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                                     July 19, 1999
(Date of earliest event reported)





                   KIMBALL INTERNATIONAL, INC.
      (Exact name of registrant as specified in its charter)





                          INDIANA
      (State or other jurisdiction of incorporation)

        0-3279                            35-0514506
(Commission File Number)     (IRS Employee Identification Number)

   1600 Royal Street, Jasper, Indiana               47549-1001
(Address of principal executive offices)            (Zip Code)


Registrants telephone number, including area code: (812) 482-1600


                         Not Applicable
(Former name or former address, if changed since last report)






ITEM 5.  Other Events


Kimball International to Construct State-of-the-Art Veneer Mill

Jasper, IN (July 16, 1999) - Kimball International, Inc. (NASDAQ: KBALB) today
announced plans to construct a 130,000 square foot, state-of-the-art veneer mill
for their Evansville Veneer business unit.  The proposed site is strategically
located on property owned by Kimball adjacent to their Indiana Hardwoods
dimension lumber processing facility in Chandler, Indiana.  The planned facility
will help Evansville Veneer reduce shipping and handling costs, lower
maintenance expenses and increase productivity and yields.

Evansville Veneer will move their operations and their labor force currently
located in Evansville, Indiana to Chandler upon completion of the new mill.  At
this time, no decision has been made concerning the status of the current
Evansville Veneer site after operations are moved to the new facility.

Evansville Veneer, established in 1904 and acquired by Kimball International in
1955, manufactures quality veneers for the furniture, plywood, paneling and
architectural trade.

"Today's announcement signifies our continued commitment to focus our energies
on increasing our share of the core markets in which we compete by expanding our
products and services," stated Kimball International Chairman and Chief
Executive Officer Douglas A. Habig.  "Evansville Veneer has played an important
role in the development of our vertical integration strategy as a provider of
reliable, high-quality veneers for a variety of products manufactured by Kimball
for the office, lodging, healthcare and residential markets.  The increased
capacity and productivity expected from the new mill will allow Evansville
Veneer to more aggressively pursue new markets for their products and services
both domestically and internationally."

Kimball International, Inc. is a diversified manufacturer of consumer durable
goods, including office, lodging, healthcare and home furniture, sold under the
Company's family of brand names.  Kimball also supplies electronic assemblies on
a contract basis to customers in the automotive, medical, aerospace, defense,
telecommunications and computer industries.  Other products produced by Kimball
on an original equipment manufactured basis include store fixtures, television
cabinets and stands, audio speaker systems, pool tables, plywood, dimension
stock and other lumber products.

For more information about Kimball International, Inc., visit the Company's web
site on the Internet at www.kimball.com.



                           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 hereunto duly authorized.

                                   Kimball International, Inc.



                                  By: Robert F. Schneider
                                      ROBERT F. SCHNEIDER
                                      Executive Vice President,
                                      Chief Financial Officer,
                                      Assistant Treasurer

Date: July 19, 1999