It gets worse

[Billbrpt@AOL.COM]

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Baldwin Piano & Organ Co. Announces Intent to Reorganize Under Chapter 11 of 
The United States Bankruptcy Code

  
MASON, Ohio, May 30 /PRNewswire/ -- Baldwin Piano & Organ Company today 
announced its intent to file for bankruptcy protection under Chapter 11 of 
the United States Bankruptcy Code.  Previously, the Company announced on 
April 24, 2001, a liquidity squeeze that was having a negative impact on the 
Company.  Subsequently, Baldwin hired Robert Jones as the new chief executive 
officer and announced that Kenneth W. Pavia was elected chairman of the board 
of directors. 

In a statement, Pavia said that while he had full confidence in Jones and his 
ability to return the Company to profitability, the liquidity squeeze coupled 
with certain legacy issues made the operation of Baldwin, as presently 
defined, virtually impossible. 

Pavia commented, "The legacy of past management makes the day-to-day 
operations of our core business impossible.  Disproportionate severance 
agreements, excessive inventory, excess administrative expenses in relation 
to historical Company performance, internal control issues, executive 
compensation arrangements that seem to exceed reasonable standards, and an 
extensive list of substantial payables are some examples of the factors we 
can not overcome." 

"Other factors that led to our decision to file for protection," Pavia added, 
"included unduly burdensome lease arrangements entered into under past 
administrations, restrictive borrowing arrangements with our lender, and the 
inability to secure concessions in regard to our liquidity crisis." 

"The dealers, factory personnel, and the new management deserve the 
opportunity to bring Baldwin back to its glory without the added pressure of 
past mismanagement," Pavia emphasized.  "All attempts to resolve this matter 
informally were explored and given due consideration.  Unfortunately, the 
pressures caused by the lack of liquidity and the demand of our creditors, 
including prior management's demand for the immediate payment under certain 
change of control agreements, made any recovery impossible.  In the end, for 
the benefit of all concerned, including our shareholders, a formal, orderly 
reorganization became the only viable alternative." 

In a statement, Jones said that he looked forward to leading the Company out 
of bankruptcy and working diligently to restore the Baldwin name and maintain 
the Company's relationship with its dealers and customers.  He continued, 
"Despite being CEO for only three weeks, I am convinced that the personnel at 
our factories have the ability, desire, and loyalty to make quality pianos 
and achieve enhanced values.  I firmly believe that the Baldwin name stands 
for our loyal employees and dealers.  With their continued support and the 
implementation of our strategic plan, Baldwin can return to profitability 
within a relatively short period." 

Baldwin Piano & Organ Company, the maker of America's best selling pianos, 
has marketed keyboard musical products for over 140 years. 

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 
1995:  This release contains forward-looking statements that are subject to 
risks and uncertainties, including, but not limited to, the impact of 
competitive products and pricing, product demand and market acceptance, 
reliance on key strategic alliances, fluctuation in operating results and 
other risks detailed from time-to-time in the Company's filings with the 
Securities and Exchange Commission. 


Bill Bremmer RPT
Madison, Wisconsin

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