<PAGE>   1
                                                                    EXHIBIT 99.4


                    
                           [BALDWIN PIANO LETTERHEAD]
--------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE


CONTACTS:     Perry Schwartz             Ken DiPaola or Joel Pomerantz
              Baldwin Piano              The Dilenschneider Group, Inc.
              (513) 576 - 4518           (212)  922 - 0900



               BALDWIN PIANO REPORTS HIGHER THIRD-QUARTER RESULTS

              MUSIC SALES UP 22%; NET INCOME UP MORE THAN FIVE FOLD


         LOVELAND, OH, October 21, 1997 --- Baldwin Piano and Organ Company
(NASDAQ:BPAO) today announced results for the third quarter and nine months
ending September 30, 1997.

         The third-quarter sales rose 28 percent to $ 33.9 million, up from
$26.5 million last year. Net income rose more than five fold to $1.0 million, or
31 cents per share, compared with $192,000, or 6 cents per share, for the same
quarter a year ago.

         The third-quarter impact of Baldwin's second-quarter 1997 decision to
phase-out consignment sales was insignificant, adding only $2.3 million to sales
and 2 cents per share to earnings for the quarter.

         For the first nine months of 1997, net income rose to $2.9 million, or
86 cents per share, on sales of $103.6 million, compared with net income of $1.6
million, or 48 cents per share, on sales of $79.8 million, a year ago. Without
the impact of discontinuing consignment sales and other one-time events, net
income through the first nine months of 1997 would have been $1.9 million, or 55
cents per share, on sales of $88.6 million.

         Karen L. Hendricks, Baldwin's president, chairman and chief executive
officer commented on the third quarter gains, "Strong demand for pianos coupled
with strides we have made in improving cycle times and rolling out new marketing
programs contributed to the ongoing positive trend in our Music business.

             


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         "As expected, our exit from consignment has resulted in accelerated
sales recognition, shifting sales from the fourth quarter, traditionally our
strongest, into the third quarter. In fact, we estimate that approximately half
of our third-quarter sales increase was a result of shipments that would have
otherwise fallen in the fourth quarter. While this in no way changes our outlook
for a strong improvement in full-year financial performance, it will take a toll
on fourth-quarter sales comparisons," she noted.

         "Contract Electronics has also begun to contribute to Baldwin's
improving financial results," she said. "New customer development has produced
the strongest sales increase in three years, fueling sales growth of 15 percent
and 12 percent for the third quarter and first nine months, respectively."

         Ms. Hendricks noted that through the end of the third quarter,
Baldwin's phase-out of consignment sales and the related decrease in inventory
levels, has lowered Baldwin's debt to $30.4 million, a reduction of more than
$15 million compared with a year ago. She also said the company anticipates
additional debt reduction in the fourth quarter.

         Ms. Hendricks concluded, "All of Baldwin's major business segments
experienced profitable growth in the third quarter. There is every indication
that Contract Electronics growth will continue into the fourth quarter.
Stripping away the impact of consignment sales, the Music side of our business
will likewise be strong, but this will be less evident because of the
quarter-to-quarter sales shift cited earlier."

         Baldwin Piano & Organ Company has manufactured and marketed keyboard
musical products for 135 years and has been providing consumer financing for the
keyboard industry for nearly a century. Baldwin, maker of America's best selling
pianos, also manufactures electronic and electro-mechanical components for
Original Equipment Manufacturers.



"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, fluctuations in operating results and other risks detailed from time
to time in the company's filings with the Securities and Exchange Commission.

                      (Condensed Income Statement Attached)





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<TABLE>
<CAPTION>


                 BALDWIN PIANO & ORGAN COMPANY AND SUBSIDIARIES
                        CONSOLIDATED SUMMARY OF EARNINGS
                  (IN THOUSANDS, EXCEPT NET EARNINGS PER SHARE)

                                             THREE MONTHS ENDED               NINE MONTHS ENDED
                                                SEPTEMBER 30,                   SEPTEMBER 30,
                                         -------------------------       ------------------------
                                            1997           1996            1997             1996
                                         ---------       ---------       ---------       ---------

<S>                                      <C>             <C>             <C>             <C>      
Net sales                                $  33,915       $  26,508       $ 103,629       $  79,794
Cost of goods sold                          26,539          21,543          83,324          63,634
                                         ---------       ---------       ---------       ---------
  Gross profit                               7,376           4,965          20,305          16,160
Interest income on
   installment receivables (1)               2,090           1,740           6,315           5,323
Other operating income, net                    386             842           1,807           2,648
Selling, general and administrative         (7,556)         (6,496)        (21,453)        (19,648)
Interest expense                              (592)           (827)         (2,248)         (2,009)
                                         ---------       ---------       ---------       ---------
  Earnings before income taxes               1,704             224           4,726           2,474
Income taxes                                   645              32           1,779             848
                                         ---------       ---------       ---------       ---------
  Net earnings                           $   1,059       $     192       $   2,947       $   1,626
                                         =========       =========       =========       =========
Net earnings per share                   $    0.31       $    0.06       $    0.86       $    0.48
                                         =========       =========       =========       =========
Average number of
    shares outstanding                       3,442           3,423           3,432           3,419
                                         =========       =========       =========       =========

<CAPTION>

                                               CONSOLIDATED SUMMARY BALANCE SHEETS
                                                         (IN THOUSANDS)
                                                                                SEPTEMBER 30,
                                                                         ------------------------
                                                                            1997             1996
                                                                         ---------        --------
<S>                                                                      <C>              <C>     
Assets
  Receivables, net                                                       $  23,756        $ 15,414
  Inventories                                                               43,706          64,352
Other current assets                                                         8,482           7,758
                                                                         ---------        --------
  Total current assets                                                      75,944          87,524

Installment receivables, less current portion                               15,882          12,547
Property, plant and equipment, net                                          15,650          16,800
Other assets                                                                 4,740           5,466
                                                                         ---------        --------
  Total assets                                                           $ 112,216        $122,337
                                                                         =========        ========

Liabilities and Shareholders' Equity
  Current portion of long-term debt                                      $  27,808        $ 42,314
Other liabilities                                                           15,359          13,678
                                                                         ---------        --------
  Total current liabilities                                                 43,167          55,992
Long-term debt, less current portion                                         2,675           3,575
Other liabilities                                                            7,069           6,926
Shareholders' equity                                                        59,305          55,844
                                                                         ---------        --------
  Total liabilities and shareholders' equity                             $ 112,216        $122,337
                                                                         =========        ========
<FN>

(1)      Baldwin's adoption of FAS 125, Accounting for Transfers and Servicing
         of Financial Assets and Extinguishment of Liabilities, by its Keyboard
         Acceptance unit (KAC) resulted in additional pre-tax revenue of
         $325,000 and $975,000, respectively, for the third quarter and first
         nine months of fiscal 1997. FAS 125 was not applicable to fiscal 1996
         and earlier periods.
</TABLE>

                                   


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