Kimball Electronics Forms Strategic Partnership with XStream Systems

JASPER, Ind.--June 29, 2006--Kimball Electronics Group, Inc., through its related subsidiaries, announced today that the company has entered into an agreement with XStream Systems, Inc. to manufacture their XT250 Material Identification System. Kimball Electronics Group, Inc., a subsidiary of Kimball International, Inc. , is a global contract electronics manufacturing services (EMS) company that specializes in durable electronics with applications in the public safety, automotive, medical, and industrial controls industries. XStream Systems, Inc. is a company that designs and sells next-generation material identification equipment for verification and detection of substances as wide-ranging as illicit drugs, pharmaceuticals, chemicals, and food products.

Don Charron, President, Kimball Electronics Group, stated, "We are excited about being the strategic manufacturing partner for XStream, and we believe that their newly developed and patented Energy-Dispersive X-Ray Diffraction (EDXRD) technology will quickly establish them as a market leader."

Brian Mayo, President and CEO, XStream Systems, said, "Kimball's commitment to be both a business partner as well as a supplier is very important to XStream and we look forward to a long lasting relationship."

Jim Thyen, President and CEO of Kimball International, Inc., said, "XStream Systems, Inc. has developed a unique, innovative product providing a valuable service for the public safety in our communities. We are honored to be chosen as the preferred supplier and to have earned the opportunity this brings for growth and diversification."

Under the terms of the agreement, Kimball Electronics will assemble, test, service, and repair the XT250 x-ray system in their Jasper, Indiana facility, with first production units shipping later this year.

About Kimball Electronics:

Kimball Electronics Group is well recognized for its excellent quality, reliability and innovative service. The September 2005 issue of "Electronic Business" magazine ranked Kimball Electronics as #26 among the global Top 100 Contract Manufacturers. In June 2005, "Electronics Supply & Manufacturing" magazine rated Kimball Electronics #20 among the Top 50 Electronics Manufacturing Services Companies. Kimball Electronics Group has manufacturing operations in the U.S., Mexico, Thailand, Poland, Wales, Ireland, and a soon to be completed new facility in China.

About XStream Systems, Inc.:

XStream Systems, Inc., founded in 2004, is headquartered in Vero Beach, Florida. The company's products are based on a technology called Energy-Dispersive X-Ray Diffraction (EDXRD), that can be used to quickly identify unknown substances based on their crystalline structure. This highly sensitive technology was previously available only in expensive, large-scale systems used at major research centers. The company plans to bring material identification capabilities within reach of nearly any organization, with easy-to-use, affordable products.

To learn more about XSTREAM SYSTEMS, Inc., visit the Company's website on the Internet at: www.xstreamsystems.net

About Kimball International:

Recognized with a reputation for excellence, Kimball International is committed to a high performance culture that values personal and organizational commitment to quality, reliability, value, speed, and ethical behavior. Kimball employees know they are part of a corporate culture that builds success for customers while enabling employees to share in the company's success through personal, professional and financial growth.

Kimball International, Inc. provides a variety of products from its two business segments: the Furniture and Cabinets segment and the Electronic Contract Assemblies segment. The Electronic Contract Assemblies segment provides engineering and manufacturing services which utilize common production and support capabilities to a variety of industries globally. The Furniture and Cabinets segment provides furniture for the office and hospitality industries, sold under the Company's family of brand names. The Furniture and Cabinets segment also provides engineering and manufacturing services which utilize common production and support capabilities on a contract basis to customers primarily in the residential furniture and cabinets industry.

To learn more about Kimball International, Inc., visit the Company's website on the Internet at: www.kimball.com

"Kimball International ... We Build Success!"