EXHIBIT 99.1

Steinway Q4 Operating Profit Up 22%

FY 2010 EPS $0.68 vs. $0.60

WALTHAM, MA — March 3, 2011— Steinway Musical Instruments, Inc. (NYSE: LVB) today reported earnings for the quarter and twelve months ended December 31, 2010.

Discussing fourth quarter results, CEO Dana Messina said, “We are pleased with our overall performance this quarter.  We saw improvement in sales and gross margins in both of our operating segments. Our piano business in the United States and Asia was very strong and our band instrument sales continue to trend positively. We have further strengthened our balance sheet, ending the year in a very healthy financial position.”

Q4 2010 Compared to Q4 2009

·                  Sales of $88 million, up 8%

·                  Gross margin increased to 33.2% from 29.4%

·                  Income from operations of $8 million, up 22%

·                  Adjusted EBITDA of $9 million, down 7%

·                  Earnings per share decrease to $0.28 from $0.44

FY 2010 Compared to FY 2009

·                  Sales of $318 million, up 4%

·                  Gross margin increased to 30.2% from 27.7%

·                  Income from operations of $23 million, up 72%

·                  Adjusted EBITDA of $32 million, up 21%

·                  Adjusted earnings per share increased to $0.67 from $0.42

Full year Adjustments are detailed in the attached financial tables.

Balance Sheet Highlights

·                  Cash of $120 million

·                  Inventory reduced 9% from December 2009

Piano Operations

Domestically, demand continued to rebound in the fourth quarter.  Unit shipments of Steinway grand pianos rose nearly 30% and shipments of mid-priced pianos increased 7% over the prior year period.  Overseas, Steinway grand units were consistent with the prior year period while

shipments of mid-priced pianos surged 37%.  Piano gross margins improved in the quarter as a result of a higher mix of retail sales and steady production schedules at both piano facilities.

Year-to-date, domestic unit shipments of Steinway grands were up 13% while mid-priced unit sales were slightly below 2009 levels. Shipments of Steinway grand pianos were strong in Asia, with units up 13%. However, the Company’s European business experienced weak demand for Steinway grands throughout 2010, with shipments down 10% from the prior year.  Mid-priced piano sales in Europe and Asia combined were up 36% over 2009.

Band Operations

During the fourth quarter, increases in sales of professional brass instruments and percussion products contributed to overall improved band segment revenue. Gross margins increased over the prior year period primarily as a result of better manufacturing efficiency.

For the year, sales increased slightly while order flow increased 12%. The benefit of steadier production rates more than offset the impact of higher sales program costs, resulting in significantly improved gross margins.

Outlook

Discussing management’s outlook, Messina commented, “While 2010 was a challenging year, we are encouraged by our solid fourth quarter results, especially in the United States. In 2011, we are expecting increased revenue in our band segment as positive order trends continue. In our piano division, we are anticipating the domestic market will continue its recovery during 2011 while European markets lag. With our factories running more efficiently, we can expect year-over-year increases in overall piano revenue and gross margins.”

Segment Information

Piano Segment

Q4 2010 Compared to Q4 2009

·                  Sales of $61 million, up 10%

·                  Steinway grand piano unit increase of 14%

·                  Mid-priced piano unit increase of 21%

·                  Gross margin increased to 35.9% from 32.7%

·                  Inventories reduced by $8 million

FY 2010 Compared to FY 2009

·                  Sales of $190 million, up 6%

·                  Steinway grand piano unit increase of 5%

·                  Mid-priced piano unit increase of 15%

·                  Gross margin increased to 33.5% from 31.4%

Band Segment

Q4 2010 Compared to Q4 2009

·                  Sales of $27 million, up 2%

·                  Gross margin increased to 27.1% from 22.4%

·                  Inventories reduced by $5 million

FY 2010 Compared to FY 2009

·                  Sales of $128 million, up 1%

·                  Gross margin increased to 25.1% from 22.4%

Conference Call

Management will be discussing the Company’s fourth quarter results as well as its outlook for 2011 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.  Through its online music retailer, ArkivMusic, the Company also produces and distributes classical music recordings.  For more information about Steinway Musical Instruments, Inc. please visit the Company’s website at www.steinwaymusical.com.

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. Adjustments are detailed in the attached financial tables. The Company uses Adjusted EBITDA because it is useful to management and investors as a measure of the Company’s core operating performance in that it eliminates the impact of items that are unrelated to how well the Company is completing its manufacturing and operating responsibilities. In addition, the Company uses Adjusted EBITDA as the basis for determining bonuses for its managers. 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 as it factors out non-cash expenses such as depreciation and amortization.

There are limitations in the use of Adjusted EBITDA because the Company’s actual results do include the impact of the noted Adjustments. Accordingly, Adjusted EBITDA should be used as a supplement to the comparable GAAP measures and should not be construed as a substitute for income from operations or net income, or a better indicator of liquidity than cash flows from operating activities, which are determined in accordance with GAAP.

“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; reductions in school budgets; increased competition; work stoppages and slowdowns; ability to successfully consolidate band manufacturing; impact of dealer consolidations on orders; ability of dealers to obtain financing; exchange rate fluctuations; variations in the mix of products sold; market acceptance of new products; ability of suppliers to meet demand; concentration of credit risk; ability to lease office space; and fluctuations in effective tax rates resulting from shifts in sources of income.  Further information on these risk factors is included in the Company’s filings with the Securities and Exchange Commission.

STEINWAY MUSICAL INSTRUMENTS, INC.

Condensed Consolidated Statements of Operations

(In Thousands, Except Per Share Data)

(Unaudited)

Condensed Consolidated Balance Sheets

(In Thousands)

(Unaudited)

STEINWAY MUSICAL INSTRUMENTS, INC.

Reconciliation from GAAP Earnings to Adjusted Earnings

(In Thousands, Except Per Share Data)

(Unaudited)

Notes to Reconciliation from GAAP Earnings to Adjusted Earnings

(1) Reflects a net gain on early extinguishment of debt.

(2) Reflects the tax effect of Adjustments.

(3) Reflects impairment of intangible assets.

STEINWAY MUSICAL INSTRUMENTS, INC.

(In Thousands)

(Unaudited)

Reconciliation from Cash Flows from Operating Activities to Adjusted EBITDA

Reconciliation from Net Income to Adjusted EBITDA