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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, 2006
                                    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:  None
       Securities registered pursuant to Section 12(g) of the Act:
                              Title of class
                      Common Stock, par value $.01
                    ------------------------------------
     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
<PAGE> 2
     The aggregate market value of the registrant's voting Common Stock held
by non-affiliates of the registrant was approximately $44,771,000 (computed
using the closing price of $17.01 per share of Common Stock on September 30,
2005 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 3,850,785 shares of the registrant's Common Stock, par value
$.01 per share, outstanding on May 23, 2006.
     Portions of the registrant's definitive Proxy Statement for the Annual
Meeting of Shareholders scheduled to be held on August 3, 2006, which Proxy
Statement will be filed no later than 120 days after the close of the
registrant's fiscal year ended March 31, 2006, are incorporated by reference
in Part III of this Annual Report on Form 10-K.

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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 7 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 23.

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(TM), SwiftSet(R), Xpeditor(TM), Xtreme
Edge(TM), Summit(TM) Lectern, MitySnap(TM), BRODA(TM), Versipanel(TM),
Intellicore(R), SwiftSet(R) HD(TM), and SwiftSet(R) Courtside(TM) are
trademarks or trade names of the Company.

                                   (i)
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                                 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 and healthcare seating.  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.  Recently, the Company has also started
designing, manufacturing and marketing a line of rotomolded fence panel
products to be used in commercial and residential fencing applications.  A
summary of our net sales, income from continuing operations and assets for our
business segments is found in Note 12 to the Consolidated Financials
Statements in Item 8, which is included herein by reference.

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 SwiftSet  lines are manufactured in-house while the Steelcore
Chiavari and Duramax Resin chair lines 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.

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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.  Only a limited amount of product has been manufactured to date.
Management is currently increasing its production capability and establishing
its distribution channel and believes that it will be able to successfully
enter the fence market.  During the year ended March 31, 2006, sales volumes
of this product and other metrics were not significant enough for its
classification as a separate segment.

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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 57 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 and
mail services.

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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.


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, 2004, 2005, and 2006, the Company's international
sales accounted for 13.3 percent, 14.7 percent and 15.1 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, the United Arab Emirates, Portugal, Italy,
Qatar, and Saudi Arabia.  Approximately 28 percent of healthcare seating sales
are in Canada, and 5 percent are in other countries outside of 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.

<PAGE> 8

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, SwiftSet folding
chairs, and 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.

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.

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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.

<PAGE> 10

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.

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 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 and Canada.  A utility
patent on its flipdown footrest has been granted in the United States and is
pending in Canada.  The Company does have international patents pending on
healthcare chairs in Canada, Japan, Germany, the United Kingdom, and France.
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.  Design patents are pending for a bariatric chair.  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.

<PAGE> 11

EMPLOYEES

As of March 31, 2006, the Company had approximately 378 full-time and 14
part-time employees.  No employees have union representation.  The Company
believes that its relationship with its employees is good.

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

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.  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.

<PAGE> 12

A DOWN-TURN 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 and 2006, the Company experienced
rapidly increasing costs in most of its raw materials, including steel,
plastic, and wood.  In addition, rising fuel costs have increased
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.

<PAGE> 13

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.

<PAGE> 14

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

<PAGE> 15

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.  During the quarter ended March 31, 2006, the Company purchased
approximately 2 acres located adjacent to its corporate headquarters.  The
Company currently intends to construct an additional manufacturing and
warehousing facility on this land during fiscal 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 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.

The Company's healthcare seating manufacturing facilities are located in
Waterloo, Ontario, Canada (approximately 60 miles west of Toronto).  These
facilities consist of two adjacent buildings with approximately 30,000 square
feet of leased manufacturing, office, research and development and storage
space. The facilities and related real estate are leased under an agreement
for a one-year term expiring in August 2006.  The base monthly lease payment
is approximately $14,000.  Broda pays all maintenance costs, taxes and
insurance.  The Company believes that these facilities will serve its
healthcare seating manufacturing needs for the term of the lease.  Subsequent
to the year ended March 31, 2006, the Company purchased approximately 4 acres
in Waterloo, Ontario, Canada for $570,000.  The Company intends to construct a
new facility during the upcoming fiscal year and will relocate its healthcare
seating operations to that facility.


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.   During the quarter ended March 31, 2006, the Company reached a
settlement agreement for certain alleged obligations related to a defined
benefit pension plan resulting from exiting and selling its specialty office
seating and systems business in fiscal 2002.  The Company also successfully
defended itself in a wage dispute also resulting from exiting and selling its
specialty office seating and systems business in fiscal 2002.  The litigation
resulted in a judgment in the Company's favor and had no material impact on
the consolidated financial statements.  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, 2006.

<PAGE> 16

                                      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 National 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, 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

Fiscal Year Ended March 31, 2005:
  First Quarter . . . . . . . . . . . . . . . . .   $19.30        $16.52
  Second Quarter. . . . . . . . . . . . . . . . .    17.95         15.05
  Third Quarter . . . . . . . . . . . . . . . . .    16.75         14.25
  Fourth Quarter. . . . . . . . . . . . . . . . .    16.22         13.36

There were 143 security holders of record as of May 23, 2006.  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.

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, 2006:

                     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                      375,371        $12.28            12,080

Equity compensation plans
 not approved by security
 holders                         --             --               --
--------------------------  ----------     -----------    ---------------
Total                         375,371        $12.28            12,080
==========================  ===========    ===========    ===============

<PAGE> 17

The following table presents information about repurchases of the Company's
common stock that were made during the fourth quarter of the fiscal year ended
March 31, 2006:

                    ISSUER PURCHASES OF EQUITY SECURITIES*
                                                               MAXIMUM NUMBER
                                             TOTAL NUMBER OF     OF SHARES
                       TOTAL      AVERAGE    SHARES PURCHASED   THAT MAY YET
                     NUMBER OF     PRICE       AS PART OF       BE PURCHASED
                      SHARES        PAID    PUBLICLY ANNOUNCED UNDER THE PLANS
PERIOD               PURCHASED   PER SHARE  PLANS OR PROGRAMS   OF PROGRAMS
-------------------  ---------   ---------  ------------------ ---------------
February 1 -
 February 28, 2006      8,800       $19.00

March 1 - March 31,
 2006                  75,482        18.88         481,846       368,154
-------------------  ---------   ---------  ------------------ ---------------
Total                  84,282       $18.89         481,846       368,154
===================  =========   =========  ================== ===============
* 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, bringing the total to 850,000
shares.  This table details the activity in the share repurchase program for
the three month period ended March 31, 2006.

ITEM 6.  SELECTED FINANCIAL DATA

The following selected financial data should be read in conjunction with the
Financial Statements and the Notes thereto included in this Form 10-K.  The
statement of income data set forth below with respect to the fiscal years
ended March 31, 2006, 2005 and 2004 and the balance sheet data at March 31,
2006 and 2005 are derived from, and should be read in conjunction with the
audited Financial Statements included in this Form 10-K.  The statement of
income data set forth below with respect to the fiscal year ended March 31,
2003 and 2002 and the balance sheet data at March 31, 2004, 2003 and 2002 are
derived from audited financial statements not included in this Form 10-K.

<PAGE> 18

STATEMENT OF INCOME DATA

Year Ended March 31,        2006      2005      2004      2003      2002
                          -------   -------   -------   -------   -------
                  (in thousands, except per share data)
Net sales                 $55,701   $50,272   $45,210   $40,965   $40,841
Cost of products sold      35,947    33,537    28,037    24,457    24,485
                          -------   -------   -------   -------   -------
Gross profit               19,754    16,735    17,173    16,508    16,356
Expenses:
 Selling                    7,903     7,427     6,452     6,172     6,363
 General and
  administrative            2,012     1,980     1,787     2,504     2,028
 Research and development   1,734     1,265     1,393     1,541     1,158
 Asset impairment             -       2,226       -         -         -
                          -------   -------   -------   -------   -------
Income from continuing
 operations                 8,105     3,837     7,541     6,291     6,807
Interest and other, net       247        58      (101)      132       368
                          -------   -------   -------   -------   -------
Income before provision
 for income taxes           8,352     3,895     7,440     6,423     7,175
Provision for income taxes  2,811     1,448     2,766     2,367     2,772
                          -------   -------   -------   -------   -------
Net income from continuing
 operations before
 minority interest          5,541     2,447     4,674     4,056     4,403
Minority interest             -          22        79         7       -
                          -------   -------   -------   -------   -------
Net income from continuing
 operations                 5,541     2,469     4,753     4,063     4,403
                          -------   -------   -------   -------   -------
Loss from discontinued
 operations, net of
 applicable income tax        -         -         -         -        (271)

Gain (loss) on disposal,
 net of applicable income
 tax                          -         -         -         745    (3,256)
                          -------   -------   -------   -------   -------
Net income                 $5,541   $ 2,469   $ 4,753   $ 4,808     $ 876
                          =======   =======   =======   =======   =======

Basic earnings per share
 from continuing
 operations                 $1.34     $0.57     $1.14     $0.90     $0.86
Basic loss per share from
 discontinued operations      -         -         -         -       (0.05)
Basic gain (loss) per
 share on disposal of
 discontinued operations      -         -         -        0.17     (0.64)
                          -------   -------   -------   -------   -------
Basic earnings per share    $1.34     $0.57     $1.14     $1.07     $0.17
                          =======   =======   =======   =======   =======
Weighted average common
  shares outstanding -
  basic                 4,124,189 4,296,525 4,157,081 4,501,342 5,071,125
                        ========= ========= ========= ========= =========
<PAGE> 19

Diluted earnings per
 share from continuing
 operations                 $1.30     $0.55     $1.09     $0.86     $0.85
Diluted loss per share
 from discontinued
 operations                  -          -         -         -       (0.05)
Diluted gain (loss) per
 share on disposal of
 discontinued operations     -          -         -        0.16     (0.63)
                          -------   -------   -------   -------   -------
Diluted earnings per share  $1.30     $0.55     $1.09     $1.02     $0.17
                          =======   =======   =======   =======   =======
Weighted average common
 and common equivalent
 shares outstanding -
 diluted                4,270,962 4,474,111 4,364,683 4,711,420 5,208,924
                        ========= ========= ========= ========= =========

BALANCE SHEET DATA

March 31,                   2006      2005      2004      2003      2002
                          -------   -------   -------   -------   -------
                                          (in thousands)
Working capital           $15,230   $16,732   $13,060   $ 8,069   $18,365

Total assets               34,819    35,616    31,956    25,402    33,369

Stockholders' equity       30,403    31,264    27,799    21,454    27,319



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 product lines consist of multipurpose room furniture and
healthcare seating.  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; 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.

<PAGE> 20

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 has
continued so far in 2006.  For the Company's fiscal year ending March 31,
2006, the Company experienced growth of 12 percent in its multipurpose room
furniture segment which was slightly higher than the industry growth during
the same time period of 11 percent.  For the current calendar year, industry
analysts are estimating that shipments will slow down from the fast pace of
the prior year and are estimating growth for the year of 7 percent for
calendar year 2006 as compared to calendar year 2005.  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 offering and has added four new chair lines during the
last fiscal year.  The Company is also pursuing uses for the rotational
molding facility built for production of the new table.  The Company has
started using the facility 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 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.

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.  During the upcoming
fiscal year, the Company anticipates launching at least one additional chair
line to complement its existing chair lines as well as enhancing its current
offering.  Beyond the upcoming year, 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 Waterloo, 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.

<PAGE> 21

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.

GENERAL NEAR-TERM OUTLOOK.  Based on the reasons stated above, the Company
anticipates that sales volumes during the quarter ending June 30, 2006 will be
up to 10 percent higher as compared to the prior year's first quarter.
Despite these expectations, the Company, for a variety of reasons including
those described in Item 1A "Risk Factors", may not be successful in achieving
this sales level in the first quarter.

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.  These principles require the use of estimates and assumptions
that affect amounts reported and disclosed in the 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,
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 collectability 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 in the consolidated financial
statements).

ACCRUALS FOR WARRANTY EXPENSE:  The Company's warranty service costs for
fiscal years ended March 31, 2006, 2005, and 2004 totaled 1.6 percent of net
sales or $869,000, 1.3 percent of net sales or $637,000 and 1.4 percent of net
sales or $619,000, 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.

<PAGE> 22

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 has impaired 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 in the consolidated financial
statements).

GOODWILL AND OTHER INTANGIBLE ASSETS: The Company reviews annually the
carrying value of its goodwill and other intangible assets.  The goodwill
arose from the Broda and Versipanel acquisitions.  The other intangible asset
at March 31, 2004 was intellectual property related to certain rights the
Company obtained to utilize new technology in its next generation table
product development efforts.  During the quarter ended June 30, the Company
annually reviews the goodwill related to the Broda and Versipanel acquisitions
and the intellectual property related to the startup development company.
This review is performed by calculating the present value of estimated future
cash flows.  If the carrying value of the intangible asset is considered
impaired, an impairment charge would be recorded for the amount by which the
carrying value of the intangible asset exceeds its fair value.  Goodwill is
also tested for impairment between annual tests if an event occurs or
circumstances change that would more likely than not reduce the fair value of
a reporting unit below its carrying amount.  No impairment charges have been
recorded related to the Broda or Versipanel goodwill.  However, due to the
decision by the board of directors in January 2005 to discontinue the next
generation table project, the Company fully impaired the other intangible
asset related to this intellectual property during the quarter ended March 31,
2005.  This resulted in an impairment charge of $227,000 related to other
intangible assets (see Note 4 in the consolidated financial statements).

NOTES RECEIVABLE: The Company reviews its notes receivable to determine likely
collectability.  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
collectability 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 collectability 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.

<PAGE> 23

RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS

In December 2004, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 123R, "Share-Based
Payment," which replaces SFAS No. 123, "Accounting for Stock-Based
Compensation," and supersedes APB Opinion No. 25, "Accounting for Stock Issued
to Employees."  SFAS No. 123R eliminates the alternative of applying the
intrinsic value measurement provisions of Opinion 25 to stock compensation
awards issued to employees.  Rather, the new standard requires enterprises to
measure the cost of employee services received in exchange for an award of
equity instruments based on the grant-date fair value of the award.  That cost
will be recognized over the period during which an employee is required to
provide services in exchange for the award, known as the requisite service
period (usually the vesting period).

SFAS No. 123R, as amended by the Securities Exchange Commission, will be
effective for the Company's first quarter in its fiscal year beginning April
1, 2006, and requires the use of the Modified Prospective Application Method.
Under this method, SFAS No. 123R is applied to new awards and to awards
modified, repurchased, or cancelled after the effective date.  Additionally,
compensation cost for the portion of awards for which the requisite service
has not been rendered (such as unvested options) that are outstanding as of
the date of adoption shall be recognized as the remaining requisite services
are rendered.  The compensation cost relating to unvested awards at the date
of adoption shall be based on the grant-date fair value of those awards as
calculated for pro forma disclosures under the original SFAS No. 123.  In
addition, companies may use the Modified Retrospective Application Method.
This method may be applied to all prior years for which the original SFAS No.
123 was effective or only to prior interim periods in the year of initial
adoption.  If the Modified Retrospective Application Method is applied,
financial statements for prior periods shall be adjusted to give effect to the
fair-value-based method of accounting for awards on a consistent basis with
the pro forma disclosures required for those periods under the original SFAS
No. 123.  The Company anticipates using the Modified Prospective Application
Method.

The Company has not yet quantified the effects of the adoption of SFAS No.
123R, but it is expected that the new standard will result in significant
stock-based compensation expense.  The pro forma effects on net income and
earnings per share if the Company had applied the fair value recognition
provisions of SFAS No. 123 on stock compensation awards (rather than applying
the intrinsic value measurement provisions of Opinion 25) are disclosed in the
notes to the consolidated financial statements.  Although such pro forma
effects of applying original SFAS No. 123 may be indicative of the effects of
adopting SFAS No. 123R, the provisions of these two statements differ in some
important respects.  The actual effects of adopting SFAS No. 123R will be
dependent on numerous factors including, but not limited to, the valuation
model chosen by the Company to value stock-based awards; the assumed award
forfeiture rate; the accounting policies adopted concerning the method of
recognizing the fair value of awards over the requisite service period; and
the transition method (as described below) chosen for adopting SFAS No. 123R.

<PAGE> 24

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 intends
to adopt SFAS No. 151 on April 1, 2006.  The adoption of SFAS No. 151 is not
expected to have a material impact on the Company's consolidated financial
statements.

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities", ("FIN No. 46") an interpretation of ARB No. 51.
FIN No. 46, as amended, addresses consolidation by business enterprises of
variable interest entities.  FIN No. 46 applies immediately to variable
interest entities created after January 31, 2003 and to variable interest
entities in which an enterprise obtains an interest after that date.  FIN No.
46 applies in the first year or interim period ending after December 15, 2003
to variable interest entities in which an enterprise holds a variable interest
that it acquired before February 1, 2003.  The Company does not have an
interest in any variable interest entity and therefore the adoption of FIN No.
46 did not impact the consolidated financial statements.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liability and Equity", which
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liability and equity in its
statement of financial position.  SFAS No. 150 is effective for new or
modified financial instruments beginning June 1, 2003, and for existing
instruments beginning August 1, 2003.  The adoption of SFAS No. 150 did not
have an impact on our consolidated financial statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities", which amends and clarifies
accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under SFAS
No. 133.  SFAS No. 149 is effective for contracts entered into or modified
after June 30, 2003 and for hedging relationships designated after June 30,
2003.  The adoption of SFAS No. 149 did not have an impact on our 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
Statements of Income.

<PAGE> 25

Year Ended March 31,      2006       2005       2004       2003       2002
                         ------     ------     ------     ------     ------
  Net sales              100.0%     100.0%     100.0%     100.0%     100.0%
  Cost of products sold   64.5       66.7       62.0       59.7       60.0
                         ------     ------     ------     ------     ------
  Gross profit            35.5       33.3       38.0       40.3       40.0
  Operating expenses:
    Selling               14.2       14.9       14.2       15.1       15.5
    General and
     administrative        3.6        3.9        4.0        6.1        5.0
    Research and
     development           3.1        2.5        3.1        3.7        2.8
    Asset impairment        -         4.4         -          -          -
                         ------     ------     ------     ------     ------
  Income from continuing
   operations             14.6        7.6       16.7       15.4       16.7
  Interest and other, net  0.4        0.2       (0.1)       0.3        0.9
                         ------     ------     ------     ------     ------
  Income before tax       15.0        7.8       16.6       15.7       17.6
  Provision for income
   taxes                   5.1        2.9        6.1        5.8        6.8
                         ------     ------     ------     ------     ------
  Net income from
   continuing operations   9.9%       4.9%      10.5%       9.9%      10.8%
                         ======     ======     ======     ======     =======


COMPARISON OF FISCAL YEARS 2006, 2005 AND 2004

NET SALES

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 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 product lines
represented 15 percent of net sales for both fiscal 2006 and 2005.

The Company's fiscal 2005 net sales of $50.3 million were up $5.1 million as
compared to net sales in fiscal 2004.  The 11 percent increase in sales in
fiscal 2005 resulted from increased sales in most of the Company's product
lines.  The Company's healthcare seating segment increased by 16 percent and
the Company's multipurpose room furniture segment increased 10 percent.  For
fiscal 2005, the multipurpose room furniture segments increase was due to an 8
percent increase in table sales, a 7 percent increase in chair sales, and a 61
percent increase in other sales, primarily due to sales of portable partitions
related to the acquisition of Versipanel in April of 2004.  International
sales for all product lines represented 15 percent and 13 percent of net sales
for fiscal 2005 and 2004, respectively.

<PAGE> 26

GROSS PROFIT

Fiscal 2006 gross profit as a percentage of net sales increased to 35 percent
from 33 percent in the prior fiscal year.  Of this increase, approximately 2
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 1 percentage point
was due to an inventory charge in the prior fiscal year 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 1 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 as compared to
the prior year's comparative period.

Fiscal 2005 gross profit as a percentage of net sales decreased to 33 percent
as compared to 38 percent in the prior year.  The decrease in gross profit was
due primarily to three factors. The first was higher labor and overhead costs
associated with the attempted startup of manufacturing operations for the
Company's next generation table.  Prior to the decision in January 2005 to
discontinue the funding on this operation, a considerable amount of labor and
overhead costs related to this potential new product line were expended.
These costs account for approximately 5 percentage points of the deterioration
in gross margin in the current year as compared to 3 percentage points in the
prior year.  The second factor was higher material costs due to increases in
almost all of the Company's raw materials.  These increases were partially
offset by sales price increases that were implemented earlier in the year, but
were not enough to fully offset the costs.  Material costs as a percentage of
sales increased by 2 percentage points.  The third factor was a charge to
inventory related to the next generation table project.  This charge reduced
its value from cost to its market valuation resulting from the Company's
decision to discontinue funding this operation.  This charge totaled $324,000
and represents an additional 1 percentage point in reduced margin.

OPERATING EXPENSES

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 costs
increased by $0.46 million over the prior fiscal year.  This increase resulted
primarily from higher commission costs due to the higher sales volume.  This
increase was 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.

For fiscal 2005, selling expenses were up at 15 percent of net sales as
compared to 14 percent in the prior fiscal year.  Actual expenses increased by
$0.97 million, or 15 percent.   Multipurpose room furniture selling costs
increased by $0.83 million compared to the prior fiscal year.  This increase
resulted primarily from increased personnel and commission costs due to the
higher sales volume.  Selling expenses in the healthcare seating operations
increased by $0.14 million compared to the prior fiscal year due primarily to
increased personnel costs.

<PAGE> 27

General and administrative expenses were 4 percent of net sales in fiscal
2006, 2005 and 2004.  Actual expenses increased by 2 percent or $0.03 million
in fiscal 2006 over fiscal 2005.  The increase was due to higher outside
services, training and professional fees.  This increase was partially offset
by lower personnel costs.

Actual general and administrative expenses increased by 11 percent or $0.20
million in fiscal 2005 over fiscal 2004.  The increase was due to the receipt
in the prior year of a settlement in a legal suit as well as higher
professional fees in the 2005 fiscal year.  This increase was partially offset
by lower insurance costs.

Research and development expenses were 3 percent of sales in fiscal 2006,
2005, and 2004.  For fiscal 2006, actual spending 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, actual research and development spending decreased by 9
percent, or $0.13 million, as compared to fiscal 2004.  This decrease resulted
mainly from lower costs for personnel at the Company's multipurpose room
operations.  This decrease was partially offset by increased spending at the
Company's healthcare seating operations related to new products.

For fiscal 2005, the Company realized an impairment charge of $2.2 million
related to the Company's decision to discontinue funding its next generation
table.  The Company realized 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 consisted of $2.0 million in impairment of fixed assets and
$0.2 million in impairment of other intangible asset.  No impairment charge
occurred in fiscal 2006 or fiscal 2004.

OTHER INCOME/EXPENSE

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.

Other income and expenses netted to $0.06 million in fiscal 2005.  Investment
income was $0.17 million, an increase of $0.09 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 2005, which totaled $0.11 million,
consisted of $0.13 million in realized foreign currency exchange losses, which
were partially offset by $0.02 million in other income.

<PAGE> 28

MINORITY INTEREST

On September 30, 2004, the Company sold its 50 percent equity interest in a
startup development company.  During the preceding six months ended September
30, 2004, this startup development company realized a pre-tax net loss of
$143,000.  Since the Company consolidated this entity within its financial
statements and eliminated the other owner's 50 percent interest in the net
profits or losses, 50 percent of the loss, or $71,000, was eliminated as a
minority interest.  However, the $71,000 elimination amount exceeded the
amount of minority interest represented by the other partner's capital
contribution by $37,000.  Consequently, for the year ended March 31, 2005,
$37,000 was fully recognized, while $34,000, or $22,000 after-tax, was
allocated to the minority interest.  Since the Company sold its interest in
the company in fiscal 2005, no minority interest was recognized in fiscal
2006.

For the year ended March 31, 2004, the startup development company realized a
net loss of $249,000.  Upon consolidation, 50 percent of the loss, or
$125,000, was allocated to the minority interest.  Tax effected, this amount
nets to $79,000.

INCOME TAXES

Provision for income taxes was $2.81 million in fiscal 2006 as compared to
$1.45 million in fiscal 2005 and $2.77 million in fiscal 2004.  The effective
tax rates for these years were 34 percent, 37 percent, and 37.2 percent,
respectively.  The reduction in effective rate for fiscal 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, and benefits resulting from the implementation of the
American Jobs Creation Act of 2004.

NET INCOME

For reasons stated above, the Company's net income for fiscal 2006 was $5.54
million, an increase of $3.07 million or 124 percent compared to fiscal 2005.
For fiscal 2005, net income was $2.47 million, a decrease of $2.28 million or
48 percent compared to net income in fiscal 2004.

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
That May Affect Future Operations."  Earnings per share information may not
add to match annual earnings per share information due to rounding.

<PAGE> 29

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

                              Q1 2004     Q2 2004     Q3 2004     Q4 2004
                              -------     -------     -------     -------
  Net sales                   $11,562     $11,497     $11,199     $10,952
  Gross profit                  4,441       4,489       4,212       4,031
  Income before provision
   for income tax               2,026       2,070       1,836       1,508
  Net income from operations    1,262       1,303       1,146       1,042
  Basic earnings per share       0.31        0.32        0.28        0.25
  Diluted earnings per share     0.29        0.30        0.26        0.23


                              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

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.

<PAGE> 30

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 $4.79 million at March 31, 2006 which compared to $3.94 million at
March 31, 2005.   In addition, the Company held available-for-sale securities
which totaled $4.55 million at March 31, 2006  as compared to $7.15 million at
March 31, 2005.

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

YEAR ENDED MARCH 31,                               2006               2005
                                               -----------        -----------
Net cash provided by operations                 $7,245,000         $6,364,000
Net sales (purchases) of available-for-sale
 securities                                      2,612,000         (6,113,000)
Purchases of property and equipment             (2,236,000)        (2,142,000)
Purchase of Versipanel                                -            (1,201,000)
Net proceeds from exercise of stock options
 and issuance of shares to the 401(k) plan       1,123,000            614,000
Purchase and retirement of common stock         (8,035,000)              -


The increase in cash and cash equivalents for fiscal 2006 as compared to
fiscal 2005 was due primarily to cash from operations of $7.24 million, net
sales of available-for-sale securities of $2.61 million, and the net proceeds
related to the exercise of stock options of $1.12 million.  This increase was
partially offset by purchases of property and equipment of $2.24 million, and
the purchase and retirement of common stock of $8.03 million.

Historically, the Company has financed its growth primarily through cash from
operations.  The Company's subsidiary, Broda Enterprises, has a line of
credit.  The limit on this facility is $0.86 million.  As of March 31, 2006,
no amount 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, 2006, management of the Company
believes it was in full compliance with the loan covenants related to this
credit facility.

The Company's material cash commitments at March 31, 2006 consisted primarily
of current liabilities of $4.42 million to be paid from funds generated from
operations.  Current liabilities consisted of the following:



YEAR ENDED MARCH 31,                         2006                     2005
                                         -----------              -----------
Accounts payable                          $1,989,000               $1,736,000
Accrued payroll and payroll taxes          1,080,000                1,155,000
Accrued warranty                             470,000                  439,000
Deferred revenue                             492,000                  374,000
Income taxes payable                          88,000                  152,000
Other                                        297,000                  496,000
                                         -----------              -----------
Total current liabilities                 $4,416,000               $4,352,000
                                         ===========              ===========

<PAGE> 31

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, 2006) per month
through August 2006.  Management expects to renew these leases based upon
similar terms.  As of March 31, 2006, the Company had no operating leases with
terms in excess of one year.  At March 31, 2006, the Company also has fixed
price commitments to purchase $321,000 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, bringing the total to 850,000
shares.  As of March 31, 2006, 481,846 shares had been repurchased for $8.0
million.  As of the date of this report, an additional 144,071 shares had been
repurchased for $2.7 million.  This brings the number of shares remaining in
the authorization to 224,083.  Additional repurchases will reduce the
Company's liquidity.

The Company has recently purchased land for the construction of new facilities
at both its multipurpose room furniture operations in Orem, Utah as well as
its healthcare seating operations in Waterloo, Ontario, Canada.  The Company
anticipates capital expenditures during the coming year of approximately $4.5
million related to this construction.  The Company currently anticipates
funding these capital expenditures using any of existing cash reserves,
available lines of credit as well as cash from operations.

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, 2006, the proceeds
which would have been received by the Company upon exercise of outstanding
options which were exercisable on that date were approximately $3.35 million.
There is no assurance that such options will be exercised.

<PAGE> 32

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, the inflationary pressures continued, but at
a reduced rate.  However, transportation costs have continued to increased as
fuel prices have increased.  During these two 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 as compared to the prior fiscal year.  At the current
time, pricing of the Company's raw materials has appeared generally to
stabilize.  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 that its sales volumes during
the first quarter of fiscal 2007 may increase by up to 10 percent as compared
to the sales levels of the prior year's first quarter;

<PAGE> 33

     -  statements that the Company anticipates developing additional
complementary chair lines and further penetrating its existing marketplace
with its current line of chairs;
     -  statements that the Company plans to sell Versipanel products through
its existing sales system to current customers and that such products will
allow the Company to expand its product line and better penetrate the
institutional furniture markets;
     -  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;

<PAGE> 34

     -  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 1.  Business-Risk Factors That May Affect
Future Results of Operations."

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 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.  For the year ended
March 31, 2004, approximately 7 percent of the Company's net sales, 7 percent
of the Company's cost of products sold, and 14 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 2006.  The Company's
healthcare chair operations have occasionally entered into forward contracts
for specific U.S. dollar denominated accounts receivable.  As of March 31,
2006, 2005, and 2004, 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 $145,000, $148,000 and
$96,000 for the fiscal years ended March 31, 2006, 2005 and 2004.  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.

<PAGE> 35

MANAGEMENT'S STATEMENT

The Company's 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 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 auditing
standards generally accepted in the United States of America.

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 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 2006 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 2006 audited consolidated
financial statements be included in the Company's Annual Report on Form 10-K.
The Board of Directors concurred.

<PAGE> 36

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM

To the Board of Directors and
  Shareholders of MITY Enterprises, Inc.:

We have audited the accompanying consolidated balance sheets of MITY
Enterprises, Inc. and subsidiaries (the "Company") as of March 31, 2006 and
2005, and the related consolidated statements of income, stockholders' equity,
and cash flows for each of the three years in the period ended March 31, 2006.
These financial statements are the responsibility of the Company 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, 2006 and 2005, and the results of their operations
and their cash flows for each of the three years in the period ended March 31,
2006 in conformity with accounting principles generally accepted in the United
States of America.

May 19, 2006

<PAGE> 37

CONSOLIDATED BALANCE SHEETS

MARCH 31,                                      2006               2005
                                           ------------       ------------
ASSETS
Current assets:
  Cash and cash equivalents                 $ 4,787,000        $ 3,940,000
  Available-for-sale securities               4,547,000          7,151,000
  Accounts receivable, less allowances
   of $140,000 and $147,000 at March 31,
   2006 and 2005, respectively                6,718,000          6,463,000
  Inventories                                 2,587,000          2,518,000
  Prepaid expenses and other current assets     655,000            311,000
  Deferred income tax assets                    402,000            701,000
                                           ------------       ------------
Total current assets                         19,696,000         21,084,000

Property and equipment, net                  12,485,000         11,714,000
Deferred income tax assets                      248,000            403,000
Goodwill                                      2,358,000          2,306,000
Notes receivable, net                            32,000            109,000
                                           ------------       ------------
                                            $34,819,000        $35,616,000
                                           ============       ============
LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable                          $ 1,989,000        $ 1,736,000
  Accrued expenses and other current
   liabilities                                2,427,000          2,616,000
                                           ------------       ------------
Total current liabilities                     4,416,000          4,352,000

                                           ------------       ------------
Total liabilities                             4,416,000          4,352,000

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 3,990,303 shares at
   March 31, 2006 and 4,325,434 shares
   at March 31, 2005                             40,000             43,000
Additional paid-in capital                   12,244,000         12,208,000
Retained earnings                            17,247,000         18,337,000
Accumulated other comprehensive income          872,000            676,000
                                           ------------       ------------
Total stockholders' equity                   30,403,000         31,264,000
                                           ------------       ------------
                                            $34,819,000        $35,616,000
                                           ============       ============
       (See accompanying notes to consolidated financial statements)

<PAGE) 38


CONSOLIDATED STATEMENTS OF INCOME

YEAR ENDED MARCH 31,                  2006            2005            2004
                                  -----------     -----------     -----------
Net sales                         $55,701,000     $50,272,000     $45,210,000
Cost of products sold              35,947,000      33,537,000      28,037,000
                                  -----------     -----------     -----------
Gross profit                       19,754,000      16,735,000      17,173,000
Operating expenses:
  Selling                           7,903,000       7,427,000       6,452,000
  General and administrative        2,012,000       1,980,000       1,787,000
  Research and development          1,734,000       1,265,000       1,393,000
  Asset impairment                       -          2,226,000            -
                                  -----------     -----------     -----------
Total operating expenses           11,649,000      12,898,000       9,632,000


                                  -----------     -----------     -----------
Income from operations              8,105,000       3,837,000       7,541,000
Other income (expense):
  Investment income                   310,000         171,000          79,000
  Other                               (63,000)       (113,000)       (180,000)
                                  -----------     -----------     -----------
Total other income (expense), net     247,000          58,000        (101,000)
Income before provision for
  income taxes and minority
  interest                          8,352,000       3,895,000       7,440,000
Provision for income taxes          2,811,000       1,448,000       2,766,000
                                  -----------     -----------     -----------
Net income before minority
  interest                          5,541,000       2,447,000       4,674,000
Minority interest                        -             22,000          79,000
                                  -----------     -----------     -----------
Net income                        $ 5,541,000     $ 2,469,000     $ 4,753,000
                                  ===========     ===========     ===========
Basic earnings per share                $1.34           $0.57           $1.14
                                  ===========     ===========     ===========
Weighted average number of
 common shares - basic              4,124,189       4,296,525       4,157,081
                                  ===========     ===========     ===========
Diluted earnings per share              $1.30           $0.55           $1.09
                                  ===========     ===========     ===========
Weighted average number of
 common and common equivalent
 shares - diluted                   4,270,962       4,474,111       4,364,683
                                  ===========     ===========     ===========

       (See accompanying notes to consolidated financial statements)

<PAGE> 39

<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                                                                            Accumulated
                                                 Additional                       Other         Total
                                        Common      Paid-In     Retained  Comprehensive  Stockholders'
                                         Stock      Capital     Earnings    Income(Loss)       Equity
                                       -------  -----------  -----------  -------------   -----------
<S>                                    <C>      <C>          <C>          <C>             <C>
Balance at April 1, 2003               $41,000   $9,925,000  $11,376,000       $112,000   $21,454,000
Comprehensive income:
     Net income                                                4,753,000
     Unrealized gains on available-
          for-sale securities                                                     2,000
     Foreign currency translation                                               305,000
                                                                                          -----------
Total comprehensive income                                                                  5,060,000
Issuance of 166,493 shares of common
     stock from the exercise of options  2,000    1,076,000                                 1,078,000
Issuance of 7,916 shares of common
     stock to the Company's 401(k) plan             103,000                                   103,000
Purchase and retirement of 31,000
     shares of common stock                         (75,000)    (261,000)                    (336,000)
Tax benefit of employee stock options               440,000                                   440,000
                                       -------  -----------  -----------  -------------   -----------
Balance at March 31, 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

<PAGE> 40

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
                                       =======   ==========  ===========  =============   ===========

                       (See accompanying notes to consolidated financial statements)

</TABLE>
<PAGE> 41

CONSOLIDATED STATEMENTS OF CASH FLOWS


YEAR ENDED MARCH 31,                      2006          2005          2004
                                      -----------   -----------   -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                            $ 5,541,000   $ 2,469,000   $ 4,753,000
Adjustments to reconcile net income to
  net cash provided by operating
  activities:
   Asset impairment                          -        2,226,000          -
   Depreciation and amortization        1,474,000     1,830,000     1,634,000
   Deferred taxes                         456,000      (473,000)      383,000
   Loss (gain) on disposal of
    property and equipment                 29,000        (6,000)      114,000
   Tax benefit from exercise of
    stock options                         314,000       125,000       440,000
   Changes in assets and liabilities:
    Accounts receivable                  (180,000)     (652,000)   (1,667,000)
    Inventories                           (43,000)      (88,000)     (913,000)
    Tax receivable                           -          784,000       508,000
    Prepaid expenses and other current
     assets                              (341,000)      107,000      (194,000)
    Accounts payable                      194,000      (420,000)     (137,000)
    Accrued expenses and other current
     liabilities                         (199,000)      462,000       373,000
                                      -----------   -----------   -----------
Net cash provided by operating
 activities                             7,245,000     6,364,000     5,294,000
                                      -----------   -----------   -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of available-for-sale
 securities                            (4,664,000)   (7,591,000)   (1,463,000)
Sales and maturities of available-
 for-sale securities                    7,276,000     1,478,000     2,750,000
Proceeds from sale of property and
 equipment                                 32,000        85,000         1,000
Purchases of property and equipment    (2,236,000)   (2,142,000)   (3,270,000)
Purchase of Versipanel                       -       (1,201,000)         -
Decrease (increase) in notes receivable    77,000       (30,000)       87,000
                                      -----------   -----------   -----------
Net cash provided by (used in)
 investing activities                     485,000    (9,401,000)   (1,895,000)
                                      -----------   -----------   -----------
<PAGE> 42

CASH FLOWS FROM FINANCING ACTIVITIES:

Net proceeds from exercise of stock
 options and issuance of shares to
 the 401(k) plan                        1,123,000       614,000     1,181,000
Minority interest                            -          (34,000)      (91,000)
Purchase and retirement of common
 stock                                 (8,035,000)         -         (336,000)
                                      -----------   -----------   -----------
Net cash provided by (used in)
 financing activities                  (6,912,000)      580,000       754,000
                                      -----------   -----------   -----------
Effect of exchange rate changes on cash    29,000        15,000        26,000
                                      -----------   -----------   -----------
Net increase (decrease) in cash and
 cash equivalents                         847,000    (2,442,000)    4,179,000
                                      -----------   -----------   -----------
Cash and cash equivalents at
 beginning of year                      3,940,000     6,382,000     2,203,000
                                      -----------   -----------   -----------
Cash and cash equivalents at end of
 year                                 $ 4,787,000   $ 3,940,000   $ 6,382,000
                                      ===========   ===========   ===========
                                                                  (continued)

       (See accompanying notes to consolidated financial statements)

<PAGE> 43

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION


YEAR ENDED MARCH 31,                      2006          2005          2004
                                      -----------   -----------   -----------
Cash paid during the year for
 income taxes                         $ 2,358,000   $   772,000   $ 1,701,000


SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES

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

During the year ended March 31, 2006, 17,224 matured shares (i.e. shares owned
for more than six months) 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)

<PAGE> 44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For each of the three years in the period ended March 31, 2006


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 significant 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, 2006 and 2005, the Company had unrealized holding
losses on available-for-sale securities of $6,000 and $19,000, respectively.
These losses were related to fluctuations in interest rates and are not
considered to be other than temporary losses.

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

MARCH 31,                         2006                         2005
                       --------------------------  --------------------------
                       Amortized Cost  Fair Value  Amortized Cost  Fair Value
                       --------------  ----------  --------------  ----------
Due in one year or less  $2,703,000    $2,697,000    $1,950,000    $1,942,000

Due after one through
 five years                 250,000       250,000     2,220,000     2,209,000

Due after five through
 ten years                     -             -             -             -

Due after ten years       1,600,000     1,600,000     3,000,000     3,000,000
                       --------------  ----------  --------------  ----------
                         $4,553,000    $4,547,000    $7,170,000    $7,151,000
                       ==============  ==========  ==============  ==========

<PAGE> 45

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
                           ==========   ==========  ==========  ==========

                                           Gross       Gross
MARCH 31, 2005              Amortized   Unrealized  Unrealized     Fair
                              Cost         Gains       Losses      Value
                           ----------   ----------  ----------  ----------
U.S. government securities $2,920,000        -        $19,000   $2,901,000

Asset-backed securities       200,000        -           -         200,000

Auction rate notes          4,050,000        -           -       4,050,000
                           ----------   ----------  ----------  ----------
Balance at end of period   $7,170,000        -        $19,000   $7,151,000
                           ==========   ==========  ==========  ==========

Investments that have been in a continuous unrealized loss position for more
than 12 months as of March 31, 2006 and 2005 were not significant.  For the
years ended March 31, 2006 and 2005, proceeds from the sale of securities
available-for-sale amounted to $7,276,000 and $1,478,000, respectively.  Gross
realized gains amounted to $8,000 and $0 for the years ended March 31, 2006
and 2005, respectively.  There were no gross realized losses for the years
ended March 31, 2006 and 2005.

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
$225,000 and $372,000 as of March 31, 2006 and 2005, 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:

<PAGE> 46

                                                     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 and other
intangible assets during the first quarter of each fiscal year.  The goodwill
arose from its acquisitions of Broda Enterprises and Versipanel and the other
intangible asset was represented by intellectual property related to certain
rights the Company obtained to utilize new technology in its next generation
table product development efforts.  During the quarter ended June 30, 2005,
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
intangible asset is considered impaired, an impairment charge is recorded for
the amount by which the carrying value of the intangible asset exceeds its
fair value.  During the prior fiscal year, the board of directors in January
2005 decided to discontinue the next generation table project, resulting in
the full impairment of the other intangible assets related to intellectual
property.  This resulted in an impairment charge of $227,000 related to the
other intangible assets in the March 31, 2005 quarter (See Note 4, Impairment
of 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 collectability 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.

<PAGE> 47

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, and accounts payable approximates fair value
because of the immediate or short-term maturity 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
In December 2002, the Financial Accounting Standards Board (FASB) issued
Statement of Financial Accounting Standards (SFAS) No. 148, "Accounting for
Stock-Based Compensation - Transition and Disclosure - an amendment of FASB
Statement No. 123" which provides alternative methods of transition for a
voluntary change to the fair value based method of accounting for stock-based
employee compensation.  The Company has decided to continue applying
Accounting Principle Board (APB) Statement No. 25 (as permitted by SFAS No.
123 and SFAS No. 148).  The required disclosure of the effects of SFAS No. 123
and SFAS No. 148 are included in the notes to the consolidated financial
statements.  Accordingly, no compensation cost has been recognized for its
stock option plans.  Had compensation cost of the Company's two stock-based
compensation plans been determined based on the fair value at the grant dates
for awards under those plans consistent with SFAS No. 123, 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            2004
                                  -----------     -----------     -----------
  Net income:
    As reported                   $ 5,541,000     $ 2,469,000     $ 4,753,000
    Deduct stock-based employee
     compensation expense
     determined under the
     fair-value based method,
     net of related tax effects       241,000         254,000         156,000
                                  -----------     -----------     -----------
    Pro forma                     $ 5,300,000     $ 2,215,000     $ 4,597,000
                                  ===========     ===========     ===========
   Earnings per share - basic:
    As reported                         $1.34           $0.57           $1.14
    Pro forma                           $1.29           $0.52           $1.11

   Earnings per share - diluted:
    As reported                         $1.30           $0.55           $1.09
    Pro forma                           $1.24           $0.49           $1.05

<PAGE> 48

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.  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 has  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, 2006.

COMPREHENSIVE INCOME
The Company's comprehensive income consists of foreign currency 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,                        2006        2005        2004
                                          --------    --------    --------
Balance at beginning of period            $439,000    $415,000    $365,000

Accruals for warranties issued during
 the period                                900,000     661,000     669,000

Settlements made during the period        (869,000)   (637,000)   (619,000)
                                          --------    --------    --------
Balance at end of period                  $470,000    $439,000    $415,000
                                          ========    ========    ========

<PAGE> 49

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.

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,                      2006          2005          2004
                                      -----------   -----------   -----------
Numerator:
  Net income                          $ 5,541,000   $ 2,469,000   $ 4,753,000
                                      ===========   ===========   ===========
Denominator:
  Weighted average shares outstanding:
    Basic                               4,124,189     4,296,525     4,157,081
    Employee stock options and other      146,773       177,586       207,602
                                      -----------   -----------   -----------
    Diluted                             4,270,962     4,474,111     4,364,683
                                      ===========   ===========   ===========
Earnings per common share:
    Basic                                   $1.34         $0.57         $1.14
    Diluted                                 $1.30         $0.55         $1.09


<PAGE> 50

RECENTLY ISSUED FINANCIAL ACCOUNTING STANDARDS
In December 2004, the FASB issued SFAS No. 123R, "Share-Based Payment," which
replaces SFAS No. 123, "Accounting for Stock-Based Compensation," and
supersedes APB Opinion No. 25, "Accounting for Stock Issued to Employees."
SFAS No. 123R eliminates the alternative of applying the intrinsic value
measurement provisions of Opinion 25 to stock compensation awards issued to
employees.  Rather, the new standard requires enterprises to measure the cost
of employee services received in exchange for an award of equity instruments
based on the grant-date fair value of the award.  That cost will be recognized
over the period during which an employee is required to provide services in
exchange for the award, known as the requisite service period (usually the
vesting period).

SFAS No. 123R, as amended by the Securities Exchange Commission, will be
effective for the Company's first quarter in its fiscal year beginning April
1, 2006, and requires the use of the Modified Prospective Application Method.
Under this method, SFAS No. 123R is applied to new awards and to awards
modified, repurchased, or cancelled after the effective date.  Additionally,
compensation cost for the portion of awards for which the requisite service
has not been rendered (such as unvested options) that are outstanding as of
the date of adoption shall be recognized as the remaining requisite services
are rendered.  The compensation cost relating to unvested awards at the date
of adoption shall be based on the grant-date fair value of those awards as
calculated for pro forma disclosures under the original SFAS No. 123.  In
addition, companies may use the Modified Retrospective Application Method.
This method may be applied to all prior years for which the original SFAS No.
123 was effective or only to prior interim periods in the year of initial
adoption.  If the Modified Retrospective Application Method is applied,
financial statements for prior periods shall be adjusted to give effect to the
fair-value-based method of accounting for awards on a consistent basis with
the pro forma disclosures required for those periods under the original SFAS
No. 123.  The Company anticipates using the Modified Prospective Application
Method.

The Company has not yet quantified the effects of the adoption of SFAS No.
123R, but it is expected that the new standard will result in significant
stock-based compensation expense.  The pro forma effects on net income and
earnings per share if the Company had applied the fair value recognition
provisions of SFAS No. 123 on stock compensation awards (rather than applying
the intrinsic value measurement provisions of Opinion 25) are disclosed above.
Although such pro forma effects of applying original SFAS No. 123 may be
indicative of the effects of adopting SFAS No. 123R, the provisions of these
two statements differ in some important respects.  The actual effects of
adopting SFAS No. 123R will be dependent on numerous factors including, but
not limited to, the valuation model chosen by the Company to value stock-based
awards; the assumed award forfeiture rate; the accounting policies adopted
concerning the method of recognizing the fair value of awards over the
requisite service period; and the transition method (as described below)
chosen for adopting SFAS No. 123R.

<PAGE> 51

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 intends
to adopt SFAS No. 151 on April 1, 2006.  The adoption of SFAS No. 151 is not
expected to have a material impact on the Company's consolidated financial
statements.

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of
Variable Interest Entities", (FIN No. 46) an interpretation of ARB No. 51.
FIN No. 46, as amended, addresses consolidation by business enterprises of
variable interest entities.  FIN No. 46 applies immediately to variable
interest entities created after January 31, 2003 and to variable interest
entities in which an enterprise obtains an interest after that date.  FIN No.
46 applies in the first year or interim period ending after December 15, 2003
to variable interest entities in which an enterprise holds a variable interest
that it acquired before February 1, 2003.  The Company does not have an
interest in any variable interest entity and therefore the adoption of FIN No.
46 did not impact the consolidated financial statements.

In May 2003, the FASB issued SFAS No. 150, "Accounting for Certain Financial
Instruments with Characteristics of both Liability and Equity," which
establishes standards for how an issuer classifies and measures certain
financial instruments with characteristics of both liability and equity in its
statement of financial position.  SFAS No. 150 is effective for new or
modified financial instruments beginning June 1, 2003, and for existing
instruments beginning August 1, 2003.  The adoption of SFAS No. 150 did not
have an impact on the consolidated financial statements.

In April 2003, the FASB issued SFAS No. 149, "Amendment of Statement 133 on
Derivative Instruments and Hedging Activities", which amends and clarifies
accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under SFAS
No. 133.  SFAS No. 149 is effective for contracts entered into or modified
after June 30, 2003 and for hedging relationships designated after June 30,
2003.  The adoption of SFAS No. 149 did not have an impact on the consolidated
financial statements.

2.  INVENTORIES

Inventories consisted of the following:


MARCH 31,                                  2006            2005
                                       -----------     -----------
   Materials and supplies              $ 1,730,000     $ 1,522,000
   Work-in-progress                        174,000         161,000
   Finished goods                          683,000         835,000
                                       -----------     -----------
                                       $ 2,587,000     $ 2,518,000
                                       ===========     ===========

<PAGE> 52

3.  PROPERTY AND EQUIPMENT

Property and equipment consisted of the following:

MARCH 31,                                  2006            2005
                                       -----------     -----------
  Land and improvements                $ 2,710,000     $ 2,179,000
  Machinery and equipment                9,274,000       7,994,000
  Furniture and fixtures                 2,304,000       2,279,000
  Leasehold improvements                 1,013,000         960,000
  Building and improvements              6,818,000       6,818,000
                                       -----------     -----------
                                       $22,119,000     $20,230,000
Less accumulated depreciation and
  amortization                          (9,634,000)     (8,516,000)
                                       -----------     -----------
                                       $12,485,000     $11,714,000
                                       ===========     ===========

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.

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.  So, 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.

<PAGE> 53

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
created 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.  The Company has a
reserve of $0 and $20,000, for this note receivable as of March 31, 2006 and
2005, respectively.  At March 31, 2006 and 2005, the gross value of this note
receivable was $80,000 and $159,000, respectively.  At March 31, 2005, $64,000
was the current portion of this note receivable, which is included in prepaid
expenses and other current assets.  As of March 31, 2006, the dealer was
current on payments on this note receivable.  The Company has another note
receivable for $26,000, of which $10,000 is current.


6.  LINE OF CREDIT

The Company's wholly-owned subsidiary, Broda Enterprises, had a line of
credit, bearing interest at Canadian prime (5.50 percent at March 31, 2006)
which is secured by a General Security Agreement, an assignment of insurance
and guarantees by the Company.  The limit on this line is $857,000 (US$).  At
March 31, 2006 and 2005, 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, 2006,
management of the Company believes it was in full compliance with the loan
covenants related to this credit facility.

7.  ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consisted of the following:

MARCH 31,                                  2006            2005
                                       -----------     -----------
  Accrued payroll and payroll taxes    $ 1,080,000     $ 1,155,000
  Accrued warranty                         470,000         439,000
  Deferred revenue                         492,000         374,000
  Tax payable                               88,000         152,000
  Other                                    297,000         496,000
                                       -----------     -----------
                                       $ 2,427,000     $ 2,616,000
                                       ===========     ===========

<PAGE> 54

8.  COMMON STOCK OPTIONS

At March 31, 2006, the Company has two stock incentive plans, the 1990 Stock
Option Plan (the "1990 Plan") and the 1997 Stock Incentive Plan (the "1997
Plan").  The Company authorized and reserved 750,000 shares of common stock
for issuance under the 1990 Plan and 900,000 shares of common stock for
issuance under the 1997 Plan. 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
Exchange 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.  A table of stock option activity is shown below:


                                           Number            Weighted Average
                                        of Options            Exercise Price
                                         ---------               ---------
Outstanding at April 1, 2003              628,748                  $ 8.43

  Granted                                 115,000                   17.02
  Exercised                              (166,493)                   6.47
  Forfeited                               (13,893)                  11.23
                                         ---------               ---------
Outstanding at March 31, 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

  Granted                                       0                     -
  Exercised                              (159,983)                   8.67
  Forfeited                                (9,474)                  15.14
                                         ---------               ---------
Outstanding at March 31, 2006             375,371                  $12.28
                                         =========               =========

Options exercisable at March 31, 2006, 2005 and 2004 were 296,729, 405,679,
and 387,138, respectively.  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 1990 and 1997
Plans' options outstanding at March 31, 2006:

<PAGE> 55

                 Options Outstanding                    Options Exercisable
    -------------------------------------------------   --------------------
                                Weighted
                                 Average
     Range of                  Remaining    Weighted                Weighted
     Exercise       Number    Contractual    Average       Number    Average
     Prices      Outstanding      Life      Exercise     Exercis-   Exercise
                              (in years)       Price         able      Price
 -------------   -----------  -----------   --------     --------   --------
  $6.78-$8.20         91,375      4.45       $  6.98       91,375    $  6.98
   9.70-11.75         94,726      3.52         10.22       93,026      10.21
  12.10-12.15         20,518      6.84         12.12       18,018      12.13
  12.96-15.50         79,118      7.46         14.73       47,466      14.95
  16.55-17.90         89,634      8.10         17.75       46,844      17.81
 -------------   -----------  -----------   --------     --------   --------
 $6.78-$17.90        375,371      5.85       $ 12.28      296,729    $ 11.29
 =============    ========== ============   ========     ========   ========

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 2005 and 2004, respectively: expected
volatility of 41 percent and 44 percent, risk free interest rates of 3.31
percent and 2.24 percent, and expected lives of one to four years.  Under SFAS
No. 148, the weighted average fair value per share of options issued during
the years ended March 31, 2005, and 2004 was $4.72, and $6.00, respectively.
No options were granted during the year ended March 31, 2006.

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, 2006, 2005 and 2004 were $150,000, $125,000, and $107,000,
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, 2006, 2005
and 2004 were $63,000, $60,000, and $103,000, respectively.  As of March 31,
2006, 131,457 shares had been issued under the provisions of the plan.

<PAGE> 56

10.  INCOME TAXES

Income tax expense from operations consisted of the following components:



YEAR ENDED MARCH 31,    2006            2005            2004
                    -----------     -----------     -----------
 Current:
   Federal          $ 1,663,000     $ 1,392,000     $ 1,708,000
   State                295,000         211,000         244,000
   Foreign              399,000         318,000         431,000
                    -----------     -----------     -----------
 Total current        2,357,000       1,921,000       2,383,000
                    -----------     -----------     -----------
 Deferred:
   Federal              405,000        (430,000)        359,000
   State                 28,000         (42,000)         35,000
   Foreign               21,000          (1,000)        (11,000)
                    -----------     -----------     -----------
 Total deferred         454,000        (473,000)        383,000
                    -----------     -----------     -----------
                    $ 2,811,000     $ 1,448,000     $ 2,766,000
                    ===========     ===========     ===========

The amount of the Company's foreign pre-tax income for the years ended March
31, 2006, 2005 and 2004 was $1,268,000, $834,000, and $361,000, respectively.

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



YEAR ENDED MARCH 31,              2006       2005       2004
                                 ------     ------     ------
 Federal statutory tax rates      34.0%      34.0%      34.0%
 State / provincial income taxes,
   net of federal benefit          3.9        3.3        3.3
 Deduction related to domestic
   production activities          (1.0)        -          -
 Meals and entertainment           0.2        0.4        0.2
 Foreign sales                    (0.6)      (0.6)      (0.5)
 Tax exempt interest income       (0.4)      (0.1)        -
 Research and development tax
   credit                         (0.8)        -          -
 Other                            (1.6)       0.2        0.2
                                 ------     ------     ------
                                  33.7%      37.2%      37.2%
                                 ======     ======     ======

<PAGE> 57

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,                      2006                 2005
                         Current  Long Term   Current  Long Term
                        --------  ---------  --------  ---------
Deferred tax assets:
 Allowance for doubtful
  accounts              $ 45,000             $ 55,000
 Inventory                86,000              134,000
 Vacation accrual         71,000               60,000
 Warranty reserve and
  accrual                175,000              196,000
 Discontinued operations  22,000               77,000
 Net operating loss
  carryforward                                105,000
 AMT credit                        $ 30,000              $30,000
 Depreciation and
  amortization                      273,000              373,000
 Other accruals            3,000               74,000
                        --------  ---------  --------  ---------
 Total                   402,000    303,000   701,000    403,000
Deferred tax liabilities:
 Goodwill                           (55,000)
                        --------  ---------  --------  ---------
Net deferred tax asset  $402,000   $248,000  $701,000   $403,000
                        ========  =========  ========  =========

At March 31, 2006, the Company had utilized all of its previously held
consolidated net operating loss carryforwards for federal income tax purposes.

11.  COMMITMENTS AND CONTINGENCIES

The Company leases two buildings in its Waterloo, Ontario, Canada location
under an operating lease which expires in August 2006.  The current agreement
requires lease payments of $16,000 Canadian (approximately US $14,000) per
month through August 2006.  Management expects to renew these leases based on
similar terms.

Total rent expense was $187,000, $147,000, and $132,000 for the years ended
March 31, 2006, 2005 and 2004, respectively.

At March 31, 2006, the Company has fixed price commitments to purchase
$321,000 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.

<PAGE> 58

12.  BUSINESS SEGMENT INFORMATION

Management currently views the Company as being two business segments:
multipurpose room furniture 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 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.  Corporate
and fence related assets and expenditures are include in the multipurpose room
furniture segment.  During the year ended March 31, 2006, sales volumes and
other metrics of the corporate and fence related assets were not significant
enough for their classification as separate segments.

Reportable segment data reconciled to the consolidated financial statements
for the fiscal years ended March 31, 2006, 2005 and 2004 is as follows:


FISCAL YEAR ENDED MARCH 31,    2006         2005         2004
                           -----------  -----------  -----------
Net sales:
 Multipurpose room
  furniture                $48,201,000  $43,040,000  $39,002,000
 Healthcare seating          7,500,000    7,232,000    6,208,000
                           -----------  -----------  -----------
                           $55,701,000  $50,272,000  $45,210,000
                           ===========  ===========  ===========
Income from operations:
 Multipurpose room
  furniture                $ 6,657,000  $ 2,332,000  $ 6,238,000
 Healthcare seating          1,448,000    1,505,000    1,303,000
                           -----------  -----------  -----------
                           $ 8,105,000  $ 3,837,000  $ 7,541,000
                           ===========  ===========  ===========
Depreciation & amortization
 expense:
 Multipurpose room
  furniture                $ 1,299,000  $ 1,661,000  $ 1,502,000
 Healthcare seating            175,000      169,000      132,000
                           -----------  -----------  -----------
                           $ 1,474,000  $ 1,830,000  $ 1,634,000
                           ===========  ===========  ===========
Capital expenditures, net:
 Multipurpose room
  furniture                $ 1,893,000  $ 1,900,000  $ 3,101,000
 Healthcare seating            343,000      242,000      169,000
                           -----------  -----------  -----------
                           $ 2,236,000  $ 2,142,000  $ 3,270,000
                           ===========  ===========  ===========

MARCH 31,                              2006          2005
                                    -----------   -----------
Total assets:
 Multipurpose room furniture        $28,735,000   $30,626,000
 Healthcare seating                   6,084,000     4,990,000
                                    -----------   -----------
                                    $34,819,000   $35,616,000
                                    ===========   ===========
<PAGE> 59

13.  ACQUISITION

On April 1, 2004, the Company announced the acquisition of the assets of
Versipanel LLC, a privately-owned designer, manufacturer and marketer of a
variety of portable partitions based in Phoenix, Arizona.  The transaction was
treated for accounting purposes as a purchase and accordingly, the Company has
included the operating results of Versipanel in the financial statements from
April 1, 2004.

In conjunction with this acquisition, the Company paid $1,201,000 in cash.
The acquisition resulted in goodwill of $1,085,000 all of which is deductible
for tax purposes.  Up to an additional $200,000 of the purchase price was
contingently payable based on obtaining certain sales growth targets on the
Versipanel product line through April 26, 2005.  These growth targets were not
achieved.

The unaudited pro forma results of operations of the Company for the year
ended March 31, 2005 and 2004 (assuming the acquisition of Versipanel had
occurred as of April 1, 2003) are as follows:


FISCAL YEAR ENDED MARCH 31,      2005            2004
                             -----------     -----------
 Net sales                   $50,272,000     $46,689,000
 Net income                    2,476,000       4,863,000
 Basic earnings per share          $0.58           $1.17
 Diluted earnings per share        $0.55           $1.11


14.  SUBSEQUENT EVENT

Pursuant to the Company's stock repurchase plan, on May 10, 2006, the Company
repurchased 144,071 shares of the Company's common stock at a price of $18.50
per share.  On May 18, 2006, the Company's board of directors increased the
share authorization in the buyback plan by 200,000 shares.  This brings the
total shares authorized in the plan to be repurchased to 850,000 shares, with
224,083 remaining in the authorization.

Subsequent to the year ended March 31, 2006, the Company purchased
approximately 4 acres in Waterloo, Ontario, Canada for $570,000.  The Company
intends to construct a new facility during the upcoming fiscal year and will
relocate its healthcare seating operations to that facility.

<PAGE> 60

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

          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, 2006, 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.

<PAGE> 61

                            PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT

The information required by this Item is incorporated by reference to the
sections of the Company's Proxy Statement filed in connection with its 2006
Annual Meeting of Stockholders entitled "Nominees" and "Directors and
Executive Officers."


AUDIT COMMITTEE FINANCIAL EXPERT

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 401(h) 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.

ITEM 11.  EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to the
section of the Company's Proxy Statement filed in connection with its 2006
Annual Meeting of Stockholders entitled "Executive Compensation."

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

The information required by this item is incorporated by reference to the
section of the Company's Proxy Statement filed in connection with its 2006
Annual Meeting of Stockholders entitled "Security Ownership of Management and
Others."

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

The information required by this item is incorporated by reference to the
sections of the Company's Proxy Statement filed in connection with its 2006
Annual Meeting of Stockholders entitled "Executive Compensation" and "Certain
Transactions."

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information required by this item is incorporated by reference to the
sections of the Company's Proxy Statement filed in connection with its 2006
Annual Meeting of Stockholders entitled "Auditor's Fees."


<PAGE> 62



                            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 29.
       (2) Financial statement schedule: Valuation and Qualifying
           Accounts for the three fiscal years ended March 31,
           2006
       (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.

<PAGE> 63

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.

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.

<PAGE> 64

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.

<PAGE> 65

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.

<PAGE> 66

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.

<PAGE> 67

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.

11.1
Statement Regarding Computation of Per Share Earnings.

21
Subsidiaries of Registrant.

23.1
Consent of Deloitte & Touche LLP.

31.1
Certification of CEO Pursuant to Rule 13a-14(a) of the Exchange Act, as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2
Certification of 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 CEO Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant
to Section 906 of the Sarbanes-Oxley Act of 2002

32.2
Certification of 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.

<PAGE> 68

          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 financial
statements or notes thereto.



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
  Shareholders of Mity Enterprises, Inc.:

We have audited the consolidated financial statements of MITY Enterprises,
Inc. and subsidiaries (the "Company") as of March 31, 2006 and 2005, and for
each of the three years in the period ended March 31, 2006, and have issued
our report thereon dated May 19, 2006; such report is included elsewhere in
this Annual Report on 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.

Salt Lake City, Utah
May 19, 2006


<PAGE> 69

               MITY ENTERPRISES, INC. AND SUBSIDIARIES
           SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
          FOR THE YEARS ENDED MARCH 31, 2006, 2005 AND 2004

                                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, 2006      $ 147,000  $  41,000  $  48,000  $ 140,000
 March 31, 2005        168,000     24,000     45,000    147,000
 March 31, 2004        140,000     91,000     63,000    168,000


INVENTORY RESERVES:

Year ended:
 March 31, 2006      $ 372,000  $  25,000  $ 172,000  $ 225,000
 March 31, 2005         31,000    341,000       -       372,000
 March 31, 2004         28,000      3,000       -        31,000


RESERVES ON NOTES RECEIVABLE

Year Ended:
 March 31, 2006      $  20,000  $ (20,000)      -          -
 March 31, 2005        150,000   (140,000)  $ 10,000  $  20,000
 March 31, 2004        180,000    (30,000)      -       150,000


ACCRUED WARRANTY

Year Ended:
 March 31, 2006      $ 439,000  $ 900,000  $(869,000) $ 470,000
 March 31, 2005        415,000    661,000   (637,000)   439,000
 March 31, 2004        365,000    669,000   (619,000)   415,000


<PAGE> 70

                           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/ Bradley T Nielson
                                   ----------------------------------
                                   Bradley T Nielson, President,
                                   Chief Executive Officer
                                Date: May 23, 2006



     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  May 23, 2006
----------------------   Director
Gregory L. Wilson


/s/ Bradley T Nielson    President and Chief        May 23, 2006
----------------------   Executive Officer
Bradley T Nielson        (Principal Executive Officer)


/s/ Paul R. Killpack     Chief Financial Officer    May 23, 2006
----------------------   (Principal Financial and
Paul R. Killpack         Accounting Officer)


/s/ Ralph E. Crump       Director                   May 23, 2006
----------------------
Ralph E. Crump


/s/ Peter Najar          Director                   May 23, 2006
----------------------
Peter Najar


/s/ C. Lewis Wilson      Director                   May 23, 2006
----------------------
C. Lewis Wilson


/s/ Hal B. Heaton        Director                   May 23, 2006
----------------------
Hal B. Heaton