The Keller Manufacturing Company, Inc. Has Acquired Paragon Door Designs, Inc.

The Keller Manufacturing Company, Inc. ("Keller" or
"KMFI.PK") (Pink Sheets:KMFI) announced today that it acquired
Louisville-based Paragon Door Designs, Inc. ("Paragon"). Keller
acquired an 85% equity interest in this light-manufacturing business
for $1,140,000 in cash on January 6, 2006.
   Founded in 1993, Paragon offers custom steel and fiberglass
residential entry doors and storm doors with a variety of glass styles
and finishes. Paragon sells through a network of window and door
dealers, remodelers, and home improvement companies in 20 states.
Paragon has 27 employees and has been profitable for many years with
$3.9 million of sales in 2005. Paragon Founder, President, and Chief
Executive Officer David N. Burks, an industry veteran with over 25
years of experience, will continue to serve as its President and Chief
Executive Officer. Mr. Burks owns the balance of the equity not
acquired by Keller. David T. Richardson, Keller President and Chief
Executive Officer, plans to leave Keller and will not be employed by
either company. Mr. Richardson plans to assist Paragon and the Keller
Board via a consulting arrangement. According to Mr. Richardson, "The
acquisition of Paragon represents the exact type of transaction we
looked for during 2005. I believe Paragon is a very good fit for
Keller and I am impressed with its founder and leader, David Burks."
Mr. Burks added, "I am very pleased to have Keller as an equity
partner in Paragon and I look forward to leading and growing Paragon
for many years." For more information about Paragon please visit
www.paragondoor.com.
   In January of 2005, Keller announced that it was exiting all
furniture operations and would begin a search for a new operating
business. In December of 2005, Keller announced that it had signed a
non-binding letter of intent to acquire a local light-manufacturing
business but did not identify the acquisition target, pending due
diligence and financing. Begun in 1885 by German immigrants in
Corydon, Indiana, Keller has demonstrated an uncommon ability to
successfully evolve and adapt to changing business conditions.
Originally, Keller produced wood spokes for farm wagons, then complete
wheels by 1901, and later the entire wagon under contract with the
International Harvester Company. With the introduction of the
motorized metal farm tractor following the Depression era, Keller
converted its production to household furniture while also
manufacturing walk-in ice boxes for U.S. Army camp kitchens during the
Second World War and producing army vehicle bodies for General Motors.
Following the war, Keller resumed its entry into home furnishings and
grew to become one of the nation's leading manufacturers of solid wood
bedroom, dining room, and occasional furniture until exiting that
business in early 2005 due to low-cost import competition from Asia.
For more information about Keller please visit
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 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.