NEW YORK, June 4 /PRNewswire-FirstCall/ -- Martha Stewart and the Board of
Directors of Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) have agreed
that Ms. Stewart will relinquish her responsibilities as Chairman and Chief
Executive Officer and continue to serve the Company as its Founder and Chief
Creative Officer, as well as a member of its Board of Directors, effective
immediately.
Accordingly, the Company today put into effect senior management and
governance changes designed to ensure MSO's continued progress. Specifically:
Sharon Patrick, the Company's President and Chief Operating Officer, has been
appointed by the Board to be Chief Executive Officer; Jeffrey Ubben, a founder
and Managing Partner of ValueAct Capital Partners, L.P., an investment
partnership that owns 22% of the Company's class A common stock, has been
elected Chairman of the Board; and Arthur Martinez, a director and former
Chairman and Chief Executive Officer of Sears Roebuck, has been named Lead
Director and will preside over all meetings of independent directors of the
Board.
"I love this Company, its people, and everything it stands for and I am
stepping aside as Chairman and CEO because it is the right thing to do. This
will enable the Company to continue to build the confidence and love of its
readers, viewers, customers and strategic partners, without the distraction of
my personal legal issues," Ms. Stewart said. "My decision reflects the
enormous sense of responsibility I feel to our shareholders and to all those
who have worked so hard to make Martha Stewart Living Omnimedia a success. We
have mobilized a wonderful team of people, each with particular expertise who
will serve the Company extremely well. I will continue to be instrumental in
the Company's creative efforts, across the entire Omnimedia spectrum,
including all of our print and television products, working with our
exceptional array of creative experts to develop the unique ideas and content
that have defined our Company and all of its brand labels since its inception.
"I thank all of our subscribers, our viewers, our Internet users and our
other consumers for their continued support, and I hope many other people will
look to Martha Stewart Living Omnimedia for the kind of information and
inspiration that we create."
"The Board and the Company's senior management respect Martha's decision
and she has our full support," Mr. Ubben commented. "As Lead Director, Arthur
Martinez will provide his perspective as an experienced, independent voice,
and I bring the view and background of an active investor. Our combined
experience and skills will blend with Sharon, Martha and their team as,
together, we move the Company forward through this challenging time. This
Company has the benefit of a first-class infrastructure and considerable
resources, including a significant amount of cash on hand, and we will act
prudently and responsibly to preserve and grow the value of its assets."
Ms. Patrick said, "This great Company we have built attests to the
strength and resolve of Martha and the incredible team of people we work with
every day to deliver the best how-to information and quality products
anywhere. Together, we will make sure the Company continues to build on its
proven business model and tremendous asset base, including powerful and
respected brand labels and an organization of 600 of the most talented
business people, cooks, gardeners, craftspeople, decorators, stylists, art
directors, editors and other creative experts in the world. This team remains
responsible for the Company's award-winning publications, television
programming and products that will continue to set the standard for creative
excellence and win the acceptance and support of our readers, viewers,
shoppers, and strategic partners."
Mr. Ubben has been a Director of Martha Stewart Living Omnimedia since
January 2002. Prior to founding ValueAct Capital Partners, L.P., Mr. Ubben
was a Managing Partner of Blum Capital from 1995 to 2000. He served as a
portfolio manager for Fidelity Investments from 1987 to 1995. He is also a
Director of Insurance Auto Auctions, Inc. and Per-Se Technologies.
Mr. Martinez, a Director of Martha Stewart Living Omnimedia since January
2001, served as Chairman of the Board of Sears Roebuck and Co. until December
2000 and was its Chief Executive Officer from August 1995 through October
2000. Prior to that, he served as Chairman and Chief Executive Officer of
Sears Merchandise Group, Sears' former retail arm, and as Vice Chairman of
Saks Fifth Avenue and a member of its Board of Directors. Mr. Martinez is
currently a member of the Boards of Directors of PepsiCo, Inc., Liz Claiborne,
Inc., International Flavors & Fragrances, Inc. and ABN AMRO Bank.
Ms. Patrick has been President and Chief Operating Officer and a Director
of Martha Stewart Living Omnimedia since 1997. From 1994 until 1997, she
served as a consultant to Martha Stewart Living in her capacity as President
of her own strategic consulting company. From 1990 to 1993, Ms. Patrick was
President and Chief Operating Officer of Rainbow Programming Holdings, the
programming company of Cablevision Systems Development. Prior to that, she
was a Principal at McKinsey and Company and the Partner in charge of the Media
and Entertainment practice. Ms. Patrick has a B.A. degree from Stanford
University and an M.B.A. from Harvard Business School. She is also a member
of the Board of Directors of The Conference Board, the Air Traffic Control and
is a Trustee of American Ballet Theatre.
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 content and high-quality products for the home.
MSO's creative experts develop content within eight core areas -- Home,
Cooking and Entertaining, Gardening, Crafts, Holiday, Keeping, Weddings, and
Baby and Kids -- that provide consumers with ideas and products to celebrate
their homes and the domestic arts. MSO is organized into four business
segments -- Publishing, Television, Merchandising and Internet/Direct
Commerce.
SOURCE Martha Stewart Living Omnimedia, Inc.
CONTACT:
Investors - James Follo,
Chief Financial Officer,
+1-212-827-8218;
Media - Elizabeth Estroff,
+1-212-827-8281,
both of Martha
Stewart Living Omnimedia, Inc.
