Note 1

NATURE OF OPERATIONS

Steelcase Inc. and its majority-owned subsidiaries (the "Company") represent the world's largest manufacturer and provider of office furniture, office furniture systems and related products and services. The Company manufactures at 30 facilities in the United States, Canada and Mexico and, through international subsidiaries, joint ventures and licensing arrangements, at approximately 20 facilities throughout the rest of the world. The Company distributes its products through a worldwide network of independent dealers in approximately 680 locations including approximately 450 in the United States and Canada and approximately 230 throughout the rest of the world. The Company operates on a worldwide basis within a single industry segment.

Steelcase Strafor, a 50% owned joint venture with Strafor Facom S.A., is a leading office furniture company in Europe with 15 manufacturing facilities and dealers in more than 200 locations. See Note 20 regarding the April 22, 1999 acquisition by the Company of the remaining 50% equity interest in the joint venture from Strafor Facom S.A.