On July 17, 2009, HNI Corporation (the "Corporation") announced it will close its Louisburg, North Carolina office furniture manufacturing facility during the third and fourth quarters of 2009. The Corporation will consolidate the Louisburg production into existing office furniture manufacturing facilities and anticipates the closure and consolidation to be effectively completed by the end of 2009. The Corporation made this decision to reduce structural costs.

The Corporation anticipates charges related to the shutdown will impact pre-tax earnings an estimated $3.4 million. The following table lists the estimated composition of these charges:

 (Dollars in millions)
Time Period     Restructuring Costs     Accelerated Depreciation     Other Costs   Total
   2009 Q2              0.8                        -                      -         0.8
   2009 Q3              0.2                       0.5                    0.3        1.0
   2009 Q4              0.2                       0.3                    0.6        1.1
                                                                      2009 Total    2.9
   2010                 0.5                        -                      -         0.5
                                                                     Grand Total    3.4

The Corporation estimates the realignment will save $1.8 million annually beginning in 2010.