Steelcase Inc.
Dec 18, 2006

Steelcase Reports Third Quarter Results

- Net Income Up 72%; International Segment Revenue Up 19% -

GRAND RAPIDS, Mich., Dec. 18 /PRNewswire-FirstCall/ -- Steelcase Inc. (NYSE: SCS) today reported revenue totaling $802.0 million for its third quarter of fiscal 2007. Revenue increased 6.8 percent compared to $750.7 million in the prior year quarter driven by strong growth of 19.2 percent in the International segment.

As compared to the prior year, third quarter revenue included $9.9 million from currency translation and $9.8 from acquisitions. These items had the net effect of increasing revenue by 2.6 percent.

Steelcase reported net income of $32.8 million, or $0.22 per share for the third quarter of fiscal 2007 driven by better than expected operating and non- operating performance. This compares to net income of $19.1 million, or $0.13 per share in the same quarter last year. The reported results for the current quarter were higher than company estimates of $0.14 to $0.19 per share.

Included in third quarter results were net restructuring charges totaling $(3.6) million after-tax, in line with company expectations. The charges primarily related to facility rationalization in the company's North America segment. Net restructuring charges were $(4.6) million after-tax in the prior year quarter.

"We are particularly pleased to recognize our International segment this quarter," said James P. Hackett, president and CEO. "The strength of its performance is not only a significant factor in the company's increased revenue but also signals the potential impact this segment can have moving forward."

Cost of sales was reduced by 90 basis points to 68.5 percent in the third quarter, driven by a 290 basis point improvement in the International segment and a 170 basis point improvement in the North America segment. Volume was a key contributor to International's improved cost of sales while improved pricing yield and the benefits of prior restructuring actions contributed to the improvements in North America. Some of these improvements were offset by unfavorable shifts in business mix within the Steelcase Design Partnership segment.

Gross margin, which includes restructuring costs, was 30.8 percent in the third quarter and improved 100 basis points from 29.8 percent in the same quarter last year.

Operating expenses as a percent of revenue increased to 25.8 percent from 25.2 percent in the prior year. Higher variable compensation expense and investments in growth initiatives contributed to the increase.

Reported operating income of $40.5 million, or 5.0 percent of revenue, improved from $32.7 million, or 4.4 percent of revenue in the prior year. Operating income without restructuring charges was $46.2 million, or 5.7 percent of revenue in the current quarter compared to $40.0 million, or 5.4 percent of revenue in the prior year.

Other income, net increased by $11.3 million driven primarily by higher interest income and a gain on the completion of a dealer ownership transition.

The company has reduced its year-to-date effective tax rate to 36.4%. As a result, the effective tax rate for the quarter decreased to 33.5%.

Cash decreased to $525.0 million from $707.0 million at the end of the previous quarter reflecting $250.0 million of cash used to redeem term notes scheduled to mature in November 2006. Net of the redemption payment, total cash and cash equivalents increased by $68.0 million. Debt at the end of the quarter was $256.1 million. As part of its share repurchase authorization, Steelcase repurchased 592,000 shares in the third quarter at a total cost of $9.7 million.

Year to date, net income almost doubled to $77.6 million from $39.6 million for the same period last year.

"Our third quarter earnings per share is at its highest point in six years, which sustains our enthusiasm over the company's performance," said David C. Sylvester, chief financial officer. "These results would not be possible without the passion for continual improvement exemplified by all of our employees. Our balance sheet continues to strengthen and we will continue to focus intently on expense control and revenue growth."

Outlook

Steelcase expects fourth quarter revenue to increase 4 to 8 percent over the prior year quarter. International order rates remained strong throughout the third quarter. North America orders rates improved from unseasonably low levels in August and backlog rebounded by the end of the quarter.

Steelcase expects to report earnings between $0.14 and $0.19 per share in the fourth quarter and estimates after-tax restructuring charges of $(2) to $(4) million in the fourth quarter. The earnings estimate includes a projected net income impact of $0.02 per share related to the anticipated extension of the U.S. Research tax credit. The company reported earnings of $0.06 per share in the fourth quarter of the prior year.

The company has updated its three-year plan and continues to target gross margins of 35 percent, operating expenses of 25 percent and operating income of 10 percent of revenue.

Mr. Hackett concluded, "We are demonstrating that changes to our industrial model have enabled us to sustain and improve profits despite moderating growth. We expect to build on this momentum as we intensify our attention on growth initiatives within our newly re-defined organizational units."

    Business Segment Results
    (in millions)

                         Third Quarter                Year-To-Date
                       Three Months Ended          Nine Months Ended
                       Nov. 24,   Nov. 25,         Nov. 24,   Nov. 25,
                       -------    -------          -------    -------
                        2006       2005  % Inc.     2006       2005   % Inc.
                        ----       ----   -----     ----       ----    -----

    Revenue
    North America (1)  $434.9    $433.0    0.4%  $1,305.8  $1,214.3     7.5%
    International (2)   199.6     167.4   19.2%     526.0     465.2    13.1%
    Steelcase Design
     Partnership(3)      95.3      86.8    9.8%     270.1     255.5     5.7%
    Other (4)            72.2      63.5   13.7%     217.1     194.6    11.6%
                        -----     -----             -----     -----
      Consolidated
       Revenue         $802.0    $750.7    6.8%  $2,319.0  $2,129.6     8.9%
                        =====     =====           =======   =======

    Operating Income
    North America       $21.4     $19.5             $79.6     $54.1
    International        15.8       6.6              20.0      (0.1)
    Steelcase Design
     Partnership          9.5      10.0              25.0      26.2
    Other                (6.2)     (3.4)            (13.7)     (7.0)
                        -----     -----             -----     -----
      Consolidated
       Operating Income $40.5     $32.7            $110.9     $73.2
                        =====     =====             =====     =====

    Operating Income
     Percent              5.0%      4.4%   0.6%       4.8%      3.4%    1.4%

    Business Segment Footnotes

(1) North America business segment includes the company's Steelcase and Turnstone brands, consolidated dealers in the U.S. and Canada, and services.

(2) International business segment includes all manufacturing and sales operations outside the U.S. and Canada.

(3) Steelcase Design Partnership business segment includes Brayton, The Designtex Group, Details, Metro and Vecta.

(4) Other includes Steelcase Financial Services, PolyVision, IDEO subsidiaries, other ventures and unallocated corporate expenses.

    Non-GAAP Financial Measures

    Steelcase Inc.

                                                  Three Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $802.0    100.0%  $750.7    100.0%
    Cost of sales                           549.2     68.5    521.1     69.4
    Restructuring costs                       5.5      0.7      5.9      0.8
                                           ------   ------   ------   ------
      Gross margin                          247.3     30.8    223.7     29.8
    Operating expenses                      206.6     25.8    189.6     25.2
    Restructuring costs                       0.2      -        1.4      0.2
                                           ------   ------   ------   ------
      Operating income                      $40.5      5.0%   $32.7      4.4%
                                           ======   ======   ======   ======

    Gross Margin, as reported              $247.3     30.8%  $223.7     29.8%
    Restructuring Charges                     5.5      0.7      5.9      0.8
                                           ------   ------   ------   ------
    Gross Margin, excluding
     restructuring charges                 $252.8     31.5%  $229.6     30.6%
                                           ======   ======   ======   ======

    Operating Income, as reported           $40.5      5.0%   $32.7      4.4%
    Restructuring Charges                     5.7      0.7      7.3      1.0
                                           ------   ------   ------   ------
    Operating Income, excluding
     restructuring charges                  $46.2      5.7%   $40.0      5.4%
                                           ======   ======   ======   ======



                                                   Nine Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $2,319.0   100.0% $2,129.6   100.0%
    Cost of sales                           1,593.2    68.7   1,469.8    69.0
    Restructuring costs                        14.1     0.6      22.2     1.1
                                             ------  ------    ------  ------
      Gross margin                            711.7    30.7     637.6    29.9
    Operating expenses                        600.5    25.9     558.8    26.2
    Restructuring costs                         0.3      -        5.6     0.3
                                             ------  ------    ------  ------
      Operating income                       $110.9     4.8%    $73.2     3.4%
                                             ======  ======    ======  ======

    Gross Margin, as reported                $711.7    30.7%   $637.6    29.9%
    Restructuring Charges                      14.1     0.6      22.2     1.1
                                             ------  ------    ------  ------
    Gross Margin, excluding
      restructuring charges                  $725.8    31.3%   $659.8    31.0%
                                             ======  ======    ======  ======

    Operating Income, as reported            $110.9     4.8%    $73.2     3.4%
    Restructuring Charges                      14.4     0.6      27.8     1.4
                                             ------  ------    ------  ------
    Operating Income, excluding
      restructuring charges                  $125.3     5.4%   $101.0     4.8%
                                             ======  ======    ======  ======



    North America

                                                  Three Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $434.9    100.0%  $433.0    100.0%
    Cost of sales                           308.0     70.8    314.0     72.5
    Restructuring costs                       5.2      1.2      4.0      0.9
                                           ------   ------   ------   ------
      Gross margin                          121.7     28.0    115.0     26.6
    Operating expenses                      100.3     23.1     95.5     22.1
                                           ------   ------   ------   ------
      Operating income                      $21.4      4.9%   $19.5      4.5%
                                           ======   ======   ======   ======

    Gross Margin, as reported              $121.7     28.0%  $115.0     26.6%
    Restructuring Charges                     5.2      1.2      4.0      0.9
                                           ------   ------   ------   ------
    Gross Margin, excluding
      restructuring charges                $126.9     29.2%  $119.0     27.5%
                                           ======   ======   ======   ======

    Operating Income, as reported           $21.4      4.9%   $19.5      4.5%
    Restructuring Charges                     5.2      1.2      4.0      0.9
                                           ------   ------   ------   ------
    Operating Income, excluding
      restructuring charges                 $26.6      6.1%   $23.5      5.4%
                                           ======   ======   ======   ======




                                                   Nine Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $1,305.8   100.0% $1,214.3   100.0%
    Cost of sales                             926.5    71.0     873.9    72.0
    Restructuring costs                        10.8     0.8      14.9     1.2
                                             ------  ------    ------  ------
      Gross margin                            368.5    28.2     325.5    26.8
    Operating expenses                        288.9    22.1     271.4    22.3
                                             ------  ------    ------  ------
      Operating income                        $79.6     6.1%    $54.1     4.5%
                                             ======  ======    ======  ======

    Gross Margin, as reported                $368.5    28.2%   $325.5    26.8%
    Restructuring Charges                      10.8     0.8      14.9     1.2
                                             ------  ------    ------  ------
    Gross Margin, excluding
      restructuring charges                  $379.3    29.0%   $340.4    28.0%
                                             ======  ======    ======  ======

    Operating Income, as reported             $79.6     6.1%    $54.1     4.5%
    Restructuring Charges                      10.8     0.8      14.9     1.2
                                             ------  ------    ------  ------
    Operating Income, excluding
      restructuring charges                   $90.4     6.9%    $69.0     5.7%
                                             ======  ======    ======  ======



    International

                                                  Three Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $199.6    100.0%  $167.4    100.0%
    Cost of sales                           131.2     65.7    114.8     68.6
    Restructuring costs                       0.3      0.2      -        -
                                           ------   ------   ------   ------
      Gross margin                           68.1     34.1     52.6     31.4
    Operating expenses                       52.2     26.1     44.6     26.7
    Restructuring costs                       0.1      0.1      1.4      0.8
                                           ------   ------   ------   ------
      Operating income                      $15.8      7.9%    $6.6      3.9%
                                           ======   ======   ======   ======

    Gross Margin, as reported               $68.1     34.1%   $52.6     31.4%
    Restructuring Charges                     0.3      0.2      -        -
                                           ------   ------   ------   ------
    Gross Margin, excluding
      restructuring charges                 $68.4     34.3%   $52.6     31.4%
                                           ======   ======   ======   ======

    Operating Income, as reported           $15.8      7.9%    $6.6      3.9%
    Restructuring Charges                     0.4      0.3      1.4      0.8
                                           ------   ------   ------   ------
    Operating Income, excluding
      restructuring charges                 $16.2      8.2%    $8.0      4.7%
                                           ======   ======   ======   ======



                                                  Nine Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $526.0    100.0%  $465.2    100.0%
    Cost of sales                           352.0     66.9    320.0     68.8
    Restructuring costs                       3.3      0.6      5.3      1.1
                                           ------   ------   ------   ------
      Gross margin                          170.7     32.5    139.9     30.1
    Operating expenses                      150.6     28.7    134.2     28.9
    Restructuring costs                       0.1      -        5.8      1.2
                                           ------   ------   ------   ------
      Operating income (loss)               $20.0      3.8%   $(0.1)     0.0%
                                           ======   ======   ======   ======

    Gross Margin, as reported              $170.7     32.5%  $139.9     30.1%
    Restructuring Charges                     3.3      0.6      5.3      1.1
                                           ------   ------   ------   ------
    Gross Margin, excluding
      restructuring charges                $174.0     33.1%  $145.2     31.2%
                                           ======   ======   ======   ======

    Operating Income (Loss), as reported    $20.0      3.8%   $(0.1)     0.0%
    Restructuring Charges                     3.4      0.6     11.1      2.3
                                           ------   ------   ------   ------
    Operating Income, excluding
      restructuring charges                 $23.4      4.4%   $11.0      2.3%
                                           ======   ======   ======   ======



    Steelcase Design Partnership

                                                 Three Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $95.3    100.0%  $86.8    100.0%
    Cost of sales                           61.8     64.8    53.7     61.9
                                          ------   ------  ------   ------
      Gross margin                          33.5     35.2    33.1     38.1
    Operating expenses                      23.9     25.1    23.1     26.6
    Restructuring charges                    0.1      0.1     -        -
                                          ------   ------  ------   ------
      Operating income                      $9.5     10.0%  $10.0     11.5%
                                          ======   ======  ======   ======

    Gross Margin, as reported              $33.5     35.2%  $33.1     38.1%
    Restructuring Charges                    -        -       -        -
                                          ------   ------  ------   ------
    Gross Margin, excluding
      restructuring charges                $33.5     35.2%  $33.1     38.1%
                                          ======   ======  ======   ======

    Operating Income, as reported           $9.5     10.0%  $10.0     11.5%
    Restructuring Charges                    0.1      0.1     -        -
                                          ------   ------  ------   ------
    Operating Income, excluding
      restructuring charges                 $9.6     10.1%  $10.0     11.5%
                                          ======   ======  ======   ======



                                                  Nine Months Ended
                                         November 24, 2006  November 25, 2005
                                         -----------------  -----------------

    Revenue                                $270.1   100.0%   $255.5   100.0%
    Cost of sales                           171.8     63.6    157.9     61.8
                                           ------   ------   ------   ------
      Gross margin                           98.3     36.4     97.6     38.2
    Operating expenses                       73.1     27.0     71.4     27.9
    Restructuring charges                     0.2      0.1      -        -
                                           ------   ------   ------   ------
      Operating income                      $25.0     9.3%    $26.2    10.3%
                                           ======   ======   ======   ======

    Gross Margin, as reported               $98.3    36.4%    $97.6    38.2%
    Restructuring Charges                     -        -        -        -
                                           ------   ------   ------   ------
    Gross Margin, excluding
      restructuring charges                 $98.3    36.4%    $97.6    38.2%
                                           ======   ======   ======   ======

    Operating Income, as reported           $25.0     9.3%    $26.2    10.3%
    Restructuring Charges                     0.2      0.1      -        -
                                           ------   ------   ------   ------
    Operating Income, excluding
      restructuring charges                 $25.2     9.4%    $26.2    10.3%
                                           ======   ======   ======   ======


    Webcast

Steelcase will discuss third quarter fiscal 2007 results and business outlook on a conference call and webcast at 11:00 a.m. EST today. Links to the webcast are available at http://www.steelcase.com/ir . Related presentation slides will be available on the company's website shortly before the start of the webcast.

Non-GAAP Financial Measures

This earnings release contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows of the company. Pursuant to the requirements of Regulation G, the company has provided a reconciliation above of non-GAAP financial measures to the most directly comparable GAAP financial measure.

The non-GAAP financial measures used within the company's earnings release are: third quarter and nine months year-to-date consolidated gross margin, excluding restructuring costs for the current and prior year in dollars and as a percent of revenue; and third quarter and nine months year-to-date operating income, excluding restructuring costs for the current and prior year in dollars and as a percent of revenue, on a consolidated basis and for each business segment. These measures are presented because management uses this information to monitor and evaluate financial results and trends. Therefore, management believes this information is also useful for investors.

Forward-looking Statements

From time to time, in written and oral statements, the company discusses its expectations regarding future events and its plans and objectives for future operations. These forward-looking statements generally are accompanied by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "may," "possible," "potential," "predict," "project," or other similar words, phrases or expressions. Forward-looking statements involve a number of risks and uncertainties that could cause actual results to vary from the company's expectations because of factors such as, but not limited to, competitive and general economic conditions domestically and internationally; acts of terrorism, war, governmental action, natural disasters and other Force Majeure events; changes in the legal and regulatory environment; restructuring activities; currency fluctuations; changes in customer demands; and the other risks and contingencies detailed in the company's most recent Annual Report on Form 10-K and its other filings with the Securities and Exchange Commission. Steelcase undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

About Steelcase Inc.

    Steelcase, the global leader in the office furniture industry, helps
people have a better work experience by providing products, services and
insights into the ways people work.  The company designs and manufactures
architecture, furniture and technology products.  Founded in 1912 and
headquartered in Grand Rapids, Michigan, Steelcase (NYSE: SCS) serves
customers through a network of more than 800 independent dealers and
approximately 13,000 employees worldwide.  Fiscal 2006 revenue was $2.9
billion.  Learn more at http://www.steelcase.com.


                                STEELCASE INC.
           CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
                     (in millions, except per share data)

                                         Three Months Ended  Nine Months Ended
                                         Nov. 24, Nov. 25,   Nov. 24, Nov. 25,
                                         -------  -------    -------  -------
                                            2006     2005       2006     2005
                                            ----     ----       ----     ----

    Revenue                                $802.0  $750.7  $2,319.0  $2,129.6
    Cost of sales                           549.2   521.1   1,593.2   1,469.8
    Restructuring costs                       5.5     5.9      14.1      22.2
                                           ------  ------  --------  --------
      Gross margin                          247.3   223.7     711.7     637.6
    Operating expenses                      206.6   189.6     600.5     558.8
    Restructuring costs                       0.2     1.4       0.3       5.6
                                           ------  ------  --------  --------
      Operating income                       40.5    32.7     110.9      73.2
    Interest expense                         (5.1)   (4.2)    (14.3)    (13.8)
    Other income, net                        13.9     2.6      25.5       4.5
                                           ------  ------  --------  --------
      Income before income taxes             49.3    31.1     122.1      63.9
    Income tax expense                       16.5    12.0      44.5      24.3
                                           ------  ------  --------  --------
      Net income                            $32.8   $19.1     $77.6     $39.6
                                           ======  ======  ========  ========
    Basic and diluted per share data:
      Earnings                              $0.22   $0.13     $0.52     $0.27
                                           ======  ======  ========  ========
    Dividends declared per common share     $0.12   $0.09     $0.32     $0.24
                                           ======  ======  ========  ========
    Weighted average shares outstanding -
     basic                                  148.1   148.3     148.9     148.2
                                           ======  ======  ========  ========
    Weighted average shares outstanding -
     diluted                                149.2   148.7     150.3     148.6
                                           ======  ======  ========  ========



                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in millions)
                                                    Nov. 24,         Feb. 24,
                                                   ---------        ---------
                  ASSETS                              2006             2006
                                                   ---------        ---------
    Current assets:
      Cash and cash equivalents                       $525.0           $423.8
      Accounts receivable, net                         398.1            381.9
      Inventories                                      159.7            147.9
      Deferred income taxes                             57.0             80.3
      Other current assets                              87.4             94.2
                                                   ---------        ---------
          Total current assets                       1,227.2          1,128.1
                                                   ---------        ---------

    Property and equipment, net                        476.6            524.8
    Company owned life insurance                       204.9            196.6
    Deferred income taxes                              162.7            154.6
    Goodwill                                           216.1            211.1
    Other intangible assets, net of
     accumulated amortization                           75.8             73.7
    Other assets                                        59.8             55.6
                                                   ---------        ---------
          Total assets                              $2,423.1         $2,344.5
                                                   =========        =========

      LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities:
      Accounts payable                                $226.6           $189.6
      Short-term borrowings and current
       portion of long-term debt                         6.0            261.8
      Accrued expenses:
        Employee compensation                          134.8            127.9
        Employee benefit plan obligations               30.1             34.1
        Other                                          236.3            222.8
                                                   ---------        ---------
          Total current liabilities                    633.8            836.2
                                                   ---------        ---------

    Long-term liabilities:
      Long-term debt less current maturities           250.1              2.2
      Employee benefit plan obligations                237.0            239.7
      Other long-term liabilities                       68.7             61.5
                                                   ---------        ---------
          Total long-term liabilities                  555.8            303.4
                                                   ---------        ---------
          Total liabilities                          1,189.6          1,139.6
                                                   ---------        ---------

    Shareholders' equity:
      Common stock                                     290.3            309.9
      Additional paid in capital                         5.9              3.4
      Accumulated other comprehensive loss             (26.2)           (39.1)
      Deferred compensation -                            - restricted stock
-             (3.1)
      Retained earnings                                963.5            933.8
                                                   ---------        ---------
          Total shareholders' equity                 1,233.5          1,204.9
                                                   ---------        ---------
          Total liabilities and
           shareholders' equity                     $2,423.1         $2,344.5
                                                   =========        =========



                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                                (in millions)
                                                             (Unaudited)
                                                           Nine Months Ended
                                                          Nov. 24,    Nov. 25,
                                                         ---------   ---------
                                                             2006        2005
                                                         ---------   ---------
    OPERATING ACTIVITIES
    Net income                                              $77.6       $39.6
    Depreciation and amortization                            77.6        91.1
    Deferred income taxes                                    23.7         5.3
    Changes in operating assets and liabilities,
     net of corporate acquisitions                            9.8       (48.9)
    Excess tax benefit from exercise of stock
     options and vesting of restricted stock                 (2.2)          -
    Other, net                                                5.9         5.9
                                                         ---------   ---------

    Net cash provided by operating activities               192.4        93.0
                                                         ---------   ---------

    INVESTING ACTIVITIES
    Capital expenditures                                    (33.9)      (54.0)
    Short-term investments, liquidations                        -       131.6
    Acquisitions, net of cash acquired                      (13.6)       (6.2)
    Net (increase) decrease in notes receivable               8.9        (2.3)
    Proceeds from the disposal of fixed assets                8.1        23.8
    Net proceeds from repayment of leases                     7.8        13.6
    Other, net                                                3.1         4.3
                                                         ---------   ---------

    Net cash (used in) provided by investing activities     (19.6)      110.8
                                                         ---------   ---------

    FINANCING ACTIVITIES
    Issuance of long-term debt, net                         249.3           -
    Repayments of long-term debt                           (251.9)      (54.1)
    Repayments of lines of credit, net                       (6.2)       (2.7)
    Dividends paid                                          (47.9)      (35.7)
    Common stock issuances                                   11.5         3.9
    Common stock repurchases                                (32.2)       (3.4)
    Excess tax benefit from exercise of stock
     options and vesting of restricted stock                  2.2           -
                                                         ---------   ---------

    Net cash used in financing activities                   (75.2)      (92.0)
                                                         ---------   ---------

    Effect of exchange rate changes on cash
     and cash equivalents                                     3.6         3.2
                                                         ---------   ---------

    Net increase in cash and cash equivalents               101.2       115.0
    Cash and cash equivalents, beginning of period          423.8       216.6
                                                         ---------   ---------
    Cash and cash equivalents, end of period               $525.0      $331.6
                                                         =========   =========


CONTACT:
Investor Contact: Raj Mehan, Investor Relations
+1-616-698-4734
Media Contact: Jeanine Holquist, Public Relations
+1-616-698-3765
both for Steelcase Inc.
Web site: http://www.steelcase.com
http://www.steelcase.com/ir