|                                                        |
|--------------------------------------------------------|
|                                                        |
| KIMBALL INTERNATIONAL, INC.                            |
| (Exact name of registrant as specified in its charter) |

|                                          |
|------------------------------------------|
|                                          |  |  |
| Indiana                                  |   | 35-0514506 |
| (State or other jurisdiction of          |   | (I.R.S. Employer Identification No.) |
| incorporation or organization)           |   |   |
| 1600 Royal Street, Jasper, Indiana       |   | 47549-1001 |
| (Address of principal executive offices) |   | (Zip Code) |

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |
| (812) 482-1600                                                                   |
| Registrant's telephone number, including area code                               |
| Not Applicable                                                                   |
| Former name, former address and former fiscal year, if changed since last report |

|        |
|--------|
|        |  |
|   | Class A Common Stock - 10,453,372 shares |
|   | Class B Common Stock - 27,296,516 shares |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |
|                                           | Page No. |   |
|                                           |   |   |
| PART I    FINANCIAL INFORMATION |   |   |
|                                           |   |   |
|                                           | Item 1. Financial Statements |   |   |
|                                           | Condensed Consolidated Balance Sheets        - March 31, 2011 (Unaudited) and June 30, 2010 | 3 |   |
|                                           | Condensed Consolidated Statements of Income (Unaudited)        - Three and Nine Months Ended March 31, 2011 and 2010 | 4 |   |
|                                           | Condensed Consolidated Statements of Cash Flows (Unaudited)        - Nine Months Ended March 31, 2011 and 2010 | 5 |   |
|                                           | Notes to Condensed Consolidated Financial Statements (Unaudited) | 6 |   |
|                                           | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 19 |   |
|                                           | Item 3. Quantitative and Qualitative Disclosures About Market Risk | 28 |   |
|                                           | Item 4. Controls and Procedures | 29 |   |
|                                           |   |   |   |
| PART II    OTHER INFORMATION    |   |   |
|                                           | Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 29 |   |
|                                           | Item 6. Exhibits | 30 |   |
|                                           |   |   |   |
| SIGNATURES                                     | 31 |   |
|                                           |   |   |   |
| EXHIBIT INDEX                                  | 32 |   |

----

|                                                                                                |
|------------------------------------------------------------------------------------------------|
|                                                                                                |  |  |  |  |  |  |  |
|                                                                                           | (Unaudited) |   |   |   |
|                                                                                           | March 31, 2011 |   | June 30, 2010 |
| ASSETS                                                                                         |   |   |   |   |   |
| Current Assets:                                                                                |   |   |   |   |   |
| Cash and cash equivalents                                                                      | $ | 41,252 |   |   | $ | 65,342 |   |
| Short-term investments                                                                         | 2,712 |   |   | 2,496 |   |
| Receivables, net of allowances of $1,344 and $3,349, respectively                              | 184,255 |   |   | 154,343 |   |
| Inventories                                                                                    | 146,997 |   |   | 146,406 |   |
| Prepaid expenses and other current assets                                                      | 47,075 |   |   | 43,776 |   |
| Assets held for sale                                                                           | 1,160 |   |   | 1,160 |   |
| Total current assets                                                                           | 423,451 |   |   | 413,523 |   |
| Property and Equipment, net of accumulated depreciation of $353,296 and $337,251, respectively | 196,812 |   |   | 186,999 |   |
| Goodwill                                                                                       | 2,616 |   |   | 2,443 |   |
| Other Intangible Assets, net of accumulated amortization of $64,948 and $63,595, respectively  | 7,448 |   |   | 8,113 |   |
| Other Assets                                                                                   | 23,171 |   |   | 25,673 |   |
| Total Assets                                                                                   | $ | 653,498 |   |   | $ | 636,751 |   |
| LIABILITIES AND SHARE OWNERS' EQUITY                                                           |   |   |   |
| Current Liabilities:                                                                           |   |   |   |
| Current maturities of long-term debt                                                           | $ | 62 |   |   | $ | 61 |   |
| Accounts payable                                                                               | 171,073 |   |   | 178,693 |   |
| Borrowings under credit facilities                                                             | 5,900 |   |   | — |   |
| Dividends payable                                                                              | 1,835 |   |   | 1,828 |   |
| Accrued expenses                                                                               | 65,817 |   |   | 52,923 |   |
| Total current liabilities                                                                      | 244,687 |   |   | 233,505 |   |
| Other Liabilities:                                                                             |   |   |   |
| Long-term debt, less current maturities                                                        | 286 |   |   | 299 |   |
| Other                                                                                          | 21,490 |   |   | 25,519 |   |
| Total other liabilities                                                                        | 21,776 |   |   | 25,818 |   |
| Share Owners' Equity:                                                                          |   |   |   |
| Common stock-par value $0.05 per share:                                                        |   |   |   |
| Class A - 49,826,000 shares authorized; 14,368,000 shares issued                               | 718 |   |   | 718 |   |
| Class B - 100,000,000 shares authorized; 28,657,000 shares issued                              | 1,433 |   |   | 1,433 |   |
| Additional paid-in capital                                                                     | 208 |   |   | 119 |   |
| Retained earnings                                                                              | 451,724 |   |   | 454,800 |   |
| Accumulated other comprehensive loss                                                           | (97 | ) |   | (9,775 | ) |
| Less: Treasury stock, at cost:                                                                 |   |   |   |
| Class A - 3,915,000 and 3,834,000 shares, respectively                                         | (49,236 | ) |   | (49,415 | ) |
| Class B - 1,360,000 and 1,579,000 shares, respectively                                         | (17,715 | ) |   | (20,452 | ) |
| Total Share Owners' Equity                                                                     | 387,035 |   |   | 377,428 |   |
| Total Liabilities and Share Owners' Equity                                                     | $ | 653,498 |   |   | $ | 636,751 |   |

Notes to Condensed Consolidated Financial Statements

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | (Unaudited) |   | (Unaudited) |
|                                  | Three Months Ended |   | Nine Months Ended |
|                                  | March 31 |   | March 31 |
|                                  | 2011 |   | 2010 |   | 2011 |   | 2010 |
| Net Sales                             | $ | 314,466 |   |   | $ | 282,347 |   |   | $ | 919,774 |   |   | $ | 832,167 |   |
| Cost of Sales                         | 263,775 |   |   | 241,970 |   |   | 772,360 |   |   | 700,465 |   |
| Gross Profit                          | 50,691 |   |   | 40,377 |   |   | 147,414 |   |   | 131,702 |   |
| Selling and Administrative Expenses   | 46,869 |   |   | 45,008 |   |   | 143,206 |   |   | 137,690 |   |
| Other General Income                  | — |   |   | (6,724 | ) |   | — |   |   | (9,980 | ) |
| Restructuring Expense                 | 68 |   |   | 933 |   |   | 553 |   |   | 1,710 |   |
| Operating Income                      | 3,754 |   |   | 1,160 |   |   | 3,655 |   |   | 2,282 |   |
| Other Income (Expense):               |   |   |   |   |   |   |   |
| Interest income                       | 196 |   |   | 279 |   |   | 587 |   |   | 944 |   |
| Interest expense                      | (40 | ) |   | (27 | ) |   | (110 | ) |   | (133 | ) |
| Non-operating income, net             | 745 |   |   | 243 |   |   | 1,411 |   |   | 2,683 |   |
| Other income, net                     | 901 |   |   | 495 |   |   | 1,888 |   |   | 3,494 |   |
| Income Before Taxes on Income         | 4,655 |   |   | 1,655 |   |   | 5,543 |   |   | 5,776 |   |
| Provision (Benefit) for Income Taxes  | 1,349 |   |   | (4,675 | ) |   | 905 |   |   | (4,234 | ) |
| Net Income                       | $ | 3,306 |   |   | $ | 6,330 |   |   | $ | 4,638 |   |   | $ | 10,010 |   |
|                                  |   |   |   |   |   |   |   |
| Earnings Per Share of Common Stock:   |   |   |   |   |   |   |   |   |   |
| Basic Earnings Per Share:             |   |   |   |   |   |   |   |   |   |
| Class A                               | $ | 0.08 |   |   | $ | 0.17 |   |   | $ | 0.11 |   |   | $ | 0.26 |   |
| Class B                               | $ | 0.09 |   |   | $ | 0.17 |   |   | $ | 0.13 |   |   | $ | 0.27 |   |
| Diluted Earnings Per Share:           |   |   |   |   |   |   |   |
| Class A                               | $ | 0.08 |   |   | $ | 0.17 |   |   | $ | 0.11 |   |   | $ | 0.26 |   |
| Class B                               | $ | 0.09 |   |   | $ | 0.17 |   |   | $ | 0.13 |   |   | $ | 0.27 |   |
|                                  |   |   |   |   |   |   |   |
| Dividends Per Share of Common Stock:  |   |   |   |   |   |   |   |
| Class A                               | $ | 0.045 |   |   | $ | 0.045 |   |   | $ | 0.135 |   |   | $ | 0.135 |   |
| Class B                               | $ | 0.050 |   |   | $ | 0.050 |   |   | $ | 0.150 |   |   | $ | 0.150 |   |
|                                  |   |   |   |   |   |   |   |
| Average Number of Shares Outstanding: |   |   |   |   |   |   |   |
| Class A and B Common Stock:           |   |   |   |   |   |   |   |
| Basic                                 | 37,746 |   |   | 37,573 |   |   | 37,718 |   |   | 37,408 |   |
| Diluted                               | 37,845 |   |   | 37,633 |   |   | 37,856 |   |   | 37,499 |   |

Notes to Condensed Consolidated Financial Statements

----

|                                                                                |
|--------------------------------------------------------------------------------|
|                                                                                |  |  |  |  |  |  |  |
|                                                                           | (Unaudited) |
|                                                                           | Nine Months Ended |
|                                                                           | March 31 |
|                                                                           | 2011 |   | 2010 |
| Cash Flows From Operating Activities:                                          |   |   |   |
| Net income                                                                     | $ | 4,638 |   |   | $ | 10,010 |   |
| Adjustments to reconcile net income to net cash used for operating activities: |   |   |
| Depreciation and amortization                                                  | 23,509 |   |   | 26,335 |   |
| Gain on sales of assets                                                        | (36 | ) |   | (6,802 | ) |
| Restructuring and exit costs                                                   | — |   |   | 82 |   |
| Deferred income tax                                                            | 4,673 |   |   | (3,371 | ) |
| Stock-based compensation                                                       | 1,049 |   |   | 1,560 |   |
| Excess tax benefits from stock-based compensation                              | — |   |   | (263 | ) |
| Other, net                                                                     | 772 |   |   | (31 | ) |
| Change in operating assets and liabilities:                                    |   |   |   |
| Receivables                                                                    | (31,557 | ) |   | (28,420 | ) |
| Inventories                                                                    | (2,642 | ) |   | (25,712 | ) |
| Prepaid expenses and other current assets                                      | (3,685 | ) |   | (4,732 | ) |
| Accounts payable                                                               | (9,195 | ) |   | 21,700 |   |
| Accrued expenses                                                               | 4,910 |   |   | (812 | ) |
| Net cash used for operating activities                                         | (7,564 | ) |   | (10,456 | ) |
| Cash Flows From Investing Activities:                                          |   |   |   |
| Capital expenditures                                                           | (20,893 | ) |   | (26,288 | ) |
| Proceeds from sales of assets                                                  | 888 |   |   | 12,321 |   |
| Purchase of capitalized software                                               | (1,100 | ) |   | (316 | ) |
| Purchases of available-for-sale securities                                     | — |   |   | (6,555 | ) |
| Sales and maturities of available-for-sale securities                          | — |   |   | 15,644 |   |
| Other, net                                                                     | (1,023 | ) |   | 310 |   |
| Net cash used for investing activities                                         | (22,128 | ) |   | (4,884 | ) |
| Cash Flows From Financing Activities:                                          |   |   |   |
| Proceeds from revolving credit facility                                        | 82,300 |   |   | — |   |
| Payments on revolving credit facility                                          | (82,300 | ) |   | (12,248 | ) |
| Additional net change in credit facilities                                     | 5,900 |   |   | — |   |
| Payments on capital leases and long-term debt                                  | (12 | ) |   | (10 | ) |
| Dividends paid to Share Owners                                                 | (5,495 | ) |   | (5,437 | ) |
| Excess tax benefits from stock-based compensation                              | — |   |   | 263 |   |
| Repurchase of employee shares for tax withholding                              | (278 | ) |   | (1,201 | ) |
| Net cash provided by (used for) financing activities                           | 115 |   |   | (18,633 | ) |
| Effect of Exchange Rate Change on Cash and Cash Equivalents                    | 5,487 |   |   | (698 | ) |
| Net Decrease in Cash and Cash Equivalents                                      | (24,090 | ) |   | (34,671 | ) |
| Cash and Cash Equivalents at Beginning of Period                               | 65,342 |   |   | 75,932 |   |
| Cash and Cash Equivalents at End of Period                                     | $ | 41,252 |   |   | $ | 41,261 |   |
| Supplemental Disclosure of Cash Flow Information                               |   |   |   |
| Cash paid during the period for:                                               |   |   |   |
| Income taxes                                                                   | $ | 215 |   |   | $ | 8,070 |   |
| Interest expense                                                               | $ | 106 |   |   | $ | 201 |   |

Notes to Condensed Consolidated Financial Statements

----

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                      | Three Months Ended |   | Nine Months Ended |
|                                                      | March 31 |   | March 31 |
| (Amounts in Thousands)                                    | 2011 |   | 2010 |   | 2011 |   | 2010 |
| Foreign Currency/Derivative Gain (Loss)                   | $ | 100 |   |   | $ | (454 | ) |   | $ | (1,271 | ) |   | $ | 329 |   |
| Gain on Supplemental Employee Retirement Plan Investments | 690 |   |   | 540 |   |   | 2,966 |   |   | 2,560 |   |
| Other                                                     | (45 | ) |   | 157 |   |   | (284 | ) |   | (206 | ) |
| Non-operating income, net                                 | $ | 745 |   |   | $ | 243 |   |   | $ | 1,411 |   |   | $ | 2,683 |   |

----

Note 1 - Summary of Significant Accounting PoliciesNote 14 - Credit Quality and Allowance for Credit Losses of Notes Receivable

Note 13 - Variable Interest Entities

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |
| (Amounts in Thousands) | March 31, 2011 |   | June 30, 2010 |
| Finished Products      | $ | 33,411 |   |   | $ | 33,177 |   |
| Work-in-Process        | 12,490 |   |   | 13,209 |   |
| Raw Materials          | 113,494 |   |   | 112,897 |   |
| Total FIFO Inventory   | $ | 159,395 |   |   | $ | 159,283 |   |
| LIFO Reserve           | (12,398 | ) |   | (12,877 | ) |
| Total Inventory        | $ | 146,997 |   |   | $ | 146,406 |   |

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | Three Months Ended |   | Three Months Ended |
|                                      | March 31, 2011 |   | March 31, 2010 |
| (Amounts in Thousands)                    | Pre-tax |   | Tax |   | Net of Tax |   | Pre-tax |   | Tax |   | Net of Tax |
| Net income                                |   |   |   |   |   |   | $ | 3,306 |   |   |   |   |   |   |   |   | $ | 6,330 |   |
| Other comprehensive income (loss):        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments  | $ | 4,765 |   |   | $ | (1,090 | ) |   | $ | 3,675 |   |   | $ | (5,610 | ) |   | $ | 1,228 |   |   | $ | (4,382 | ) |
| Postemployment severance actuarial change | 620 |   |   | (247 | ) |   | 373 |   |   | (1,823 | ) |   | 727 |   |   | (1,096 | ) |
| Other fair value changes:                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities             | — |   |   | — |   |   | — |   |   | (90 | ) |   | 36 |   |   | (54 | ) |
| Derivatives                               | (337 | ) |   | (54 | ) |   | (391 | ) |   | 1,990 |   |   | (544 | ) |   | 1,446 |   |
| Reclassification to (earnings) loss:      |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities             | — |   |   | — |   |   | — |   |   | (272 | ) |   | 108 |   |   | (164 | ) |
| Derivatives                               | (408 | ) |   | 136 |   |   | (272 | ) |   | (1,042 | ) |   | 317 |   |   | (725 | ) |
| Amortization of prior service costs       | 71 |   |   | (28 | ) |   | 43 |   |   | 71 |   |   | (27 | ) |   | 44 |   |
| Amortization of actuarial change          | 183 |   |   | (73 | ) |   | 110 |   |   | 310 |   |   | (123 | ) |   | 187 |   |
| Other comprehensive income (loss)         | $ | 4,894 |   |   | $ | (1,356 | ) |   | $ | 3,538 |   |   | $ | (6,466 | ) |   | $ | 1,722 |   |   | $ | (4,744 | ) |
| Total comprehensive income                |   |   |   |   |   |   | $ | 6,844 |   |   |   |   |   |   |   |   | $ | 1,586 |   |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      | Nine Months Ended |   | Nine Months Ended |
|                                      | March 31, 2011 |   | March 31, 2010 |
| (Amounts in Thousands)                    | Pre-tax |   | Tax |   | Net of Tax |   | Pre-tax |   | Tax |   | Net of Tax |
| Net income                                |   |   |   |   | $ | 4,638 |   |   |   |   |   |   | $ | 10,010 |   |
| Other comprehensive income (loss):        |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustments  | $ | 11,543 |   |   | $ | (2,652 | ) |   | $ | 8,891 |   |   | $ | (3,689 | ) |   | $ | 796 |   |   | $ | (2,893 | ) |
| Postemployment severance actuarial change | 1,107 |   |   | (442 | ) |   | 665 |   |   | (2,497 | ) |   | 996 |   |   | (1,501 | ) |
| Other fair value changes:                 |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities             | — |   |   | — |   |   | — |   |   | (134 | ) |   | 54 |   |   | (80 | ) |
| Derivatives                               | 839 |   |   | (375 | ) |   | 464 |   |   | 2,844 |   |   | (684 | ) |   | 2,160 |   |
| Reclassification to (earnings) loss:      |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities             | — |   |   | — |   |   | — |   |   | (328 | ) |   | 130 |   |   | (198 | ) |
| Derivatives                               | (1,215 | ) |   | 379 |   |   | (836 | ) |   | 343 |   |   | (117 | ) |   | 226 |   |
| Amortization of prior service costs       | 214 |   |   | (86 | ) |   | 128 |   |   | 214 |   |   | (84 | ) |   | 130 |   |
| Amortization of actuarial change          | 608 |   |   | (242 | ) |   | 366 |   |   | 608 |   |   | (242 | ) |   | 366 |   |
| Other comprehensive income (loss)         | $ | 13,096 |   |   | $ | (3,418 | ) |   | $ | 9,678 |   |   | $ | (2,639 | ) |   | $ | 849 |   |   | $ | (1,790 | ) |
| Total comprehensive income                |   |   |   |   | $ | 14,316 |   |   |   |   |   |   | $ | 8,220 |   |

|                                          |
|------------------------------------------|
|                                          |  |  |  |  |  |  |  |
|                                     | March 31, 2011 |   | June 30, 2010 |
| (Amounts in Thousands)                   |   |   |   |
| Foreign currency translation adjustments | $ | 6,328 |   |   | $ | (2,563 | ) |
| Unrealized loss from:                    |   |   |   |   |   |
| Derivatives                              | (4,379 | ) |   | (4,007 | ) |
| Postemployment benefits:                 |   |   |   |
| Prior service costs                      | (679 | ) |   | (807 | ) |
| Net actuarial loss                       | (1,367 | ) |   | (2,398 | ) |
| Accumulated other comprehensive loss     | $ | (97 | ) |   | $ | (9,775 | ) |

----

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                         | Three Months Ended |   |   |   | Nine Months Ended |   |
|                                         | March 31 |   |   |   | March 31 |   |
| (Amounts in Thousands)                  | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Net Sales:                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Electronic Manufacturing Services      | $ | 198,985 |   |   |   |   | $ | 190,137 |   |   |   |   | $ | 558,291 |   |   |   | $ | 522,606 |   |   |
|  Furniture                              | 115,481 |   |   |   |   | 92,181 |   |   |   |   | 361,483 |   |   |   | 309,487 |   |   |
|  Unallocated Corporate and Eliminations | — |   |   |   |   | 29 |   |   |   |   | — |   |   |   | 74 |   |   |
|  Consolidated                           | $ | 314,466 |   |   |   |   | $ | 282,347 |   |   |   |   | $ | 919,774 |   |   |   | $ | 832,167 |   |   |
| Net Income (Loss):                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Electronic Manufacturing Services      | $ | 3,151 |   |   |   |   | $ | 10,766 |   |   |   |   | $ | 2,794 |   |   |   | $ | 13,212 |   |   |
|  Furniture                              | (12 | ) |   |   |   | (4,543 | ) |   |   |   | 1,378 |   |   |   | (3,759 | ) |   |
|  Unallocated Corporate and Eliminations | 167 |   |   |   |   | 107 |   |   |   |   | 466 |   |   |   | 557 |   |   |
|  Consolidated                           | $ | 3,306 |   | (1 | ) |   | $ | 6,330 |   | (2 | ) |   | $ | 4,638 |   | (1 | ) |   | $ | 10,010 |   | (2 | ) |

Note 6 - Restructuring Expense

Note 6 - Restructuring Expense

|                                              |
|----------------------------------------------|
|                                              |  |  |  |  |  |  |  |
| (Amounts in Thousands)                       | March 31, 2011 |   | June 30, 2010 |
| Total Assets:                                |   |   |   |
|  Electronic Manufacturing Services      | $ | 425,009 |   |   | $ | 384,491 |   |
|  Furniture                              | 181,011 |   |   | 182,396 |   |
|  Unallocated Corporate and Eliminations | 47,478 |   |   | 69,864 |   |
|  Consolidated                           | $ | 653,498 |   |   | $ | 636,751 |   |

----

|                                                                |
|----------------------------------------------------------------|
|                                                                |  |  |  |  |  |  |  |
|                                                           | Nine Months Ended |
|                                                           | March 31 |
| (Amounts in Thousands)                                         | 2011 |   | 2010 |
| Product Warranty Liability at the beginning of the period      | $ | 1,818 |   |   | $ | 2,176 |   |
| Additions to warranty accrual (including changes in estimates) | 2,088 |   |   | 416 |   |
| Settlements made (in cash or in kind)                          | (1,747 | ) |   | (712 | ) |
| Product Warranty Liability at the end of the period            | $ | 2,159 |   |   | $ | 1,880 |   |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Summary of All Plans                |    |   |   |   |    |   |    |   |    |   |    |   |   |   |   |
|                                | AccruedJune 30,2010 (2) |   | Nine Months Ended March 31, 2011 |   | AccruedMarch 31,2011 (2) |   | Total ChargesIncurred Since Plan Announcement |   | Total ExpectedPlan Costs |
| (Amounts in Thousands)              |   | AmountsCharged Cash |   | AmountsCharged  Non-cash |   | Amounts Utilized/Cash Paid |   | Adjustments |   |   |   |
| EMS Segment                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| FY 2008 European Consolidation Plan |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Transition and Other Employee Costs | $ | 9,181 |   |   | $ | 471 |   |   | $ | — |   |   | $ | (796 | ) |   | $ | 602 |   | (3)  | $ | 9,458 |   |   | $ | 19,745 |   |   | $ | 19,868 |   |
| Asset Write-downs                   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | 522 |   |   | 522 |   |
| Plant Closure and Other Exit Costs  | — |   |   | 3 |   |   | — |   |   | (3 | ) |   | — |   |   | — |   |   | 659 |   |   | 891 |   |
| Total EMS Segment                   | $ | 9,181 |   |   | $ | 474 |   |   | $ | — |   |   | $ | (799 | ) |   | $ | 602 |   |   | $ | 9,458 |   |   | $ | 20,926 |   |   | $ | 21,281 |   |
| Unallocated Corporate               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Restructuring Plan (1)        | — |   |   | 79 |   |   | — |   |   | (79 | ) |   | — |   |   | — |   |   | 740 |   |   | 858 |   |
| Consolidated Total of All Plans     | $ | 9,181 |   |   | $ | 553 |   |   | $ | — |   |   | $ | (878 | ) |   | $ | 602 |   |   | $ | 9,458 |   |   | $ | 21,666 |   |   | $ | 22,139 |   |

|     |                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------|
| (1) | Other Restructuring Plan represents the Gaylord restructuring plan initiated in fiscal year 2007. |

|     |                                                                                                                                                                                                                                                                                                                                                       |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Accrued restructuring at March 31, 2011 and June 30, 2010 was $9.5 million and $9.2 million, respectively. The balances include $9.5 million recorded in current liabilities at March 31, 2011 and $2.5 million and $6.7 million recorded in current liabilities and other long-term liabilities, respectively, at June 30, 2010. |

|     |                                                                                                                                                                         |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | The effect of changes in foreign currency exchange rates within the EMS segment primarily due to revaluation of the restructuring liability is included in this amount. |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | Level 1:  Unadjusted quoted prices in active markets for identical assets and liabilities. |

|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 2:  Observable inputs other than those included in level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets. |

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | Level 3:  Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset or liability. |

----

|                                                                                             |
|---------------------------------------------------------------------------------------------|
|                                                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                        | March 31, 2011 |
| (Amounts in Thousands)                                                                      | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                                                                                      |   |   |   |   |   |   |   |
| Cash equivalents                                                                            | $ | 19,752 |   |   | $ | — |   |   | $ | — |   |   | $ | 19,752 |   |
| Available-for-sale securities: Convertible debt securities                                  | — |   |   | — |   |   | 2,712 |   |   | 2,712 |   |
| Derivatives: Foreign exchange contracts                                                     | — |   |   | 880 |   |   | — |   |   | 880 |   |
| Derivatives: Stock warrants                                                                 | — |   |   | — |   |   | 401 |   |   | 401 |   |
| Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 15,843 |   |   | — |   |   | — |   |   | 15,843 |   |
| Total assets at fair value                                                                  | $ | 35,595 |   |   | $ | 880 |   |   | $ | 3,113 |   |   | $ | 39,588 |   |
| Liabilities                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives: Foreign exchange contracts                                                     | $ | — |   |   | $ | 2,844 |   |   | $ | — |   |   | $ | 2,844 |   |
| Total liabilities at fair value                                                             | $ | — |   |   | $ | 2,844 |   |   | $ | — |   |   | $ | 2,844 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                        | June 30, 2010 |
| (Amounts in Thousands)                                                                      | Level 1 |   | Level 2 |   | Level 3 |   | Total |
| Assets                                                                                      |   |   |   |   |   |   |   |
| Cash equivalents                                                                            | $ | 32,706 |   |   | $ | — |   |   | $ | — |   |   | $ | 32,706 |   |
| Available-for-sale securities: Convertible debt securities                                  | — |   |   | — |   |   | 2,496 |   |   | 2,496 |   |
| Derivatives: Foreign exchange contracts                                                     | — |   |   | 2,223 |   |   | — |   |   | 2,223 |   |
| Derivatives: Stock warrants                                                                 | — |   |   | — |   |   | 395 |   |   | 395 |   |
| Trading Securities: Mutual funds held by nonqualified supplemental employee retirement plan | 13,071 |   |   | — |   |   | — |   |   | 13,071 |   |
| Total assets at fair value                                                                  | $ | 45,777 |   |   | $ | 2,223 |   |   | $ | 2,891 |   |   | $ | 50,891 |   |
| Liabilities                                                                                 |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives: Foreign exchange contracts                                                     | $ | — |   |   | $ | 392 |   |   | $ | — |   |   | $ | 392 |   |
| Total liabilities at fair value                                                             | $ | — |   |   | $ | 392 |   |   | $ | — |   |   | $ | 392 |   |

Note 9 - Short-Term Investments

----

|                                         |
|-----------------------------------------|
|                                         |  |  |
| Assets                                  |   | Liabilities |
| Certain cash and cash equivalents       |   | Accounts payable |
| Receivables                             |   | Borrowings under credit facilities |
| Other assets not recorded at fair value |   | Dividends payable |
|                                    |   | Accrued expenses |

----

Note 7 - Fair ValueNote 3 - Comprehensive Income

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               | Asset Derivatives |   | Liability Derivatives |
|                                               |   |   | Fair Value As of |   |   |   | Fair Value As of |
| (Amounts in Thousands)                             | Balance Sheet Location |   | March 31, 2011 |   | June 30, 2010 |   | Balance Sheet Location |   | March 31, 2011 |   | June 30, 2010 |
| Derivatives designated as hedging instruments:     |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange contracts                         | Prepaid expenses and other current assets |   | $ | 744 |   |   | $ | 525 |   |   | Accrued expenses |   | $ | 402 |   |   | $ | 339 |   |
|                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives not designated as hedging instruments: |   |   |   |   |   |   |   |   |   |   |   |
| Foreign exchange contracts                         | Prepaid expenses and other current assets |   | 136 |   |   | 1,698 |   |   | Accrued expenses |   | 2,442 |   |   | 53 |   |
| Stock warrants                                     | Other assets(long-term) |   | 401 |   |   | 395 |   |   |   |   |   |   |   |   |   |
| Total derivatives                                  |   |   | $ | 1,281 |   |   | $ | 2,618 |   |   |   |   | $ | 2,844 |   |   | $ | 392 |   |

|                                                                                                                            |
|----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                                       |   |   |   | Three Months Ended |   | Nine Months Ended |
|                                                                                                                       |   |   |   | March 31 |   | March 31 |
| (Amounts in Thousands)                                                                                                     |   |   |   | 2011 |   | 2010 |   | 2011 |   | 2010 |
| Amount of Pre-Tax Gain or (Loss) Recognized in Other Comprehensive Income (Loss) (OCI) on Derivatives (Effective Portion): |   |   |   |   |   |   |   |   |
| Foreign exchange contracts                                                                                                 |   |   |   | $ | (337 | ) |   | $ | 1,990 |   |   | $ | 839 |   |   | $ | 2,844 |   |

----

|                                                                                                       |
|-------------------------------------------------------------------------------------------------------|
|                                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                  |   |   |   | Three Months Ended |   | Nine Months Ended |
| (Amounts in Thousands)                                                                                |   |   |   | March 31 |   | March 31 |
| Derivatives in Cash Flow Hedging Relationships                                                        |   | Location of Gain or (Loss)  |   | 2011 |   | 2010 |   | 2011 |   | 2010 |
| Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion):   |   |   |   |   |   |   |   |   |
| Foreign exchange contracts                                                                            |   | Net Sales |   | $ | — |   |   | $ | — |   |   | $ | — |   |   | $ | 12 |   |
| Foreign exchange contracts                                                                            |   | Cost of Sales |   | 562 |   |   | 973 |   |   | 1,296 |   |   | (429 | ) |
| Foreign exchange contracts                                                                            |   | Non-operating income |   | (157 | ) |   | 69 |   |   | (84 | ) |   | 30 |   |
| Total                                                                                                 |   |   |   | $ | 405 |   |   | $ | 1,042 |   |   | $ | 1,212 |   |   | $ | (387 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount of Pre-Tax Gain or (Loss) Reclassified from Accumulated OCI into Income (Ineffective Portion): |   |   |   |   |   |   |   |   |
| Foreign exchange contracts                                                                            |   | Non-operating income |   | $ | 3 |   |   | $ | — |   |   | $ | 3 |   |   | $ | 44 |   |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivatives Not Designated as Hedging Instruments                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Amount of Pre-Tax Gain or (Loss) Recognized in Income on Derivatives:                                 |   |   |   |   |   |   |   |   |
| Foreign exchange contracts                                                                            |   | Non-operating income |   | $ | (1,598 | ) |   | $ | (54 | ) |   | $ | (3,761 | ) |   | $ | (491 | ) |
| Stock warrants                                                                                        |   | Non-operating income |   | (5 | ) |   | (5 | ) |   | 5 |   |   | (5 | ) |
| Total                                                                                                 |   |   |   | $ | (1,603 | ) |   | $ | (59 | ) |   | $ | (3,756 | ) |   | $ | (496 | ) |
|                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Pre-Tax Gain (Loss) Recognized in Income                                             |   | $ | (1,195 | ) |   | $ | 983 |   |   | $ | (2,541 | ) |   | $ | (839 | ) |

|                                                                                       |
|---------------------------------------------------------------------------------------|
|                                                                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                  | Three Months Ended |   | Nine Months Ended |
|                                                                                  | March 31 |   | March 31 |
| (Amounts in Thousands)                                                                | 2011 |   | 2010 |   | 2011 |   | 2010 |
| Proceeds from sales                                                                   | $ | — |   |   | $ | 11,770 |   |   | $ | — |   |   | $ | 14,879 |   |
| Gross realized gains from sale of available-for-sale securities included in earnings  | — |   |   | 272 |   |   | — |   |   | 328 |   |
| Gross realized losses from sale of available-for-sale securities included in earnings | — |   |   | — |   |   | — |   |   | — |   |
| Net unrealized holding gain (loss) included in Other Comprehensive Income (Loss)      | — |   |   | (90 | ) |   | — |   |   | (134 | ) |
| Net (gains) losses reclassified out of Other Comprehensive Income (Loss)              | — |   |   | (272 | ) |   | — |   |   | (328 | ) |

----

Note 8 - Derivative Instruments

Note 7 - Fair Value

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |
| (Amounts in Thousands)                        | March 31, 2011 |   | June 30, 2010 |
| SERP investment - current asset               | $ | 5,528 |   |   | $ | 4,822 |   |
| SERP investment - other long-term asset       | 10,315 |   |   | 8,249 |   |
|     Total SERP investment | $ | 15,843 |   |   | $ | 13,071 |   |
|                                          |   |   |   |
| SERP obligation - current liability           | $ | 5,528 |   |   | $ | 4,822 |   |
| SERP obligation - other long-term liability   | 10,315 |   |   | 8,249 |   |
|     Total SERP obligation | $ | 15,843 |   |   | $ | 13,071 |   |

----

|                                                             |
|-------------------------------------------------------------|
|                                                             |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                        | Three Months Ended |   | Nine Months Ended |
|                                                        | March 31 |   | March 31 |
| (Amounts in Thousands)                                      | 2011 |   | 2010 |   | 2011 |   | 2010 |
|     Service cost                        | $ | 227 |   |   | $ | 217 |   |   | $ | 711 |   |   | $ | 595 |   |
|     Interest cost                       | 65 |   |   | 122 |   |   | 203 |   |   | 334 |   |
|     Amortization of prior service costs | 71 |   |   | 71 |   |   | 214 |   |   | 214 |   |
|     Amortization of actuarial change    | 183 |   |   | 310 |   |   | 608 |   |   | 608 |   |
| Net periodic benefit cost                                   | $ | 546 |   |   | $ | 720 |   |   | $ | 1,736 |   |   | $ | 1,751 |   |

Note 6 - Restructuring Expense

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |  |
| Performance Shares                                        |   | Quarter Awarded |   | Shares |   | Grant Date Fair Value (4) |
| Annual Performance Shares - Class A (1)              |   | 1st Quarter |   | 235,710  |   |   | $ | 5.09 |   |
| Long-Term Performance Shares - Class A (2)           |   | 1st Quarter |   | 483,318  |   |   | $ | 5.09 |   |
|                                                      |   |   |   |   |   |   |
| Unrestricted Shares                                       |   | Quarter Awarded |   |  Shares |   | Grant Date Fair Value (4) |
| Unrestricted Shares - Class A (3)                         |   | 1st Quarter |   | 1,000 |   |   | $ | 5.27 |   |
| Unrestricted Shares - Class B (3)                    |   | 1st Quarter |   | 500 |   |   | $ | 5.27 |   |
| Unrestricted Shares - Class B (3)                         | 2nd Quarter | 1,000 |   |   | $ | 6.72 |   |
| Unrestricted Shares (Director Compensation) - Class B (3) | 2nd Quarter | 25,477 |   |   | $ | 6.32 |   |
| Unrestricted Shares - Class A (3)                         |   | 3rd Quarter |   | 12,000 |   |   | $ | 7.36 |   |
| Unrestricted Shares - Class B (3)                         | 3rd Quarter |   | 6,500 |   |   | $ | 7.36 |   |
| Unrestricted Shares - Class B (3)                         | 3rd Quarter |   | 500 |   |   | $ | 6.89 |   |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Annual performance shares were awarded to officers. Payouts will be based upon the fiscal year 2011 cash incentive payout percentages calculated under the Company's Profit Sharing Incentive Bonus Plan. The number of shares issued will be less than the maximum potential shares issuable if the maximum cash incentive payout percentages are not achieved. Annual performance shares vest after one year. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Long-term performance shares were awarded to officers and other key employees. Payouts will be based upon the cash incentive payout percentages calculated under the Company's Profit Sharing Incentive Bonus Plan. Long-term performance shares are based on five successive annual performance measurement periods, with each annual tranche having a grant date when economic profit tiers are established at the beginning of the applicable fiscal year and a vesting date at the end of each annual period. The number of shares issued will be less than the maximum potential shares issuable if the maximum cash incentive payout percentages are not achieved. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Unrestricted shares were awarded to non-employee members of the Board of Directors as compensation for director's fees, as a result of directors' elections to receive unrestricted shares in lieu of cash payment. Director's fees are expensed over the period that directors earn the compensation. Other unrestricted shares were awarded to officers and other key employees as consideration for their service to the |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | The grant date fair value of performance shares is based on the stock price at the date of the award, reduced by the present value of dividends normally paid over the vesting period which are not payable on outstanding performance share awards. The grant date fair value shown for long-term performance shares is applicable to the first tranche only. The grant date fair value of the unrestricted shares was based on the stock price at the date of the award. |

Note 9 - Short-Term InvestmentsNote 8 - Derivative Instruments

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                          | As of March 31, 2011 |   | As of December 31, 2010 |
| (Amounts in Thousands)                                        | Unpaid Balance |   | Related Allowance |   | Receivable Net of Allowance |   | Unpaid Balance |   | Related Allowance |   | Receivable Net of Allowance |
| Note Receivable from Sale of Indiana Facility                 | $ | 1,317 |   |   | $ | — |   |   | $ | 1,317 |   |   | $ | 1,300 |   |   | $ | — |   |   | $ | 1,300 |   |
| Note Receivable from an Electronics Engineering Services Firm | 1,000 |   |   | — |   |   | 1,000 |   |   | — |   |   | — |   |   | — |   |
| Other Notes Receivable                                        | — |   |   | — |   |   | — |   |   | 84 |   |   | 84 |   |   | — |   |
| Total                                                         | $ | 2,317 |   |   | $ | — |   |   | $ | 2,317 |   |   | $ | 1,384 |   |   | $ | 84 |   |   | $ | 1,300 |   |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Company does not have operations located in Japan and thus has had no production facilities directly impacted by the effects of the earthquake and tsunami.  The Company is monitoring EMS customers and suppliers who were affected either by physical damage to production facilities or indirect production impacts caused by electricity blackouts or aftershocks.  While there has been minimal disruption in the supply chain up to this point, the Company has been informed by a few suppliers of possible component shortages in the near-term which could impact the Company's production schedule. In addition, customers can be impacted with part shortages unrelated to electronic components, and their production schedule reductions could cause the Company to have delayed or canceled orders.  The Company has maintained close communications with customers and suppliers and notified them, where appropriate, of force majeure conditions which may impact the Company's performance. |

|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Company will continue its focus on preserving cash and minimizing debt. Managing working capital in conjunction with fluctuating demand levels is key. In addition, the Company plans to minimize capital expenditures where appropriate but has |

----

|         |                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Commodity price pressure is expected to continue in the near-term. Mitigating the impact of commodity and fuel prices continues to be an area of focus within the Company. |

|         |                                                                                                                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Management continues to evaluate and monitor the implementation of the healthcare reform legislation that was signed into law in March 2010 to understand the full impact on the Company. This legislation is expected to increase the Company's healthcare and related administrative expenses. |

|         |                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|
| • | Globalization continues to reshape not only the industries in which the Company operates but also its key customers and competitors. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The nature of the EMS industry is such that the start-up of new programs to replace departing customers or expiring programs occurs frequently. The Company's sales to Bayer AG are forecasted to decline in the fourth quarter of fiscal year 2011 as the Company's manufacturing contract with Bayer AG reaches end-of-life. Margins on the Bayer AG product are generally lower than the Company's other EMS products. The success of the Company's EMS segment is dependent on the successful replacement of such customers or programs. Such changes usually occur gradually over time as old programs phase out of production while newer programs ramp up.   The transition to new programs may temporarily reduce sales and increase operating costs, resulting in a temporary decline in operating profit at the impacted business unit.  Additional information on the risks related to contract customers is contained in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2010. |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | The increasingly competitive marketplace mandates that the Company continually re-evaluate its business models. |

|         |                                                                                                                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Company's employees throughout its business operations are an integral part of the Company's ability to compete successfully, and the stability of its management team is critical to long-term Share Owner value. The Company's career development and succession planning processes help to maintain stability in management. |

|         |                                                                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | To support growth and diversification efforts, the Company focuses on both organic growth and potential acquisition targets. Acquisitions allow rapid diversification of both customers and industries served. |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |
|                                      | Three Months Ended |   | Nine Months Ended |
|                                      | March 31 |   | March 31 |
|                                      | 2011 |   | 2010 |   | 2011 |   | 2010 |
| EMS segment net sales as % of total       | 63 | % |   | 67 | % |   | 61 | % |   | 63 | % |
| Furniture segment net sales as % of total | 37 | % |   | 33 | % |   | 39 | % |   | 37 | % |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  | At or for theThree Months Ended |   |   |   | For theNine Months Ended |   |   |
|                                  | March 31 |   |   |   | March 31 |   |   |
| (Amounts in Millions)                 | 2011 |   | 2010 |   | % Change |   | 2011 |   | 2010 |   | % Change |
| Net Sales                             | $ | 199.0 |   |   | $ | 190.1 |   |   | 5 |  % |   | $ | 558.3 |   |   | $ | 522.6 |   |   | 7 |  % |
| Operating Income                      | $ | 4.5 |   |   | $ | 10.2 |   |   | (56 | )% |   | $ | 4.9 |   |   | $ | 12.5 |   |   | (61 | )% |
| Net Income                            | $ | 3.2 |   |   | $ | 10.8 |   |   | (71 | )% |   | $ | 2.8 |   |   | $ | 13.2 |   |   | (79 | )% |
| Poland Land/Facility Gain, net of tax | $ | — |   |   | $ | 7.7 |   |   |   |   | $ | — |   |   | $ | 7.7 |   |   |   |
| Restructuring Expense, net of tax     | $ | — |   |   | $ | 0.5 |   |   |   |   | $ | 0.3 |   |   | $ | 1.0 |   |   |   |
| Open Orders                           | $ | 175.4 |   |   | $ | 198.9 |   |   | (12 | )% |   |   |   |   |   |   |

----

|                                                                  |
|------------------------------------------------------------------|
|                                                                  |  |  |  |  |  |  |  |  |  |  |  |
|                                                             | Three Months Ended |   | Nine Months Ended |
|                                                        | March 31 |   | March 31 |
|                                                             | 2011 |   | 2010 |   | 2011 |   | 2010 |
| Bayer AG affiliated sales as a percent of consolidated net sales | 15 | % |   | 16 | % |   | 14 | % |   | 15 | % |
| Bayer AG affiliated sales as a percent of EMS segment net sales  | 23 | % |   | 23 | % |   | 22 | % |   | 24 | % |

|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                    | At or for theThree Months Ended |   |   |   | For theNine Months Ended |   |   |
|                    | March 31 |   |   |   | March 31 |   |   |
| (Amounts in Millions)   | 2011 |   | 2010 |   | % Change |   | 2011 |   | 2010 |   | % Change |
| Net Sales               | $ | 115.5 |   |   | $ | 92.2 |   |   | 25 | % |   | $ | 361.5 |   |   | $ | 309.5 |   |   | 17 | % |
| Operating Income (Loss) | $ | 0.2 |   |   | $ | (7.2 | ) |   | 103 | % |   | $ | 2.6 |   |   | $ | (6.2 | ) |   | 141 | % |
| Net Income (Loss)       | $ | — |   |   | $ | (4.5 | ) |   | 100 | % |   | $ | 1.4 |   |   | $ | (3.8 | ) |   | 137 | % |
| Open Orders             | $ | 76.5 |   |   | $ | 57.1 |   |   | 34 | % |   |   |   |   |   |   |

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|                         |
|-------------------------|
|                         |  |  |  |  |  |  |  |  |  |  |  |  |
| Covenant                |   | At or For thePeriod EndedMarch 31, 2011 |   | Limit AsSpecified inCredit Agreement |   | Excess |
| Minimum Net Worth  |   | $ | 387,035,000 |   |   | $ | 362,000,000 |   |   | $ | 25,035,000 |   |
| Interest Coverage Ratio |   | 56.7 |   |   | 3.0 |   |   | 53.7 |   |

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Note 7 - Fair Value

Note 5 - Commitments and Contingent Liabilities

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Sales returns and allowances - At the time revenue is recognized certain provisions may also be recorded, including a provision for returns and allowances, which involve estimates based on current discussions with applicable customers, historical experience with a particular customer and/or product, and other relevant factors. As such, these factors may change over time causing the provisions to be adjusted accordingly. At March 31, 2011 and June 30, 2010, the reserve for returns and allowances was $2.0 million and $2.5 million, respectively. The returns and allowances reserve approximated 1% to 3% of gross trade receivables during the past two fiscal years. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Allowance for doubtful accounts - Allowance for doubtful accounts is generally based on a percentage of aged accounts receivable, where the percentage increases as the accounts receivable become older. However, management judgment is utilized in the final determination of the allowance based on several factors including specific analysis of a customer's credit worthiness, changes in a customer's payment history, historical bad debt experience, and general economic and market trends. The allowance for doubtful accounts at March 31, 2011 and at June 30, 2010 was $1.1 million and $1.3 million, respectively. During the preceding two-year period, this reserve had approximated 1% of gross trade accounts receivable except for the period June 2009 through December 2009 during which time it approximated 2% of gross trade accounts receivable. The higher reserve was driven by increased risk created by deteriorating market conditions during that time. |

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Note 1 - Summary of Significant Accounting Policies

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|     |                                                   |
|-----|---------------------------------------------------|
| (a) | Evaluation of disclosure controls and procedures. |

|     |                                                       |
|-----|-------------------------------------------------------|
| (b) | Changes in internal control over financial reporting. |

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|        |
|--------|
|        |  |  |
|   |   | KIMBALL INTERNATIONAL, INC. |
|   |   |   |
|   | By: | /s/ James C. Thyen |
|   |   | JAMES C. THYENPresident,Chief Executive Officer |
|   |   | May 5, 2011 |
|   |   |   |
|   |   |   |
|   | By: | /s/ Robert F. Schneider |
|   |   | ROBERT F. SCHNEIDERExecutive Vice President, Chief Financial Officer |
|   |   | May 5, 2011 |

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|             |
|-------------|
|             |  |  |
| Exhibit No. |   | Description |
| 3(a)        |   | Amended and restated Articles of Incorporation of the Company (Incorporated by reference to Exhibit 3(a) to the Company's Form 10-K for the fiscal year ended June 30, 2007) |
| 3(b)        |   | Restated By-laws of the Company (Incorporated by reference to Exhibit 3(b) to the Company's Form 8-K filed October 23, 2009) |
| 10          |   | Summary of Director and Named Executive Officer Compensation |
| 11          |   | Computation of Earnings Per Share |
| 31.1        |   | Certification filed by Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 31.2        |   | Certification filed by Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
| 32.1        |   | Certification furnished by the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2        |   | Certification furnished by the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |