55772--8/23/2006--KIMBALL_INTERNATIONAL

related topics

{customer, product, revenue}

{cost, operation, labor}

{regulation, change, law}

{cost, regulation, environmental}

{property, intellectual, protect}

{condition, economic, financial}

{competitive, industry, competition}

{tax, income, asset}

{acquisition, growth, future}

{product, market, service}

{operation, natural, condition}

{system, service, information}

{stock, price, operating}

{personnel, key, retain}

{operation, international, foreign}

{product, liability, claim}

Downturns in economic and market conditions could adversely impact demand for the Company's products and adversely affect operating results. The Company operates in a highly competitive environment and may not be able to compete successfully. The Company faces pricing pressures that could adversely affect the Company's financial position, results of operations or cash flows. Reduction of purchases by, or the loss of, one or more key customers could reduce revenues and profitability. The Company's future operating results depend on the ability to purchase a sufficient amount of materials, parts and components at competitive prices. The Company could be adversely affected by increased commodity costs or availability of raw materials. The Company could be impacted by manufacturing inefficiencies at certain locations. A change in the Company's sales mix among various products could have a negative impact on the gross profit margin. The Company's restructuring efforts may not be successful. Acquisitions by their nature may present risks to the Company. Start-up operations could present risks to the Company's current operations. Our international operations involve financial and operational risks. If the Company's efforts to introduce new products are not successful, this could limit sales growth or cause sales to decline. If customers do not perceive the Company's products to be of high quality, the Company's brand and name recognition could suffer. A loss of independent manufacturing representatives, dealers, or other sales channels could lead to a decline in sales of the Company's Furniture and Cabinets segment products. The Company must effectively manage working capital. The Company's assets could become impaired. There are inherent uncertainties involved in estimates, judgments and assumptions used in the preparation of financial statements in accordance with generally accepted accounting principles in the United States (U.S. GAAP). Any changes in estimates, judgments and assumptions could have a material adverse effect on the Company's financial position, results of operations or cash flows. The Company could be subject to additional tax liabilities. A failure to successfully implement information technology solutions could adversely affect the Company. An inability to protect the Company's intellectual property could have a significant impact on business. A third party could claim that the Company has infringed on their intellectual property rights. The Company's insurance may not adequately protect the Company from liabilities related to product defects. The Company is subject to extensive environmental regulation and significant potential environmental liabilities. The Company's failure to retain the existing management team and continue to attract qualified personnel could adversely affect the Company's business. Turnover in personnel could cause manufacturing inefficiencies. Natural disasters or other catastrophic events may impact the Company's production schedules and, in turn, negatively impact profitability. The requirements of being a public company may strain the Company's resources and distract management. The market price of the Company's common stock may experience substantial fluctuations for reasons over which the Company has little control.

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55772--8/23/2006--KIMBALL_INTERNATIONAL_INC