EXHIBIT 99.1

For Immediate Release:

Steinway Reports Q4 2006 Results

WALTHAM, MA – March 1, 2007 – Steinway Musical Instruments, Inc. (NYSE: LVB), one of the world’s leading manufacturers of musical instruments, today announced results for the quarter and twelve months ended December 31, 2006.

Revenues decreased 4% for the quarter, to $106.1 million, due to the loss of an estimated $7.6 million in band instrument sales caused by a labor strike.  Lost profit and unabsorbed overhead from the strike also negatively impacted gross profit for the quarter by approximately $4.4 million.  Despite these factors, overall gross margins improved from 29.3% to 30.4%.

Operating expenses increased 21% as compared to the prior year period primarily as a result of an increase in bad debt expense of $4.1 million, the majority of which related to the bankruptcy of a band customer.  Recruiting costs, stock-based compensation and bonuses paid to our overseas piano operations also contributed to the increase.  Operating income was $6.3 million as compared to $10.7 million in the prior year period. Net interest expense decreased 17% compared to the fourth quarter of 2005, as a result of continued debt reduction and the Company’s successful debt refinancing earlier in the year.

Income before taxes was negatively impacted by the following atypical items (shown in millions):

	Q4		2006
Adjustments included in Adjusted EBITDA:
Loss on extinguishment of debt	$	—	$	9.7
Unabsorbed overhead due to strike	—		2.0
Charges relating to step-up of inventory	—		0.1
Total Adjustments	$	—	$	11.8
Other Atypical Items:
Lost gross profit on lost sales due to strike	$	2.5	$	6.5
Unabsorbed overhead due to replacement worker inefficiencies	1.9		1.9
Inventory reserve adjustment	—		2.4
Bad debt expense due to customer bankruptcies	2.9		7.2
Unabsorbed overhead due to piano plant shutdowns	—		1.3
Total Other Atypical Items	$	7.3	$	19.3
Total Adjustments & Atypical Items	$	7.3	$	31.1

For the quarter, the Company posted Basic EPS of $0.13 compared to $0.62 in the prior year period. For 2006, the Company posted a Basic loss per share of $0.08 compared to Basic earnings per share of $1.71 in the prior year.  Adjusted Basic EPS was $0.77 compared to $1.87 in 2005.  Adjustments, which are comprised primarily of costs associated with a labor strike and a loss on the early extinguishment of debt, are detailed in the attached financial tables.

Band Operations

Band sales for the quarter decreased $10.7 million, or 23%, due to the lost sales caused by a labor strike at one of the Company’s manufacturing facilities and the impact of recent customer bankruptcies.  Gross margins for the quarter declined to 15.9% due to the negative impact of the strike.

Sales for 2006 declined only $13.2 million, or 7%, as strong sales of other instruments somewhat offset the $19.3 million in lost sales from the strike.  Gross margins declined from 20.4% to 18.6% as a result of the strike.

Piano Operations

Worldwide piano sales for the quarter increased $6.7 million, or 10%, including a $2.5 million positive impact from foreign currency translation.  Demand continued to be strong overseas where fourth quarter unit shipments of Steinway grand pianos rose 7% and unit shipments of mid-priced pianos more than doubled over the prior year period.  Domestically, shipments of mid-priced pianos climbed 70% as a result of the re-launch of the Essex brand.  Steinway grand unit shipments declined 14% from the prior year period.  Gross margins improved from 37.1% to 37.5%.

Year-to-date piano sales were up 5%.  Gross margins declined from 36.4% to 35.4% as a result of plant shutdowns and a shift in product mix.   

Comments

Discussing fourth quarter results of the piano segment, CEO Dana Messina stated, “We are extremely pleased with the overall results of our piano business this quarter.  Sales were strong, especially overseas, where we had a record year.  For the fourth quarter, an increase in domestic sales of mid-priced pianos offset lower sales of Steinway grands.  For the year, worldwide unit shipments in the mid-priced segment increased 30% while unit shipments of Steinway grands were virtually level with 2005.”

Regarding band operations, Messina said, “Our band business continues to improve.  The ongoing strike at our brass plant in Elkhart impacted revenue more this quarter than in previous quarters because fourth quarter sales typically include a higher proportion of professional instruments.  If you factor out the impact of the strike, sales and gross margins would have increased in 2006.”

“We are still negotiating with the union,” said Messina, “but we remain far apart on many important terms.  In the meantime, after all of the recruiting and hiring we did in the third quarter, we were at appropriate staffing levels at our Elkhart brass plant throughout the fourth quarter.  Quality has improved dramatically and we are making progress on production as the permanent replacement workers become more efficient.  Daily production today is double what it was in the fourth quarter.”

Messina commented, “Overall, we should see improved band sales and margins in 2007.  Order rates for band instruments are up and our production rates are improving.  While we will continue to deal with the impact of the strike for several more months, we expect production levels of professional instruments at our Elkhart brass plant to improve throughout the year.  Looking at our piano business, the U.S. market is difficult to predict but we expect Europe and Asia to continue to perform well in 2007.”

Conference Call

Management will be discussing the Company’s fourth quarter results and outlook for 2007 on a conference call today beginning at 5:00 p.m. ET.  A live webcast and an archive of the call will be available to all interested parties on the Company’s website, www.steinwaymusical.com.

About Steinway Musical Instruments

Steinway Musical Instruments, Inc., through its Steinway and Conn-Selmer divisions, is one of the world’s leading manufacturers of musical instruments.  Its notable products include Bach Stradivarius trumpets, Selmer Paris saxophones, C.G. Conn French horns, Leblanc clarinets, King trombones, Ludwig snare drums and Steinway & Sons pianos.

Non-GAAP Financial Measures Used by Steinway Musical Instruments

The Company uses the non-GAAP measurement Adjusted EBITDA, which it defines as earnings before net interest expense, income taxes, depreciation and amortization, adjusted to exclude non-recurring, infrequent or unusual items.  The Company uses Adjusted EBITDA because it is useful to management and investors as a measure of the Company’s core operating performance.  The Company also believes Adjusted EBITDA is helpful in determining the Company’s ability to meet future debt service, capital expenditures and working capital requirements.  In addition, certain of the Company’s debt covenants are based upon Adjusted EBITDA calculations and the Company uses Adjusted EBITDA as the basis for determining bonuses for its managers.  However, Adjusted EBITDA should not be construed as a substitute for income from operations or a better indicator of liquidity than cash flows from operating activities, which are determined in accordance with GAAP.

The Company has provided other non-GAAP measurements which present operating results on a basis excluding certain non-comparable items.  The Company has provided Adjusted financial information because management uses it to make meaningful comparisons of performance between periods.  However, there are limitations in the use of such information because the Company’s actual results do include the impact of these Adjustments.  The non-GAAP measures are intended only as a supplement to the comparable GAAP measures.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995

This release contains “forward-looking statements” which represent the Company’s present expectations or beliefs concerning future events.  The Company cautions that such statements are necessarily based on certain assumptions which are subject to risks and uncertainties which could cause actual results to differ materially from those indicated in this release.  These risk factors include the following: changes in general economic conditions; recent geopolitical events; increased competition; work stoppages and slowdowns; ability of new workers to meet desired production levels; exchange rate fluctuations; variations in the mix of products sold; market acceptance of new product and distribution strategies; ability of suppliers to meet demand; concentration of credit risk; fluctuations in effective tax rates resulting from shifts in sources of income; and the ability to successfully integrate and operate acquired businesses.  Further information on these risk factors is included in the Company’s filings with the Securities and Exchange Commission.

Contact:	Julie A. Theriault
Telephone:	781-894-9770
Email:	ir@steinwaymusical.com

STEINWAY MUSICAL INSTRUMENTS, INC.

Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Data)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	12/31/2006			12/31/2005			12/31/2006			12/31/2005
Net sales	$	106,127		$	110,126		$	384,620		$	387,143
Cost of sales	73,906			77,911			277,213			275,609
Gross profit	32,221			32,215			107,407			111,534
	30.4		%	29.3		%	27.9		%	28.8		%
Operating expenses:
Sales and marketing	12,395			12,563			45,586			45,475
Provision for doubtful accounts	4,416			345			9,150			424
General and administrative	8,730			8,048			33,062			29,200
Amortization	197			270			812			1,116
Other operating expenses	166			275			419			482
Total operating expenses	25,904			21,501			89,029			76,697
Income from operations	6,317			10,714			18,378			34,837
Interest expense, net	2,690			3,248			11,255			13,645
Other (income) expense, net	(329		)	73			7,504			(800		)
(Loss) income before income taxes	3,956			7,393			(381		)	21,992
Provision for income taxes	2,889			2,360			287			8,200
Net (loss) income	$	1,067		$	5,033		$	(668	)	$	13,792
(Loss) earnings per share - basic	$	0.13		$	0.62		$	(0.08	)	$	1.71
(Loss) earnings per share - diluted	$	0.13		$	0.61		$	(0.08	)	$	1.67
Weighted average common shares - basic	8,374			8,108			8,304			8,070
Weighted average common shares - diluted	8,516			8,255			8,304			8,265

Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)

	12/31/2006		12/31/2005
Cash	$	30,409	$	34,952
Receivables, net	75,161		81,880
Inventories	154,623		159,310
Other current assets	27,220		19,589
Total current assets	287,413		295,731
Property, plant and equipment, net	95,598		96,664
Other assets	70,438		63,260
Total assets	$	453,449	$	455,655
Notes payable and current portion of long-term debt	$	4,595	$	12,977
Other current liabilities	62,033		58,904
Total current liabilities	66,628		71,881
Long-term debt	173,816		191,715
Other liabilities	55,004		43,229
Stockholders’ equity	158,001		148,830
Total liabilities and stockholders’ equity	$	453,449	$	455,655

STEINWAY MUSICAL INSTRUMENTS, INC.

Reconciliation of GAAP Earnings to Adjusted Earnings
(In Thousands, Except Per Share Data)
(Unaudited)

	Three Months Ended 12/31/06
	GAAP			Adjustments		Adjusted
Band sales	$	35,028		$	—	$	35,028
Piano sales	71,099			—		71,099
Total sales	106,127			—		106,127
Band cost of sales	29,454			—		29,454
Piano cost of sales	44,452			—		44,452
Total cost of sales	73,906			—		73,906
Band gross profit	5,574			—		5,574
Piano gross profit	26,647			—		26,647
Total gross profit	32,221			—		32,221
Band GM%	15.9		%			15.9		%
Piano GM%	37.5		%			37.5		%
Total GM%	30.4		%			30.4		%
Operating expenses	25,904			—		25,904
Income from operations	6,317			—		6,317
Interest expense, net	2,690			—		2,690
Other (income) expense, net	(329		)	—		(329		)
Income before taxes	3,956			—		3,956
Provision for income taxes	2,889			—		2,889
Net income	$	1,067		$	—	$	1,067
Earnings per share - basic	$	0.13				$	0.13
Earnings per share - diluted	$	0.13				$	0.13
Weighted average common shares - basic	8,374					8,374
Weighted average common shares - diluted	8,516					8,516

	Three Months Ended 12/31/05
	GAAP			Adjustments			Adjusted
Band sales	$	45,748		$	—		$	45,748
Piano sales	64,378			—			64,378
Total sales	110,126			—			110,126
Band cost of sales	37,414			(29		)(1)	37,385
Piano cost of sales	40,497			—			40,497
Total cost of sales	77,911			(29		)	77,882
Band gross profit	8,334			29			8,363
Piano gross profit	23,881			—			23,881
Total gross profit	32,215			29			32,244
Band GM%	18.2		%				18.3		%
Piano GM%	37.1		%				37.1		%
Total GM%	29.3		%				29.3		%
Operating expenses	21,501			—			21,501
Income from operations	10,714			29			10,743
Interest expense, net	3,248			—			3,248
Other (income) expense, net	73			(538		)(2)	(465		)
Income before taxes	7,393			567			7,960
Provision for income taxes	2,360			181		(3)	2,541
Net income	$	5,033		$	386		$	5,419
Earnings per share - basic	$	0.62					$	0.67
Earnings per share - diluted	$	0.61					$	0.66
Weighted average common shares - basic	8,108						8,108
Weighted average common shares - diluted	8,255						8,255

Notes to Reconciliation of GAAP Earnings to Adjusted Earnings

(1)Reflects charges relating to the step-up of acquired inventory.

(2)Reflects a loss on early extinguishment of debt.

(3)Reflects the tax effect of Adjustments at the Company’s effective rate for the period.

STEINWAY MUSICAL INSTRUMENTS, INC.

Reconciliation of GAAP Earnings to Adjusted Earnings
(In Thousands, Except Per Share Data)
(Unaudited)

	Twelve Months Ended 12/31/06
	GAAP			Adjustments			Adjusted
Band sales	$	170,426		$	—		$	170,426
Piano sales	214,194			—			214,194
Total sales	384,620			—			384,620
Band cost of sales	138,745			(2,155		)(1)	136,590
Piano cost of sales	138,468			—			138,468
Total cost of sales	277,213			(2,155		)	275,058
Band gross profit	31,681			2,155		(1)	33,836
Piano gross profit	75,726			—			75,726
Total gross profit	107,407			2,155			109,562
Band GM%	18.6		%				19.9		%
Piano GM%	35.4		%				35.4		%
Total GM%	27.9		%				28.5		%
Operating expenses	89,029			—			89,029
Income from operations	18,378			2,155			20,533
Interest expense, net	11,255			—			11,255
Other (income) expense, net	7,504			(9,674		)(2)	(2,170		)
(Loss) income before taxes	(381		)	11,829			11,448
Provision for income taxes	287			4,732		(3)	5,019
Net (loss) income	$	(668	)	$	7,097		$	6,429
(Loss) earnings per share - basic	$	(0.08	)				$	0.77
(Loss) earnings per share - diluted	$	(0.08	)				$	0.76
Weighted average common shares - basic	8,304						8,304
Weighted average common shares - diluted	8,304						8,438

	Twelve Months Ended 12/31/05
	GAAP			Adjustments			Adjusted
Band sales	$	183,626		$	—		$	183,626
Piano sales	203,517			—			203,517
Total sales	387,143			—			387,143
Band cost of sales	146,168			(1,573		)(4)	144,595
Piano cost of sales	129,441			—			129,441
Total cost of sales	275,609			(1,573		)	274,036
Band gross profit	37,458			1,573		(4)	39,031
Piano gross profit	74,076			—			74,076
Total gross profit	111,534			1,573			113,107
Band GM%	20.4		%				21.3		%
Piano GM%	36.4		%				36.4		%
Total GM%	28.8		%				29.2		%
Operating expenses	76,697			—			76,697
Income from operations	34,837			1,573			36,410
Interest expense, net	13,645			—			13,645
Other (income) expense, net	(800		)	(538		)(2)	(1,338		)
Income before taxes	21,992			2,111			24,103
Provision for income taxes	8,200			787		(5)	8,987
Net income	$	13,792		$	1,324		$	15,116
Earnings per share - basic	$	1.71					$	1.87
Earnings per share - diluted	$	1.67					$	1.83
Weighted average common shares - basic	8,070						8,070
Weighted average common shares - diluted	8,265						8,265

Notes to Reconciliation of GAAP Earnings to Adjusted Earnings

(1)Reflects $130 charges relating to the step-up of inventory and $2,025 of unabsorbed overhead associated with a labor strike.

(2)Reflects loss on extinguishment of debt.

(3)Reflects the tax effect of Adjustments at the Company’s historical effective rate.

(4)Reflects charges relating to the step-up of inventory.

(5)Reflects the tax effect of Adjustments at the Company’s effective rate for the period.

STEINWAY MUSICAL INSTRUMENTS, INC.

Reconciliation from Income from Operations to Adjusted EBITDA
(In Thousands)
(Unaudited)

	Three Months Ended
	12/31/2006		12/31/2005
Income from operations	$	6,317	$	10,714
Other income, net	329		(73		)
Depreciation	2,417		2,453
Amortization	197		270
Non-recurring, infrequent or unusual items	—		567
Adjusted EBITDA	$	9,260	$	13,931

	Twelve Months Ended
	12/31/2006			12/31/2005
Income from operations	$	18,378		$	34,837
Other income, net	(7,504		)	800
Depreciation	9,847			10,151
Amortization	812			1,116
Non-recurring, infrequent or unusual items	11,829			2,111
Adjusted EBITDA	$	33,362		$	49,015