KSTW Acquisition, Inc. Commences Tender Offer for All Shares Of Steinway Musical Instruments, Inc.

   KSTW Acquisition, Inc. Commences Tender Offer for All Shares Of Steinway
                          Musical Instruments, Inc.

Previously Announced Offer Price of $35.00 per Share in Cash

PR Newswire

MOUNT KISCO, N.Y., July 15, 2013

MOUNT KISCO, N.Y., July15, 2013 /PRNewswire/ --In connection with the
previously announced merger agreement entered into to acquire Steinway Musical
Instruments, Inc. (NYSE: LVB) (the "Company"), Kohlberg& Company, L.L.C.
("Kohlberg") today announced that KSTW Acquisition,Inc. ("Purchaser") has
commenced a cash tender offer to acquire all of the outstanding shares of the
Company's common stock. Upon the successful closing of the tender offer,
stockholders of the Company who tendered their shares in the tender offer will
receive $35.00 per share, in cash, payable without interest and less any
applicable withholding taxes. Purchaser and its parent company, KSTW Holdings,
Inc. ("Parent"), are affiliates of Kohlberg.

(Logo: http://photos.prnewswire.com/prnh/20130715/CL47566LOGO )

On July1, 2013, the Company and Kohlberg announced that the Company, Parent
and Purchaser had signed a definitive merger agreement pursuant to which the
tender offer would be made. The Company's board of directors, consisting of
all disinterested directors, has unanimously approved the terms of the merger
agreement, including the tender offer.

Under the terms of the merger agreement, the tender offer is conditioned upon,
among other things, the valid tender of the number of shares that would
represent at least a majority of the shares of Company common stock, Parent's
receipt of the proceeds of the debt financing, the Company's rights agreement
having no force or effect as a result of the tender offer or merger, the
receipt of the Federal Trade Commission's approval under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, the receipt of any applicable consents or
approvals under German antitrust or merger control laws and other customary
closing conditions.

Pursuant to the merger agreement, upon completion of the tender offer and the
satisfaction or waiver of all conditions, Purchaser will merge with and into
the Company and all outstanding shares of the Company's common stock, other
than shares held by Parent, Purchaser or the Company or its subsidiaries or
shares held by the Company's stockholders who validly exercise appraisal
rights under Delaware law, will be converted into the right to receive $35.00
per share, in cash, payable without interest and less any applicable
withholding taxes.

Parent and Purchaser are filing with the Securities and Exchange Commission
("SEC") today a tender offer statement on Schedule TO, including an offer to
purchase and related letter of transmittal, setting forth in detail the terms
of the tender offer. Additionally, the Company is filing with the SEC today a
solicitation/recommendation statement on Schedule 14D-9 setting forth in
detail, among other things, the recommendation of the Company's board of
directors that the Company's stockholders tender their shares in the tender
offer.

The tender offer and withdrawal rights are scheduled to expire at 11:59 P.M.,
New York City time, on Wednesday, August21, 2013, unless the offer is
extended or earlier terminated.

About Steinway Musical Instruments,Inc.

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
www.steinwaymusical.com.

About Kohlberg& Company

Kohlberg& Company, L.L.C. ("Kohlberg") is a leading private equity firm
headquartered in Mount Kisco, New York.Since its inception in 1987, Kohlberg
has completed 60 platform investments and more than 100 add-on acquisitions,
with aggregate transaction value in excess of $9 billion.Kohlberg has
invested over $3 billion of equity capital over its history and is currently
investing its seventh private equity fund, Kohlberg Investors VII.For more
information, visit www.kohlberg.com.

Notice to Investors

This press release is neither an offer to purchase nor a solicitation of an
offer to sell any securities. The solicitation and the offer to buy shares of
the Company's common stock is being made pursuant to an offer to purchase and
related materials that affiliates of Kohlberg have filed with the SEC.
Affiliates of Kohlberg are filing a tender offer statement on Schedule TO with
the SEC today in connection with the commencement of the offer, and the
Company is filing a solicitation/recommendation statement on Schedule 14D-9
with the SEC today with respect to the tender offer. The tender offer
statement (including an offer to purchase, a related letter of transmittal and
other tender offer documents) and the solicitation/recommendation statement
contain important information that should be read carefully before making any
decision to tender securities in the tender offer. These materials will be
made available to the Company's shareholders at no expense to them and may
also be obtained by contacting the Company's Investor Relations Department at
800SouthStreet, Suite305, Waltham, Massachusetts 02453, telephone number
(781)894-9770 or ir@steinwaymusical.com. All of these materials (and all
other tender offer documents filed with the SEC) will also be made available
at no charge at the SEC's website (www.sec.gov).

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements with respect to the
tender offer and related transactions, including the benefits expected from
the acquisition and the expected timing of the completion of the
transaction.When used in this press release, the words "can," "will,"
"intends," "expects," "is expected," similar expressions and any other
statements that are not historical facts are intended to identify those
assertions as forward-looking statements.Such statements are based on a
number of assumptions that could ultimately prove inaccurate, and are subject
to a number of risk factors, including uncertainties regarding the timing of
the closing of the transaction, uncertainties as to the number of stockholders
of the Company who may tender their stock in the tender offer, the possibility
that a governmental entity may prohibit, delay or refuse to grant approval for
the consummation of the transaction, and general economic and business
conditions.The Company does not assume any obligation to update any
forward-looking statement, whether as a result of new information, future
events or otherwise.Factors that could cause actual results of the tender
offer to differ materially include the following: the risk of failing to
obtain any regulatory approvals or satisfy conditions to the transaction, the
risk that Kohlberg is unable to obtain adequate financing, the risk that the
transaction will not close or that closing will be delayed, the risk that the
Company's businesses will suffer due to uncertainty related to the
transaction, the competitive environment in the Company's industry and
competitive responses to the transaction as well as risk factors set forth
above.Further information on factors that could affect the Company's
financial results is provided in documents filed by the Company with the SEC,
including the Company's recent filings on Form10-Q and Form10-K.

Contact:
Christopher W. Anderson
Kohlberg & Company
111 Radio Circle
Mount Kisco, New York 10549
(914) 241-7430

SOURCE Kohlberg & Company, L.L.C.

Website: http://www.kohlberg.com
 
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