Baldwin Piano & Organ Company reports earnings.

LOVELAND, Ohio--(BUSINESS WIRE)--July 24, 1996--Baldwin Piano & Organ Company reports net earnings of $.7 million ($.22 per share) in the second quarter of 1996, as compared to $.8 million ($.24 per share) in 1995. Net sales were 15% lower compared to last year, $26.1 million versus $30.7 million.

Two-thirds of the sales decline resulted from reductions in contract furniture and contract music as Baldwin executed its plan to shift focus away from these non-strategic businesses. As expected, unit sales in the acoustic piano category also declined during the second quarter reflecting the final impact of the consolidation of the Baldwin and Wurlitzer dealer networks.

The Company's operating profit was $1.9 million for the second quarter, unchanged compared to the same period in 1995. Lower gross profit was offset by a strong performance in the Consumer Finance segment and lower selling, general and administrative expense, primarily related to the Baldwin and Wurlitzer dealer network consolidation. Interest expense was higher in the 1996 quarter as a result of higher inventory levels in anticipation of second half sales. The net effect is that net earnings were 10% lower than those reported in the second quarter of 1995.

For reasons similar to those describing the second quarter, net earnings for the first six months of 1996 decreased 13% to $1.4 million ($.42 per share) from $1.6 million ($.48 per share) in 1995. Net sales for the first six months of 1996 decreased 12% to $53.2 million from $60.4 million in 1995. -0-

                             Three Months Ended    Six Months Ended
(in thousands, except              June 30,            June 30,
 net earnings per share)      1996        1995      1996      1995
                              ____        ____      ____      ____

Net sales                   $26,139     $30,688   $53,286    $60,448
Cost of goods sold           20,219      23,852    42,091     47,168
                            _______     _______   _______    _______
  Gross profit                5,920       6,836    11,195     13,280
Income on the sale of
 installment receivables      1,474       1,187     2,934      2,376
Interest income on
 installment receivables        341         201       649        407
Other operating income          947         859     1,806      1,772
Selling, general and
 administrative expenses     (6,826)     (7,222)  (13,152)   (14,182)
Interest expense               (657)       (503)   (1,182)    (1,025)
                            _______     _______   _______    _______
   Earnings before
    income taxes              1,199       1,358     2,250      2,628
Income taxes                    449         527       816        982
                            _______     _______   _______    _______
   Net earnings             $   750     $   831   $ 1,434    $ 1,646
                            _______     _______   _______    _______
                            _______     _______   _______    _______
Net earnings per share         $.22        $.24      $.42       $.48
                            _______     _______   _______    _______
                            _______     _______   _______    _______
Average number of
 shares outstanding           3,419       3,415     3,417      3,415
                            _______     _______   _______    _______
                            _______     _______   _______    _______

Baldwin Piano & Organ Company has manufactured and marketed keyboard musical products over 130 years. The market leader of acoustic pianos in the United States, Baldwin also manufactures electronic and electro-mechanical components for Original Equipment Manufacturers.

CONTACT: Baldwin Piano & Organ Company, Loveland

Charles Juengling, 513/576-4522