Steinway Announces Conclusion of Evaluation of Strategic Alternatives

    Steinway Announces Conclusion of Evaluation of Strategic Alternatives

PR Newswire

WALTHAM, Mass., Dec. 26, 2012

WALTHAM, Mass., Dec. 26, 2012 /PRNewswire/ --Steinway Musical
Instruments,Inc. (NYSE: LVB), one of the world's leading manufacturers of
musical instruments, announced today the conclusion of its previously
announced evaluation of strategic alternatives.

In July 2011, after receiving an unsolicited proposal to acquire the Company's
band instrument division, Steinway's Board of Directors engaged Allen &
Company LLC to assist a Special Committee of the Board in evaluating the
proposal and other strategic alternatives available to the Company. As part of
that process, the Special Committee evaluated a wide range of alternatives to
enhance shareholder value, including a sale of the Company's band division and
a sale of the entire Company.

Over the course of the evaluation process, a broad range of domestic and
international industry participants and private equity sources were solicited.
The Special Committee had extensive discussions with several parties and
received several non-binding indications of interest related to the sale of
the Company. After careful consideration of the results of the process, the
Company's current business strategy, economic and marketplace considerations
and the recommendation of the Special Committee, the Board of Directors has
ended the strategic alternatives evaluation process.

The Company previously announced that it had reached an agreement in principle
to sell its band instrument division to an investor group led by two current
Board members: Dana Messina, former CEO, and John Stoner, Conn-Selmer
President. The Special Committee had extensive negotiations with this investor
group. Upon the recommendation of the Special Committee and in light of
current operating performance of the band division, the Board of Directors
concluded that entering into a definitive agreement on the terms negotiated
with the investor group would not be in the best interests of the Company's
shareholders at this time. Accordingly, the Company has terminated the
agreement in principle and all related discussions with the investor group.

Michael Sweeney, Chairman and CEO, commented, "The Special Committee, with
assistance from its financial and legal advisors, considered a number of
strategic alternatives. However, in the end, the Board of Directors concluded
that none of the alternatives presented generated shareholder value superior
to the value inherent in the Company's strategic plan. We will continue to
focus management's efforts on execution of that plan and we look forward to a
prosperous 2013."

The Company also previously announced that it entered into a non-binding
letter of intent to sell its leasehold interest in the Steinway Hall building
on West 57^th Street in New York City. The Company did not reach a definitive
agreement with respect to the sale during the exclusivity period under the
letter of intent. However, the Company has continued negotiations with the
potential buyer and also entered into additional discussions with other
parties with respect to the property. No assurance can be made that a
definitive agreement will be reached or that any transaction will be
completed. Discussions regarding a potential transaction involving Steinway
Hall are separate from the strategic alternatives evaluation process.

Conference Call
Chairman and CEO Michael Sweeney will host a conference call to further
discuss the matters contained in this press release on Wednesday, January 2,
2013, 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,

About Steinway Musical Instruments
Steinway Musical Instruments,Inc., through its Steinway and Conn-Selmer
divisions, is a global leader in the design, manufacture, marketing and
distribution of high quality musical instruments. These 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

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of
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.
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

SOURCE Steinway Musical Instruments, Inc.

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