to provide the global musical
instrument manufacturer's interactive arm with colocation facilities and
managed services.

Yamaha is very highly regarded in the entertainment world for its musical
instrument quality.com or contact us at
NYIIX_25B_60H_111E@TELEHOUSE.87 from $0. Cash flow from
operations was $24 million and EBITDA improved 10%, to $51 million.91 $1.87 $0.
(5) Reflects asset impairment charges related to plant closures.

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The BROADWAY Center, also known as 25B, is in downtown Manhattan at 25
Broadway. "The benefits of our colocation facilities
and our International Internet Exchange , the NYIIX, continues to fuel our
growth in the media, entertainment, and sports sector. Companies from a wide range of
industries have chosen to locate their mission critical equipment at one of
TELEHOUSE's colocation "meet-me-centers" in New York and California, to
take advantage of the potential business opportunities that exist from
other TELEHOUSE customers. Adjustments are comprised of costs associated with
band instrument plant closures and other non-comparable items, which are
detailed in the attached financial tables.m. EST.
The Company uses EBITDA because it is useful to management and investors as a
measure of the Company's core operating performance.com

STEINWAY MUSICAL INSTRUMENTS, INC.09 $1.91 $2. Additionally, American Capital's current
performance may be lower or higher than the performance data quoted above.

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Band Operations
In the fourth quarter, band instrument sales increased 21% overall, to $41
million from $34 million.6% to 14., through its Steinway and Conn-Selmer
divisions , is one of the world's leading manufacturers of musical instruments. The Company also
believes EBITDA is helpful in determining the Company's ability to meet future
debt service, capital expenditures and working capital requirements. In
addition, certain of the Company's debt covenants are based upon EBITDA
calculations and the Company uses EBITDA as the basis for determining bonuses
for its managers.16 $1.29 dividends per share since its August 1997
IPO at $15 per share. Past performance does not guarantee future results and the investment
return and principal value of an investment in American Capital will likely
fluctuate.

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TELEHOUSE America announces the signing of an
agreement with Yamaha Music Interactive, Inc. is engaging in
maintaining, hosting, and promoting web sites for Yamaha's musical
instrument-related business., Steinway Musical
Instruments, Inc.16."
Turning to band operations, he said, "During 2004 we implemented several
new strategies in our band division. BETHESDA, Md. American Capital has paid a total of $787
million in dividends and paid $18.

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Yamaha manufactures pianos, digital
pianos, keyboards, digital instruments, drums, guitars , stringed, wind, and
percussion instruments and accessories, professional audio equipment, and
music education products. Through its sister companies
in Europe and Asia, TELEHOUSE also can provide continuous, cost-effective
operation of network-dependent businesses around the world.4% on a
more favorable product mix and improved production efficiencies.
For the year, sales increased 9% to $171 million. Adjusted
gross margins declined, from 23. Compared to prior years, we expect to receive a higher
percentage of our 2005 orders in the second and third quarters. As a result, production levels are not yet up to desired levels and
gross margins did not meet our expectations.1% 29.
(2) Reflects a gain on the sale of property and equipment associated with
plant closures. Gibson produces some of the most recognized guitar models in
the world, including the Les Paul, Flying V, ES-175, ES-335, Explorer,
Firebird and SG. Through the Gibson product line the Company markets over 500
different models of premium-priced guitars and, through the Epiphone product
line, over 140 different models of moderately priced guitars.
Companies interested in learning more about American Capital's flexible
financing should contact Mark Opel, Senior Vice President, Business
Development, at (800) 248-9340, or visit our website.

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Despite
incurring professional service fees related to regulatory compliance with the
Sarbanes-Oxley Act of over $3 million, or $0. This decline was primarily due to low
production levels and resulting unfavorable manufacturing variances. The Company's base
Conn-Selmer business grew 3%, with acquisitions contributing an additional $10
million in sales.3% 27.77
Diluted $1.
(4) Reflects $1,903 paid in accordance with the terms of expired labor
contracts; $1,258 impact of labor strikes; $1 ,200 from a lower-of-
cost-or-market adjustment to inventory and $1,683 of employee
severance costs, both associated with plant closures.

American Capital Provides Up to $52.5 Million to Gibson Guitar

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"

"As we expand our business and activities on the Internet, we require a
reliable and cost-effective facility for our systems, and TELEHOUSE offers
us exactly what we need," said Jun Sumii, Chief Operating Officer at Yamaha
Music Interactive, Inc. However, the shift in our
sales toward new channels has resulted in a change from our traditional
ordering patterns .09
Earnings per share - diluted $0.

STEINWAY MUSICAL INSTRUMENTS, INC. For more
information about American Capital's portfolio, go to
http://www.
Performance data quoted above represents past performance of American
Capital. The statements
regarding expected results of American Capital Strategies are subject to
various factors and uncertainties , including the uncertainties associated with
the timing of transaction closings, changes in interest rates, availability of
transactions, changes in regional, national or international economic
conditions , or changes in the conditions of the industries in which American
Capital has made investments.

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Yamaha Music Interactive, Inc.TELEHOUSE. has historically required. 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.
Condensed Consolidated Statements of Income
(In Thousands, Except Per Share Data)
(Unaudited)

Fourth Quarter Full Year
2004 2003 2004 2003
Net sales $106,632 $94,130 $375,034 $337,220
Cost of sales 73,523 68,013 265,901 244,667
Gross profit 33,109 26,117 109,133 92,553

Operating expenses 21,776 18,062 74,892 69,729
Income from operations 11,333 8,055 34,241 22,824
Interest expense, net 3,183 2,777 13,437 11,945
Other (income) expense, net (1,011) (1,485) (3,163) (3,517)
Income before taxes 9,161 6,763 23,967 14,396
Provision for income taxes 2,180 1,746 8,100 4,698
Net income $6,981 $5,017 $15,867 $9,698

Earnings per share - basic $0. Bank of America is
providing a revolving credit facility and investing in senior term debt.

ABOUT AMERICAN CAPITAL
American Capital is a publicly traded buyout and mezzanine fund with
capital resources of approximately $5.

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$1.16

WALTHAM, Mass. The Company's base Conn-Selmer business grew 6%,
with an acquisition contributing an additional $5 million. Continued strong demand for percussion
instruments also contributed to the sales increase.

10-K Filing
Section 404 of the Sarbanes-Oxley Act requires additional procedures be
performed by both the Company and its auditors.
Its notable products include Bach Stradivarius trumpets, Selmer Paris
saxophones , C.56 $1.8 billion in the last twelve months,
over $1.

Retailers offering online shopping for a range of musical instruments, accessories, and/or recording gear.

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About Yamaha

Yamaha Music Interactive, Inc.

Steinway Reports 2004 Results

27 per share, basic EPS was $1.

Piano Operations
For the fourth quarter, piano sales climbed 9% to $65 million.2% in 2003.6% in the fourth quarter of 2004 primarily as a result of the
absence of plant closure costs.6%. We anticipate improvement in
2005 as the manufacturing disruptions are reduced."
"The integration of our Leblanc acquisition has been successful thus far,"
said Messina. Once charges from the step up of inventory have run through, we should
see further financial benefit.

Contact:
Julie A.5%
Operating
expenses 21,776 287 (2) 22,063 18,062 (883)(5) 17 ,179

Income from
operations 11,333 (45) 11,288 8,055 3,506 11 ,561

Interest expense,
net 3,183 - 3,183 2,777 - 2,777
Other income,
net (1,011) - (1,011) (1,485) - (1,485)
Income before
taxes 9,161 (45) 9,116 6,763 3,506 10,269

Provision for
income taxes 2,180 (11)(3) 2,169 1,746 905 (3) 2,651

Net income $6,981 ($34) $6,947 $5,017 $2,601 $7,618

Earnings per
share:
Basic $0.09 $1.

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Basic EPS increased 55%, to $0. Adjusted gross margins decreased to 15.
Reconciliation of GAAP Earnings to Adjusted Earnings

(In Thousands, Except Per Share Data)
(Unaudited)

Three Months Ended 12/31/04 Three Months Ended 12/31/03
GAAP Adjustments Adjusted GAAP Adjustments Adjusted

Net sales $106,632 $ - $106,632 $94,130 $ - $94,130
Cost of sales 73 ,523 (242)(1) 73,281 68,013 (2,623)(4) 65,390

Gross profit 33,109 242 33 ,351 26,117 2,623 28,740
31.09 $1. The Company's product offering includes electric and acoustic guitars,
specialty guitars and fretted instruments; string, pickups and accessories;
and pianos.

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Yamaha will use TELEHOUSE's BROADWAY Center to house and
manage their enterprise operation.97 vs. Unit
shipments of both Steinway grand pianos and the Company's Boston and Essex
pianos increased 5%.
(2) Reflects a gain on the sale of property associated with plant
closures.
Reconciliation of GAAP Earnings to Adjusted Earnings

(In Thousands, Except Per Share Data)
(Unaudited )

Twelve Months Ended 12/31/04 Twelve Months Ended 12/31/03
GAAP Adjust- Adjusted GAAP Adjust- Adjusted
ments ments

Netsales $375,034 $- $375,034 $337,220 $- $337,220
Cost of sales 265,901 (2,618)(1) 263,283 244,667 (6,044)(4) 238,623

Gross profit 109,133 2,618 111,751 92,553 6,044 98,597
29., a well-known
designer, manufacturer, marketer and distributor of electric and acoustic
guitars, bass guitars, banjos and mandolins, pianos, drums, keyboards,
electronically synthesized instruments and a variety of instrument-related
products and accessories, including amplifiers, speakers , string picks and
straps.9 billion year to date and $636 million quarter to date.

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They provide a broad spectrum of musical products for
individual and orchestral performers. GAAP Basic EPS $1. Plant
consolidation necessitated the training of many new production workers during
2004 .

Non-GAAP Financial Measures Used by Steinway Musical Instruments
The Company uses the non-GAAP measurement EBITDA, which it defines as
earnings before net interest expense, income taxes, depreciation and
amortization, adjusted to exclude non-recurring, infrequent or unusual items . However, EBITDA should not be construed as a substitute for
operating income or a better indicator of liquidity than cash flows from
operating activities, which are determined in accordance with GAAP .56 $0.2%

Operating
expenses 74,892 363(2) 75,255 69,729 (2,958)(5) 66,771

Income from
operations 34,241 2,255 36,496 22 ,824 9,002 31,826

Interest
expense, net 13,437 - 13,437 11 ,945 - 11,945
Other income,
net (3,163) - (3,163) (3 ,517) - (3,517)

Income before
taxes 23,967 2,255 26,222 14,396 9,002 23,398

Provision for
income taxes 8,100 762(3) 8 ,862 4,698 2,935(3) 7,633

Net income $15,867 $1,493 $17,360 $9,698 $6 ,067 $15,765

Earnings per
share:
Basic $1.
(3) Reflects the tax effect of Adjustments at the Company's effective rate
for the period."
American Capital has invested over $2. In 2005, Gibson began marketing over 20 youth-oriented, entry-level
guitar models, other instruments and accessories through Gibson Baldwin Music
Education under the brands Maestro, Signature and Genisis.

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Among the many benefits of colocating with
TELEHOUSE is the ability to connect to state-of-the-art peering exchanges
in New York (NYIIX) and Los Angeles (LAIIX).1%, as increased margins on sales of
imported student products were offset by significant increases in certain raw
material costs and inefficiencies resulting from plant consolidations. Over the coming months we will be increasing production levels in
New York and Hamburg to meet anticipated higher demand.97 $2.
Reconciliation from Cash Flows from Operating Activities to EBITDA

(In Thousands)
(Unaudited )

Three Months Ended
12/31/2004 12/31/2003
Cash flows from operating activities $31,557 $25,166
Changes in operating assets and
liabilities (22,205) (18,059)
Income taxes, net of deferred tax
benefit 3,589 4,578
Net interest expense 3,183 2,777
Other (750) (94)
Non-recurring, infrequent or unusual
cash charges (45) 1,423
EBITDA $15,329 $15,791

Twelve Months Ended
12/31/2004 12/31/2003
Cash flows from operating activities $23,768 $31,212
Changes in operating assets and
liabilities 2,133 (8,669)
Income taxes, net of deferred tax
benefit 9,832 7,299
Net interest expense 13,437 11,945
Other (583) (329)
Non-recurring, infrequent or unusual
cash charges 2,255 4,844
EBITDA $50,842 $46,302

, American Capital
Strategies Ltd.

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Manufacturing efficiencies and strong retail sales contributed to improved
gross margins , which increased to 37. Severance payments associated with plant closures and
charges to cost of sales for the step up of inventory from an acquisition
negatively impacted gross margins, which were reported at 19. Our new imported student level
instruments have been well received and our export business is strong."
The Company expects overall improvement in its business for 2005 but has
decided to end its practice of giving earnings guidance.87 $0.84 $0.americancapital.

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Strong demand in the US and positive results in Asia led to a 9%
increase in unit shipments of Steinway grand pianos worldwide. Our
channel strategy is also proving to be successful. This Adjusted information also provides meaningful comparisons
of performance between periods.85 $0.
(3 ) Reflects the tax effect of Adjustments at the Company's effective rate
for the quarter.

8% 27. At Gibson, we are backing an excellent management team with
substantial company ownership that has produced an enviable track record of
growth and strong cash flows.cfm. In addition, Gibson
markets grand pianos, vertical pianos and innovative computerized player piano
systems under the Baldwin, Hamilton, Ellington, Wurlitzer and Chickering brand
names.

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PRESS RELEASE Yamaha Music Interactive Inc. Selects TELEHOUSE as Its New Colocation Facility

25B also is the home of the NYIIX, the New York International Internet
Exchange, which offers a seamless fabric with a 10GigE interface speed
between 25 Broadway and the 60 Hudson Street and 111 8th Avenue carrier
hotels.

About TELEHOUSE America:

TELEHOUSE is a stable and trusted pioneer of carrier-neutral colocation
space and services. (NYSE: LVB), one of the world's leading manufacturers of
musical instruments, today announced results for the quarter and year ended
December 31, 2004. Cash
flow from operations was $32 million, up 25%, and EBITDA was $15 million.
For the year, piano sales increased 13% , to $204 million from $180
million. However, there are limitations in the use of
such information because the Company's actual results do include the impact of
these Adjustments.0% 31 .84

Weighted average
common shares:
Basic 8,019 8 ,019 8,955 8,955
Diluted 8,230 8,230 9,040 9,040

Notes to Reconciliation of GAAP Earnings to Adjusted Earnings

(1 ) Reflects charges primarily relating to the step up of Leblanc
inventory.
"Gibson sells some of the most recognized brand names in the musical
instruments industry," said American Capital Managing Director Jeff MacDowell.
"Both Henry Juszkiewicz, Chairman and CEO, and David Berryman , President, are
highly motivated individuals, dedicated to maintaining the Company's leading
position and taking it to another level by capitalizing on growth
opportunities at home and abroad.
As of August 31, 2005, American Capital shareholders have enjoyed a total
return of 411% since the Company's IPO -- an annualized return of 23%,
assuming reinvestment of dividends.

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It offers dedicated colocation space, high-end managed services,
and 24x7 onsite support to a broad spectrum of industries and companies.com

We expect our piano
business to have a good year in 2005.85
Diluted $0. American Capital's financing facilities take the form of second lien
notes and a second lien committed acquisition line.
American Capital provides up to $250 million of senior debt, mezzanine debt
and equity to fund growth, acquisitions and recapitalizations.

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Their arrival at our BROADWAY Center further
illustrates TELEHOUSE's ability to offer diverse and highly effective
solutions to the entertainment sector," said Michael Vallone, Head of
Marketing at TELEHOUSE America. For more
information, please visit www.97
and Adjusted EPS was $2. Gross margins increased 400 basis points to 41. Unit shipments
of Boston and Essex pianos also improved, increasing 10% over the prior year .6% to 21. The Company will utilize a 15-
day extension to timely file its Form 10-K for the fiscal year ended December
31, 2004. The
Company has provided Adjusted financial information because management uses it
to better understand the Company's core operating performance on a going
forward basis. Further information
on these risk factors is included in the Company's filings with the Securities
and Exchange Commission.7% 30.87 $0.
"We are delighted to support the development of a music industry icon,"
said American Capital Chief Operating Officer Ira Wagner .
This press release contains forward-looking statements.

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"
Messina added, "We also moved forward with our rationalization plans and
reduced our band instrument manufacturing capacity by over 20%.
The Company has provided other non-GAAP measurements which present
operating results on a basis excluding certain non-comparable items. Theriault
Telephone: 781-894-9770
E-mail: ir@steinwaymusical.97 $1.4% 29.77

Weighted average
common shares:
Basic 8,046 8,046 8,925 8,925
Diluted 8,304 8,304 8,926 8,926

Notes to Reconciliation of GAAP Earnings to Adjusted Earnings

(1) Reflects $1,418 of employee severance costs associated with plant
closures and $1,200 of charges relating to the step up of Leblanc
inventory .5 million to Gibson Guitar Corp.com/our_portfolio/our_portfolio.

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is one of the subsidiaries fully owned by
Yamaha Corporation in Japan, aiming to facilitate business development over
the Internet along with several musical instruments, such as the Disklavier
(player piano) and IDC (Internet Direct Connection) equipped electronic
keyboards.
For the full year, sales increased 11% to $375 million. The increase was
led by strong demand for the Company's new imported student level instruments ,
both in the US and overseas. "Sales and order trends are positive and operating expenses are
down . These procedures necessitate
more time to complete the year-end closing and audit than Steinway Musical
Instruments, Inc.G.
These risk factors include the following: changes in general economic
conditions; recent geopolitical events; increased competition; work stoppages
and slowdowns; exchange rate fluctuations; variations in the mix of products
sold; market acceptance of new band instrument product and distribution
strategies; ability of suppliers to meet demand; fluctuations in effective tax
rates resulting from shifts in sources of income; and the ability to
successfully integrate and operate acquired businesses.

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Net sales increased 13% for the fourth quarter, to $107 million .56 in the fourth quarter of 2003.1% from 34. Gross margins improved
from 10.2%
from 18. Our piano business posted strong results both in the US and
overseas.

Conference Call
Management will be discussing the Company's results and outlook for 2005
on a conference call today beginning at 5:30 p.55 $1.
(4) Reflects $1,200 lower-of-cost-or-market adjustment to inventory and
$1,423 of employee severance costs, both associated with plant
closures .4 billion. Consequently, an investor's shares, when sold, may be worth more or
less than their original cost.

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85 $0.55 $0. The Company
also markets over 50 different medium-priced models of guitars under the
Kramer brand and over 75 specialty guitar models and other fretted instruments
through its Steinberger, Toby, Flatiron and Dobro brands. American Capital invests in
and sponsors management and employee buyouts, invests in private equity
buyouts, and provides capital directly to private and small public companies.

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Since 1989, they have provided customers with secure,
power -protected environments where they can house and operate their
telecommunications and network resources .

Comments
CEO Dana Messina remarked, "I am pleased with our overall results for the
fourth quarter. A live web cast and an
archived version of the call will be available to all interested parties on
the Company's web site, http://www.com. Conn French horns, Leblanc clarinets , King trombones, Ludwig
snare drums and Steinway + Sons pianos. The non-GAAP measures are intended only as a supplement to
the comparable GAAP measures.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act
of 1995
This release contains "forward-looking statements " which represent the
Company's present expectations or beliefs concerning future events.09

Weighted average common shares -
basic 8,019 8,955 8,046 8,925
Weighted average common shares -
diluted 8,230 9,040 8,304 8,926

Condensed Consolidated Balance Sheets
12/31/2004 12/31/2003
Cash $27,372 $42,283
Receivables, net 88,059 76,403
Inventories 172,346 152,029
Other current assets 20,984 17 ,555
Total current assets 308,761 288,270

Property , plant and equipment, net 102,944 98,937
Other assets 65,840 58,458
Total assets $477 ,545 $445,665

Notes payable and current portion of
long-term debt $14,212 $10,638
Other current liabilities 59,546 50,666
Total current liabilities 73,758 61,304

Long-term debt 208,580 185,964
Other liabilities 49,654 45,762
Stockholders' equity 145,553 152,635
Total liabilities and
stockholders ' equity $477,545 $445,665

STEINWAY MUSICAL INSTRUMENTS, INC.
(5) Reflects asset impairment charges related to plant closures.

STEINWAY MUSICAL INSTRUMENTS, INC. This financing
will give Gibson flexibility as it continues to grow both organically and
through acquisitions", said American Capital Vice President John Drennan.
Orville Gibson made his first guitar in 1894. Over 100 years later, the
Company now employs approximately 1,750 people and has its headquarters in
Nashville, TN. Further, some of the most famous guitar players in history
play Gibson guitars, including BB King, Jimmy Page, Chet Atkins, Slash and Joe
Perry.

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NYIIX website

"As one who has deep music industry roots, I am very excited about Yamaha 's
decision to select TELEHOUSE.09; Adjusted Basic EPS Up 22% to $2.3% in the prior year period.steinwaymusical .

About Steinway Musical Instruments
Steinway Musical Instruments, Inc. (Nasdaq: ACAS ) announced today it has provided financing
facilities of up to $52.
Gibson's current owners are maintaining their 100% equity ownership. "Our ability to
directly invest capital in middle market companies is critical to their
success."
"Worldwide demand for Gibson products is extremely high.