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<p><b>SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C. &nbsp;20549<br>
<br>
FORM 8-K</b></p>
<p align="center">CURRENT REPORT<br>
</p>
<p align="center">Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934</p>
<p align="center"><br>
Date of Report (Date of earliest event reported) &nbsp;&nbsp;&nbsp;<u>January 10, 2002</u><br>
<br>
</p>
<table border="0" cellspacing="1" width="450">
  <tr>
    <td>
    <p align="center"><b><font size="5">KIMBALL INTERNATIONAL, INC.</font></b></td>
  </tr>
  <tr>
    <td><hr SIZE="1"></td>
  </tr>
  <tr>
    <td>
    <p align="center"><font size="2">(Exact name of registrant as specified in
    its charter)</font></td>
  </tr>
</table>
<p align="center"></p>
<center>
<table cellSpacing="0" width="624" border="0">
  <tr>
    <td width="33%">&nbsp;</td>
    <td width="33%">&nbsp;</td>
    <td width="33%">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">Indiana</td>
    <td>
    <p align="center">0-3279</td>
    <td>
    <p align="center">35-0514506</td>
  </tr>
  <tr>
    <td>
    <p align="center"></p>
    <hr width="90%" SIZE="1"></td>
    <td>
    <p align="center"></p>
    <hr width="48%" SIZE="1"></td>
    <td>
    <p align="center"></p>
    <hr width="90%" SIZE="1"></td>
  </tr>
  <tr>
    <td align="center"><font size="2">(State or other jurisdiction of</font></td>
    <td align="center"><font size="2">(Commission File</font></td>
    <td align="center"><font size="2">(IRS Employer Identification No.)</font></td>
  </tr>
  <tr>
    <td align="center"><font size="2">incorporation)</font></td>
    <td align="center"><font size="2">Number)</font></td>
    <td>&nbsp;</td>
  </tr>
</table>
<table cellSpacing="0" width="624" border="0">
  <tr>
    <td width="55%">&nbsp;</td>
    <td width="4%">&nbsp;</td>
    <td width="41%">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">&nbsp;</td>
    <td>&nbsp;</td>
    <td>
    <p align="center">&nbsp;</td>
  </tr>
  <tr>
    <td>
    <p align="center">1600 Royal Street, Jasper, Indiana</td>
    <td>&nbsp;</td>
    <td>
    <p align="center">47549-1001</td>
  </tr>
  <tr>
    <td>
    <p align="center"></p>
    <hr width="64%" SIZE="1"></td>
    <td>&nbsp;</td>
    <td>
    <p align="center"></p>
    <hr width="48%" SIZE="1"></td>
  </tr>
  <tr>
    <td align="center"><font size="2">(Address of principal executive offices)</font></td>
    <td>&nbsp;</td>
    <td align="center"><font size="2">(Zip Code)</font></td>
  </tr>
</table>
</center>
<p align="center">Registrant's telephone number, including area code &nbsp;&nbsp;<u>(812)
482-1600</u></p>
<table border="0" cellspacing="1" width="350">
  <tr>
    <td>
    <p align="center">Not Applicable</td>
  </tr>
  <tr>
    <td><hr SIZE="1"></td>
  </tr>
  <tr>
    <td>
    <p align="center"><font size="2">(Former name or former address, if changed
    since last report)</font></td>
  </tr>
</table>
</center>
<p align="center">1</p>
<hr SIZE="1">
<p><b>Item 5. Other Events<br>
<br>
Kimball International Increases Focus On Core Competencies;<br>
Sells Boesendorfer Piano Subsidiary</b></p>
<p align="left">JASPER, IN (January 10, 2002) -- Kimball International, Inc.
(NASDAQ: KBALB) announced today that the company has agreed to sell its
Boesendorfer piano subsidiary, located in Vienna, Austria, to BAWAG-Bank of
Austria. The sale, which is subject to Austrian regulatory approval, is expected
to be finalized within the next 60 days. BAWAG-Bank has a history of supporting
the arts and is dedicated to preserving the heritage of this world famous
manufacturer of custom designed and handcrafted musical instruments.<br>
<br>
Doug Habig, Kimball International CEO and Chairman of the Board of Directors
declared, &quot;We are very pleased that we have been able to find an &quot;Austrian
solution&quot; and that this legendary music company will return to Austrian
ownership. We know this has been an area of keen concern and a desire of the
employees themselves.&quot; <br>
<br>
Noting the company's long-term strategic business plans, Habig stated, &quot; While
we have enjoyed a long and fruitful relationship with Boesendorfer, our core
business has gradually shifted away from the music industry...This move is a
further indication of our commitment to focus our resources on our furniture and
electronics businesses - our core competencies.&quot;<br>
<br>
In the past, Kimball has carefully divested other business operations which were
no longer integral to its core business, such as a small home furniture
operation focused on Victorian and French period reproduction pieces, and most
recently, a cutting tools manufacturing plant and service center.</p>
<p align="left">Proceeds from the sale of the Boesendorfer subsidiary are
expected to be used for general corporate purposes, including funding for
strategic initiatives designed to accelerate sales growth and improve quality
and efficiencies. The gain on the sale is estimated to be $0.21 to $0.24 per
Class B share and is expected to be recorded in the Company's fiscal 2002 third
quarter, which will close on March 31, 2002.<br>
<br>
Ron Thyen, Senior Executive Vice President, Operations Officer for Kimball
International, has overseen the Austrian subsidiary for many years, and
explained that, &quot;Boesendorfer is a jewel, a true musical legend...but it no
longer fits our long-term strategic plans...However, we want Boesendorfer to be
in good hands. We're very pleased that the new owners will continue to nurture
and maintain the Boesendorfer name and excellent quality reputation in the music
industry. &quot;<br>
<br>
Kimball ceased its domestic Kimball brand piano operations in 1996, and aligned
those capacities into its contract furniture and cabinets manufacturing group.
However, the Company retained the Boesendorfer operations which Kimball had
originally acquired in 1966, under the leadership of Kimball founder Arnold F.
Habig, who was honored by the Austrian government for his efforts to strengthen
and preserve this tradition-rich piano manufacturer.<br>
<br>
Considered by many to be the world's most prestigious piano, only approximately
150 Boesendorfer pianos are brought into the United States each year. Requiring
62 weeks to produce a single piano, only 550 pianos are crafted annually. To
this day, each Boesendorfer is hand made in Vienna by master craftsmen using the
same techniques that have been proudly handed down through generations.<br>
<br>
Boesendorfer Klavierfabrik GmbH, is headquartered in Vienna, Austria, &quot;The City
of Music&quot;, and still operates near where the company was originally founded by
Ignaz Boesendorfer. A second production facility is located in nearby Wiener
Neustadt. Since 1828, Boesendorfer's mission has been to create the ultimate
hand-made musical instrument. Combining the pleasure of musical perfection with
the knowledge of a secure capital investment, well maintained Boesendorfer
grands are famous for retaining their value.<br>
<br>
BAWAG (Bank fur Arbeit und Wirtschaft =Bank for Labor and Industry) is an
Austrian multi-purpose bank and an active member of democratic Austrian society
with the objective of serving the general economic, social and cultural good
through its actions, including support of the arts. BAWAG focuses on intensive
individual customer service, providing high quality financial services and
building long-term customer relationships. Founded in 1922, BAWAG now has 154
branches across Austria. <br>
<br>
Kimball International, Inc. (NASDAQ: KBALB) provides a vast array of products
from its two business segments: the Furniture and Cabinets Segment and the
Electronic Contract Assemblies Segment. The Furniture and Cabinets Segment
manufactures furniture for the office, residential, lodging, and healthcare
industries and store display fixtures, all sold under the Company's family of
brand names. Other products produced by Kimball on a contract manufactured basis
include store fixtures, television cabinets and stands, audio speaker systems,
residential furniture and furniture components. The Electronic Contract
Assemblies Segment is a global provider of design engineering, manufacturing,
packaging and distribution of electronic assemblies, circuit boards, multi-chip
modules and semiconductor components on a contract basis to customers in the
transportation, industrial, telecommunications, computer and medical industries.<br>
<br>
To learn more about Kimball International, Inc., visit the Company's website on
the Internet at: www.kimball.com<br>
<br>
&quot;Kimball International ... We Build Success!&quot;</p>
<p align="center">2</p>
<p align="center"></p>
<hr SIZE="1"><center>
<p><b>SIGNATURES</b></p>
</center>
<p>Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized. </p>
<div align="right">
  <table cellSpacing="0" border="0" cellpadding="0">
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">KIMBALL INTERNATIONAL, INC.</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">&nbsp;</td>
    </tr>
    <tr>
      <td width="30">
      <p align="center">By:</td>
      <td width="300">/s/ Robert F. Schneider</td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300"><hr align="left" width="70%" SIZE="1"></td>
    </tr>
    <tr>
      <td width="30">&nbsp;</td>
      <td width="300">ROBERT F. SCHNEIDER<br>
      Executive Vice President, <br>
      Chief Financial Officer<br>
      Treasurer</td>
    </tr>
  </table>
</div>
<p><br>
<br>
Date: January 10, 2002</p>
<p align="center">3</p>

</body>

</html>
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
Date of Report (Date of earliest event reported)
January 10, 2002
KIMBALL INTERNATIONAL, INC.
(Exact name of registrant as specified in
    its charter)
Indiana
0-3279
35-0514506
(State or other jurisdiction of
(Commission File
(IRS Employer Identification No.)
incorporation)
Number)
1600 Royal Street, Jasper, Indiana
47549-1001
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code
(812)
482-1600
Not Applicable
(Former name or former address, if changed
    since last report)
1
Item 5. Other Events
Kimball International Increases Focus On Core Competencies;
Sells Boesendorfer Piano Subsidiary
JASPER, IN (January 10, 2002) -- Kimball International, Inc.
(NASDAQ: KBALB) announced today that the company has agreed to sell its
Boesendorfer piano subsidiary, located in Vienna, Austria, to BAWAG-Bank of
Austria. The sale, which is subject to Austrian regulatory approval, is expected
to be finalized within the next 60 days. BAWAG-Bank has a history of supporting
the arts and is dedicated to preserving the heritage of this world famous
manufacturer of custom designed and handcrafted musical instruments.
Doug Habig, Kimball International CEO and Chairman of the Board of Directors
declared, "We are very pleased that we have been able to find an "Austrian
solution" and that this legendary music company will return to Austrian
ownership. We know this has been an area of keen concern and a desire of the
employees themselves."
Noting the company's long-term strategic business plans, Habig stated, " While
we have enjoyed a long and fruitful relationship with Boesendorfer, our core
business has gradually shifted away from the music industry...This move is a
further indication of our commitment to focus our resources on our furniture and
electronics businesses - our core competencies."
In the past, Kimball has carefully divested other business operations which were
no longer integral to its core business, such as a small home furniture
operation focused on Victorian and French period reproduction pieces, and most
recently, a cutting tools manufacturing plant and service center.
Proceeds from the sale of the Boesendorfer subsidiary are
expected to be used for general corporate purposes, including funding for
strategic initiatives designed to accelerate sales growth and improve quality
and efficiencies. The gain on the sale is estimated to be $0.21 to $0.24 per
Class B share and is expected to be recorded in the Company's fiscal 2002 third
quarter, which will close on March 31, 2002.
Ron Thyen, Senior Executive Vice President, Operations Officer for Kimball
International, has overseen the Austrian subsidiary for many years, and
explained that, "Boesendorfer is a jewel, a true musical legend...but it no
longer fits our long-term strategic plans...However, we want Boesendorfer to be
in good hands. We're very pleased that the new owners will continue to nurture
and maintain the Boesendorfer name and excellent quality reputation in the music
industry. "
Kimball ceased its domestic Kimball brand piano operations in 1996, and aligned
those capacities into its contract furniture and cabinets manufacturing group.
However, the Company retained the Boesendorfer operations which Kimball had
originally acquired in 1966, under the leadership of Kimball founder Arnold F.
Habig, who was honored by the Austrian government for his efforts to strengthen
and preserve this tradition-rich piano manufacturer.
Considered by many to be the world's most prestigious piano, only approximately
150 Boesendorfer pianos are brought into the United States each year. Requiring
62 weeks to produce a single piano, only 550 pianos are crafted annually. To
this day, each Boesendorfer is hand made in Vienna by master craftsmen using the
same techniques that have been proudly handed down through generations.
Boesendorfer Klavierfabrik GmbH, is headquartered in Vienna, Austria, "The City
of Music", and still operates near where the company was originally founded by
Ignaz Boesendorfer. A second production facility is located in nearby Wiener
Neustadt. Since 1828, Boesendorfer's mission has been to create the ultimate
hand-made musical instrument. Combining the pleasure of musical perfection with
the knowledge of a secure capital investment, well maintained Boesendorfer
grands are famous for retaining their value.
BAWAG (Bank fur Arbeit und Wirtschaft =Bank for Labor and Industry) is an
Austrian multi-purpose bank and an active member of democratic Austrian society
with the objective of serving the general economic, social and cultural good
through its actions, including support of the arts. BAWAG focuses on intensive
individual customer service, providing high quality financial services and
building long-term customer relationships. Founded in 1922, BAWAG now has 154
branches across Austria.
Kimball International, Inc. (NASDAQ: KBALB) provides a vast array of products
from its two business segments: the Furniture and Cabinets Segment and the
Electronic Contract Assemblies Segment. The Furniture and Cabinets Segment
manufactures furniture for the office, residential, lodging, and healthcare
industries and store display fixtures, all sold under the Company's family of
brand names. Other products produced by Kimball on a contract manufactured basis
include store fixtures, television cabinets and stands, audio speaker systems,
residential furniture and furniture components. The Electronic Contract
Assemblies Segment is a global provider of design engineering, manufacturing,
packaging and distribution of electronic assemblies, circuit boards, multi-chip
modules and semiconductor components on a contract basis to customers in the
transportation, industrial, telecommunications, computer and medical industries.
To learn more about Kimball International, Inc., visit the Company's website on
the Internet at: www.kimball.com
"Kimball International ... We Build Success!"
2
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereto duly authorized.
KIMBALL INTERNATIONAL, INC.
By:
/s/ Robert F. Schneider
ROBERT F. SCHNEIDER
Executive Vice President,
Chief Financial Officer
Treasurer
Date: January 10, 2002
3