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[09/22/04 - 12:00 AM]
Martha Stewart Living Omnimedia and Mark Burnett to Collaborate on New Television Opportunities

[via press release from Martha Stewart Living Omnimedia]

Martha Stewart Living Omnimedia and Mark Burnett to Collaborate on New Television Opportunities

Programming Includes Enhancements of Daily Syndicated Show and Network Primetime Series Featuring Martha Stewart

NEW YORK, Sept. 22 -- Martha Stewart Living Omnimedia, Inc. (MSO) announced today that it has entered into agreements with Mark Burnett and an affiliated entity under which Mr. Burnett will advise and consult with the company regarding various television matters, including developing opportunities to evolve the future Martha Stewart Living daily syndicated television show and relating to the development and production of a primetime network television series to feature Martha Stewart.

"We are pleased to have the assistance of Mark Burnett -- a creative force in tune with our emphasis on quality and innovation -- in the evolution of MSO's television programming strategies," said MSO President and CEO Sharon Patrick. "We expect the collaboration among Martha, Martha Stewart Living Television Productions and Mark to bring new and exciting entertainment and interactive elements -- and surprise -- to the usefulness and inspiration of our original 'how-to' programming. Now that we are able to anticipate Martha's return, we are delighted to move forward with the evolution of Martha's syndicated daily show and offer new network special programs. This is exactly the kind of 'creative entrepreneurialism' that our audiences and distributors expect from us," Ms. Patrick added.

"Martha and MSO are pioneers in high-quality 'how-to' television, and I can't wait to collaborate with them to develop the next generation of programming rooted in what they do so well," Mr. Burnett said. "We will explore new ways to communicate that unique combination of teaching, usefulness, quality, style, and impeccable good taste that millions of viewers have enjoyed for over a decade. I look forward to a very productive relationship, starting with 2005."

Martha Stewart, MSO Founding Editorial Director, stated: "Mark and I have forged a bond based on similar creative visions and common respect for strong and distinctive programming. I am very pleased to work with him to produce new and useful shows that are pertinent to the audience of today and tomorrow. I look forward to collaborating with Mark to evolve our syndicated television program, to bring more of our unique blend of original high-quality, educational and inspirational programming to our loyal viewers and new programming to new audiences in primetime next year."

Mr. Burnett will consult with Ms. Stewart and the team at Martha Stewart Living Television Productions, led by President Heidi Diamond, on new programming opportunities. Current initiatives from MSLTV Productions, based at MSO's state-of-the-art studio in Westport, CT, include the recently announced Everyday Food, a new television program that will air on PBS stations nationwide beginning in January 2005; new weddings programming to air on The Style Network in first quarter 2005; and ongoing international efforts.

In connection with the consulting agreement, MSO issued to Mr. Burnett a warrant to purchase up to 2,500,000 shares of MSO's Class A Common Stock at an exercise price of $12.59 per share. The warrant will vest and become exercisable in tranches, subject to the achievement of various milestones relating to the broadcast of a primetime network television series and production of a new series of Martha Stewart Living or a successor program.

Martha Stewart Living Omnimedia, Inc. (MSO) is a leading provider of original "how-to" information that turns dreamers into doers, 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.

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 legal proceeding 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 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.

SOURCE Martha Stewart Living Omnimedia, Inc.
Web Site: http://www.marthastewart.com





  [september 2004]  
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· MARTHA STEWART LIVING (SYNDICATION)





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