On October 9, 2009, HNI Corporation (the "Corporation") notified its members (i.e., employees) and the union representing the bargaining unit at its Owensboro, Kentucky office furniture manufacturing facility it has made the tentative decision, pending negotiations with the union, to close this facility beginning in the fourth quarter of 2009. The Corporation plans to consolidate the Owensboro facility's production into existing office furniture manufacturing facilities and anticipates the closure and consolidation to be effectively completed by the end of the second quarter of 2010. The Corporation made this tentative decision due to challenging market conditions and to reduce structural costs.

The Corporation anticipates charges related to the closure will impact pre-tax earnings an estimated $6.1 million. The following table lists the estimated composition of these charges:

Time Period       (cash)               (non-cash)        Other Costs Total
  2009 Q3          $2.2                   $  -              $  -     $2.2
  2009 Q4          $0.1                   $0.2              $0.3     $0.6
  2010 Q1          $0.1                   $0.2              $0.2     $0.5
  2010 Q2          $1.4                   $0.1              $1.3     $2.8
                                                               Total $6.1

The Corporation also anticipates additional charges which cannot be estimated until the Corporation and the union conclude negotiations over the effects of the facility closing, as required by the union contract. The Corporation expects to complete these negotiations along with the details of the production phase-out during the fourth quarter of 2009.