<ARTICLE> 5 <CIK> 0000911583 <NAME> STEINWAY MUSICAL INSTRUMENTS INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 3,277 <SECURITIES> 0 <RECEIVABLES> 38,443 <ALLOWANCES> 7,120 <INVENTORY> 82,950 <CURRENT-ASSETS> 140,353 <PP&E> 76,005 <DEPRECIATION> 13,904 <TOTAL-ASSETS> 265,366 <CURRENT-LIABILITIES> 37,720 <BONDS> 116,037 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 9 <OTHER-SE> 67,869 <TOTAL-LIABILITY-AND-EQUITY> 265,366 <SALES> 257,903 <TOTAL-REVENUES> 257,903 <CGS> 173,668 <TOTAL-COSTS> 45,569 <OTHER-EXPENSES> 4,886 <LOSS-PROVISION> 760 <INTEREST-EXPENSE> 17,107 <INCOME-PRETAX> 15,913 <INCOME-TAX> 8,492 <INCOME-CONTINUING> 7,421 <DISCONTINUED> 0 <EXTRAORDINARY> 4,368 <CHANGES> 0 <NET-INCOME> 3,053 <EPS-PRIMARY> .41 <EPS-DILUTED> .41