<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF OPERATION AND CONSOLIDATED BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0000911583 <NAME> STEINWAY MUSICAL INSTRUMENTS, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 12460 <SECURITIES> 0 <RECEIVABLES> 59963 <ALLOWANCES> 7512 <INVENTORY> 96527 <CURRENT-ASSETS> 170381 <PP&E> 86041 <DEPRECIATION> 25847 <TOTAL-ASSETS> 283927 <CURRENT-LIABILITIES> 42243 <BONDS> 111370 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 9 <OTHER-SE> 91748 <TOTAL-LIABILITY-AND-EQUITY> 283927 <SALES> 293251 <TOTAL-REVENUES> 293251 <CGS> 194772 <TOTAL-COSTS> 51893 <OTHER-EXPENSES> 3217 <LOSS-PROVISION> 401 <INTEREST-EXPENSE> 11911 <INCOME-PRETAX> 31057 <INCOME-TAX> 14406 <INCOME-CONTINUING> 16651 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 16651 <EPS-PRIMARY> 1.78 <EPS-DILUTED> 1.75