
500,000 shares of the Company's common stock.  On January 24, 2006, the board
of directors increased the share repurchase authorization by 150,000 shares.
On May 18, 2006, the board of directors increased the share repurchase
authorization by an additional 200,000 shares and on August 3, 2006, the board
of directors again increased the share repurchase authorization an additional
400,000 shares, bringing the total to 1,250,000 shares.  As of March 31, 2007,
1,156,779 shares had been repurchased for approximately $20.1 million.  On
October 24, 2006, the board of directors ended the share repurchase
authorization.  During the six months ended March 31, 2007, no shares were
repurchased.

The Company currently believes that cash flow from its current operations
together with existing cash reserves and available lines of credit will be
sufficient to support its working capital requirements for its existing
operations for at least the next 12 months.  The Company cannot guarantee that
its working capital will be sufficient to support the Company's operations.
If the existing cash reserves, cash flow from operations and debt financing
are insufficient or if working capital requirements are greater than currently
estimated, the Company could be required to raise additional capital.  The
Company may not be capable of raising additional capital or the terms upon
which such capital may be available to the Company may not be acceptable.
Additional sources of equity capital are available to the Company through the
exercise by holders of outstanding options.  At March 31, 2007, the proceeds
which would have been received by the Company upon exercise of outstanding
options which were exercisable on that date were approximately $3.62 million.
There is no assurance that such options will be exercised.

IMPACT OF INFLATION AND ENVIRONMENTAL REGULATIONS

During the fiscal year ended March 31, 2005, the Company experienced inflation
on several of its raw materials including steel, plastic and wood.  During the
fiscal year ended March 31, 2006 and 2007, the inflationary pressures
continued, but at a reduced rate.  However, transportation costs have
continued to increase as fuel prices have increased.  During these three
fiscal years, the Company has implemented price increases on its products in
response to these increases and has been able to recover part of its increased
costs.  However, the Company has been unable to fully maintain its previous
margins.  The Company plans to continue to implement these price increases and
is hopeful to regain its previous position with respect to margins, but can
give no assurance that it will be successful in doing so.  The Company
estimates that the effects of inflation on its material costs has been to
increase the costs of materials as a percent of sales by less than one
percentage point during the fiscal year ended March 31, 2006 and 2007 as
compared to the prior fiscal year.  However, significant increases in the
price of raw materials could occur and have a material adverse impact on the
Company's results of operations.

The Company believes that compliance with environmental laws and regulations
has not materially affected the Company's operations.

FORWARD-LOOKING STATEMENTS AND FACTORS THAT MAY AFFECT FUTURE RESULTS OF
OPERATIONS

Certain statements made above in this filing that are not historical facts are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act").  In addition, when used in
this filing, the words or phrases "may," "will," "Management believes,"
"Company believes," "Company intends," "estimates," "projects," "anticipates,"
"expects" and similar expressions are intended to identify "forward-looking
statements" within the meaning of the Reform Act.

Forward-looking statements contained in this Annual Report on Form 10-K
include plans and objectives of management for future operations, including
plans and objectives relating to the products, marketing, customers, product
line expansions, liquidity and capital resources, and cost reductions to
preserve margins.  These forward-looking statements involve risks and
uncertainties and are based on certain assumptions that may not be realized.
Actual results and outcomes may differ materially from those discussed or
anticipated.  These forward-looking statements relate to:

   -  references to predicted increases in the institutional furniture and
United States office furniture markets and the Company's belief of a rebound
in the office furniture business;
   -  statements regarding the contribution of fencing to the Company's sales
growth, and the industry's growth;
   -  statements regarding the Company's belief that it will be able to
increase fence production and successfully enter the fence market;
   -  statements regarding the Company's beliefs about economic pressures on
the healthcare seating market and the multipurpose room furniture operations;
   -  statements that the Company anticipates developing additional
complementary chair lines and further penetrating its existing marketplace
with its current line of chairs;
   -  statements regarding management's belief regarding the sufficiency of
future earnings to recover deferred tax assets;
   -  statements regarding the Company's hope that it will regain its previous
position with respect to margins;
   -  statements relating to the Company's belief that cash flow from its
current operations, existing cash reserves, and available line of credit will
be sufficient to support its working capital requirements to fund existing
operations for at least the next 12 months; and
   -  statements related to anticipated capital expenditures.

All forward-looking statements involve predictions and are subject to known
and unknown risks and uncertainties, that could cause actual results to differ
materially from historical results and those presently anticipated or
projected.  Readers should not place undue reliance on any such
forward-looking statements, which speak only as of the date made.  The
considerations listed below and elsewhere in this filing could affect the
Company's financial performance and could cause the Company's actual results
for future periods to differ materially from any views or statements expressed
with respect to future periods.  Important factors and risks that might cause
such differences, include, but are not limited to:

   -  a repeated downturn in domestic and international economies and business
conditions, specifically in the institutional furniture industry;
   -  war, terrorist acts, and threats of war and terrorist acts;
   -  increased competition in the Company's institutional furniture market;
   -  loss of important customer contracts through increased price-based and
product quality competition, especially in the Company's multipurpose room
furniture segment;
   -  limited management and key employee resources;
   -  declines in sales volumes and profit margins in the Company's
multipurpose room furniture and healthcare seating businesses;
   -  lower than expected revenue, revenue growth, cash flow and gross margins
from the multipurpose room and healthcare seating operations, higher materials
and labor costs, or the Company's inability, for any reason, to profitably
introduce new products or implement its marketing strategies in the healthcare
seating and multipurpose room markets;
   -  the Company's inability for any reason to develop new products and
expand successfully into new markets;
   -  the Company's ability to manufacture and market at current margins high
quality, high performance products at competitive prices;
   -  import restrictions and economic conditions in the Company's foreign
markets and foreign currency risks associated therewith;
   -  the Company's ability to maintain relatively low cost labor rates;
   -  the Company's ability to source a sufficient volume of acceptable raw
materials at current prices;
   -  increased product warranty service costs if warranty claims increase as
a result of the Company's new product introductions or acquisitions or for any
other reason;
   -  the Company's ability to refine and enhance the quality and productivity
of its manufacturing process;
   -  the Company's ability to locate and successfully consummate and
integrate acquisitions, if any, of complementary product lines or companies on
terms acceptable to the Company;
   -  the Company's ability to retain and maintain relationships with key
customers;
   -  the availability of insurance funding or government reimbursement for
the Company's healthcare seating products;
   -  regulatory developments that adversely affect demand for the Company's
products, particularly the Company's healthcare seating products;
   -  adverse regulatory developments in the healthcare industry affecting our
healthcare seating business; and
   -  other factors noted in "Item 1A  Risk Factors."

In light of the significant uncertainties inherent in forward-looking
statements, the inclusion of any such statement should not be regarded as a
representation by the Company or any other person that the objectives or plans
of the Company will be achieved.  The Company disclaims any obligation or
intent to update any such factors or forward-looking statements to reflect
future events or developments.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company manufactures its products in the United States and Canada and
sells its products in those markets as well as in other countries.  The
majority of the Company's sales and expenses are transacted in U.S. dollars
with limited transactions occurring in Canadian dollars or other foreign
currencies.  For the year ended March 31, 2007, approximately 5 percent of the
Company's net sales, 8 percent of the Company's cost of products sold, and 12
percent of the Company's operating expenses were denominated in currencies
other than the U.S. dollar.  For the years ended March 31, 2006 and 2005,
approximately 5 percent of the Company's net sales, 7 percent of the Company's
cost of products sold, and 12 percent of the Company's operating expenses were
denominated in currencies other than the U.S. dollar.  Foreign currency
exchange rate fluctuations did not have a material impact on the financial
results of the Company during fiscal 2007.  The Company's healthcare chair
operations have occasionally entered into forward contracts for specific U.S.
dollar denominated accounts receivable.  As of March 31, 2007, 2006, and 2005,
no forward contracts were outstanding.

The economic impact of foreign exchange rate movements on the Company is
complex because such changes are often linked to variability in real growth,
inflation, interest rates, governmental actions and other factors.  The
Company estimates that a 10 percent adverse change in foreign exchange rates
could have reduced operating profit by as much as $186,000, $145,000 and
$148,000 for the fiscal years ended March 31, 2007, 2006 and 2005.  As
mentioned above, this quantitative measure has inherent limitations and the
sensitivity analysis disregards the possibility of other effects that may
offset such adverse change.




MANAGEMENT'S STATEMENT

The Company's consolidated financial statements were prepared by management.
Management is responsible for the integrity and objectivity of the financial
information presented, including amounts that must necessarily be based on
judgments and estimates.  The Company's consolidated financial statements were
prepared in accordance with accounting principles generally accepted in the
United States of America.

The Company's independent registered public accounting firm, Deloitte & Touche
LLP, have audited these financial statements in accordance with the standards
of the Public Company Accounting Oversight Board (United States).

The Audit Committee of the Board of Directors is composed of directors who are
free of any relationship or personal interest that, in the opinion of the
Board of Directors, would interfere with their ability to exercise sound
judgment as a committee member.  The purpose of the Audit Committee is to
provide assistance to the overall Board of Directors in fulfilling the Board's
responsibility to the shareholders, potential shareholders, and the investment
community relating to corporate accounting, reporting practices of the
corporation, and the quality and integrity of the financial reports of the
corporation.  In so doing, it is the responsibility of the Audit Committee to
establish and maintain free and open means of communication between the
directors, the independent auditor, and the financial management of the
Company.

Based on a review and discussions of the Company's 2007 audited consolidated
financial statements with management and discussions with the independent
registered public accounting firm, the Audit Committee recommended to the
Board of Directors that the Company's fiscal 2007 audited consolidated
financial statements be included in the Company's Annual Report on Form 10-K.
The Board of Directors concurred.


ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

                   INDEX TO FINANCIAL STATEMENTS

     Report of Independent Registered Public Accounting Firm

     Consolidated Balance Sheets as of March 31, 2007 and 2006

     Consolidated Statements of Income for the fiscal years ended March 31,
       2007, 2006, and 2005

     Consolidated Statements of Stockholders' Equity for the fiscal years
       ended March 31, 2007, 2006, and 2005

     Consolidated Statements of Cash Flows for the fiscal years ended March
       31, 2007, 2006, and 2005

     Notes to Consolidated Financial Statements



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of
MITY Enterprises, Inc.:
Orem, UT

We have audited the accompanying consolidated balance sheets of MITY
Enterprises, Inc. and subsidiaries (the Company) as of March 31, 2007 and
2006, and the related consolidated statements of income, stockholders' equity,
and cash flows for each of the three years in the period ended March 31, 2007.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  The Company is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting.  Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Company's internal
control over financial reporting.  Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all
material respects, the financial position of MITY Enterprises, Inc. and
subsidiaries at March 31, 2007 and 2006, and the results of their operations
and their cash flows for each of the three years in the period ended March 31,
2007, in conformity with accounting principles generally accepted in the
United States of America.

As discussed in Note 1 to the consolidated financial statements, on April 1,
2006 the Company changed its method of accounting for share-based payment
arrangements to conform to Statement of Financial Accounting Standards No.
123R, "Share-Based Payment."


Deloitte & Touche LLP

Salt Lake City, UT
June 12, 2007



MITY ENTERPRISES, INC. - CONSOLIDATED BALANCE SHEETS
as of March 31, 2007 and 2006


March 31,                                             2007           2006
                                                  -----------    -----------
ASSETS
Current assets:
  Cash and cash equivalents                       $   302,000    $ 4,787,000
  Available-for-sale securities                          -         4,547,000
  Accounts receivable, less allowances of
   $214,000 and $140,000 at March 31, 2007
   and 2006, respectively                           8,978,000      6,718,000
  Inventories                                       4,763,000      2,587,000
  Prepaid expenses and other current assets           779,000        655,000
  Deferred income tax assets                          387,000        402,000
                                                  -----------    -----------
Total current assets                               15,209,000     19,696,000

Property and equipment, net                        15,734,000     12,485,000
Deferred income tax assets                            199,000        248,000
Goodwill                                            2,371,000      2,358,000
Other assets, net                                      91,000         32,000
                                                  -----------    -----------
                                                  $33,604,000    $34,819,000
                                                  ===========    ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                                $ 2,956,000    $ 1,989,000
  Accrued expenses and other current liabilities    3,566,000      2,427,000
  Net borrowing on line of credit                     589,000           -
                                                  -----------    -----------
Total current liabilities                           7,111,000      4,416,000
Net borrowing on long-term line of credit           3,151,000           -
                                                  -----------    -----------
Total liabilities                                  10,262,000      4,416,000

Commitments and contingencies (Note 11)
Stockholders' equity:
  Preferred stock, par value $.10 per share;
   authorized 3,000,000 shares; no shares
   issued and outstanding                                -              -
  Common stock, par value $.01 per share;
   authorized 10,000,000 shares; issued and
   outstanding 3,334,111 shares at March 31,
   2007 and 3,990,303 shares at March 31, 2006         33,000         40,000
  Additional paid-in capital                       10,725,000     12,244,000
  Retained earnings                                11,668,000     17,247,000
  Accumulated other comprehensive income              916,000        872,000
                                                  -----------    -----------
Total stockholders' equity                         23,342,000     30,403,000
                                                  -----------    -----------
                                                  $33,604,000    $34,819,000
                                                  ===========    ===========

        (See accompanying notes to consolidated financial statements)


MITY ENTERPRISES, INC. - CONSOLIDATED STATEMENTS OF INCOME
For each of the three years in the period ended March 31, 2007

Year Ended March 31,                  2007          2006          2005
                                  -----------   -----------   -----------
Net sales                         $60,338,000   $55,701,000   $50,272,000
Cost of products sold              40,793,000    35,947,000    33,537,000
                                  -----------   -----------   -----------
Gross profit                       19,545,000    19,754,000    16,735,000
Operating expenses:
  Selling                           8,760,000     7,903,000     7,427,000
  General and administrative        2,538,000     2,012,000     1,980,000
  Research and development          1,548,000     1,734,000     1,265,000
  Asset impairment                       -             -        2,226,000
                                  -----------   -----------   -----------
Total operating expenses           12,846,000    11,649,000    12,898,000
                                  -----------   -----------   -----------
Income from operations              6,699,000     8,105,000     3,837,000
Other income:
  Investment income                   113,000       310,000       171,000
  Interest expense                   (115,000)         -             -
  Other, net                           52,000       (63,000)     (113,000)
                                  -----------   -----------   -----------
Total other income, net                50,000       247,000        58,000
                                  -----------   -----------   -----------
Income before provision for income
 taxes and minority interest        6,749,000     8,352,000     3,895,000
Provision for income taxes          2,302,000     2,811,000     1,448,000
                                  -----------   -----------   -----------
Net income before minority
 interest                           4,447,000     5,541,000     2,447,000
Minority interest                        -             -           22,000
                                  -----------   -----------   -----------
Net income                        $ 4,447,000   $ 5,541,000   $ 2,469,000
                                  ===========   ===========   ===========







Basic earnings per share                $1.26         $1.34         $0.57
                                  ===========   ===========   ===========
Weighted average number of
 common shares - basic              3,519,942     4,124,189     4,296,525
                                  ===========   ===========   ===========

Diluted earnings per share              $1.23         $1.30         $0.55
                                  ===========   ===========   ===========
Weighted average number of
  common and common equivalent
  shares - diluted                  3,617,907     4,270,962     4,474,111
                                  ===========   ===========   ===========

        (See accompanying notes to consolidated financial statements)


MITY ENTERPRISES, INC. - CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
For each of the three years in the period ended March 31, 2007

                                                   Accumulated
                                                         Other
                              Additional               Compre-          Total
                     Common      Paid-In    Retained   hensive   Stockholders'
                       Stock     Capital    Earnings    Income         Equity
                     ------- ----------- ----------- ---------   ------------
Balance at April 1,
 2004                $43,000 $11,469,000 $15,868,000  $419,000    $27,799,000
Comprehensive income:
 Net income                                2,469,000
 Unrealized losses on
  available-for-sale
  securities                                           (12,000)
 Foreign currency
  translation                                          269,000
                                                                  -----------
Total comprehensive
 income                                                             2,726,000
Issuance of 63,189
 shares of common
 stock from the
 exercise of options             555,000                              555,000
Issuance of 3,655
 shares of common
 stock to the
 Company's 401(k)
 plan                             59,000                               59,000
Tax benefit of
 employee stock
 options                         125,000                              125,000
                     ------- ----------- ----------- ---------   ------------
Balance at March
 31, 2005             43,000  12,208,000  18,337,000   676,000     31,264,000

Comprehensive income:
 Net income                                5,541,000
 Unrealized gains on
  available-for-sale
  securities                                             8,000
 Foreign currency
  translation                                          188,000
                                                                  -----------
Total comprehensive
 income                                                             5,737,000
Issuance of 159,983
 shares of common
 stock from the
 exercise of options   2,000   1,385,000                            1,387,000
Surrender of 17,224
 shares of common
 stock for issuance
 of common stock
 from the exercise
 of options                     (327,000)                            (327,000)
Issuance of 3,956
 shares of common
 stock to the
 Company's 401(k)
 plan                             63,000                               63,000
Purchase and
 retirement of
 481,846 shares
 of common stock      (5,000) (1,399,000) (6,631,000)              (8,035,000)
Tax benefit of
 employee stock
 options                         314,000                              314,000
                     ------- ----------- ----------- ---------   ------------
Balance at March
 31, 2006             40,000  12,244,000  17,247,000   872,000     30,403,000

Comprehensive income:
 Net income                                4,447,000
 Unrealized gains
  on available-for-
  sale securities                                        4,000
 Foreign currency
  translation                                           40,000
                                                                  -----------
Total comprehensive
 income                                                             4,491,000
Issuance of 15,710
 shares of common
 stock from the
 exercise of
 options                         185,000                              185,000
Surrender of 56
 shares of common
 stock for issuance
 of common stock
 from the exercise
 of options                       (1,000)                              (1,000)
Issuance of 3,087
 shares of common
 stock to the
 Company's 401(k)
 plan                             58,000                               58,000
Purchase and
 retirement of
 674,933 shares of
 common stock         (7,000) (2,091,000)(10,026,000)             (12,124,000)
Tax benefit of
 employee stock
 options                          23,000                               23,000
Stock-based
 compensation                    307,000                              307,000
                     ------- ----------- ----------- ---------   ------------
Balance at March
 31, 2007            $33,000 $10,725,000 $11,668,000  $916,000    $23,342,000
                     ======= =========== =========== =========   ============

         (See accompanying notes to consolidated financial statements)


MITY ENTERPRISES, INC.- CONSOLIDATED STATEMENTS OF CASH FLOWS
For each of the three years in the period ended March 31, 2007

Year Ended March 31,                        2007         2006         2005
                                        -----------  -----------  -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                              $ 4,447,000  $ 5,541,000  $ 2,469,000
Adjustments to reconcile net income to
 net cash provided by operating
 activities:
  Asset impairment                             -            -       2,226,000
  Depreciation                            1,701,000    1,474,000    1,793,000
  Amortization                                5,000         -          37,000
  Deferred taxes                             63,000      456,000     (473,000)
  Loss (gain) on disposal of property
   and equipment                             (2,000)      29,000       (6,000)
  Tax benefit from exercise of stock
   options                                     -         314,000      125,000
  Excess tax benefit from stock-based
   compensation                             (23,000)        -            -
  Stock-based compensation                  307,000         -            -
  Changes in assets and liabilities:
   Accounts receivable                   (2,257,000)    (180,000)    (652,000)
   Inventories                           (2,177,000)     (43,000)     (88,000)
   Tax receivable                              -            -         784,000
   Prepaid expenses and other current
    assets                                 (122,000)    (341,000)     107,000
   Accounts payable                         598,000      194,000     (420,000)
   Accrued expenses and other current
    liabilities                           1,166,000     (199,000)     462,000
                                        -----------  -----------  -----------
Net cash provided by operating
 activities                               3,706,000    7,245,000    6,364,000
                                        -----------  -----------  -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale
 securities                                (845,000)  (4,664,000)  (7,591,000)
Sales and maturities of available-for-
 sale securities                          5,396,000    7,276,000    1,478,000
Proceeds from sale of property and
 equipment                                   17,000       32,000       85,000
Purchases of property and equipment      (4,589,000)  (2,236,000)  (2,142,000)
Purchase of Versipanel                         -            -      (1,201,000)
Net decrease (increase) in other
 asset, net                                 (64,000)      77,000      (30,000)
                                        -----------  -----------  -----------
Net cash provided by (used in)
 investing activities                       (85,000)     485,000   (9,401,000)
                                        -----------  -----------  -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from exercise of stock
 options and issuance of shares to the
 401(k) plan                                242,000    1,123,000      614,000
Minority interest                              -            -         (34,000)
Proceeds from lines of credit            15,421,000         -            -
Payments on lines of credit             (11,690,000)        -            -
Tax benefit from exercise of stock
 options                                     23,000         -            -
Purchase and retirement of common stock (12,124,000)  (8,035,000)        -
                                        -----------  -----------  -----------
Net cash provided by (used in)
 financing activities                    (8,128,000)  (6,912,000)     580,000
                                        -----------  -----------  -----------
Effect of exchange rate changes on cash      22,000       29,000       15,000
                                        -----------  -----------  -----------
Net increase (decrease) in cash and
 cash equivalents                        (4,485,000)     847,000   (2,442,000)
Cash and cash equivalents at beginning
 of year                                  4,787,000    3,940,000    6,382,000
                                        -----------  -----------  -----------
Cash and cash equivalents at end of year$   302,000  $ 4,787,000  $ 3,940,000
                                        ===========  ===========  ===========


                                                                 (continued)
       (See accompanying notes to consolidated financial statements)


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION


Year Ended March 31,                        2007         2006         2005
                                        -----------  -----------  -----------
Cash paid during the year for income
 taxes                                  $ 2,379,000  $ 2,358,000  $   772,000

Cash paid for interest                      100,000         -            -


SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES

As of March 31, 2007 and 2006, $416,000 and $45,000 of additions to property
and equipment were accrued as accounts payable.

During the year ended March 31, 2007, 56 shares of the Company's common stock
with a value of approximately $1,000 were surrendered in exchange for the
exercise of stock options.  During the year ended March 31, 2006, 17,224
shares of the Company's common stock with a value of approximately $327,000
were surrendered in exchange for the exercise of stock options.

In April of 2004, the Company purchased the assets of Versipanel LLC for
$1,201,000.  In conjunction with the acquisition, liabilities were assumed as
follows:

    Fair value of assets acquired                      $  219,000
    Cost in excess of fair value of assets (goodwill)   1,085,000
    Cash paid for assets                               (1,201,000)
                                                      -----------
    Liabilities assumed                               $   103,000
                                                      ===========




                                                                  (concluded)

       (See accompanying notes to consolidated financial statements)

MITY ENTERPRISES, INC. - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For each of the three years in the period ended March 31, 2007


1.  DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

MITY Enterprises, Inc. (the Company) designs and manufactures multipurpose
room furniture, healthcare seating and fencing and markets these products in
niche markets.  In addition, the Company continues to pursue acquisitions of
product lines or companies that will be complementary to the Company's
businesses.  The Company markets its products throughout the United States,
Canada and in certain foreign countries.

PRINCIPLES OF CONSOLIDATION
The consolidated financial statements of the Company include the accounts of
MITY Enterprises, Inc. and all wholly owned and partially owned subsidiaries
for which the Company exercises control.  All  intercompany accounts and
transactions have been eliminated in consolidation.

CASH AND CASH EQUIVALENTS
Cash and cash equivalents include highly liquid investments which have an
original maturity not greater than three months.

AVAILABLE-FOR-SALE SECURITIES
Debt securities, which consist of corporate bonds and government agency
securities, are classified as available-for-sale and are recorded at their
fair value.  When the fair value of available-for-sale securities differs from
the amortized cost, the resulting unrealized gain or loss is recorded as a
component of comprehensive income.  The amortization of premiums and discounts
on debt securities in this category are included in investment income and
reflected in the net carrying amount of the debt securities.  The cost of
securities sold during the period is based on the specific identification
method.  Interest on securities in this category are included in investment
income.  As of March 31, 2007, the Company did not have any available-for-sale
securities.  As of March 31, 2006, the Company had unrealized holding losses
on available-for-sale securities of $6,000.  These losses were related to
fluctuations in interest rates and were not considered to be other than
temporary losses.

The contractual maturities of the available-for-sale securities held are
summarized below:


March 31,                                                    2006
                                                Amortized Cost   Fair Value
                                                -------------  ------------
Due in one year or less                            $2,703,000    $2,697,000
Due after one through five years                      250,000       250,000
Due after five through ten years                         -             -
Due after ten years                                 1,600,000     1,600,000
                                                -------------  ------------
                                                   $4,553,000    $4,547,000
                                                =============  ============

These available-for-sale securities consisted of the following (at fair
value):

                                        Gross         Gross
March 31, 2006          Amortized    Unrealized    Unrealized     Fair
                           Cost         Gains        Losses       Value
                        ----------   ----------    ----------  ----------
U.S. government
 securities             $1,370,000        -         $ 3,000    $1,367,000
Corporate notes          1,333,000        -           3,000     1,330,000
Auction preferred stock    200,000        -            -          200,000
Auction rate notes       1,650,000        -            -        1,650,000
                        ----------   ----------    ----------  ----------
Balance at end of
 period                 $4,553,000        -         $ 6,000    $4,547,000
                        ==========   ==========    ==========  ==========

For the years ended March 31, 2007, 2006 and 2005, proceeds from the sale of
securities available-for-sale amounted to $5,396,000, $7,276,000, and
$1,478,000, respectively; gross realized gains amounted to $1,000, $8,000 and
$0, respectively; and gross realized losses amounted to $1,000, $0, and $0,
respectively.

INVENTORIES
Inventories are stated at the lower of cost, on a first in, first out basis,
or market.  The Company has established a reserve on this inventory of
$103,000 and $225,000 as of March 31, 2007 and 2006, respectively (See Note 4,
Impairment of Assets).

PROPERTY AND EQUIPMENT
Property and equipment are stated at cost.  Maintenance and repairs are
charged to operations as incurred, whereas major replacements and improvements
are capitalized and subsequently depreciated.  Leasehold improvements are
amortized over the shorter of the useful life of the asset or the lease term.
Depreciation and amortization on the Company's property and equipment are
provided on a straight-line basis over the estimated useful lives of the
related assets as follows:

                                              Estimated Useful
                                               Life (in years)
                                              ----------------

Machinery and equipment                            3 to 10

Furniture and fixtures                              3 to 5

Leasehold improvements                             2 to 15

Buildings and improvements                              30


GOODWILL AND OTHER INTANGIBLE ASSETS
The Company reviews annually the carrying value of its goodwill during the
first quarter of each fiscal year.  The goodwill arose from its acquisitions
of Broda Enterprises and Versipanel.  During the quarter ended June 30, 2006,
the Company reviewed the goodwill related to the Broda and Versipanel
acquisitions and determined that there was no impairment.  This review is
performed using estimates of future cash flows.  If the carrying value of the
goodwill is considered impaired, an impairment charge is recorded for the
amount by which the carrying value of the goodwill exceeds its fair value.
During the years ended March 31, 2007 and 2006, the change in the carrying
value of the goodwill is related to foreign currency translation gains.  The
Company recorded an intangible asset of $85,000 (net of $5,000 in accumulated
amortization) related to a license agreement entered into during the year
ended March 31, 2007 for the Company's dance floor product line which is
included in other assets.  The term of this license agreement extends through
the life of the patent which expires in June 2016.  For the year ended March
31, 2007, the Company amortized $5,000 related to this intangible asset.  The
Company anticipates annual amortization expense related to this intangible
asset of $12,000.

REVENUE RECOGNITION
The Company recognizes revenue in accordance with Staff Accounting Bulletin
(SAB) No. 101, "Revenue Recognition," as revised by SAB No. 104. Sales are
recorded when title passes and collectibility is reasonably assured under its
various shipping terms.  Revenue is normally recognized upon shipment of goods
to customers. In certain circumstances revenue is not recognized until the
goods are received by the customer based on the terms of the sale agreement.
Discounts directly related to the sale are recorded as a reduction to net
sales.

SHIPPING COSTS
In accordance with Emerging Issues Task Force (EITF) No. 00-10, "Accounting
for Shipping and Handling Fees and Costs," the Company classifies shipping
costs billed to customers as revenue.

CONCENTRATION OF CREDIT RISK
Financial instruments which potentially subject the Company to concentrations
of credit risk consist primarily of trade receivables and cash equivalents.
In the normal course of business, the Company provides credit terms to its
customers.  Accordingly, the Company performs ongoing credit evaluations of
its customers and maintains allowances for possible losses which, when
realized, have been within the range of management's expectations.

FAIR VALUE OF FINANCIAL INSTRUMENTS
Available-for-sale securities are carried at fair value.  The carrying amount
reported in the balance sheets for cash and cash equivalents, accounts
receivable, notes receivable, accounts payable and line of credit approximates
fair value because of the immediate, short-term maturity, or variable rate
nature of these financial instruments.

INCOME TAXES
The Company uses an asset and liability approach for financial accounting and
reporting for income taxes.  Deferred income taxes are provided for temporary
differences in the bases of assets and liabilities as reported for financial
statement purposes and income tax purposes.  The undistributed earnings of the
Canadian operation are permanently reinvested.

STOCK-BASED COMPENSATION
Effective April 1, 2006, the Company adopted Statement of Financial Accounting
Standards (SFAS) No. 123R, "Share-Based Payment," which requires that the fair
value compensation cost relating to share-based payment transactions be
recognized in financial statements.  Under the provisions of SFAS No. 123R,
share-based compensation cost is measured at the grant date, based on the fair
value of the award, and is recognized over the employee's requisite service
period.  The fair value of the Company's stock options is estimated using a
Black-Scholes option valuation model.  The Company adopted the fair value
recognition provisions of SFAS No. 123R using the modified prospective
transition method and accordingly, prior years have not been restated.  Under
this method, stock-based compensation cost is recognized beginning April 1,
2006 for all options granted after the date of adoption as well as the
unvested portion of previously granted options based on the estimated fair
value.  Prior to April 1, 2006 the Company accounted for employee stock option
grants using the intrinsic method in accordance with Accounting Principles
Board (APB) Opinion No. 25, "Accounting for Stock Issued to Employees," and
included disclosures of pro forma information in its footnotes to the
consolidated financial statements.  The Company elected to adopt the
alternative transition method provided in the Financial Accounting Standards
Board (FASB) Staff Position No. 123R-3, "Transition Election to Accounting for
the Tax Effects of the Share-based Payment Awards," for calculating the tax
effects of stock-based compensation pursuant to SFAS No. 123R.  The
alternative transition method includes a simplified method to establish the
beginning balance of the Additional Paid-In Capital (APIC) pool related to the
tax effects of employee stock-based compensation, and to determine the
subsequent APIC pool and consolidated statements of cash flows of the tax
effects of employee stock-based compensation awards that are outstanding upon
adoption of SFAS No. 123R.  Pro forma net income and pro forma net income per
share disclosed in Note 8, Common Stock Options, were determined using a
Black-Scholes option valuation model.  The impact of adopting SFAS No. 123R
resulted in additional compensation expense of $307,000 in the fiscal year
ended March 31, 2007.

USE OF ESTIMATES
The preparation of these consolidated financial statements in conformity with
accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period.  Significant estimates
subject to change include the allowance for doubtful accounts receivable, the
reserve for obsolete inventory, accruals for warranty expense, goodwill and
intangible assets, reserve on notes receivable, litigation reserves, and
valuation of  the assets related to its discontinued next generation table
line (see Note 4, Impairment of Assets).  Actual results could differ from
these estimates.

LONG-LIVED ASSETS
The Company adopted SFAS No. 144, "Accounting for the Impairment or Disposal
of Long-Lived Assets" which requires that all long-lived assets to be disposed
of by sale be carried at the lower of carrying amount or fair value less cost
to sell, and that depreciation cease to be recorded on such assets.  The
Company periodically reviews the carrying amount of its long-lived assets for
impairment.  An asset is considered impaired when estimated future cash flows
are less than the carrying amount of the asset.  In the event the carrying
amount of such asset is considered not recoverable, the asset is adjusted to
its fair value.  Fair market value is determined primarily using the
anticipated cash flows discounted at a rate commensurate with the risk
involved.  Long-lived assets to be disposed of other than by sale are
considered held and used until disposed of.  Due to the decision by the board
of directors in January 2005 to discontinue the next generation table project,
the Company  impaired certain long-term assets during the quarter ended March
31, 2005.  This resulted in an impairment charge of $2.2 million, including
$2.0 million related to fixed assets and $0.2 million related to other
intangible assets (See Note 4, Impairment of Assets). There were no additional
long-lived assets which were considered impaired as of March 31, 2007 and
2006.

COMPREHENSIVE INCOME
The Company's comprehensive income consists of foreign currency translation
adjustments, unrealized holding gains and losses on available-for-sale
securities, and net income.

ACCRUED WARRANTY
The Company provides for the estimated cost of product warranties at the time
revenue is recognized.  This warranty obligation is affected by failure rates,
the introduction of new products, and the costs of material and labor to
repair or replace the product.  The Company regularly assesses the adequacy of
its accrual for warranty expense based upon historical warranty rates and
anticipated future warranty rates.  Activity associated with the accrued
warranty is as follows:


Year Ended March 31,                         2007        2006        2005
                                           --------    --------    --------
Balance at beginning of period             $470,000    $439,000    $415,000

Accruals for warranties issued
 during the period                          865,000     900,000     661,000

Settlements made during the period         (850,000)   (869,000)   (637,000)
                                           --------    --------    --------
Balance at end of period                   $485,000    $470,000    $439,000
                                           ========    ========    ========

FOREIGN CURRENCY EFFECTS
The financial statements of the Company's foreign subsidiary is measured using
the Canadian dollar as the functional currency.  Assets and liabilities are
translated into U.S. dollars at year-end rates of exchange and results of
operations are translated at average rates for the year.  Gains and losses
resulting from these translations are included in accumulated other
comprehensive income as a separate component of stockholders' equity.  The
Company also recognizes foreign currency gains and losses for transactions
related to its foreign subsidiary as well as note payments from its Australian
dealer.  For the years ended March 31, 2007, 2006, and 2005, currency gains
(losses) totaled $36,000. ($53,000), and ($126,000), respectively.

RESEARCH AND DEVELOPMENT
Research and development costs are expensed as incurred.  Patent expenses,
including legal expenses, are expensed in the period in which they are
incurred and are generally not significant.  Patent expenses are included in
research and development expenses in our consolidated statements of income.

EARNINGS PER SHARE
Basic earnings per share is based on the weighted effect of all common shares
issued and outstanding, and is calculated by dividing net income by the
weighted average shares outstanding during the period.  Diluted earnings per
share is calculated by dividing net income by the weighted average number of
common shares used in the basic earnings per share calculation plus the number
of common shares that would be issued assuming exercise or conversion of all
potentially dilutive common shares outstanding.  The Company excludes equity
instruments from the calculation of diluted weighted average shares
outstanding if the effect of including such instruments is antidilutive to
earnings per share.  The following table sets forth the computation of basic
and diluted earnings per share for each of the past three fiscal years:










Year Ended March 31,                       2007         2006         2005
                                       -----------  -----------  -----------
Numerator:
    Net income                         $ 4,447,000  $ 5,541,000  $ 2,469,000
                                       ===========  ===========  ===========
Denominator:
     Weighted average shares
       outstanding:
        Basic                            3,519,942    4,124,189    4,296,525
        Employee stock options
         and other                          97,965      146,773      177,586
                                       -----------  -----------  -----------
        Diluted                          3,617,907    4,270,962    4,474,111
                                       ===========  ===========  ===========
Earnings per common share:
        Basic                                $1.26        $1.34        $0.57
        Diluted                              $1.23        $1.30        $0.55


RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS
In November 2004, the FASB issued SFAS No. 151, "Inventory Costs."  SFAS No.
151 amends the guidance in ARB No. 43, Chapter 4, "Inventory Pricing," to
clarify the accounting for abnormal amounts of idle facility expense, freight,
handling costs, and wasted material. SFAS No. 151 requires that those items be
recognized as current-period charges regardless of whether they meet the
criterion of "so abnormal."  In addition, this Statement requires that
allocation of fixed production overheads to the costs of conversion be based
on the normal capacity of the production facilities.  SFAS No. 151 is
effective for fiscal years beginning after June 15, 2005.  The Company adopted
SFAS No. 151 on April 1, 2006.  The adoption of SFAS No. 151 did not have any
impact on the Company's consolidated financial statements.

In December 2004, the FASB issued SFAS No. 153, "Exchange of Nonmonetary
Assets."  SFAS No. 153 addresses the measurement of exchanges of nonmonetary
assets.  It eliminates the exception from the fair value measurement for
nonmonetary exchanges of similar productive assets and replaces it with a
general exception for exchanges that do not have a commercial substance.  This
Statement specifies that a nonmonetary exchange has commercial substance if
the future cash flows of the entity are expected to change significantly as a
result of the exchange.  SFAS No. 153 is effective for annual periods
beginning after June 15, 2005.  The Company adopted SFAS No. 153 on April 1,
2006.  The adoption of SFAS No. 153 did not have any impact on the Company's
consolidated financial statements.

In May 2005, the FASB issued SFAS No. 154, "Accounting Changes and Error
Corrections," a replacement of APB Opinion No. 20 and FASB Statement No. 3.
SFAS No. 154 requires retrospective application to prior periods financial
statements for changes in accounting principle, unless it is impracticable to
determine either the period-specific effects or the cumulative effect of the
change.  SFAS No. 154 also requires that retrospective application of a change
in accounting principle be limited to the direct effects of the change.
Indirect effects of a change in accounting principle should be recognized in
the period of the accounting change.  SFAS No. 154 further requires a change
in depreciation, amortization or depletion method for long-lived,
non-financial assets to be accounted for as a change in accounting estimate
affected by a change in accounting principle.  SFAS No. 154 is effective for
accounting changes and corrections of errors made in fiscal years beginning
after December 31, 2005.  The Company adopted SFAS No. 154 on April 1, 2006.
The adoption of SFAS No. 154 did not have any impact on the Company's
consolidated financial statements.

In July 2006, the FASB issued FASB Interpretation No. (FIN) 48,  "Accounting
for Uncertainty in Income Taxes," which clarifies the accounting for
uncertainty in income taxes recognized in the financial statements in
accordance with FASB No. 109, "Accounting for Income Taxes."  Under FIN 48,
tax positions shall initially be recognized in the financial statements when
it is more likely than not the position will be sustained upon examination by
the tax authorities.  Such tax positions shall initially and subsequently be
measured as the largest amount of tax benefit that is greater than 50% likely
of being realized upon ultimate settlement with a tax authority that has full
knowledge of the position and all relevant facts.  FIN 48 also revises
disclosure requirements to include an annual tabular reconciliation of
unrecognized tax benefits.  The provision of this interpretation are required
to be adopted for fiscal years beginning after December 15, 2006.  The Company
will be required to apply the provisions of FIN 48 to all tax positions upon
initial adoption with any cumulative effect adjustment to be recognized as an
adjustment to retained earnings.   The Company is required to adopt FIN 48 for
its fiscal year beginning April 1, 2007.  The Company does not expect the
adoption of FIN 48 to have a material impact on its consolidated financial
statements.

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements,"
which defines fair value, establishes guidelines for measuring fair value and
expands disclosure regarding fair value measurements.  SFAS No. 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007, on a prospective basis.  The Company does not expect the
adoption of SFAS No. 157 to have a material effect on its consolidated
financial statements.

In September 2006, the Securities and Exchange Commission issued SAB No. 108,
"Financial Statements - Considering the Effects of Prior Year Misstatements
When Quantifying Misstatements in Current Year Financial Statements."  SAB No.
108 provides interpretive guidance on how the effects of prior-year
uncorrected misstatements should be considered when quantifying misstatements
in the current year financial statements.  SAB No. 108 requires registrants to
quantify misstatements using both the income statement and balance sheet
approach and evaluate whether either approach results in a misstatement that,
when all relevant quantitative and qualitative factors are considered, is
material.  SAB No. 108 is effective for years ending after November 15, 2006
and the adoption had no impact on the Company's consolidated financial
statements.

During 2006, the FASB issued Emerging Issues Task Force (EITF) Issue No. 06-3,
"How Taxes Collected from Customers and Remitted to Governmental Authorities
Should Be Presented in the Income Statement (That Is, Gross versus Net
Presentation)". This Issue addresses the presentation in the income statement
of taxes collected from customers and remitted to governmental authorities
(including but not limited to sales, use, value added, and some excise taxes).
The Task Force reached a consensus that the presentation of taxes within the
scope of this issue on either a gross basis (included in revenues and costs)
or a net basis (excluded from revenues) is an accounting policy decision that
should be disclosed pursuant to APB Opinion 22. EITF Issue No. 06-3 is
effective for reporting periods beginning after December 15, 2006. The Company
currently presents such taxes on a net basis and does not expect the adoption
of EITF Issue No. 06-3 to have a material effect on its consolidated financial
statements.

2.  INVENTORIES

Inventories consisted of the following:



March 31,                                  2007              2006
                                       -----------       -----------
  Materials and supplies               $ 2,613,000       $ 1,730,000
  Work-in-progress                         263,000           174,000
  Finished goods                         1,887,000           683,000
                                       -----------       -----------
                                       $ 4,763,000       $ 2,587,000
                                       ===========       ===========


3.  PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

March 31,                                  2007              2006
                                       -----------       -----------
  Land and improvements                $ 3,231,000       $ 2,710,000
  Machinery and equipment               10,313,000         9,274,000
  Furniture and fixtures                 2,166,000         2,304,000
  Leasehold improvements                 1,086,000         1,013,000
  Building and improvements              9,798,000         6,818,000
                                       -----------       -----------
                                        26,594,000        22,119,000
Less accumulated depreciation and
 amortization                          (10,860,000)       (9,634,000)
                                       -----------       -----------
                                       $15,734,000       $12,485,000
                                       ===========       ===========

4.     IMPAIRMENT OF ASSETS

During a meeting of the Company's board of directors on January 25, 2005, the
board decided to discontinue funding the Company's initiative to develop its
next generation table.  The decision was made based on the difficulties
encountered and additional expenses required to achieve a consistent,
repeatable manufacturing process.  At this time, the decision was also made to
redirect some of the resources previously focused on the next generation table
project towards using the same technology and equipment for other products
that do not require the same level of precision as tables.  Currently, the
Company is using these assets for the production of its new fence product
line.

As a result, during the quarter ending March 31, 2005, in accordance with SFAS
No. 144, the Company realized an impairment on some of the assets involved in
that project to reduce their carrying amounts to their estimated fair value.
As per SFAS No. 144, the fair value was determined by the amount at which the
assets could be bought or sold in a current transaction between willing
parties.  The Company utilized an outside specialist to establish the fair
value of the assets.  The impairment totaled $2,226,000 and consisted of
$1,999,000 in impairment of fixed assets and $227,000 in impairment of other
intangible asset related to license agreements.

In connection with the decision to discontinue the next generation table line,
it was determined that the value of the inventory associated with the project
was less than its cost.  In accordance with Accounting Research Bulletin 43
(ARB 43), this inventory was revalued at market value through a reserve which
resulted in an adjustment down in the value of inventory of $324,000.  This
charge was included in the cost of products sold.

The fair value of the assets previously associated with the next generation
table project that were redirected on other processes as of March 31, 2005,
consisted of $2,528,000 in building, $1,045,000 for equipment, and $272,000 in
inventory.  The Company believes that it will be able to fully realize the
value of these assets.

5.  NOTES RECEIVABLE AND INVESTMENT IN SUBSIDIARY

In 2002, the Company acquired a 50 percent interest in a startup development
company.  On September 30, 2004, the Company sold its 50 percent equity
ownership interest in the startup development company to the other 50 percent
owner.  The Company exchanged its ownership interest for an exclusive license
for furniture products and selected other products, release of all royalty
obligations on existing and future products, and other considerations.  The
Company retained most of the tangible assets and liabilities of the startup
development company including cash, inventory, fixed assets, and accounts
payable.  Due to the decision by the board of directors in January 2005 to
discontinue funding the Company's initiative to develop its next generation
table, the Company impaired certain of the remaining assets (See Note 4,
Impairment of Assets).

During the quarter ended March 31, 2002, the Company entered into an agreement
with a dealer for the Company's multipurpose room furniture in Australia and
entered into a note receivable for $365,000.  This note, which bears interest
at the prime rate, requires monthly payments of interest and principal in the
amount of $8,000 (US$) and is being amortized over a six and one half year
period.  The note is secured by all of the assets of the dealership and by
personal guarantees from the principals of the dealership. At March 31, 2007
and 2006, the gross value of this note receivable was $16,000 and $80,000,
respectively.  At March 31, 2007, all of this note receivable is current and
is included in prepaid expenses and other current assets.  As of March 31,
2007, the dealer was current on payments on this note receivable.

As of March 31, 2007 and 2006, the Company has another note receivable for
$16,000 and $26,000, respectively, of which $10,000 is current as of each date
and is included in prepaid expenses and other current assets.

6.  LINE OF CREDIT

On August 21, 2006, the Company entered into a Loan Agreement and Promissory
Note ("Loan") between the Company and Zions First National Bank to provide an
unsecured revolving line of credit of up to $5.0 million, bearing interest at
U.S. Prime minus 1.25 percent (7.00 percent at March 31, 2007).  The Loan
expires on September 1, 2008.  The Loan may be prepaid or terminated at the
Company's option at anytime without penalty.  Any outstanding principal
balance together with any accrued but unpaid interest or fees will be due in
full at maturity.  The Loan contains certain negative and affirmative
covenants.  As of March 31, 2007, the Company is in compliance with all debt
covenants (See Note 14, Subsequent Event).  As of March 31, 2007, the Company
had $3,151,000 of borrowings on the line of credit with $1,849,000 in
available capacity.

The Company's wholly-owned subsidiary, Broda Enterprises, has a line of
credit, bearing interest at Canadian prime (6.00 percent and 5.50 at March 31,
2007 and 2006, respectively) which is secured by a General Security Agreement,
an assignment of insurance and guarantees by the Company.  The limit on this
line is $1,212,000 (US$) and $857,000 (US$) at March 31, 2007 and 2006,
respectively.  At March 31, 2007, $589,000 (US$) was outstanding on this line
with $623,000 (US$) in available capacity.  At March 31, 2006, no balance was
outstanding.  Among other restrictions, this credit facility requires the
maintenance of certain financial ratios and levels of working capital.  As of
March 31, 2007, the Company is in compliance with all debt covenants (See Note
14, Subsequent Event).

7.  ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:


March 31,                                  2007              2006
                                       -----------       -----------
Accrued payroll and payroll taxes      $ 1,887,000       $ 1,080,000
Accrued warranty                           485,000           470,000
Deferred revenue                           485,000           492,000
Tax payable                                 85,000            88,000
Other                                      624,000           297,000
                                       -----------       -----------
                                       $ 3,566,000       $ 2,427,000
                                       ===========       ===========


8.  COMMON STOCK OPTIONS

The Company's stock-based compensation consists of three stock incentive
plans, the 1990 Stock Option Plan (the "1990 Plan"), the 1997 Stock Incentive
Plan (the "1997 Plan") and the 2006 Stock Incentive Plan (the "2006 Plan").
The Company authorized and reserved 750,000 shares of common stock for
issuance under the 1990 Plan, 900,000 shares of common stock for issuance
under the 1997 Plan, and 300,000 shares of common stock for issuance under the
2006 Plan.  No options remain unexercised under the 1990 Plan and the plan
expired under its own terms during the year ended March 31, 2007.  The
purchase price for the shares under the plans is equal to the fair value of
the common stock at the date the options are granted as determined by the
closing price listed on The Nasdaq Stock Market except for shareholders
holding more than ten percent of the outstanding stock, whose options are
issued at a ten percent premium to the then current market value.

Effective April 1, 2006, the Company adopted SFAS No. 123R using the modified
prospective transition method.  Under this transition method, stock-based
compensation cost recognized beginning April 1, 2006 includes compensation
cost for all share-based payments not yet vested as of April 1, 2006 based on
the grant date fair value estimated had the Company adopted the provisions of
SFAS No. 123.  In addition, this transition method requires any share-based
payments granted after April 1, 2006 be accounted for in accordance with the
provisions of SFAS No. 123R.

For the fiscal year ended March 31, 2007, the adoption of SFAS No. 123R
resulted in incremental stock-based compensation expense of $307,000.  Of this
amount, $107,000 was included in cost of products sold, $69,000 in selling
expenses, $98,000 in general and administrative expenses, and $33,000 in
research and development expenses.  Stock-based compensation expense (net of
expected forfeitures) was recognized for only those awards expected to vest on
a straight-line basis over the requisite service period.  Forfeiture rates
were estimated based on past experience.  The stock-based compensation expense
associated with the adoption of SFAS No. 123R reduced net operating income and
net income for the fiscal year ended March 31, 2007 by $307,000, and basic and
diluted earnings per share by $0.08 and $0.09 per share, respectively.  As of
March 31, 2007, the total remaining unrecognized compensation cost related to
non-vested stock options, net of expected forfeitures, was $595,000, and is
expected to be recognized through the year ending March 31, 2012.  The total
income tax benefit related to share-based compensation for the year ended
March 31, 2007 which is recorded in additional paid-in capital was $23,000,
and was shown as a cash flow from operating and financing activities in the
consolidated statements of cash flows.  The $307,000 stock-based compensation
expense is also included in cash flows from operating activities as an
adjustment to reconcile net income to net cash provided by operating
activities.  The Company's consolidated financial statements for prior periods
have not been restated to reflect the impact of SFAS No. 123R.

Prior to April 1, 2006, the Company accounted for stock-based compensation
under the intrinsic value method outlined in APB Opinion No. 25.  Accordingly,
no compensation cost has been recognized for stock-based compensation for the
prior years ended March 31, 2006 and 2005.  Had compensation cost of the
Company's stock-based compensation plans been determined consistent with SFAS
No. 123R, the Company's net income and earnings per share would have changed
to the pro forma amounts indicated below:


Year Ended March 31,                       2006              2005
                                       -----------       -----------
 Net income:
   As reported                         $ 5,541,000       $ 2,469,000
   Deduct stock-based employee
     compensation expense
     determined under the
     fair-value based method,
     net of related tax effects           (241,000)         (254,000)
                                       -----------       -----------
   Pro forma                           $ 5,300,000       $ 2,215,000
                                       ===========       ===========
 Earnings per share - basic:
   As reported                               $1.34             $0.57
   Pro forma                                 $1.29             $0.52

 Earnings per share - diluted:
   As reported                               $1.30             $0.55
   Pro forma                                 $1.24             $0.49


During the years ended March 31, 2007 and 2005, 108,500 and 58,499 options
were granted, respectively.  No options were granted during the year ended
March 31, 2006.  The fair value of each option grant is estimated on the date
of grant using the Black-Scholes option-pricing model with the following
weighted-average assumptions used for grants in 2007 and 2005, respectively:
expected volatility of 23 percent and 41 percent, risk free interest rates of
4.82 percent and 3.31 percent, an expected annual dividend yield of zero
percent, and expected lives of one to four years.  The average risk-free
interest rate was determined using the U.S. Treasury rate in effect as of the
date of the grant, based on the expected term of the option.  The expected
term of the options was determined using historical data.  The expected price
volatility was determined using a weighted average of historical volatility of
the Company's stock price over the corresponding expected option life.  The
weighted average fair value per share of options issued during the years ended
March 31, 2007 and 2005 was $5.24 and $4.72, respectively.

The table below presents information related to stock option activity for the
years ended March 31, 2007, 2006 and 2005:

Year Ended March 31,                   2007           2006          2005
                                    ----------     ----------    ----------
Total intrinsic value of stock
  options exercised                 $  105,000     $1,407,000    $  500,000
Cash received from stock option
  exercises                            185,000      1,387,000       555,000
Net income tax benefit from the
 exercise and sale of stock options     23,000        314,000       125,000


A table of stock option activity is shown below:


                                          Weighted     Remaining
                           Number          Average   Contractual     Intrinsic
                       of Options   Exercise Price   Term (years)        Value
                       ----------   --------------   ------------   ----------
Outstanding at April
  1, 2004                 563,362           $10.70
 Granted                   58,499            14.92
 Exercised                (63,189)            8.78
 Forfeited                (13,844)           14.64
                       ----------   --------------   ------------   ----------
Outstanding at March
  31, 2005                544,828            11.27           5.97   $2,027,000
 Granted                        0              -
 Exercised               (159,983)            8.67
 Forfeited                 (9,474)           15.14
                       ----------   --------------   ------------   ----------
Outstanding at March
 31, 2006                 375,371           $12.28           5.85   $2,706,000
 Granted                  108,500            17.05
 Exercised                (15,710)           11.76
 Forfeited                (23,985)           16.90
                       ----------   --------------   ------------   ----------
Outstanding at March
 31, 2007                 444,176           $13.22           5.87   $2,569,000
                       ==========   ==============   ============   ==========

No options expired during the three years ended March 31, 2007.  Options
exercisable at March 31, 2007, 2006 and 2005 were 310,384, 296,729, and
405,679, respectively.  Options exercisable as of March 31, 2007 had an
intrinsic value of $2,278,000 and an average remaining contractual term of
4.42 years.  Options vest over a one- to four-year period and are generally
exercisable over ten years.

The following table summarizes the combined information of the 1997 and 2006
Plans' options outstanding at March 31, 2007:

---------------------------------------------------  ------------------------
         Options Outstanding                           Options Exercisable
---------------------------------------------------  ------------------------
                                Weighted
                                 Average   Weighted                  Weighted
    Range of                   Remaining    Average                   Average
    Exercise      Number     Contractual   Exercise        Number    Exercise
      Prices Outstanding  Life (in years)     Price   Exercisable       Price
------------ -----------  --------------   --------   -----------   ---------
 $6.78-$8.20      87,225       3.42        $  6.98        87,225     $  6.98
  9.70-11.75      91,825       2.47          10.22        91,825       10.22
 12.10-12.15      19,034       5.82          12.12        19,034       12.12
 12.96-15.50      69,174       6.38          14.76        54,640       14.85
 16.55-17.90     176,918       8.64          17.36        57,660       17.86
------------ -----------  --------------   --------   -----------   ---------
$6.78-$17.90     444,176       5.87        $ 13.22       310,384      $11.66
============ ===========  ==============   ========   ===========   =========

9.  EMPLOYEE BENEFIT PLANS

In January 1995, the Company established a defined contribution plan which
qualifies under Section 401(k) of the Internal Revenue Code.  The plan
provides retirement benefits for employees meeting minimum age and service
requirements.  Participants may contribute up to 20 percent of their gross
wages, subject to certain limitations.  The plan provides for discretionary
matching contributions by the Company, as determined by the Board of
Directors.  The discretionary amounts contributed to the plan for the years
ended March 31, 2007, 2006 and 2005 were $134,000, $150,000, and $125,000,
respectively.

In October 1996, the Board of Directors reserved up to 37,500 shares of MITY
Enterprises common stock to be issued under the provisions of the 401(k) plan.
An additional 50,000 shares of common stock were reserved in January 2000 and
an additional 100,000 shares of common stock were reserved in March 2002.
Shares are issued to the plan on a quarterly basis.  The amounts issued to the
plan in MITY Enterprises common stock for the years ended March 31, 2007, 2006
and 2005 were $58,000, $63,000, and $59,000, respectively.  As of March 31,
2007, 130,588 shares had been issued under the provisions of the plan.

10.  INCOME TAXES

Income tax expense from operations consisted of the following components:


Year Ended March 31,                   2007           2006          2005
                                    ----------     ----------    ----------
  Current:
    Federal                         $1,398,000     $1,663,000    $1,392,000
    State                              255,000        295,000       211,000
    Foreign                            585,000        399,000       318,000
                                    ----------     ----------    ----------
  Total current                      2,238,000      2,357,000     1,921,000
                                    ----------     ----------    ----------
  Deferred:
    Federal                             13,000        405,000      (430,000)
    State                                1,000         28,000       (42,000)
    Foreign                             50,000         21,000        (1,000)
                                    ----------     ----------    ----------
  Total deferred                        64,000        454,000      (473,000)
                                    ----------     ----------    ----------
                                    $2,302,000     $2,811,000    $1,448,000
                                    ==========     ==========    ==========

The amount of the Company's foreign pre-tax income for the years ended March
31, 2007, 2006 and 2005 was $1,703,000, $1,268,000, and $834,000,
respectively.

The tax provisions for continuing operations were at effective rates as
follows:

Year Ended March 31,                   2007           2006          2005
                                    ----------     ----------    ----------
 Federal statutory tax rates           34.0%          34.0%         34.0%
 State / provincial income taxes,
   net of federal benefit               4.0            3.9           3.3
 Deduction related to domestic
   production activities               (0.7)          (1.0)           -
 Meals and entertainment                0.3            0.2           0.4
 Foreign sales                         (0.4)          (0.6)         (0.6)
 Tax exempt interest income            (0.2)          (0.4)         (0.1)
 Research and development tax credit     -            (0.8)           -
 Stock-based compensation               1.5             -             -
 Other                                 (4.4)          (1.6)          0.2
                                    ----------     ----------    ----------
                                       34.1%          33.7%         37.2%
                                    ==========     ==========    ==========

During the year ended March 31, 2007, the Company reversed $295,000 of
previously recorded reserves.


The tax effects of temporary differences that give rise to significant
portions of deferred tax assets and deferred tax liabilities are as follows:

March 31,                                 2007                    2006
                                  --------------------   ---------------------
                                   Current   Long Term    Current    Long Term
                                  --------   ---------   --------   ----------
Deferred tax assets:
 Allowance for doubtful accounts  $ 78,000               $ 45,000
 Inventory                          36,000                 86,000
 Vacation accrual                   79,000                 71,000
 Warranty reserve and accrual      180,000                175,000
 Discontinued operations            14,000                 22,000
 AMT credit                                   $ 30,000                $30,000
 Depreciation and amortization                 251,000                273,000
 Other accruals                                             3,000
                                  --------   ---------   --------   ----------
 Total                             387,000     281,000    402,000     303,000
Deferred tax liabilities:
 Goodwill                                      (82,000)               (55,000)
                                  --------   ---------   --------   ----------
Net deferred tax asset            $387,000    $199,000   $402,000    $248,000
                                  ========   =========   ========   ==========

11.  COMMITMENTS AND CONTINGENCIES

The Company leases two buildings in its Waterloo, Ontario, Canada location
under an operating lease which expired in April 2007.  The current agreement
requires lease payments of $16,000 Canadian (approximately US $14,000) per
month.  Management anticipates continuing this lease on a month-to-month basis
until it moves into its new facility, currently anticipated to be in June
2007.

Total rent expense was $180,000, $187,000, and $147,000 for the years ended
March 31, 2007, 2006 and 2005, respectively.

At March 31, 2007, the Company has fixed price commitments to purchase
$273,000 in raw materials inventory.

The Company has been named as defendant in certain lawsuits.  While the
Company cannot predict the results of these actions, management believes,
based in part on the advice of legal counsel, that the liability, if any,
resulting from such litigation and claims will not have a material affect on
the consolidated financial statements.

12.  STOCK REPURCHASE

On June 7, 2005, the Company announced its intention to repurchase up to
500,000 shares of the Company's common stock.  On January 24, 2006, the board
of directors increased the share repurchase authorization by 150,000 shares.
On May 18, 2006, the board of directors increased the share repurchase
authorization an additional 200,000 shares and on August 3, 2006, the board of
directors again increased the share repurchase authorization an additional
400,000 shares, bringing the total authorized to 1,250,000.  As of March 31,
2007, 1,156,779 shares had been repurchased for approximately $20.1 million.
On October 24, 2006, the board of directors ended the share repurchase
authorization.  During the six months ended March 31, 2007, no shares were
repurchased.

13.  BUSINESS SEGMENT INFORMATION

Management currently views the Company as being three business segments:
multipurpose room furniture, fencing and healthcare seating.  The multipurpose
room furniture business segment manufactures and markets lightweight, durable,
folding leg tables, folding chairs, stacking chairs, lecterns,  and other
related products.  The fence product segment includes a line of rotomolded
fence panel products to be used in commercial and residential fencing
applications.  The Company's healthcare seating segment manufactures and
markets healthcare chairs and related products.  The Company's healthcare
seating segment includes all of the Company's foreign-based sales.  Revenues
attributable to all foreign countries in total were $8,909,000, $8,400,000,
and $7,372,000 for the years ended March 31, 2007, 2006 and 2005. Corporate
related assets and expenditures are included in the multipurpose room
furniture segment.

Reportable segment data reconciled to the consolidated financial statements
for the fiscal years ended March 31, 2007, 2006 and 2005 is as follows:


Fiscal Year Ended March 31,            2007           2006          2005
                                    ----------     ----------    ----------
 Net sales:
    Multipurpose room furniture    $50,109,000    $48,201,000   $43,040,000
    Fence                            1,290,000           -             -
    Healthcare seating               8,939,000      7,500,000     7,232,000
                                    ----------     ----------    ----------
                                   $60,338,000    $55,701,000   $50,272,000
                                    ==========     ==========    ==========

 Income (loss) from operations:
    Multipurpose room furniture    $ 5,942,000    $ 6,657,000   $ 2,332,000
    Fence                           (1,229,000)          -             -
    Healthcare seating               1,986,000      1,448,000     1,505,000
                                    ----------     ----------    ----------
                                   $ 6,699,000    $ 8,105,000   $ 3,837,000
                                    ==========     ==========    ==========
 Depreciation & amortization expense:
    Multipurpose room furniture    $ 1,067,000    $ 1,299,000   $ 1,661,000
    Fence                              405,000           -             -
    Healthcare seating                 234,000        175,000       169,000
                                    ----------     ----------    ----------
                                   $ 1,706,000    $ 1,474,000   $ 1,830,000
                                    ==========     ==========    ==========
 Capital expenditures:
    Multipurpose room furniture    $ 1,951,000    $ 1,893,000   $ 1,900,000
    Fence                              100,000           -             -
    Healthcare seating               2,538,000        343,000       242,000
                                    ----------     ----------    ----------
                                   $ 4,589,000    $ 2,236,000   $ 2,142,000
                                    ==========     ==========    ==========



 Interest expense:
    Multipurpose room furniture    $   111,000    $      -      $      -
    Fence                                 -              -             -
    Healthcare seating                   4,000           -             -
                                    ----------     ----------    ----------
                                   $   115,000    $      -      $      -
                                    ==========     ==========    ==========


March 31,                              2007          2006
                                    ----------     ----------
 Total assets:
     Multipurpose room furniture   $22,740,000    $28,735,000
     Fence                           2,120,000           -
     Healthcare seating              8,744,000      6,084,000
                                    ----------     ----------
                                   $33,604,000    $34,819,000
                                   ===========    ===========

 Total goodwill:
    Multipurpose room furniture    $ 1,085,000    $ 1,085,000
    Fence                                 -              -
    Healthcare seating               1,286,000      1,273,000
                                    ----------     ----------
                                   $ 2,371,000    $ 2,358,000
                                   ===========    ===========


14.  SUBSEQUENT EVENT

On May 2, 2007, the Company announced that it had entered into an Agreement
and Plan of Merger dated as of May 2, 2007 (the Merger Agreement) with MLE
Holdings, Inc. (Parent) and FP Merger Sub, Inc., a wholly owned subsidiary of
Parent (Merger Sub).  Parent is an affiliate of Sorenson Capital Partners L.P.
(Sorenson) and Peterson Partners LP (Peterson).

Pursuant to the terms of the Merger Agreement, Merger Sub will merge with and
into the Company, with the Company as the surviving corporation of the merger
(the Merger).  At the effective time of the Merger, each share of common stock
of the Company then outstanding, other than those held by any wholly-owned
subsidiary of the Company and those owned by Parent or Merger Sub, and other
than those with respect to which dissenters' rights are properly exercised,
will be converted into the right to receive $21.50 per share in cash, without
interest (the Merger Consideration) and each option to purchase common stock
of the Company then outstanding will be cancelled and option holders will
receive the excess, if any, of the Merger Consideration over the option
exercise price for each share subject to the option, less any applicable
withholding taxes.

The Board of Directors of the Company unanimously approved the Merger
Agreement, the Merger and the transactions contemplated thereby.  Completion
of the transaction is subject to the affirmative vote of the Company's
shareholders and other customary closing conditions.  Consummation of the
Merger is not subject to a financing condition.

The Merger Agreement contains certain termination rights for both the Company,
Merger Sub and Parent.  Among other things and subject to certain conditions,
(1) the Company may terminate the Merger Agreement if Merger Sub and Parent
fail to close when the closing conditions are otherwise satisfied, (2) the
Company may terminate the Merger Agreement to accept a superior proposal, and
(3) Merger Sub and Parent may terminate the Merger Agreement if the Company
changes its recommendation, recommends another proposal or fails to include
its recommendation in the proxy statement.  The Merger Agreement further
provides that, upon termination of the Merger Agreement under certain
circumstances, (1) the Company may be obligated to pay Parent a termination
fee of $1,450,000 or reimburse Parent and Merger Sub for their transaction
expenses up to $700,000, and (2) Parent may be obligated to pay the Company a
termination fee of $815,000.

In connection with the execution of the Merger Agreement, certain officers and
directors of the Company holding approximately 28% of the outstanding shares
of common stock of the Company entered into a voting agreement with Parent and
Merger Sub, in which such officers and directors agreed to vote their
respective shares of Company common stock in favor of the Merger.

The Parent has received commitment letters pursuant to which (1) CIT Lending
Services Corporation has agreed, on terms and subject to the conditions in the
commitment letter, to provide a $35,000,000 first-lien senior secured credit
facility in connection with the Merger and the other transactions contemplated
by the Merger Agreement, (2) CIT CRE, LLC has agreed, on the terms and subject
to the conditions in the commitment letter, to purchase the Company's real
property for $18,370,000 in cash as a source of funds required to consummate
the Merger and to lease such real property back to the Company, (3) Sankaty
Advisors, LLC has agreed, on the terms and subject to the conditions in the
commitment letter, to provide an $18,000,000 second-lien subordinated term
loan facility in connection with the Merger and the other transactions
contemplated by the Merger Agreement and (4) Sorenson Capital Partners, L.P.
has agreed, on the terms and subject to the conditions in the commitment
letter, to invest up to $22,500,000 in cash as a source of funds required to
consummate the Merger and the other transactions contemplated by the Merger
Agreement.

In the event that the shareholders approve the Merger Agreement, all stock
options would immediately vest which would result in the Company recognizing
$595,000 in stock option expense.

Pursuant to the Company's entering into the Merger Agreement on May 2, 2007,
the Company was in violation of one of the covenants in its Loan with Zions
First National Bank.  The Company has received a waiver of this covenant
violation from Zions First National Bank dated May 16, 2007.  In addition, the
Company would again be in violation of one of the terms of this Loan upon
closing the transaction.  However, the Company has notified Zions First
National Bank of this expected event and anticipates being able to obtain a
waiver of this covenant.


ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISLOSURE

          None to report.

ITEM 9A.  CONTROLS AND PROCEDURES

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES.  Under the supervision and
with the participation of our management, including our Chief Executive
Officer and Chief Financial Officer, we evaluated the effectiveness of the
design and operation of our disclosure controls and procedures (as defined in
Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange
Act")).  Based upon that evaluation, the Chief Executive Officer and Chief
Financial Officer concluded that, as of the end of the period covered by this
report, our disclosure controls and procedures were effective.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING.  During the most recent
fiscal quarter ended March 31, 2007, there has been no change in our internal
control over financial reporting (as defined in Rule 13a-15(f) under the
Exchange Act) that has materially affected, or is reasonably likely to
materially affect, our internal control over financial reporting.

ITEM 9B.  OTHER INFORMATION

          None to report.


                                   PART III

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE


     The following table sets forth certain information with respect to our
directors and executive officers as of March 31, 2007.

                               DIRECTOR OR OFFICER
        NAME           AGE     POSITION WITH THE COMPANY
--------------------   ---     ---------------------------------------
Gregory L. Wilson      59      Chairman of the Board
Bradley T Nielson      45      President and Chief Executive Officer
Paul R. Killpack       38      Chief Financial Officer and Corporate Treasurer
Gregory D. Dye         47      Corporate Secretary
Ralph E. Crump         83      Director
Peter Najar            57      Director
C. Lewis Wilson        66      Director
Hal B. Heaton          56      Director

     Officers are appointed by and serve at the discretion of the Board of
Directors.  Each director holds office until the next Annual Meeting of
shareholders or until his successor has been duly elected and qualified.
Gregory L. Wilson and C. Lewis Wilson are brothers.  Ralph E. Crump is the
father-in-law of Peter Najar.  All of our executive officers devote full time
to their duties.  Non-management directors devote such time as is necessary to
carry out their responsibilities.

     The following is a description of the business experience of each of our
directors and executive officers.

     GREGORY L. WILSON is our founder and has been a director since our
inception in September 1987.  He served as the President and Chief Executive
Officer from the Company's inception in September 1987 to May 2002.  He has
served as Chairman of the Board since March 1988.  Mr. Wilson also served as
the Treasurer from September 1993 to August 1995.  From 1982 until 1987, Mr.
Wilson was President of Church Furnishings, Inc., in Provo, Utah.  He is
currently a director of Stratasys, Inc. (Nasdaq), and Design Imaging, LLC.  He
earned a Bachelor of Arts Degree in Economics from Brigham Young University
and a Masters of Business Administration Degree from Indiana University.

     BRADLEY T NIELSON has served as our President and Chief Executive Officer
since May 2002.  He was the Chief Financial Officer from March 1994 to May
2002, and Chief Operating Officer from August 1998 to May 2002.  He served as
Corporate Secretary from January 1998 to August 1998.  From August 1992 to
March 1994, Mr. Nielson was the Vice President - Finance for Pinnacle Micro,
Inc.  From January 1991 to August 1992, he was a management consultant for
Price Waterhouse's National Manufacturing Management Consulting Group.  He was
employed by Ernst & Young from June 1985 to January 1991.  Mr. Nielson
graduated summa cum laude with a Bachelor of Science Degree in Accounting from
Brigham Young University.  Mr. Nielson is Certified in Production and
Inventory Management.  He is also a Certified Public Accountant, a Certified
Management Accountant and is Certified in Financial Management.

     PAUL R. KILLPACK has served as our Chief Financial Officer since May
2002.  He has served as Treasurer since August 1998.  He joined the Company in
April 1997 and served as the Controller prior to being named Treasurer.  Mr.
Killpack graduated from Brigham Young University with a Masters of Business
Administration Degree and a Bachelor of Science Degree in Mechanical
Engineering.  He is a Certified Management Accountant and is Certified in
Financial Management.

     GREGORY D. DYE has served as our Corporate Secretary since August 1998.
He joined the Company in August 1997 and served as an engineer, trainer and
quality manager prior to being named Corporate Secretary.   He is currently
serving as Vice-President of Manufacturing at Mity-Lite, Inc.  From May 1985
to July 1997, he was a project manager, scheduler, floor manager and HR/Safety
manager for Woodgrain Millwork, Inc.  Mr. Dye graduated from Utah State
University with a Bachelors Degree in Business/Production Management.

     RALPH E. CRUMP has been a director since March 1988.  Mr. Crump is
President of Crump Industrial Group, an investment firm located in Trumbull,
Connecticut.  He is a founder and director of Stratasys, Inc. (Nasdaq).  He
was also a founder, director and chairman of Structural Instrumentation, Inc.
Mr. Crump was a founder and director of Osmonics, Inc. which merged in 2003
with General Electric  (NYSE).  From 1962 until 1987, Mr. Crump was the
President and Chairman of Frigitronics, Inc. (NYSE).  Mr. Crump is also a
Trustee of the Alumni Foundation of UCLA and is overseer for the Thayer
Engineering School at Dartmouth College.  He received a Bachelor of Science
Degree in Engineering from UCLA and a Bachelor of Science Degree in Marine
Engineering from the U. S. Merchant Marine Academy.  Mr. Crump is a licensed
professional mechanical engineer by examination.  Mr. Crump is a member of the
Audit, Compensation, and Nominations Committees.  He chairs the Compensation
Committee.

     PETER NAJAR has been a director since March 1988.  Mr. Najar has been a
sales engineer employed by Lange Sales, Inc. in Littleton, Colorado from
November 1981 to the present.  From 1977 to 1981, Mr. Najar was the National
Technical Director for Head Ski Co.  Mr. Najar is a member of the  Audit,
Compensation, and Nominations Committees.  He chairs the Nominations
Committee.

     C. LEWIS WILSON has been a director since May 1991.  Since 1996, Mr.
Wilson, a licensed professional engineer, has served as the Chairman and Chief
Executive Officer of Heath Engineering Company, a consulting engineering firm
based in Salt Lake City, Utah.  From 1987 to 1996, Mr. Wilson was the
President of Heath Engineering Company.  He received a Bachelor of Engineering
Sciences Degree in Mechanical Engineering from Brigham Young University and a
Masters of Mechanical Engineering Degree from Purdue University.  Mr. Wilson
is a published technical author and has been an Adjunct Professor of
Mechanical Engineering at the University of New Mexico, Brigham Young
University and the University of Utah.

     HAL B. HEATON has been a director since May 2001. He is currently the
Denny Brown Professor of Business Management at Brigham Young University's
Marriott School of Management.  He has served as a professor at Brigham Young
University from 1982 to 1988 and from 1990 to present.  From 1988 to 1990, he
was a visiting associate professor of finance at Harvard University, where he
taught corporate finance and advanced capital markets courses in Harvard's
Master of Business Administration program.  He also serves as a director for
C2 Technologies (OTC), formerly Acceris Incorporated.  He received a Ph.D. in
Finance and a Masters Degree in Economics from Stanford University.  He
received his Masters of Business Administration and a Bachelors Degree in
Computer Science and Mathematics from Brigham Young University.  Mr. Heaton is
a member of the Audit, Compensation, and Nominations Committees.  He chairs
the Audit Committee.

AUDIT COMMITTEE

The Audit Committee consists of Hal B. Heaton, Ralph E. Crump and Peter Najar,
each of whom is an Independent Director.  The Audit Committee functions
pursuant to a written charter adopted by the Company' Board of Directors.

The Board of Directors of the Company has determined that each of Hal B.
Heaton, Chair of the Audit Committee, and Audit Committee member Ralph E.
Crump is an audit committee financial expert as defined by Item 407(d) of
Regulations S-K of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") and is independent within the meaning of Item 7(d)(3)(iv) of
Schedule 14A of the Exchange Act.  The Board of Directors of the Company has
designated Hal B. Heaton, Chair of the Audit Committee as its audit committee
financial expert.

CODE OF ETHICS

The Company has adopted a code of business conduct and ethics for directors,
officers and executives.  The Code of Ethics is available on the Company's
website at www.mityinc.com.  Shareholders may request a free copy of the Code
of Ethics from the Company at MITY Enterprises, Inc., Attn: Investor
Relations, 1301 West 400 North, Orem, UT 84057.

SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Securities Exchange Act of 1934, as amended, requires our
officers and directors and persons who own beneficially more than 10 percent
of a registered class of the Company's equity securities to file with the
Securities and Exchange Commission and Nasdaq initial reports of ownership and
reports of changes in ownership of the Company's equity securities.  Officers,
directors and greater than 10 percent beneficial owners are required to
furnish us with copies of all Section 16(a) reports they file.  Based solely
upon a review of the copies of such reports furnished to us or written
representations that no other reports were required, the Company believes that
the directors, officers, and greater than 10 percent shareholders have timely
filed all necessary Forms 3, 4 and 5, for the fiscal year ended March 31,
2006.


ITEM 11.  EXECUTIVE COMPENSATION

                      COMPENSATION DISCUSSION AND ANALYSIS

The following discussion and analysis provides information regarding the
Company's executive compensation objectives and principles, procedures,
practices and decisions, and is provided to help give perspective to the
numbers and narratives that follow in the tables in this section.  This
discussion focuses on the Company's objectives, principles, practices and
decisions with regards to the compensation of the following named executive
officers of the Company (the "Named Executive Officers"):

     Gregory L. Wilson, Chairman of the Board
     Bradley T Nielson, President and Chief Executive Officer
     Paul R. Killpack, Chief Financial Officer and Treasurer
     Gregory D. Dye, Corporate Secretary

EXECUTIVE COMPENSATION OBJECTIVES

The Company's philosophy is that compensation paid to executive officers
should be closely aligned with the values, objectives and performance of the
Company on both a short- and long-term basis.  The Company's executive
compensation program is designed to achieve the following objectives:

   - Attract and retain highly qualified individuals who are capable of making
significant contributions to the long-term success of the Company;
   - Reward executive officers for long-term strategic management and the
enhancement of shareholder value; and
   - Promote a performance-oriented environment that encourages Company and
individual achievement.

EXECUTIVE COMPENSATION PROCEDURES

In an effort to attain the Company's executive compensation objectives, the
Company has established and implemented the following procedures.

     ROLE OF THE COMPENSATION COMMITTEE.   The Compensation Committee has
responsibility for establishing and monitoring the executive compensation
programs of the Company and for making decisions regarding the compensation of
the Named Executive Officers.  The agenda for meetings of the Compensation
Committee is determined by the Chairman of the Compensation Committee, in
consultation with the Chief Executive Officer of the Company.   Compensation
Committee meetings are often attended by the Chief Executive Officer.  The
Compensation Committee also meets in executive session.  In determining
compensation of the Named Executive Officers, the Compensation Committee
reviews data which it believes is representative of the institutional
furniture industry as well as other similar sized publicly traded companies in
the same geographic area, primarily by reviewing public disclosure of other
public companies, as filed with the U.S. Securities and Exchange Commission.
The Compensation Committee considers, among other factors, the Company's
performance and relative shareholder return, the value of similar incentive
awards to Chief Executive Officers at comparable companies, the awards given
to the Chief Executive Officer in past years, and other factors considered
relevant by the Committee.   The Compensation Committee attempts to benchmark
with other local companies with similar annual revenue, size and other
factors.  The Compensation Committee believes these are the companies with
whom the Company is most likely to compete to attract and retain senior
executives.  Such benchmark companies include: Weider Nutritional
International Inc, Nutraceutical International, 1-800 Contacts Inc., FX Energy
Inc, iMergent Inc., Utah Medical Products Inc., Sonic Innovations Inc., SCO,
Zevex International Inc., Evans & Sutherland Computer Corp, UCN, Sento Corp,
and Security National Financial.

     The Compensation Committee sets the compensation package of the Chief
Executive Officer.  The Compensation Committee also reviews the
recommendations of the Chief Executive Officer with respect to the
compensation of the other Named Executive Officers and, after reviewing such
recommendations, generally approves the compensation of the other Named
Executive Officers.  The Compensation Committee also monitors, administers and
approves awards under the Company's various incentive compensation plans for
all levels within the Company, including awards under the Company's 2006
Long-Term Incentive Plan.

     The Compensation Committee typically meets toward the end end of the
Company's fiscal year to review base salaries of the Named Executive Officers
for the coming year and to consider annual incentive bonus awards for the
previous year for the Named Executive Officers.  At that meeting, the
Compensation Committee also reviews the status of long-term incentives
available to the Named Executive Officers (historically limited to options to
purchase shares of Common Stock) and considers whether any additional
long-term incentive awards are appropriate.  The Compensation Committee
reviews and approves bonus and merit increase recommendations.

     The Compensation Committee relies on its experience and judgment in
making executive compensation decisions after reviewing the performance of the
Company for the applicable fiscal year and evaluating the executive's
performance and responsibilities with the Company, and current compensation
arrangements.  The compensation program for the Named Executive Officers and
the Compensation Committee assessment process are designed to be flexible so
as to better respond to the evolving business environment and individual
circumstances.

     ROLE OF CONSULTANTS.  The Company and the Compensation Committee has not
engaged the services of compensation consultants, but either or both may do so
upon a case-by-case basis as circumstances warrant.

EXECUTIVE COMPENSATION PROGRAM

The following components of the Company's executive compensation program and
the policies that govern their implementation are outlined briefly below:
   -  Base Salary
   -  Incentive Bonus
   -  Long-Term Equity Awards
   -  Retirement Benefits
   -  Other Personal Benefits

     BASE SALARY.  On average, base salaries are set at levels lower than the
median base salary levels of executives of comparable positions within the
institutional furniture industry and geographical location.  Base salaries are
reviewed and adjusted periodically.

     INCENTIVE BONUS.  Cash bonuses for executive officers reflect both
individual and corporate performance during the year and the Company's success
in achieving its goals.  The performance criteria considered in determining
cash bonus awards vary in accordance with the position and responsibilities of
the individual being evaluated.  Financial and operational indicators,
combined with personal achievements that demonstrate a contribution to our
growth and profitability, are among the significant considerations in
determining bonuses for executive officers.

     LONG-TERM EQUITY AWARDS.  Long-term equity awards, in the form of stock
options are awarded for two reasons: 1) to ensure an incentive exists to
maximize shareholder wealth by tying executive compensation to share price
performance; and 2) to reward those executives making a long-term commitment
to the Company.  Stock options are granted by the Compensation Committee in
accordance with the 1997 and 2006 Stock Incentive Plan approved by
shareholders at not less than the closing price on the business day the
options are granted.  According to the plan's provisions, the Compensation
Committee determines the number of shares subject to each option, the option
price, the extent to which each option is exercisable from time to time during
the term of the option, and any other provisions with respect to such option.
Options are not assignable.

     The salary paid to the Company's chief executive officer, Bradley T
Nielson, for the fiscal year ended March 31, 2007 was determined in accordance
with the policies set forth above.  The Compensation Committee believes Mr.
Nielson's base salary is lower than the compensation paid by companies of
comparable size or within the industry.  The Company paid $153,000 in bonuses
to Mr. Nielson based on the Company's strategic, revenue, and operating profit
performance for the fiscal year ended March 31, 2007 compared to targeted
goals.  The Compensation Committee also awarded Mr. Nielson 30,000 incentive
stock options at an exercise price of $17.05 during the fiscal year ended
March 31, 2007 based upon performance and the fully vested state of Mr.
Nielson's existing stock options.

     For the fiscal year ending March 31, 2008, the chief executive officer
will be eligible to receive the full amount of the targeted incentive bonus if
the Company achieves goals established by the Compensation Committee described
above.  In addition, the Compensation Committee may declare and pay to the
chief executive officer additional bonus amounts in recognition of exceptional
performance.

     For the fiscal year ending March 31, 2008, the other executive officers
will be eligible to receive the full amount of their targeted incentive
bonuses if the Company achieves goals established by the Compensation
Committee and the Company described above.  In addition, the Compensation
Committee may in its discretion declare and pay to the executive officers
additional bonus amounts in recognition of exceptional performance.

     Incentive bonus amounts earned by the executive officers for fiscal 2007
are reported under the caption heading "Bonus" in the Summary Compensation
Table that appears below.

     RETIREMENT BENEFITS. The Company's policy is to provide an attractive
benefit package to all employees.  Executive officers of the Company are
generally eligible to participate, on the terms and conditions applicable to
all eligible employees of the Company, in the Mity-Lite, Inc. 401(k) Profit
Sharing Plan, a broad-based, tax-qualified contributory savings and profit
sharing plan (the "401(k) Plan").

     The Company and its subsidiaries do not maintain any other pension or
retirement plans for the Named Executive Officers.

     OTHER PERSONAL BENEFITS.  The Company also provides other traditional
welfare benefits and limited perquisites to the Named Executive Officers in
order to achieve a competitive pay package as detailed in the Summary
Compensation Table below.  The Compensation Committee believes that those
benefits are reasonable, competitive and consistent with the Company's overall
executive compensation objectives.  Those benefits consist primarily of
Company-paid premiums for health and life insurance, and vehicle and
educational reimbusements.

DEDUCTABILITY OF EXECUTIVE COMPENSATION

     Section 162(m) of the Internal Revenue Code of 1986, as amended (the
"Code"), imposes a $1 million annual limit on the amount that a public company
may deduct for compensation paid to the company's Chief Executive Officer
during a tax year or to any of the company's four other most highly
compensated executive officers who are still employed at the end of the tax
year.  The limit does not apply to compensation that meets the requirements of
Code Section 162(m) for "qualified performance-based" compensation (i.e.,
compensation paid only if the executive meets pre-established, objective goals
based upon performance criteria approved by the Company's shareholders).

     The Compensation Committee reviews and considers the deductibility of
executive compensation under Section 162(m) of the Code.  In certain
situations, the Compensation Committee may approve compensation that will not
meet the requirements of Code Section 162(m) in order to ensure competitive
levels of total compensation for its executive officers.  No executive
officer's compensation in fiscal 2007 exceeded the $1 million deduction limit.



              EXECUTIVE COMPENSATION TABLES AND DISCUSSION

     The following table sets forth the annual and long-term compensation
awards to each of the Company's Named Executive Officers for services in all
capacities to the Company for the fiscal year ended March 31, 2007.

<TABLE>
<CAPTION>

                     SUMMARY COMPENSATION TABLE

<S>                    <C>     <C>       <C>      <C>     <C>          <C>           <C>
(a)                    (b)     (c)        (d)       (e)      (f)          (g)
        (h)

                                                          Non-Equity
                                                          Incentive     All
                                                  Option  Plan          Other
                      Fiscal   Salary    Bonus    Awards  Compensation  Compensation  Total
Name and Position       Year      ($)    ($)(1)    ($)(2) ($)           ($)(3)         ($)
---------------------  -----   -------   -------  ------- ------------  ------------  ------
Gregory L. Wilson,
Chairman of the Board   2007    89,000      -        -       -          43,900       132,900

Bradley T Nielson,
President and Chief
Executive Officer       2007    84,000   153,000   23,600    -          12,500        273,100

Paul R. Killpack, Chief
Financial Officer and
Corporate Treasurer     2007    84,000    56,500   21,200    -           3,600        165,300

Gregory D. Dye,
Corporate Secretary     2007    84,000    46,400   32,800    -           3,600        166,800

</TABLE>

(1)     During the reported period, bonuses were awarded annually at the
discretion of the Board of Directors to the Named Executive Officers and
certain other officers and Company personnel.  Bonuses are awarded based on
both individual and corporate performance during the year and the level of
success in achieving goals.  The Board is not obligated to award bonuses.

(2)     The amounts in column (e) reflect the dollar amount recognized for
financial statement reporting purposes for the year ended March 31, 2007, in
accordance with SFAS 123(R) of awards of stock options granted pursuant to the
Company's long-term incentive plans, and thus may include amounts from awards
granted in and prior to fiscal 2007.  Assumptions used in the calculation of
these amounts are included in footnotes to the Company's audited consolidated
financial statements for the year ended March 31, 2007, included in this
Annual Report on Form 10-K.


(3)     Amounts under the column heading "All Other Compensation" represent
matching contributions made by the Company under our 401(k) defined
contribution plan, the value of personal use of Company-owned vehicles, and
other miscellaneous compensation.  Matching contributions to the 401(k) plan
for Mr. Wilson, Mr. Nielson, Mr. Killpack, and Mr. Dye totaled $2,500, $6,500,
$3,600, and $3,600 respectively.  The value of personal use of Company-owned
vehicles and other miscellaneous compensation for Mr. Wilson, Mr. Nielson, Mr.
Killpack, and Mr. Dye totaled $41,400, $6,000, $0, and $0, respectively.  Mr.
Wilson received $39,000 for serving on the Board of Directors of Broda
Enterprises, Inc. which is included in miscellaneous compensation.


GRANTS OF PLAN-BASED AWARDS

     The following table sets forth information concerning equity-based plan
awards granted to the Named Executive Officers during the fiscal year ended
March 31, 2007.  No payouts were made under non-equity incentive plan awards
during the fiscal year ended March 31, 2007.


                               ALL OTHER         EXERCISE
                            OPTION AWARDS:       PRICE OF      GRANT DATE
                           NUMBER OF SECURITIES   OPTION       FAIR VALUE
                    GRANT   UNDERLYING OPTIONS    AWARDS        OF OPTION
NAME                DATE    GRANTED (#)(1)      ($/SH)(2)    AWARDS ($)(3)
-----------------  -------  -----------------   ---------      ----------
Bradley T Nielson  8/15/06       30,000           17.05          157,100
Paul R. Killpack   8/15/06       10,000           17.05           52,400
Gregory D. Dye     8/15/06       10,000           17.05           52,400

(1) Stock options vest annually on a straight line basis over three years from
the date of grant.
(2) The exercise price per share under each stock option is the market closing
price on the date of grant.
(3) The fair value of options was computed under SFAS 123(R).  Generally, the
Company expenses these amounts in its financial statements over the term of
the award's vesting schedule.

EMPLOYMENT AGREEMENTS

The Company has employment agreements with each of its Named Executive
Officers.  These agreements are for a 5 year term beginning on June 23, 2006
in the case of Mr. Nielson, Mr. Killpack and Mr. Dye and beginning on May 21,
2003 in the case of Mr. Wilson.  The annual base salary set forth is for
$85,000 to be reviewed annually by the Board of Directors and increased or
decreased, at the Board's sole discretion, depending upon the Company's
success.  The agreements provide for participation in the Company's bonus plan
at the Board's sole discretion.  Per the terms of the agreement, the Company
has the right, on written notice, to terminate employment immediately at any
time for cause without any obligation for payment.  The Company also has the
right to terminate employment at any time without cause provided the Company
shall be obligated to pay the Named Executive Officers base salary for a
period of 180 days and shall not include any amounts related to any bonus plan
of the Company.

OUTSTANDING EQUITY AWARDS AT YEAR-END

     The following table provides information on the holdings of stock options
and other stock awards by the Named Executive Officers as of March 31, 2007.

                          Number of     Number of
                          Securities    Securities
                          Underlying    Underlying                   Option
                          Unexercised   Unexercised      Option      Expir-
                  Grant   Options       Options          Exercise    ation
Name              Date    Exercisable   Unexercisable(1) Price ($)   Date
----------------  ------- ------------- ---------------- ----------- -------
Bradley T Nielson 5/13/97   15,000                         7.75      8/11/07
                  1/27/99   22,500                         9.92      4/27/09
                 11/30/00   10,000                         6.81       3/1/11
                  1/30/01   20,000                         6.81       5/1/11
                  8/15/06                 30,000          17.05     11/13/16

Paul R. Killpack  5/13/98   15,000                        11.75      8/11/08
                  1/27/99    4,500                         9.92      4/27/09
                  1/30/01    4,000                         6.81       5/1/11
                   8/6/02   10,000                        12.10      11/4/12
                  1/19/04    6,000         2,000          17.90      4/19/14
                  8/15/06                 10,000          17.05     11/13/16

Gregory D. Dye    1/27/99   15,000                         9.92      4/27/09
                  1/30/01    4,500                         6.81       5/1/11
                  1/19/04   11,250         3,750          17.90      4/19/14
                  8/15/06                 10,000          17.05      11/13/16

(1) Unvested options vest as follows: Bradley T Nielson options dated 8/15/06
vest as to 10,000 shares on each of 8/15/07, 8/15/08 and 8/15/09; Paul R.
Killpack options dated 1/19/04 vest on 1/19/08 and options dated 8/15/06 vest
as to 3,333 shares on 8/15/07, 3,333 shares on 8/15/08, and 3,334 shares on
8/15/09; Gregory D. Dye options dated 1/19/04 vest on 1/19/08 and options
dated 8/15/076 vest as to 3,333 shares on 8/15/07, 3,333 shares on 8/15/08 and
3,334 shares on 8/15/09.

OPTION EXERCISES AND STOCK VESTED

     No options were exercised during the fiscal year ended March 31, 2007 by
any of the Named Executive Officers.

NONQUALIFIED DEFERRED COMPENSATION

     The Company does not have any nonqualified deferred compensation plans.

POTENTIAL PAYMENTS UPON TERMINATION OR CHANGE OF CONTROL

     EMPLOYMENT AGREEMENTS.  The Board of Directors has approved Employment
Agreements for each of the Named Executive Officers.  These Employment
Agreements provide for six months of base salary in the event of termination
of employment under certain conditions.

     ACCELERATED STOCK OPTION VESTING UPON A CHANGE IN CONTROL.  Under the
Company's 1996 and 2006 Stock Option Plans, all otherwise unvested stock
options held by the Named Executive Officers becomes fully vested upon a
change of control.  A change of control is defined as any of the following
events if they occur after the date of grant of this option and after the
class of stock then subject to this option becomes registered under the 1934
Act:  the direct or indirect beneficial ownership (within the meaning of
Section 13(d) of the 1934 Act and Regulations 13D through G thereunder) of
thirty percent (30%) or more of the class of securities then subject to this
option is acquired or becomes held by any person or group of persons (within
the meaning of Section 13(d)(3) of the 1934 Act), or the sale, mortgage, lease
or other transfer in one or more transactions not in the ordinary course of
the Company's business or assets or earning power constituting more than fifty
percent (50%) of the assets or earning power of the Company and its Related
Corporations (taken as a whole) to any such person or group of persons.

AMOUNTS PAYABLE UPON A CHANGE OF CONTROL

     The following table shows for each Named Executive Officer the unrealized
intrinsic value of his otherwise unvested stock options on March 31, 2007 that
would have vested had a change of control occurred on that date, calculated by
multiplying the number of underlying shares by the closing price of Company
stock on the last trading day of fiscal 2007 and by then subtracting the
applicable option exercise price:

(a)                         (b)
                      INTRINSIC VALUE
                         OF STOCK
NAME                    OPTIONS ($)
--------------------- ------------------
Bradley T Nielson         58,500
Paul R. Killpack          21,900
Gregory D. Dye            23,625

AMOUNTS PAYABLE UPON TERMINATION OF EMPLOYMENT

     TERMINATION WITHOUT CAUSE.  The following table shows the amounts that
would be payable to each Named Executive Officer if employment with the
Company was terminated without cause on March 31, 2007.  No other benefits
would be contractually required.

(a)                       (b)               (f)
                         SALARY
NAME                 CONTINUATION ($)     TOTAL ($)
-------------------  ----------------  --------------
Gregory L. Wilson        45,000           45,000
Bradley T Nielson        42,500           42,500
Paul R. Killpack         42,500           42,500
Gregory D. Dye           42,500           42,500


DIRECTOR COMPENSATION

The only director that the Company compensates is Hal B. Heaton who is paid
$1,500 for each board meeting that he participates in.

The following table summarizes the compensation paid by the Company to non-
employee directors for the fiscal year ended March 31, 2007.










(a)               (b)          ( c)          (d)          (e)          (f)
              FEES EARNED   OPTION      NON-EQUITY     ALL OTHER     TOTAL
              OR PAID IN    AWARDS    INCENTIVE PLAN COMPENSATION COMPENSATION
NAME            CASH ($)      ($)     COMPENSATION($)     ($)          ($)
------------- ----------- ----------- --------------- ----------- ------------
Hal B. Heaton    $6,000         -           -               -          $6,000


COMPENSATION COMMITTEE REPORT

     The Compensation Committee Report establishes our executive compensation
policies and the basis for the compensation paid to our executive officers,
including our Chief Executive Officer, during the fiscal year ended March 31,
2007.

COMPOSITION AND RESPONSIBILITY OF COMPENSATION COMMITTEE

     The Compensation Committee is responsible for reviewing and approving our
compensation policies and practices, for reviewing and approving the
remuneration of the Company's directors and senior management, for succession
planning with respect to our senior executive positions and for administering
the Company's stock option plans.  The Compensation Committee bases its
recommendations on established policies and on the individual's and the
Company's performance.  None of the members of the Compensation Committee are
officers or employees of the Company or its subsidiaries.  All members of the
Compensation Committee are Independent Directors.

COMPENSATION PHILOSOPHY AND OBJECTIVES

     Our principal goal is to create value for our shareholders.  We believe
that officers and employees who advance that goal should have their
compensation aligned with the interests of shareholders.

     Our executive compensation philosophy is founded on four principal
objectives:  1)  to link the interests of executive officers with the short
and long-term interests of our shareholders;  2) to link executive
compensation to the performance of the Company and the individual;  3) to
leverage performance through emphasis on variable compensation;  and 4)  to
compensate executive officers at a level and in a manner that ensures we are
capable of attracting, motivating and retaining individuals with exceptional
executive skills.

     The majority of the compensation of our executive officers is comprised
of three components - salary, annual cash bonuses and long-term incentives in
the form of stock options - and is structured to be competitive within the
industry and geographic location.  Cash bonuses and stock options are directly
linked to our performance and the individual's contribution to our strategic
goals.  The Compensation Committee considers our record of financial
performance in all of its compensation reviews.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS

The following table sets forth security ownership information as of June 28,
2007 (i) for persons known by us to own beneficially more than five percent of
MITY's common stock, (ii) for each director or director nominee and named
executive officer, and (iii) for all named executive officers and directors as
a group.






                                             NUMBER OF SHARES    PERCENT OF
NAME AND ADDRESS OF BENEFICIAL OWNER(1)   BENEFICIALLY OWNED(2)   CLASS(3)
----------------------------------------  ---------------------  ----------
Gregory L. and Kathleen Wilson(4)                738,990           21.13%
Royce & Associates, LLC(5)                       330,200            9.44
Bares Capital Management, Inc.(6)                266,490            7.62
Dalton, Greiner, Hartman, Maher & Co LLC(7)      172,795            4.94
Bradley T Nielson(8)                             139,500            3.99
Peter Najar and Constance S. Crump(9)            119,107            3.41
Paul R. Killpack(10)                              41,606            1.19
C. Lewis Wilson(11)                               37,354            1.07
Gregory D. Dye(12)                                34,152            0.98
Hal B. Heaton(13)                                 16,000            0.46
All officers and directors as a group
  (7 persons)                                  1,126,709           32.22

(1) The address for Gregory L. and Kathleen Wilson, Bradley T Nielson, Paul R.
Killpack, and Gregory D. Dye is 1301 West 400 North, Orem, Utah 84057.  The
address for Royce & Associates, LLC is 1414 Avenue of the Americas, New York,
NY 10019.  The address for Bares Capital Management, Inc. is 221 W 6th Street,
Suite 1225, Austin, TX  78701.  The address for Dalton, Greiner, Hartman,
Maher & Co LLC is 565 Fifth Avenue, Suite 2101, New York, NY  10017.  The
address for Peter Najar and Constance S. Crump is 9900 Phillips Road,
Lafayette, Colorado 80026 The address for C. Lewis Wilson is 377 West 800
North, Salt Lake City, Utah 84103.  The address for Hal B. Heaton is 1441
North 1450 East, Provo, Utah 84604.

(2) The number of shares beneficially owned includes shares of MITY's common
stock for which the persons set forth in this table have or share either
investment or voting power.  The number of shares beneficially owned also
includes shares that any of the named persons has the right to acquire within
60 days of June 28, 2007 upon exercise of the stock options granted to them
under the Company's 1997 and 2006 Stock Incentive Plans.

(3) All percentages have been calculated to include 3,337,614 shares of common
stock outstanding on June 28, 2007, and 203,500 options exercisable by the
named individuals within 60 days following June 28, 2007.

(4) Includes 493,264 shares owned individually by Mr. Wilson, 234,740 shares
owned individually by his wife, Kathleen Wilson, and 10,986 shares held by
Kathleen Wilson as the custodian for the Wilson children.  Gregory and
Kathleen Wilson disclaim beneficial ownership of the shares held by Kathleen
Wilson as custodian for their children.

(5) Information is based on Form 13F, dated May 9, 2007, filed with the SEC by
Royce & Associates, LLC for the period ended March 31, 2007.

(6) Information is based on Form 13F, dated May 14, 2007, filed with the SEC
by Bares Capital Management, Inc. for the period ended March 31, 2007.

(7) Information is based on Form 13F, dated May 3, 2007, filed with the SEC by
Dalton, Greiner, Hartman, Maher & Co LLC for the period ended March 31, 2007.

(8) Includes 34,100 shares owned individually by the Bradley T Nielson Trust,
27,900 shares owned by the Kellie Joan Nielson Trust and 77,500 shares that
Mr. Nielson had the right to acquire within 60 days following June 28, 2007
upon exercise of options granted to him.  Mr. Nielson is the trustee of the
Bradley T Nielson Trust.  Kellie Joan Nielson is the trustee of the Kellie
Joan Nielson Trust and is the wife of Mr. Nielson.  Mr. Nielson disclaims
beneficial ownership of the shares held by Kellie Joan Nielson.

(9) Includes 95,524 shares owned individually by Mr. Najar, 17,583 shares
owned individually by Constance S. Crump (wife of Mr. Najar), and 6,000 shares
held in trust for certain young relatives with Constance S. Crump acting as
custodian.  Mr. Najar disclaims beneficial ownership of the shares held by
Constance S. Crump as custodian.

(10) Includes 773 shares owned by Mr. Killpack through MITY's 401(k) Plan and
40,833 shares that Mr. Killpack had the right to acquire within 60 days
following June 28, 2007 upon exercise of options granted to him.

(11) Includes 9,170 shares owned individually by Mr. Wilson, 18,114 shares
owned jointly by Mr. Wilson and his wife, Grace Wilson, 9,170 shares owned
individually by Grace Wilson, and 900 shares held by Mr. Wilson as custodian
for the Wilson children.

(12) Includes 3,819 shares owned by Mr. Dye through MITY's 401(k) Plan and
30,333 shares that Mr. Dye had the right to acquire within 60 days following
June 28, 2007 upon exercise of options granted to him.

(13) Includes 6,000 shares owned individually by Mr. Heaton and 10,000 shares
that Mr. Heaton had the right to acquire within 60 days following June 28,
2007 upon exercise of options granted to him.

The following table presents information about the Company's common stock that
may be issued upon the exercise of options, warrants and rights under existing
equity compensation plans at March 31, 2007:


                         EQUITY COMPENSATION PLAN INFORMATION

                            Number of      Weighted-      Number of securities
                            securities     average        remaining available
                            to be          exercise       for future issuance
                            issued upon    price of       under equity compen-
                            exercise of    outstanding    sation plans (exclu-
                            outstanding    options,       ding securities
                            options,       warrants       reflected in column
Plan Category               and rights     and rights     (a))
--------------------------  ----------     -----------    ---------------
                                (a)            (b)                (c)
Equity compensation plans
 approved by security
 holders                      444,176        $13.22           226,000

Equity compensation plans
 not approved by security
 holders                         --             --               --
--------------------------  ----------     -----------    ---------------
Total                         444,176        $13.22           226,000
==========================  ===========    ===========    ===============


ITEM 13.  CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE

The Company has entered into indemnification agreements with each of the
officers and directors.  We have adopted policies that prohibit any loans to
officers, directors and 5 percent or more shareholders.  During the fiscal
year ended March 31, 2007, no such transactions occurred.  The Company
requires any related party transactions to be approved by the board of
directors.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FEES


                                   2007        2006
                                 --------    --------
Audit Fees  (a)                  $150,000    $122,000
Audit-Related Fees (b)             16,000      14,000
Tax Fees (c)                       30,000      20,000
All Other Fees (d)                  6,000        None
                                 --------    --------
Total Fees                       $201,000    $156,000


(a) Fees for audit services consisted of the audit of our annual consolidated
financial statements and reviews of our quarterly financial statements.
(b) Fees for audit related services in 2007 and 2006 consisted of the audit of
our employee benefit plan.
(c) Tax fees consisted of assistance with tax compliance, preparation of tax
returns, and tax consultation, planning and implementation services.
(d) Other fees consisted of fees for a consent and workpaper review costs.

PRE-APPROVAL OF FEES

     The Audit Committee has delegated to the Chair of the Audit Committee
authority to pre-approve audit-related and non-audit services not prohibited
by law to be performed by our independent auditors and associated fees.  The
Chair must report any decisions to pre-approve such audit-related or non-audit
related services and fees to the full Audit Committee at its next regular
meeting.  All of the fees for the fiscal years ended March 31, 2007 and 2006
were pre-approved.


                                   PART IV

ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)     The following documents are filed as part of this report:

     (1) All financial statements: See consolidated financial statement index
shown on page 30.

     (2) Consolidated financial statement schedule: Valuation and Qualifying
Accounts for the three fiscal years ended March 31, 2007

     (3) Exhibits are incorporated herein by reference or are filed with this
report as indicated below

                            INDEX TO EXHIBITS

EXHIBIT NO.                        DESCRIPTION

2.1

Contribution Agreement dated as of March 24, 1997 by and among Estate of
Chester E. Dekko, David Kebrdle, Dennis and Mary M. Kebrdle, Domenic and
Martha S. Federico, ChiCol Group, Inc., DO Group, Inc., Sican Corp., Sican II
Corp., DO Group Holding, Inc. and Mity-Lite, Inc. incorporated by reference to
the referenced exhibit number to the Company's Form 8-K dated March 31, 1997.

2.2

Stock Purchase Agreement dated as of March 13, 1997 between Mity-Lite, Inc.
and Xaio, Inc. incorporated by reference to the referenced exhibit number to
the Company's Form 8-K dated March 31, 1997.

2.3

Stock Purchase Agreement dated as of March 13, 1997 between Mity-Lite, Inc.
and Ellman Equities, Inc. incorporated by reference to the referenced exhibit
number to the Company's Form 8-K dated March 31, 1997.

2.4

Stock Purchase Agreement dated as of March 13, 1997 between Mity-Lite, Inc.
and Key Equity Capital Corporation incorporated by reference to the referenced
exhibit number to the Company's Form 8-K dated March 31, 1997.

2.5

Stock Purchase Agreement dated as of March 13, 1997 between Mity-Lite, Inc.
and National City Capital Corporation incorporated by reference to the
referenced exhibit number to the Company's Form 8-K dated March 31, 1997.

2.6

Stock Purchase Agreement dated as of March 13, 1997 between Mity-Lite, Inc.
and Cardinal Development Capital Fund I incorporated by reference to the
referenced exhibit number to the Company's Form 8-K dated March 31, 1997.

2.7

Term Loan Agreement dated as of March 24, 1997 between Mity-Lite, Inc. and
Sican Corp. incorporated by reference to the referenced exhibit number to the
Company's Form 8-K dated March 31, 1997.

2.8

Put Agreement dated as of March 24, 1997 by and among Mity-Lite, Inc. and
Dennis Kebrdle, David Kebrdle, Domenic Federico, ChiCol Group, Inc., Sican II
Corp., and DO Group, Inc. incorporated by reference to the referenced exhibit
number to the Company's Form 8-K dated March 31, 1997.

2.9

Stock Purchase Agreement dated as of November 20, 1998, by and among Mity-Lite
Acquisition Corp. and Stephen E. Brotherston, Glenn C. Brotherston, Ian D.
Brotherston, Margaret E. Brotherston and Sandra L. Brotherston incorporated by
reference to the referenced exhibit number to the Company's Form 8-K dated
November 25, 1998.

2.10

Asset Purchase Agreement dated as of April 9, 1999, by and among The
CenterCore Group, Inc., a Delaware Corporation, Fleet Capital Corporation, a
Rhode Island Corporation, and C Core, Inc., a Utah Corporation and wholly
owned subsidiary of Mity-Lite, Inc. incorporated by reference to the
referenced exhibit number to the Company's Form 8-K dated April 9, 1999.

2.11

Form of Assignment Agreement by and among BOCCC, Inc., a Utah Corporation and
wholly owned subsidiary of Mity-Lite, Inc., and various parties holding
subordinated debt instruments of The CenterCore Group, Inc.  This form of
Assignment Agreement is substantially the same agreement that was signed by
BOCCC, Inc. and nine different subordinated debt holders incorporated by
reference to the referenced exhibit number to the Company's Form 8-K dated
April 9, 1999.

2.12

Stock Purchase Agreement, By and Among DO Group Holding, Inc., David Kebrdle,
Mary M. Kebrdle, Martha S. Federico, Estate of Chester E. Dekko, Dennis
Kebrdle, Domenic Federico and Mity-Lite, Inc. dated March 17, 2000
incorporated by reference to the referenced exhibit number to the Company's
Form 8-K dated April 1, 2000.

2.13

Agreement and Plan of Merger dated May 2, 2007 by and among the Registrant, FP
Merger Sub, Inc., and MLE Holdings, Inc. incorporated by reference to the
referenced exhibit number to the Company's Form 8-K dated May 2, 2007.

3.1

Amended and Restated Articles of Incorporation of the Registrant incorporated
by reference to the referenced exhibit number to the Company's Registration
Statement on Form SB-2, Reg. No. 33-76758-D.

3.2

Amended and Restated Bylaws of the Registrant incorporated by reference to the
referenced exhibit number to the Company's Registration Statement on Form SB-
2, Reg. No. 33-76758-D.

3.3

First Amendment to the Amended and Restated Bylaws of Registrant incorporated
by reference to the referenced exhibit number to the Company's Registration
Statement on Form SB-2, Reg. No. 33-76758-D.

4.1

Form of Stock Certificate incorporated by reference to the referenced exhibit
number to the Company's Registration Statement on Form SB-2, Reg. No. 33-
76758-D.

10.1

Revolving Note dated March 16, 1992 and Revolving Loan Agreement dated March
16, 1992 between the Registrant and First Security Bank of Utah, N.A.
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.2

Modification Agreement dated March 16, 1993 between the Registrant and First
Security Bank of Utah, N.A. incorporated by reference to the referenced
exhibit number to the Company's Registration Statement on Form SB-2, Reg. No.
33-76758-D.

10.3

Lease Agreement dated November 1, 1993 between the Registrant and the Walter
M. and Orpha M. Lewis Family Trust incorporated by reference to the referenced
exhibit number to the Company's Registration Statement on Form SB-2, Reg. No.
33-76758-D.

10.4

Trademark License dated November 23, 1993 between the Registrant and R.D.
Werner Co., Inc. incorporated by reference to the referenced exhibit number to
the Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.5

Solicitation, Offer and Award Contract between the Registrant and the General
Services Administration Federal Supply Service dated January 27, 1992 (issued
March 6, 1990) and Amendments thereto dated January 27, 1992 (effective July
16, 1990), January 27, 1992 (effective December 1, 1990), January 27, 1992
(effective December 28, 1991) and the Revision of August 24, 1992 incorporated
by reference to the referenced exhibit number to the Company's Registration
Statement on Form SB-2, Reg. No. 33-76758-D.

10.6

Notice of Contract Award dated June 23, 1993 between the Registrant and the
Commonwealth of Virginia, Department of General Services Division of Purchases
and Supply incorporated by reference to the referenced exhibit number to the
Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.7

Agreement dated July 26, 1990 between the Registrant and the State of Utah,
Department of Administrative Services and Revisions thereto dated March 8,
1991, June 5, 1991, and May 19, 1992 and March 10, 1993 incorporated by
reference to the referenced exhibit number to the Company's Registration
Statement on Form SB-2, Reg. No. 33-76758-D.

10.8

Agreement dated December 17, 1991 between the Registrant and the Air Force
Nonappropriated Fund Purchasing Office incorporated by reference to the
referenced exhibit number to the Company's Registration Statement on Form SB-
2, Reg. No. 33-76758-D.

10.9

Purchasing Contract effective October 1, 1993 between the Registrant and The
Corporation of the Presiding Bishop of The Church of Jesus Christ of Latter-
Day Saints incorporated by reference to the referenced exhibit number to the
Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.10*

Employment Agreement with attached Proprietary Information Agreement dated
effective as of May 21, 1993 between Registrant and Gregory L. Wilson
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.11*

Employment Agreement with attached Proprietary Information Agreement dated
effective as of May 21, 1993 between Registrant and Stanley L. Pool
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.12*

Employment Agreement with attached Proprietary Information Agreement dated
effective as of May 21, 1993 between Registrant and Kenneth A. Law
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.13*

Employment Agreement with attached Proprietary Information Agreement dated
effective as of February 16, 1994 between Registrant and Brent Bonham
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.14*

Employment Agreement with attached Proprietary Information Agreement dated
effective as of February 16, 1994 between Registrant and Bradley T Nielson
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.15*

1990 Stock Option Plan, as amended and Form of Stock Option Agreements
incorporated by reference to the referenced exhibit number to the Company's
Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.16

Form of Indemnification Agreements between Registrant and officers and
directors of Registrant incorporated by reference to the referenced exhibit
number to the Company's Registration Statement on Form SB-2, Reg. No. 33-
76758-D.

10.17

Form of Lock-up Agreements with Shareholders incorporated by reference to the
referenced exhibit number to the Company's Registration Statement on Form SB-
2, Reg. No. 33-76758-D.

10.18

Form of Confidentiality Agreement entered into with employees of the
Registrant incorporated by reference to the referenced exhibit number to the
Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.19

Key-Man Insurance Policy between the Company and Chubb Sovereign Life
Insurance Company incorporated by reference to the referenced exhibit number
to the Company's Registration Statement on Form SB-2, Reg. No. 33-76758-D.

10.20

Distributor Agreement between the Company and Sebel Furniture Limited dated
February 14, 1994 incorporated by reference to the referenced exhibit number
to the Company's Form 10-KSB for the year ended March 31, 1994.

10.21

Lease Agreement dated March 31, 1995 between the Company and the Walter M. and
Orpha M. Lewis Family Trust incorporated by reference to the referenced
exhibit number to the Company's Form 10-KSB for the year ended March 31, 1995.

10.22

Exclusive Distributor Agreement between the Company and Mobilite International
Limited (aka Mity-Lite (Europe) Limited) incorporated by reference to the
referenced exhibit number to the Company's Form 10-KSB for the year ended
March 31, 1995.

10.23

Purchasing Contract effective October 1, 1995 between the Registrant and The
Corporation of the Presiding Bishop of The Church of Jesus Christ of Latter-
Day Saints incorporated by reference to the referenced exhibit number to the
Company's Form 10-QSB for the quarter ended December 31, 1995.

10.24

Promissory Note dated December 6, 1995 between the Registrant and Zions First
National Bank incorporated by reference to the referenced exhibit number to
the Company's Form 10-QSB for the quarter ended December 31, 1995.

10.25

Promissory Note dated October 27, 1995 between Registrant and First Security
Bank incorporated by reference to the referenced exhibit to the Company's Form
10-KSB for the year ended March 31, 1996.

10.26

Summary Plan Description and Basic Plan Document for the 1995 Mity-Lite,Inc.
Employee Retirement Plan incorporated by reference to the referenced exhibit
number to the Company's Form 10-KSB for the year ended March 31, 1996.

10.27

Promissory Note dated January 23, 1997  between the Registrant and Zions First
National Bank incorporated by reference to the referenced exhibit number to
the Company's Form 10-KSB for the year ended March 31, 1997.

10.28

Modification Agreement (dated October 27, 1996) to Promissory Note dated
October 27, 1995 between the Registrant and First Security Bank incorporated
by reference to the referenced exhibit number to the Company's Form 10-KSB for
the year ended March 31, 1997.

10.29

Lease Agreement Amendment dated October 31, 1996 between the Company and the
Walter M. and Orpha M. Lewis Family Trust incorporated by reference to the
referenced exhibit number to the Company's Form 10-KSB for the year ended
March 31, 1997.

10.30

Promissory Note dated December 15, 1997  between the Registrant and Zions
First National Bank incorporated by reference to the referenced exhibit number
to the Company's Form 10-KSB for the year ended March 31, 1998.

10.31

Modification Agreement (dated October 25, 1997) to Promissory Note dated
October 27, 1995 between the Registrant and First Security Bank incorporated
by reference to the referenced exhibit number to the Company's Form 10-KSB for
the year ended March 31, 1998.

10.32

1997 Stock Incentive Plan and Form of Agreements incorporated by reference to
the referenced exhibit number to the Company's Form 10-KSB for the year ended
March 31, 1998.

10.33

Promissory Note dated November 18, 1998 between the Registrant and Zions First
National Bank incorporated by reference to the referenced exhibit number to
the Company's Form 10-K for the year ended March 31, 1999.

10.34

Promissory Note dated May 26, 2000 between the Registrant and Zions First
National Bank incorporated by reference to the referenced exhibit number to
the Company's Form 10-K for the year ended March 31, 2000.

10.35*

Form of Employment Agreement between the Company and its Executive Officers
incorporated by reference to the referenced exhibit number to the Company's
Form 10-K for the year ended March 31, 2001.

10.36

2006 Stock Incentive Plan and Form of Agreements incorporated by reference to
the referenced exhibit number to the Company's Form 8-K dated August 3, 2006

10.37

Loan Agreement and Promissory Note dated August 21, 2006 between the
Registrant and Zions First National Bank incorporated by reference to the
referenced exhibit number to the Company's Form 8-K dated August 21, 2006

11.1

Statement Regarding Computation of Per Share Earnings.

21

Subsidiaries of Registrant.

31.1

Certification of Principal Executive Officer and CFO Pursuant to Rule 13a-
14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-
Oxley Act of 2002

32.1

Certification of Principal Executive Officer and CFO Pursuant to 18 U.S.C.
Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002

* These items represent a management contract or compensatory plan.


    Financial Statement Schedules - Schedule II - Valuation and Qualifying
Accounts

    All other schedules have been omitted because they are not required, not
applicable, or the information is otherwise set forth in the consolidated
financial statements or notes thereto.



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders
of Mity Enterprises, Inc.:
Orem, UT

We have audited the consolidated financial statements of MITY Enterprises,
Inc. and subsidiaries (the Company) as of March 31, 2007 and 2006, and for
each of the three years in the period ended March 31, 2007, and have issued
our report thereon dated June 12, 2007; such report is included elsewhere in
this  Form 10-K.  Our audits also included the consolidated financial
statement schedule of the Company listed in Item 15.  This consolidated
financial statement schedule is the responsibility of the Company's
management.  Our responsibility is to express an opinion based on our audits.
In our opinion, such consolidated financial statement schedule, when
considered in relation to the basic consolidated financial statements taken as
a whole, present fairly in all material respects the information set forth
therein.

DELOITTE & TOUCHE LLP

Salt Lake City, Utah
June 12, 2007













              MITY ENTERPRISES, INC. AND SUBSIDIARIES
          SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
         FOR THE YEARS ENDED MARCH 31, 2007, 2006 AND 2005

                                    Additions/
                                   (Reductions)
                                    Charged
                     Balance        or Credited
                     at             to Costs       Deductions     Balance
                     Beginning      and            from           at End
                     of Period      Expenses       Reserves       of Period
                     ----------     ----------     -----------    ----------
ACCOUNTS RECEIVABLE ALLOWANCE:

Year ended:
  March 31, 2007     $  140,000     $  106,000     $   32,000     $  214,000
  March 31, 2006        147,000         41,000         48,000        140,000
  March 31, 2005        168,000         24,000         45,000        147,000


INVENTORY RESERVES:

Year ended:
  March 31, 2007     $  225,000     $    8,000     $  130,000     $  103,000
  March 31, 2006        372,000         25,000     $  172,000        225,000
  March 31, 2005         31,000        341,000           -           372,000


RESERVES ON NOTES RECEIVABLE

Year Ended:
  March 31, 2007           -              -              -              -
  March 31, 2006     $   20,000     $  (20,000)          -              -
  March 31, 2005        150,000       (140,000)    $   10,000     $   20,000


ACCRUED WARRANTY

Year Ended:
  March 31, 2007     $  470,000     $  865,000     $ (850,000)    $  485,000
  March 31, 2006        439,000        900,000       (869,000)       470,000
  March 31, 2005        415,000        661,000       (637,000)       439,000




                                  SIGNATURES

     Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.


                                                MITY ENTERPRISES, INC.

                                             By:/s/ Paul R. Killpack
                                                --------------------------
                                                Paul R. Killpack, Chief
                                                Financial Officer (Principal
                                                Executive, Financial and
                                                Accounting Officer)
                                          Date: June 29, 2007


     Pursuant to the requirements of the Exchange Act, this report has been
signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated:


       SIGNATURE             TITLE                                   DATE

/s/ Gregory L. Wilson        Chairman of the Board and Director  June 29, 2007
---------------------------
Gregory L. Wilson


/s/ Paul R. Killpack         Chief Financial Officer (Principal  June 29, 2007
---------------------------  Executive, Financial and Accounting
Paul R. Killpack             Officer)


/s/ Ralph E. Crump           Director                            June 29, 2007
----------------------------
Ralph E. Crump


/s/ Peter Najar              Director                            June 29, 2007
----------------------------
Peter Najar


/s/ C. Lewis Wilson          Director                            June 29, 2007
----------------------------
C. Lewis Wilson


/s/ Hal B. Heaton            Director                            June 29, 2007
----------------------------
Hal B. Heaton