Our Sustainability Journey

There are many shades of green

At National Office Furniture,we see our legacy asmore than quality furniture.

The National story begins with our parent company, Kimball International. Our history and culture are deeply rooted in responsibility with a strong commitment topositively impact people and the environment. We are workingto safeguard the health of our world for one another and forgenerations to come.

We aim to create lasting stakeholder value throughresponsible growth and deep commitment to the well-beingof future generations. We cherish the Earth’s naturalresources and hold sustainability and environmentalprotection as our key priorities.

As our company fulfills its responsibilities to our customers,shareholders, employees and the public, six commitmentsprovide a framework for focusing our energies toward the greatest good:

• Product Stewardship• Environmental Preservation • Green Building Development• Regulatory Compliance• Social Accountability • Economic Responsibility

At National, our holistic approach to environmentalstewardship consists of a variety of impactful strategies and actions that further resolve our commitment to enhancesustainable performance, reduce our environmental footprint and create a better tomorrow.

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Contents

4Our Culture

6Our People

8Our Products

10Our Facilities and Operations

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Sustainability Is Firmly Rooted In Our Culture

Our story begins with our parent company, Kimball International. Since its earliest days, the company’s culture,

beliefs and values have been focused on responsibility and sustainability. In 1970, President Thomas L. Habig

described the company’s environmental conscience in these words: “...many were aware of the problems of the

environment years before it became a popular crusade of the now conscious public... it makes us proud that we were

one of those who recognized the need for improvement and took action... We plan to continue, and in our own small

way, help make our communities a better place to live and work.”

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Share, Learn and Always Improve

Social and environmental stewardship is not perpetual, but it is infectious, especially when people can see or experience the positive results their effortsare producing to keep the momentum going. Sustainability takes a voice, action, vision and a deep commitment from people that believe in a bettertomorrow. We are fortunate to have a rich heritage in stewardship and even more fortunate that our employees have fully embraced it and build upon this legacy every day.

A big part of the voice and action is sharing stories, learning from one another’s mistakes and achievements, and the drive to continuously improve. That’s exactly what we strive to do by measuring our performance and then sharing it via our Corporate Sustainability Reports and brochures like this one.Hopefully, it provides inspiration to others to inject social and environmental stewardship as an integral part of their personal and professional lives andthroughout businesses worldwide.

Along this journey, a persistent pursuit will unravel new ways to overcome challenges and will lead to excelling in other areas and discovering newopportunities to reduce your footprint. Working towards zero-waste operations, life cycle assessments, chemicals of concern reduction and energyevaluations provide invaluable measurements to make sound decisions for our company today and moving forward.

And throughout all your efforts and commitments, I encourage you to take a step back from the numbers and measure your performance in smiles too. On page 6, you’ll see a little boy smiling simply because someone made an effort to spend time with him. Handshakes, hugs, thank you’s, smiles and providing hope and encouragement are just as important as the percentages and numbers. That’s the beauty of placing sustainability and socialresponsibility at the core of your business and lifestyle; it improves everything you do and can positively impact your business, personal life, communityand the environment. Done right, it is powerful and truly a win-win situation for many.

The more we share with and learn from each other today, the more we can improve together for a better tomorrow. So join us in the journey and in true National fashion, work hard, set and achieve goals, let your personality shine, and have fun along the way towards a sustainable future.

Kevin McCoyVice President, General Manager

There are many shades of green | Our Culture

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2011100% of company manufacturedproducts certified to level® 2 or 3

Dallas showroom earns LEED® Goldcertification

Participates in Carbon DisclosureProject (CDP) reporting

Earns State of KY SHARP status for Fordsville facility

All casegoods transition toIntegraClear™ UV finish

Awards $25,000 Gift of Inspiration forHealthcare to Good Samaritan RegionalMedical Center in Corvallis, OR

Awards $25,000 Gift of Inspiration forEducation to Brandeis University inWaltham, MA

2010Receives Resource Caretaker Award from State of KY for Fordsville facility

Earns OSHA Voluntary ProtectionProgram (VPP) STAR Status for 11th Avenue facility

Installs UV (ultraviolet) finishtechnology “IntegraClear” at Fordsville facility

Life Cycle Assessment (LCA) completedfor key casegood series

Chemical Assessments completed for products and processes; reductionplan developed

LEED® assessment (Existing Buildings)completed for Santa Claus facility

Introduces Antimicrobial wood finish on casegoods, tables and seating

Awards $25,000 Gift of Inspiration for Healthcare to the University of Wisconsin Hospital and Clinics in Madison, WI

Awards $25,000 Gift of Inspiration for Education to Hill College inHillsboro, TX

2009Receives Governor’s Award forEnvironmental Excellence in Pollution Prevention

Majority of products earn level™certification from SCS

Installs IntegraClear™ UV finishtechnology at Santa Claus facility

Introduces continuing educationprogram with four sustainability CEUs

Completes Greenhouse Gas Inventoryfor all facilities

Earns OSHA Voluntary ProtectionProgram (VPP) STAR Status for Santa Claus facility

Accepted into Indiana Department of Environmental Management’s (IDEM) Environmental StewardshipProgram (ESP)

Products meet California Air ResourceBoard (CARB) Air Toxins ControlMeasure 93120 Phase 1

Orange County showroom earns LEED® certification

Awards $10,000 Gift of Inspiration for Education to Southwest MiddleSchool in Savannah, GA

2008Receives ISO 14001 registration at all manufacturing facilities

First veneer and laminate casegoodsmeet BIFMA FES; SCS IndoorAdvantage™ certification

Partnership in U.S. EPA SmartWaySM

Transport Program

First products meet BIFMA e3-2008Sustainability Standard; SCS SustainableChoice™ certification

Certified to offer Forest StewardshipCouncil (FSC®) certified wood

2007First seating products meet BIFMAFurniture Emissions Standards (FES)

New York showroom earns LEED® Certification

Joins Indiana Department ofEnvironmental Management (IDEM)Vehicle Idling Program

First products meet California 01350 Environmental Requirements

2006Joins Indiana Department ofEnvironmental Management (IDEM)Partners for Pollution Prevention

2005 Jasper showroom earns LEED® Goldcertification

Chicago showroom earns LEED® Silvercertification

2004Awarded SONY® “Green Partner”certification for Excellence inEnvironmental Management

2002 Establishes Corporate Recycling Center

Membership in the U.S. Green BuildingCouncil (USGBC)

Earns HONDA ISO 14001 RecognitionAward for Excellence in Recycling

2001 Awarded Recognition as “Corporate Conservator” from The Nature Conservancy

Earns Indiana Governor’s Award for Excellence in Recycling

Named Mississippi Corporate Recycler of the Year

2000Earns OSHA Voluntary ProtectionProgram (VPP) STAR Status for SpringsValley facility

Named Mississippi Corporate Recycler of the Year

Earns Indiana Quality ImprovementAward

1990 Trees for Tomorrow Program Begins

1980 National Office Furniture Founded

1977 Membership in Business andInstitutional Furniture Manufacturer’sAssociation (BIFMA)

1976 Energy and Environmental Departmentestablished

1970 Message from Kimball InternationalPresident, Tom Habig, on Sustainability

1963 First Reforestation Efforts on 280 Acres

A History of Sustainability and Social Action

1950Kimball International Founded (National Office Furniture’s Parent Company)

From left to right: Arnold Habig, A.C. Sermersheim, Ray Schneider, Herb Thyen

Promoting Personal BestSimilar to delivering quality products to our customers, we believe in delivering a quality work

experience to our employees and their families. Safety and overall wellness is immersed in our

culture to ensure employees are comfortable and equipped with all the advantages to be productive

and successful. Every two years we conduct a Mission, Vision and Guiding Principles survey to ensure

our employees feel our actions as an organization align and deliver to what we have committed to

as a company. Our values and guiding principles serve as a road map and direct feedback from our

employees makes certain we maintain the world class business environment and performance that

exists today.

From flu shots and health screenings, to healthier choices in vending machines, creating walking

path maps, and on-going feedback, we are committed to providing the optimal work environment for

our employees. Our approach is holistic to enable our people to grow professionally and personally.

There are many shades of green | Our People

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Safety Not Just First, Safety Always

“Because of what National is doing (regarding safety), hundreds, thousands really, of other employees across the state are safer and better off,” Indiana Commissioner of Labor, Lori Torres, commented while recognizing another National site with the Occupational Safety and Health Administration’s (OSHA) VPP STAR Status. This comment sums up our commitment to safety as our approach goes beyond the obvious. We aim to educate, prevent and develop behaviors that promote safe and healthy work environments so our employees are comfortable, productive and successful. Each National facility has a safety committee and programs such as “Behavior Based Safety Training” and “Alert Driving Courses” for employees that ensure safety is top of mind. And, in true National fashion, we added some personality to safety with our super safety ambassador...

DETURDon’t Ever Take Unnecessary Risks

A Culture of Caring Filled with Personality

We care for our employees and in turn, they care for others. Along with

being good neighbors, our employees are active stewards in their

communities serving as volunteers, mentors, coaches, caregivers and much

more. We often team up to support a good cause and enjoy each other’s

company at work and at play.

Our people bring our products to life. Furniture with Personality® is driven

by a big grin, solid handshake and an obvious enjoyment for what we do.

Genuine people that care about the success of our customers, the

communities we serve and the environment.

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A Catalyst for Positive Change

Building a new facility or undergoing remodeling can be exciting. However it can also lead to unwanted,

slightly worn furnishings. To provide a socially responsible option to customers in this position National has

partnered with ANEW (Asset Network for Education Worldwide). ANEW is a non-profit organization dedicated

to extending the life cycle of surplus furniture, fixtures and equipment (FF&E) by matching donors with

charitable organizations who can use the furnishings. Utilizing this service can result in tax savings, the

avoidance of disposal fees and a warm feeling that a landfill was not the solution. Which is why ANEW truly

helps us all do what’s right with what’s left.

Trees for Tomorrow

Through our Trees for Tomorrowprogram we’ve distributed morethan 360,000 seedlings to ouremployees and customers to helpsupport long-term beautificationefforts in their communities.

Doing what’s right with what’s left®

Multi-Aspect and Holistic

Due to our holistic approach and long standing stewardship, we are proud to have achieved level® certification on our products. This certification is

based on the ANSI/BIFMA e3 Sustainability Standard and can contribute to LEED® certification under Pilot Credit #43. It includes an evaluation of

specific corporate policies and guidelines and an assessment of associated company manufacturing facilities. Products must meet stringent milestones

of environmental and social performance at every phase of development. Based on the environmental and social criteria in the standard, a product’s

entire supply chain is assessed.

To put it in simpler terms, level is an evaluation of the sustainable attributes of a product, the performance of the facility where the product was made,

and the manufacturer itself. Products can earn certification to level 1, level 2, or level 3 which is the highest attainment. 100% of National

manufactured products are certified to level 2 or 3, which truly demonstrates our leadership in the industry.

There are many shades of green | Our Products

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100%of National Office Furniture Manufactured Products

Achieve level® 2 or 3 Certification

IntegraClear™The Friendliest FinishAround

IntegraClear is our proprietary,water-based ultraviolet (UV)finish. This finish is friendly tothe environment, easy on theeyes and even handles dailyevents such as coffee spillslike a champ. IntegraClear isapplied to all surfacesincluding verticals, andprovides the ultimate balancein beauty, durability andsustainability enabling ourproducts to earn indoor airquality certification that cancontribute to LEED® points.

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Our Products Reflect StewardshipWe base our business on producing environmentally-friendly goods that enhance the lives of our customers and bring value to the markets we serve.

Our low-emitting products protect the respiratory health of occupants

by adhering to the emissions criteria of the Business and Institutional

Furniture Manufacturer’s Association (BIFMA). For meeting these criteria,

many of our products earn the Indoor Advantage™ mark from Scientific

Certification Systems (SCS). The majority of our products reach beyond

this achievement by achieving the more stringent California Section 01350

emissions criteria adopted by the Collaborative for High Performance Schools (CHPS) which earns the

Indoor Advantage™ Gold mark.

We have also taken the necessary actions to ensure compliance with California Air Resources Board (CARB) regulatory code

93120 Phases 1 and 2. Our products satisfy CARB’s established limits on the emission

of formaldehyde from core materials and finished goods being sold for use in the state of California.

By giving customers the option of Forest Stewardship Council (FSC) certified wood on most products,

we offer the assurance of products that are not only economically viable but are also environmentally

responsible and socially beneficial. Our manufacturing facilities have been approved as meeting the

FSC standard and have been awarded

a Chain of Custody (COC) certificate.

A Design for the Environment (DfE) process is essential to our product development cycle. Timeless

styling and enduring craftsmanship, guaranteed with a limited lifetime warranty, enhance the lifespan

of National furnishings and their inherent environmental

value. In anticipation of when a product reaches the end of its useful life, National provides

Disassembly Instructions to help determine the makeup of the materials and assist with recycling efforts.

From Start to Finish, It All Counts

The cliché “It’s not where you start, it’s where you finish that counts” is true in most

cases. However, when it comes to sustainability, all stages of a product’s life are vitally

important. That’s why National uses a Life Cycle Assessment (LCA) strategy to measure

where we are and where we’re going regarding our products’ environmental impact.

LCAs provide the benchmark to base improvements on and guide future decisions such

as sourcing, production, and distribution to ensure consistent progress is made in reducing our footprint.

Our Products Can Help Earn LEED® Points

National’s solutions can help achieve points for a number of LEED credits, from task lights to packaging

to the furniture. To learn more or create a document outlining the sustainable attributes

of a specific series, visit our free, easy-to-use LEED calculator website called ecoScorecard at

NationalOfficeFurniture.ecoScorecard.com.

Green product information made simpleNationalOfficeFurniture.ecoScorecard.com

Waste Wise

Our company recycles 65 different kinds of materials; from steel, aluminum, glass and cardboard to oil, printer cartridges and computer hardware. Discarded materials find new life as fencing, automotive insulation, animal bedding, tack boards and other goods to enhance people’s lives. Our corporate recycling center alone diverts 3.6 million pounds of waste each year from landfills.

Our Operations Promote Conservation

Our company is answering the challenges of conservation on several fronts. An example within our manufacturing

operations is the implementation of technology such as our IntegraClear™ UV curing finish process, which

brings efficiencies to reduce material consumption and increase energy efficiency in the curing process.

Guided by our ISO 14001 registered Environmental Management System, National recycles or reuses 89.5% of

all solid waste generated. Computer-guided trimming prevents fabric waste, and the minimal scrap is

repurposed in trunk liners, headliners and acoustic insulation. Sawdust and wood scraps become clean-burning

fuel for National manufacturing plants.

Another key element of our Environmental Management System is determining our carbon footprint. We have

determined our annual greenhouse gas emissions and are actively working to reduce them. For additional

transparency, we report these emissions through the Carbon Disclosure Project’s (CDP) Investor Report. The CDP

report provides a third party evaluation of our climate change initiatives, a baseline to track improvements,

and further demonstrates our commitment to sustainability.

Our participation in the Indiana Department of Environmental Management’s Vehicle Idling Program for Cleaner

Air and the U.S. EPA SmartWaySM Transport Partnership are examples of our focus on emissions reduction and

enhanced transportation efficiency as we deliver our furniture. We continually seek improvements throughout

our logistics network. By installing dock door seals, and installing high efficiency lighting for example, we’ve

reduced energy consumption in our warehouses. In addition to physical improvements to our fleet, we are also

providing feedback to our drivers to coach them on improving their fuel consumption. A mobile communication

system has been installed in our tractors that retrieves real time miles per gallon, engine idle time, truck speeds

and hard braking events.

In our interactions with vendors and distribution partners, we work cooperatively for improvements to benefit

our industry and the world. We encourage our suppliers to adopt sustainable solutions in their choice of

manufacturing processes and packaging materials. In that spirit we have transitioned our marketing and print

materials to incorporate FSC certified and recycled fibers as well as environmentally friendly inks and coatings.

Annual Recycling Results

Aluminum: 195,236 lbs.

Cardboard:3,464,514 lbs.

Plastics:2,219,782 lbs.

Sawdust/Wood Waste:21,370,995 lbs.

Steel:3,380,597 lbs.

Upholstery:142,569 lbs.

Office Paper/Magazines:117,483 lbs.

Numbers reflect the most recent 2010 reported data for Kimball International

There are many shades of green | Our Facilities and Operations

National casegoods include arecycled material content of at least

82%

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National Re

cycles

65Differ

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Materials

Memberships and Partnerships

Growing with Green Buildings

National facilities testify to our belief in sustainable building practices. Pursuing guidelines set by the U.S.Green Building Council (USGBC), we prioritize building practices that support the LEED® (Leadership in Energyand Environmental Design) Green Building Rating System™. Our latest LEED project includes the completion ofthe assessment to gain LEED Existing Building (EB) certification for our Santa Claus, IN, facility.

Our LEED® Certified ProjectsResearch and Development Annex/Jasper, IN - LEED CertifiedCorporate Showroom/Jasper, IN - LEED GoldShowroom/Chicago, IL - LEED SilverShowroom/Dallas, TX - LEED Gold Showroom/New York, NY - LEED CertifiedShowroom/Orange County, CA - LEED Certified

The Journey Ahead To keep us moving toward a sustainable future, sustainability is intertwined as part of strategy, culture and simply being the right thing to do. Whether it’s part of a company goal or picking up a piece of trash while walking down the street, employees take responsibility every day for improving our world through small personal steps that add up to fundamental change.

Sustainability is often defined as “Meeting the needs of the present, without compromising the ability of future generations to meet their own needs.” At National, we also believe sustainabilitymeans leaving the world a better place than we found it. Which is why we look for more robust methods for assessing our product life cycles. It’s why we’re working to identify and reduce chemicals of concern from our processes and products. And it’s why we are vigorously pursuing ways to conserve energy and water.

We don’t have all the answers. Sustainability encompasses the unknown. Just as we all share this world, we share the journey through it. Working together, we can leave it a better place. Each of us brings our own shade of green to the effort. Together, we can make it beautiful.

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www.NationalOfficeFurniture.com800.482.1717

1205 Kimball Boulevard, Jasper, IN 47549 A Unit of Kimball International ©Kimball International, Inc. 2009Printed in the USA Form No. NBRSUS Ver. 11

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We see our legacy as more than quality furniture.It is also a reverence for nature, which inspires our resolve to protect, nurture and preserve nature’s gifts.