The Keller Manufacturing Company, Inc. Proposes Plan to Sell Furniture Operations and Seek Acquisition

Business Wire, Jan 4, 2005

LOUISVILLE, Ky. -- The Keller Manufacturing Company, Inc. (Pink Sheets: KMFI) (the "Company") announced today that its Board of Directors unanimously approved, on January 3, 2005, a plan to offer for sale its furniture operations and assets and to seek an acquisition.

"Effective today, all furniture operations and assets of the Company are for sale. The decision has been made not to sell the legal entity but to sell only the furniture operations and assets. This includes, but is not limited to, our customer list, ten product groups, marketing materials, product inventory, web site, High Point showroom, and the 'Keller Furniture' name," stated David T. Richardson, Keller's Chief Operating Officer.

The second major announcement is that the Company is commencing a search process to purchase a new business using its remaining cash and other assets. "We are seeking an acquisition and the Company plans to purchase a business in 2005. We are generally targeting service industries, light manufacturing, and distribution companies," stated Keith Williams, the Company's Chief Executive Officer. We are not targeting businesses in the furniture industry. The Company began exploring this option in late December and has preliminarily identified approximately twelve companies for consideration.

Ken Fonville, President of the Keller Design Center and a member of the Company's Board of Directors resigned both positions last week to pursue other opportunities. Keith Williams, President and Chief Executive Officer, will be leaving the Keller management team on February 15, 2005, to focus on identifying an attractive operating business to acquire. Williams will remain on the Board of Directors. Effective February 15th, David T. Richardson, the Company's current Chief Operating Officer, will become the President and Chief Executive Officer of Keller.

The Keller Manufacturing Company, Inc. (KMFI.PK) is a provider of solid wood bedroom, dining room and occasional furniture to furniture retailers. Keller furniture is sold through retailers in all 50 United States and Canada. For more information about The Keller Manufacturing Company, Inc., visit our website at www.kellerfurniture.com.

The news release contains certain statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements may include statements regarding the intent, belief or current expectations of The Keller Manufacturing Company, Inc. (the "Company" or its officers with respect to (i) the Company's strategic plans, (ii) the policies of the Company regarding capital expenditures, dividends, financing and other matters, and (iii) industry trends affecting the Company's financial condition or results of operations. Readers of this news release are cautioned that reliance on any forward-looking statement involves risks and uncertainties. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate given the inherent uncertainties as to the occurrence or nonoccurrence of future events. There can be no assurance that the forward looking statements contained in this news release will prove to be accurate. The inclusion of a forward-looking statement herein should not be regarded as a representation by the Company that the Company's objectives will be achieved.