PAULSON



& CO. INC.

To the employees, dealers and partners of Steinway & Sons:

Investment Management 1251 Avenue of the Americas New York, NY 10020

August 14, 2013

On behalf of Paulson & Co., I would like to introduce our firm and share our enthusiasm for our pending acquisition of Steinway Musical Instruments. We are excited to participate in the future of Steinway & Sons, renowned for producing the finest quality pianos in the world.

Paulson & Co. is an investment firm that manages approximately US$18 billion in assets and has offices in New York, London, and Hong Kong. Our investment team has experience in a variety of industries, including several relevant to Steinway: media and entertainment, consumer products, and retailing. We have successfully invested in both public and private companies that have executed global growth strategies centered around remarkable brands.

We are delighted to have the opportunity to invest in a business with the tradition for excellence that Steinway enjoys. We will proudly support the company's legacy as the premier global piano manufacturer, a reputation earned with an uncompromising commitment to quality appreciated by the world's most demanding pianists. Personally, I am the owner of three Steinway grand pianos