The Board of Directors of Kimball International, Inc. (NasdaqGS:KBAL.B) unanimously approved the spinoff of electronic manufacturing services segment on January 17, 2014. As a result of the spin off, there will be two standalone public traded companies, Kimball International, Inc. and Kimball Electronics, Inc. Upon completion of the spin-off, James C. Thyen will retire from his current role as the Kimball International, Inc.'s President and Chief Executive Officer, as well as resign his position as a Director. Douglas A. Habig will also retire from Kimball International, Inc. and resign his position as a Director. Donald D. Charron, currently President of the Kimball Electronics Group, will serve as Chairman of the Board and Chief Executive Officer of the new company Kimball Electronics, and Robert F. Schneider, currently Chief Financial Officer, will serve as Chairman of the Board and Chief Executive Officer of Kimball International. Kimball International plans to change its NASDAQ trading ticker symbol from KBALB to KBAL as of the first trading day after the distribution date.

The spin-off is conditional upon the agreed conversion on a date certain by Class A shareholders of a sufficient number of Class A shares to trigger the 15% threshold, thus giving the Kimball International a single-class of stock at the spin-off of Kimball Electronics. Kimball International expects to obtain the agreement of a sufficient number of Class A shareholders to satisfy this condition. The completion of the spin-off is subject to certain customary conditions, including receipt of a legal opinion as to the tax-free nature of the spin-off and regulatory approvals and approval by the Board of Directors of Kimball International, Inc. of the contemplated transactions in connection with the spin-off. The deal is expected to be completed with 8 to 12 months. As on May 12, 2014, Kimball International filed a form 10 registration statement with the U.S. Securities and Exchange Commission.

The record date of distribution is October 22, 2014. On record date for the distribution, Kimball International shareholders will receive three shares of Kimball Electronics, Inc. common stock for every four shares of Kimball International Class A or Class B common stock they hold on the record date. The scheduled distribution date of the spin-off is October 31, 2014. US Securities and Exchange Commission had declared effective the initial Form 10 registration statement filed by Kimball International for the spin-off of its electronic manufacturing services business on October 30, 2014. Toby Merchant and Stephen Mahon of Squire Patton Boggs acted as legal advisors and Computershare Trust Company, NA acted as transfer agent to Kimball International, Inc. Robert W. Baird & Co. Incorporated acted as a financial advisor to Kimball International, Inc.