ITEM 1.01 Entry into a Material Definitive Agreement

On April 7, 2009 Steinway Musical Instruments, Inc., a Delaware corporation (the "Company"), revised its compensation policy for Directors who are not employees of the Company ("Non-Employee Directors"), by reducing the Annual Retainer for Non-Employee Directors from $25,000 per year to $20,000 per year. This change in compensation is effective beginning the second quarter of fiscal year 2009. David Lockwood, a Non-Employee Director, does not receive any compensation from the Company.

ITEM 8.01 Other Events

In connection with a reduction in salary and wages for certain domestic and foreign non-union employees, the salaries of all of the Company's named executive officers were reduced by ten percent effective the beginning of the second quarter of fiscal year 2009.

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