Steelcase Inc.
Sep 20, 2006

Steelcase Grows Sales and Earnings in Second Quarter

-North America revenue grows 15% over prior year-

GRAND RAPIDS, Mich., Sept. 20 /PRNewswire-FirstCall/ -- Steelcase Inc. (NYSE: SCS) today reported revenue totaling $789.7 million for its second quarter of fiscal 2007. Revenue increased 12.3 percent compared to $702.9 million in the prior year quarter. Second quarter revenue was in line with company expectations.

As compared to the prior year, second quarter revenue includes $7.9 million from newly consolidated dealers, $3.7 million of revenue from dealer acquisitions completed within the last year and a favorable impact of $7.6 million from currency translation effects.

Steelcase reported net income of $26.6 million, or $0.18 per share for the second quarter of fiscal 2007, consistent with the company's estimates. This compares to $13.8 million or $0.09 per share in the same quarter of the prior year.

Included in second quarter results were net restructuring charges totaling $(2.8) million after-tax primarily related to ongoing facility rationalization in the company's North America business segment. Net restructuring charges were $(6.1) million after-tax in the prior year quarter.

"As another sign of our continued progress, we are pleased to report nearly twice the net income compared to the same period one year ago," said James P. Hackett, president and CEO. "Steelcase generated double-digit sales growth, led by a 15.5% revenue increase in our North America business segment."

Cost of sales, which does not include restructuring charges, was 68.5 percent of revenue and consistent with the prior year. Improved pricing yield, volume and benefits of prior restructuring actions helped offset higher material and freight costs.

Gross margin was 30.9 percent of revenue, an improvement from 30.4 percent last year. Excluding restructuring charges, gross margin was consistent with the prior year level.

Operating expenses, as a percent of revenue, decreased 100 basis points from prior year to 25.5 percent because of leverage from higher sales volume and cost control.

Reported operating income was $42.4 million, or 5.4 percent of revenue, and includes pre-tax restructuring charges of $(4.4) million. Operating income without restructuring charges was $46.8 million, or 6.0 percent of revenue compared with 5.0 percent in the prior year.

Other income, on a net basis, increased to $6.7 million, up $5.6 million from the prior year primarily because of higher interest income.

Income tax expense included a $1.1 million reserve adjustment which increased the company's effective tax rate for the quarter to 39.5%. For the full year, the company expects its effective tax rate to be approximately 37%.

The company issued new senior notes of $250 million on August 7 and redeemed the existing $250 million senior notes on September 6, after the required 30 day notice period. The issuance of the new notes during the second quarter and the redemption of the existing notes during the third quarter resulted in temporarily higher cash and debt balances at the end of the second quarter. As a result, total cash and cash equivalents increased to $707.0 million at the end of the quarter and debt increased to $506.0 million.

The company also repurchased 1.35 million shares at a total cost of $21.3 million, during the quarter.

"In addition to the revenue growth, we continue to see significant improvements in profitability in our North America segment," said James P. Keane, chief financial officer. "We are benefiting from our investments in plant rationalization and lean process improvements that are driving fixed cost reductions and productivity gains."

Outlook

Steelcase expects third quarter sales to be 5% to 9% percent higher than the prior year. Order growth rates in Steelcase Design Partnership and International were strong in the second quarter. North America's orders softened in the second half of the quarter but returned to previous levels in the first few weeks of September.

The company expects to report earnings between $0.14 and $0.19 per share in the third quarter, including restructuring charges of $(2.0) to $(6.0) million after-tax. The company reported earnings of $0.13 per share in the third quarter of the prior year which included $(4.6) million after-tax restructuring charges.

Mr. Hackett said, "We are pleased with our progress across all business segments. We are particularly excited about the potential for growing our Nurture healthcare business with the continuing introduction of new products and recent acquisition of Softcare Innovations. This expands our ability to provide complete solutions for our healthcare customers."

    Business Segment Results
    (in millions)

                                                      Second Quarter
                                                    Three Months Ended
                                             Aug. 25,    Aug. 26,    % Inc.
                                             -------     -------     ------
                                               2006        2005
                                               ----        ----

    Revenue
    North America (1)                         $463.5      $401.3      15.5%
    Steelcase Design Partnership(2)             90.9        85.9       5.8%
    International (3)                          159.0       145.1       9.6%
    Other (4)                                   76.3        70.6       8.1%
                                             -------     -------
      Consolidated Revenue                    $789.7      $702.9      12.3%
                                             =======     =======

    Operating Income
    North America                              $35.7       $20.5
    Steelcase Design Partnership                 8.8         8.2
    International                               (0.4)       (4.1)
    Other                                       (1.7)        0.7
                                             -------     -------
      Consolidated Operating Income            $42.4       $25.3
                                             =======     =======

    Operating Income Percent                     5.4%        3.6%      1.8%


                                                     Year-To-Date
                                                   Six Months Ended
                                             Aug. 25,    Aug. 26,    % Inc.
                                             -------     -------     ------
                                               2006        2005
                                               ----        ----

    Revenue
    North America (1)                         $870.9      $781.3      11.5%
    Steelcase Design Partnership (2)           174.8       168.7       3.6%
    International (3)                          326.4       297.8       9.6%
    Other (4)                                  144.9       131.1      10.5%
                                             -------     -------
      Consolidated Revenue                  $1,517.0    $1,378.9      10.0%
                                             =======     =======

    Operating Income
    North America                              $58.2       $34.6
    Steelcase Design Partnership                15.5        16.2
    International                                4.2        (6.7)
    Other                                       (7.5)       (3.6)
                                             -------     -------
      Consolidated Operating Income            $70.4       $40.5
                                             =======     =======

    Operating Income Percent                     4.6%        2.9%      1.7%



    Pre-Tax Restructuring Charges Included in Business Segment Results
    (in millions, % of revenue)

                                Second Quarter             Year-To-Date
                              Three Months Ended         Six Months Ended
                           August 25,   August 26,   August 25,   August 26,
                           ---------    ---------    ---------    ---------
                              2006         2005         2006         2005
                              ----         ----         ----         ----

    North America          $3.6   0.8%  $5.0   1.2%  $5.6  0.6%  $10.9   1.4%
    Steelcase Design
     Partnership           (0.1)(0.1)%     -     -    0.1  0.1%      -   0.0%
    International           0.9   0.6%   4.8   3.3%   3.0  0.9%    9.7   3.3%
    Other                     -   0.0%  (0.1)(0.1)%     -  0.0%   (0.1)(0.1)%
                            ------------------------------------------------
      Consolidated Charges $4.4   0.6%  $9.7   1.4%  $8.7  0.6%  $20.5   1.5%
                            ================================================


    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) Steelcase Design Partnership business segment includes Brayton,
        The Designtex Group, Details, Metro and Vecta.
    (3) International business segment includes all manufacturing and sales
        operations outside the U.S. and Canada.
    (4) Other includes Steelcase Financial Services, PolyVision, IDEO
        subsidiaries, other ventures and unallocated corporate expenses.



    Non-GAAP Financial Measures

    Steelcase Inc.

                                                  Three Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                               $789.7   100.0%    $702.9   100.0%
    Cost of sales                          540.9    68.5      481.1    68.5
    Restructuring costs                      4.5     0.6        7.8     1.1
                                          ------   -----     ------   -----
      Gross margin                         244.3    30.9      214.0    30.4
    Operating expenses                     202.0    25.5      186.8    26.5
    Restructuring costs                     (0.1)      -        1.9     0.3
                                          ------   -----     ------   -----
      Operating income                     $42.4     5.4%     $25.3     3.6%
                                          ======   =====     ======   =====

    Gross Margin, as reported             $244.3    30.9%    $214.0    30.4%
    Restructuring Charges                    4.5     0.6        7.8     1.1
                                          ------   -----     ------   -----
    Gross Margin, excluding
      restructuring charges               $248.8    31.5%    $221.8    31.5%
                                          ======   =====     ======   =====

    Operating Income, as reported          $42.4     5.4%     $25.3     3.6%
    Restructuring Charges                    4.4     0.6        9.7     1.4
                                          ------   -----     ------   -----
    Operating Income, excluding
      restructuring charges                $46.8     6.0%     $35.0     5.0%
                                          ======   =====     ======   =====


                                                   Six Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                             $1,517.0   100.0%  $1,378.9   100.0%
    Cost of sales                        1,044.0    68.8      948.7    68.8
    Restructuring costs                      8.6     0.6       16.3     1.2
                                          ------   -----     ------   -----
      Gross margin                         464.4    30.6      413.9    30.0
    Operating expenses                     393.9    26.0      369.2    26.8
    Restructuring costs                      0.1       -        4.2     0.3
                                          ------   -----     ------   -----
      Operating income                     $70.4     4.6%     $40.5     2.9%
                                          ======   =====     ======   =====

    Gross Margin, as reported             $464.4    30.6%    $413.9    30.0%
    Restructuring Charges                    8.6     0.6       16.3     1.2
                                          ------   -----     ------   -----
    Gross Margin, excluding
      restructuring charges               $473.0    31.2%    $430.2    31.2%
                                          ======   =====     ======   =====

    Operating Income, as reported          $70.4     4.6%     $40.5     2.9%
    Restructuring Charges                    8.7     0.6       20.5     1.5
                                          ------   -----     ------   -----
    Operating Income, excluding
      restructuring charges                $79.1     5.2%     $61.0     4.4%
                                          ======   =====     ======   =====



    North America

                                                  Three Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                                $463.5   100.0%   $401.3   100.0%
    Cost of sales                           326.2    70.4     285.5    71.1
    Restructuring costs                       3.6     0.8       5.0     1.3
                                            -----   -----     -----   -----
      Gross margin                          133.7    28.8     110.8    27.6
    Operating expenses                       98.0    21.1      90.3    22.5
                                            -----   -----     -----   -----
      Operating income                      $35.7     7.7%    $20.5     5.1%
                                            =====   =====     =====   =====

    Gross Margin, as reported              $133.7    28.8%   $110.8    27.6%
    Restructuring Charges                     3.6     0.8       5.0     1.3
                                            -----   -----     -----   -----
    Gross Margin, excluding
     restructuring charges                 $137.3    29.6%   $115.8    28.9%
                                            =====   =====     =====   =====

    Operating Income, as reported           $35.7     7.7%    $20.5     5.1%
    Restructuring Charges                     3.6     0.8       5.0     1.3
                                            -----   -----     -----   -----
    Operating Income, excluding
     restructuring charges                  $39.3     8.5%    $25.5     6.4%
                                            =====   =====     =====   =====


                                                   Six Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                                $870.9   100.0%   $781.3   100.0%
    Cost of sales                           618.5    71.0     559.9    71.7
    Restructuring costs                       5.6     0.7      10.9     1.4
                                            -----   -----     -----   -----
      Gross margin                          246.8    28.3     210.5    26.9
    Operating expenses                      188.6    21.6     175.9    22.5
                                            -----   -----     -----   -----
      Operating income                      $58.2     6.7%    $34.6     4.4%
                                            =====   =====     =====   =====

    Gross Margin, as reported              $246.8    28.3%   $210.5    26.9%
    Restructuring Charges                     5.6     0.7      10.9     1.4
                                            -----   -----     -----   -----
    Gross Margin, excluding
     restructuring charges                 $252.4    29.0%   $221.4    28.3%
                                            =====   =====     =====   =====

    Operating Income, as reported           $58.2     6.7%    $34.6     4.4%
    Restructuring Charges                     5.6     0.7      10.9     1.4
                                            -----   -----     -----   -----
    Operating Income, excluding
     restructuring charges                  $63.8     7.4%    $45.5     5.8%
                                            =====   =====     =====   =====



    Steelcase Design Partnership

                                                  Three Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                                $90.9   100.0%   $85.9   100.0%
    Cost of sales                           57.1    62.8     53.1    61.8
                                            ----   -----     ----   -----
      Gross margin                          33.8    37.2     32.8    38.2
    Operating expenses                      25.1    27.6     24.6    28.6
    Restructuring charges                   (0.1)   (0.1)       -       -
                                            ----   -----     ----   -----
      Operating income                      $8.8     9.7%    $8.2     9.6%
                                            ====   =====     ====   =====

    Gross Margin, as reported              $33.8    37.2%   $32.8    38.2%
    Restructuring Charges                      -       -        -       -
                                            ----   -----     ----   -----
    Gross Margin, excluding
     restructuring charges                 $33.8    37.2%   $32.8    38.2%
                                            ====   =====     ====   =====

    Operating Income, as reported           $8.8     9.7%    $8.2     9.6%
    Restructuring Charges                   (0.1)   (0.1)       -       -
                                            ----   -----     ----   -----
    Operating Income, excluding
     restructuring charges                  $8.7     9.6%    $8.2     9.6%
                                            ====   =====     ====   =====


                                                   Six Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                                $174.8   100.0%   $168.7   100.0%
    Cost of sales                           110.0    62.9     104.2    61.8
                                            -----   -----     -----   -----
      Gross margin                           64.8    37.1      64.5    38.2
    Operating expenses                       49.2    28.1      48.3    28.6
    Restructuring charges                    (0.1)   (0.1)        -       -
                                            -----   -----     -----   -----
      Operating income                      $15.5     8.9%    $16.2     9.6%
                                            =====   =====     =====   =====

    Gross Margin, as reported               $64.8    37.1%    $64.5    38.2%
    Restructuring Charges                     0.1     0.1         -       -
                                            -----   -----     -----   -----
    Gross Margin, excluding
     restructuring charges                  $64.8    37.1%    $64.5    38.2%
                                            =====   =====     =====   =====

    Operating Income, as reported           $15.5     8.9%    $16.2     9.6%
    Restructuring Charges                     0.1     0.1         -       -
                                            -----   -----     -----   -----
    Operating Income, excluding
     restructuring charges                  $15.6     9.0%    $16.2     9.6%
                                            =====   =====     =====   =====



    International

                                                  Three Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                                $159.0   100.0%   $145.1   100.0%
    Cost of sales                           108.3    68.1     100.5    69.3
    Restructuring costs                       0.9     0.6       2.7     1.8
                                            -----   -----     -----   -----
      Gross margin                           49.8    31.3      41.9    28.9
    Operating expenses                       50.2    31.6      43.9    30.3
    Restructuring costs                         -       -       2.1     1.4
                                            -----   -----     -----   -----
      Operating income (loss)               $(0.4)   (0.3)%    $(4.1)  (2.8)%
                                            =====   =====     =====   =====

    Gross Margin, as reported               $49.8    31.3%    $41.9    28.9%
    Restructuring Charges                     0.9     0.6       2.7     1.8
                                            -----   -----     -----   -----
    Gross Margin, excluding
     restructuring charges                  $50.7    31.9%    $44.6    30.7%
                                            =====   =====     =====   =====

    Operating Income (Loss), as reported    $(0.4)  (0.3)%    $(4.1)  (2.8)%
    Restructuring Charges                     0.9     0.6       4.8     3.2
                                            -----   -----     -----   -----
    Operating Income, excluding
     restructuring charges                   $0.5     0.3%     $0.7     0.4%
                                            =====   =====     =====   =====


                                                   Six Months Ended
                                         August 25, 2006    August 26, 2005
                                         ---------------    ---------------

    Revenue                                $326.4   100.0%   $297.8   100.0%
    Cost of sales                           220.8    67.7     205.2    68.9
    Restructuring costs                       3.0     0.9       5.3     1.8
                                            -----   -----     -----   -----
      Gross margin                          102.6    31.4      87.3    29.3
    Operating expenses                       98.4    30.1      89.6    30.1
    Restructuring costs                         -     0.0       4.4     1.4
                                            -----   -----     -----   -----
      Operating income (loss)                $4.2     1.3%    $(6.7)  (2.2)%
                                            =====   =====     =====   =====

    Gross Margin, as reported              $102.6    31.4%    $87.3    29.3%
    Restructuring Charges                     3.0     0.9       5.3     1.8
                                            -----   -----     -----   -----
    Gross Margin, excluding
     restructuring charges                 $105.6    32.3%    $92.6    31.1%
                                            =====   =====     =====   =====

    Operating Income (Loss), as reported     $4.2     1.3%    $(6.7)  (2.2)%
    Restructuring Charges                     3.0     0.9       9.7     3.2
                                            -----   -----     -----   -----
    Operating Income, excluding
     restructuring charges                   $7.2     2.2%     $3.0     1.0%
                                            =====   =====     =====   =====


Webcast

Steelcase will discuss second quarter fiscal 2007 results and business outlook on a conference call and webcast at 11:00 a.m. EDT 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: second quarter and six 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 second quarter and six 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      Six Months Ended
                                August 25,  August 26,  August 25,  August 26,
                                ---------   ---------   ---------  ---------
                                    2006        2005        2006        2005
                                    ----        ----        ----        ----

    Revenue                       $789.7      $702.9    $1,517.0    $1,378.9
    Cost of sales                  540.9       481.1     1,044.0       948.7
    Restructuring costs              4.5         7.8         8.6        16.3
                                 -------     -------     -------     -------
      Gross margin                 244.3       214.0       464.4       413.9
    Operating expenses             202.0       186.8       393.9       369.2
    Restructuring costs             (0.1)        1.9         0.1         4.2
                                 -------     -------     -------     -------
      Operating income              42.4        25.3        70.4        40.5
    Interest expense                (5.1)       (4.4)       (9.2)       (9.6)
    Other income, net                6.7         1.1        11.6         1.9
                                 -------     -------     -------     -------
      Income before income taxes    44.0        22.0        72.8        32.8
    Income tax expense              17.4         8.2        28.0        12.3
                                 -------     -------     -------     -------
      Net income                   $26.6       $13.8       $44.8       $20.5
                                 =======     =======     =======     =======
    Basic and diluted
     per share data:
      Earnings                     $0.18       $0.09       $0.30       $0.14
                                 =======     =======     =======     =======
    Dividends declared
     per common share              $0.10       $0.09       $0.20       $0.15
                                 =======     =======     =======     =======
    Weighted average shares
     outstanding - basic           149.0       148.3       149.2       148.2
                                 =======     =======     =======     =======
    Weighted average shares
     outstanding - diluted         150.0       148.6       150.6       148.5
                                 =======     =======     =======     =======



                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                (in millions)


                                                   Aug. 25,          Feb. 24,
                                                   -------           -------
                  ASSETS                              2006              2006
                                                      ----              ----
    Current assets:
      Cash and cash equivalents                     $707.0            $423.8
      Accounts receivable, net                       396.3             381.9
      Inventories                                    162.5             147.9
      Other current assets                           158.6             174.5
                                                   -------           -------
          Total current assets                     1,424.4           1,128.1
                                                   -------           -------

    Property and equipment, net                      494.6             524.8
    Company owned life insurance                     199.5             196.6
    Goodwill and other intangible assets, net        283.9             284.8
    Other assets                                     209.5             210.2
                                                   -------           -------
          Total assets                            $2,611.9          $2,344.5
                                                   =======           =======


        LIABILITIES AND SHAREHOLDERS' EQUITY

    Current liabilities:
      Accounts payable                              $198.9            $189.6
      Short-term borrowings and current
       portion of long-term debt                     255.7             261.8
      Accrued expenses:
        Employee compensation                        119.6             127.9
        Employee benefit plan obligations             25.9              34.1
        Other                                        236.3             222.8
                                                   -------           -------
          Total current liabilities                  836.4             836.2
                                                   -------           -------

    Long-term liabilities:
      Long-term debt less current
       maturities                                    250.3               2.2
      Employee benefit plan obligations              235.3             239.7
      Other long-term liabilities                     63.1              61.5
                                                   -------           -------
          Total long-term liabilities                548.7             303.4
                                                   -------           -------
          Total liabilities                        1,385.1           1,139.6
                                                   -------           -------

    Shareholders' equity:
      Common stock                                   297.6             309.9
      Additional paid in capital                       5.3               3.4
      Accumulated other comprehensive loss           (24.7)            (39.1)
      Deferred compensation - restricted stock           -              (3.1)
      Retained earnings                              948.6             933.8
                                                   -------           -------
          Total shareholders' equity               1,226.8           1,204.9
                                                   -------           -------
          Total liabilities and shareholders'
           equity                                 $2,611.9          $2,344.5
                                                   =======           =======



                CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                                (in millions)
                                                          (Unaudited)
                                                       Six Months Ended
                                                   Aug. 25,           Aug. 26,
                                                   -------            -------
                                                      2006               2005
                                                      ----               ----

          OPERATING ACTIVITIES
          Net income                                 $44.8              $20.5
          Depreciation and amortization               52.0               61.1
          Changes in operating assets
           and liabilities, net                      (31.7)             (63.2)
          Excess tax benefit from exercise of
           stock options and vesting of
           restricted stock                           (0.7)                 -
          Other, net                                  19.7               (2.8)
                                                     -----              -----
          Net cash provided by operating activities   84.1               15.6
                                                     -----              -----

          INVESTING ACTIVITIES
          Capital expenditures                       (22.0)             (39.2)
          Short-term investments, liquidations           -              131.6
          Net proceeds from repayment of leases        6.3                7.6
          Proceeds from the disposal of fixed assets   4.6               21.0
          Net decrease in notes receivable             1.0                5.0
          Acquisitions, net of cash acquired           0.2               (6.3)
          Other, net                                   2.1                3.5
                                                     -----              -----
          Net cash provided by (used in)
           investing activities                       (7.8)             123.2
                                                     -----              -----

          FINANCING ACTIVITIES
          Issuance of long-term debt, net            249.3                  -
          Repayments of long-term debt                (6.1)             (50.6)
          Repayments of lines of credit, net          (2.0)              (0.7)
          Dividends paid                             (30.0)             (22.3)
          Common stock issuances                      11.0                3.0
          Common stock repurchases                   (22.4)                 -
          Excess tax benefit from exercise of
           stock options and vesting of
           restricted stock                            0.7                  -
                                                     -----              -----
          Net cash provided by (used in) financing
           activities                                200.5              (70.6)
                                                     -----              -----

          Effect of exchange rate changes
           on cash and cash equivalents                6.4                2.3
                                                     -----              -----

          Net increase in cash and cash equivalents  283.2               70.5
          Cash and cash equivalents,
           beginning of period                       423.8              216.6
                                                     -----              -----
          Cash and cash equivalents, end of period  $707.0             $287.1
                                                     =====              =====

SOURCE: Steelcase Inc.

CONTACT:
Investor Contact: Raj Mehan, Investor Relations
+1-616-698-4734
Media Contact: Deb Bailey, Communications
+1-616-698-4397
both for Steelcase Inc.
Web site: http://www.steelcase.com
http://www.steelcase.com/ir