NEW YORK, March 15 /PRNewswire-FirstCall/ -- The Board of Directors of
Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) announced today that Martha
Stewart has resigned effective immediately as a Director and Chief Creative
Officer of the company, and will assume the position of Founding Editorial
Director. These actions follow the recent verdict against Ms. Stewart in a
personal legal matter unrelated to the company and its businesses.
In making the announcement, Jeffrey Ubben, Chairman of the MSO Board of
Directors, said: "The MSO Board respects Martha's decision to resign her
officer and director positions. In accepting her resignation, we have decided
to create a new, continuing role as Founding Editorial Director - a role that
reflects our desire for Martha to continue to make an important contribution
to our business. The Board determined that, notwithstanding the significance
of the recent verdict, continuing to have the benefit of Martha's unique
creative talents and contributions is in the very best interests of MSO and
its shareholders."
In her new role, Ms. Stewart will continue to provide creative inspiration
for new product design and development; author two pending books, Homekeeping
and Baking; undertake contributing editor and television assignments; help
continue to build public profiles for MSO's talented core content experts; and
provide input on the continuing evolution of MSO and its brand and brand
labels and on strategic issues. She will report to the company's CEO, Sharon
Patrick.
Ms. Patrick said: "Everyone at MSO recognizes the seriousness of Martha's
situation and is deeply saddened. However, all of us also believe that the
company and our constituencies benefit most if we are able to continue to take
advantage of Martha's creative inspiration and capitalize on her prodigious
skills and experience in the domestic arts -- from cooking, to gardening, to
crafts, to homekeeping. Martha has been instrumental in building our company,
550 employees strong, whose licensed products are sold in more than 5,000
establishments across America, in partnership with over 230 manufacturers and
distributors. Retail sales of our licensed products for 2003 were over $1.5
billion. Our publications reach millions of readers each month. Wherever and
whenever possible, we believe that MSO and our consumers should not be
deprived of Martha's unique gifts."
In commenting on her new role, Ms. Stewart said: "I am taking this action
today because it is in the best interests of MSO and because I think it's the
right thing to do. I am heartsick about my personal legal situation -- and
deeply sorry for the pain and difficulties it has caused our employees. I can
never thank my MSO colleagues enough for their spirit, resiliency and
dedication. I look forward to continuing to collaborate on a wide range of
creative ideas with the amazing, talented and hard-working people at this very
special company. I also thank our readers, viewers, customers, partners and
advertisers for their steadfastness and loyalty."
The Nominating Committee of the company's Board of Directors, with the
input of Ms. Stewart, will identify a qualified person to succeed Ms. Stewart
on the Board in the normal course of such matters. The Board affirmed that
management and Board positions announced in June of last year remain
unchanged. Sharon Patrick is President and Chief Executive Officer of the
company. Jeffrey Ubben, a founder and Managing Partner of ValueAct Capital
Partners, L.P., an investment partnership that owns 22 percent of the
Company's Class A common stock, continues as Chairman of the Board; and Arthur
Martinez, director and former Chairman and Chief Executive Officer of Sears
Roebuck, remains Lead Director, presiding over all meetings of the independent
directors of the Board. The leadership of the company's creative enterprise
continues to be the responsibility of Gael Towey, Senior Executive Vice
President and Creative Director, and Margaret Roach, Executive Vice President
and Editor-in-Chief.
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, Corporate Communications,
+1-212-827-8281, both of Martha Stewart Living Omnimedia, Inc./
/Web site: http://www.marthastewart.com /
(MSO)
