Kimball International, Inc. (the "Company") entered into agreements to sell undeveloped land holdings and timberlands which approximate 27,200 acres. The sale was conducted utilizing an auction approach. The auctions began on November 6, 2008, and negotiations concluded on November 13, 2008. These agreements are with numerous buyers, and the combined purchase price for all buyers was $50.6 million for the entire acreage. These agreements are not contingent upon the buyers obtaining financing. The final closings are expected to be complete by January 31, 2009.

This summary is not intended to be complete and is qualified in its entirety by reference to the Contract to Purchase Real Estate at Public Auction included as Exhibit 10.1 to this report and incorporated herein by reference.

Based on the total purchase price of $50.6 million, the Company expects to record a pre-tax gain of approximately $30 million net of applicable selling and other expenses including the buyer's premium primarily during its fiscal year 2009 third quarter.

(d) Exhibits

The following exhibit is filed as part of this report:

Exhibit
Number    Description
10.1      Contract to Purchase Real Estate at Public Auction