(April 26, 2005 - New York, NY and Burbank, CA) – Martha Stewart Living Omnimedia, Inc. and Warner Home Video Inc. today announced an exclusive multi-year agreement to create a new line of home video releases based on MSLO’s extensive television programming library. The new theme-based DVD product line will provide consumers with in-depth “how-to” programming in special interest lifestyle areas and is due to launch by fourth quarter 2005. The distribution agreement covers the United States and Canada. The new line of home video products will be culled from MSLO’s vast library of over 1,500 hours of digitized television programming, which includes 11 seasons of the Emmy-award winning Martha Stewart Living television show hosted by Martha Stewart, Petkeeping with Marc Morrone, Everyday Food, as well as the new daily syndicated television show hosted by Martha Stewart that launches this fall. The video series will be created in areas of MSLO’s expertise such as cooking, holiday entertaining, baking, crafts, fun stuff to do with kids, weddings, celebrating, and petkeeping, just to name a few. “Consumers who rely on Martha Stewart and MSLO’s lifestyle experts as their guide to all aspects of living are seeking our authoritative lifestyle information in new, in-depth formats,” said Susan Lyne, President and CEO of Martha Stewart Living Omnimedia. “Our new ‘how-to’ DVD line will be welcomed by existing customers, and should appeal to anyone looking to master a special interest or turn an everyday event into a special occasion. We look forward to working with Warner Home Video, which has an extensive marketing and distribution network. They are the home video market leader and we expect them to introduce our new DVD line to a very broad audience.” “The Martha Stewart brand is the premiere brand in the lifestyle arena today,” said Jim Cardwell, President of Warner Home Video. “MSLO programming is synonymous with quality and ‘how-to’ expertise. We feel privileged to be able to launch this distinguished brand in an untapped genre and are looking forward to a long and successful relationship with MSLO.” MSLO Founder Martha Stewart commented: “We are very happy that consumers will now be able to watch our many useful and practical how-to segments in areas of special interest to them on DVD. Every consumer is looking for solutions for specific projects and everyday challenges. Our television content is timeless and the new line will draw from our extensive library and many lifestyle experts to provide reliable, thorough, detailed information for any project – whether they are planning a dinner party, organizing a closet, caring for pets, or looking for simple tips on cooking a weekday meal." About Warner Home Video With operations in 89 international territories Warner Home Video, a Warner Bros. Entertainment Company, commands the largest distribution infrastructure in the global video marketplace. Warner Home Video's film library is the largest of any studio, offering top quality new and vintage titles from the repertoires of Warner Bros. Pictures, Turner Entertainment, Castle Rock Entertainment, HBO Video and New Line Home Entertainment. About Martha Stewart Living Omnimedia, Inc. Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) is a leading provider of original "how-to" information, inspiring and engaging consumers with unique lifestyle content and high-quality products. MSO is organized into four business segments: Publishing, Television, Merchandising, and Internet/Direct Commerce. Martha Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange under the ticker symbol MSO. This press release contains certain "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts but instead represent only our current beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of our control. These statements can be identified by terminology such as "may," "will," "should," "could," "expects," "intends," "plans," "anticipates," "believes," "estimates," "potential" or "continue" or the negative of these terms or other comparable terminology. The Company's actual results may differ materially from those projected in these statements, and factors that could cause such differences include further adverse reaction to the prolonged and continued negative publicity relating to Martha Stewart by consumers, advertisers and business partners; further adverse reaction by the Company's consumers, advertisers and business partners to the outcome of Ms. Stewart's trial and related sentencing arising from a sale of non-Company stock by Ms. Stewart; a loss of the services of Ms. Stewart; a loss of the services of other key personnel; an adverse resolution to the SEC enforcement proceeding currently underway against Ms. Stewart arising from her personal sale of non-Company stock; adverse resolution of some or all of the Company's ongoing litigation; downturns in national and/or local economies; shifts in our business strategies; a softening of the domestic advertising market; changes in consumer reading, purchasing and/or television viewing patterns; unanticipated increases in paper, postage or printing costs; operational or financial problems at any of our contractual business partners; the receptivity of consumers to our new product introductions; and changes in government regulations affecting the Company's industries. Certain of these and other factors are discussed in more detail in the Company's filings with the Securities and Exchange Commission, especially under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations", which may be accessed through the SEC's World Wide Web site at http://www.sec.gov. The Company is under no obligation to update any forward- looking statements after the date of this release.
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