NEW YORK, May 18 /PRNewswire-FirstCall/ -- Martha Stewart Living
Omnimedia, Inc. (MSO) announced today that Martha Stewart Living Television,
the Emmy-award winning daily syndicated service show distributed by King World
Productions, will be placed on hiatus for Season 12, the 2004-2005 broadcast
season. The company will continue production of Martha Stewart Living
Television programming for the remainder of Season 11, which is distributed by
King World through September 2004 to approximately 52 percent of U.S. local
television markets. In addition, the company will continue production of
Petkeeping with Marc Morrone. The company will also accelerate its
development of special and new programming, such as Everyday Food.
Consistent with this announcement, the company will also adjust staffing
levels within the Television business segment. The company will take a
restructuring charge of up to $2 million in the second quarter of 2004.
In making the announcement, Sharon Patrick, President and Chief Executive
Officer, said: "In consideration of many factors, we concluded that taking a
hiatus in new series production for the 2004-2005 season is the right strategy
for the Martha Stewart Living Television show and the long-term interest of
our company. We thank King World Productions and our long-standing loyal
affiliates for their support and understanding of our decision. We are also
pleased at the expressed interest of stations and distributors in returning
Martha Stewart Living, when available, to future lineups. That speaks
directly to the quality and contribution of our talented professionals. We
can't thank them enough."
Martha Stewart, creator, host, and Executive Producer of Martha Stewart
Living Television, said: "I am deeply sorry that it has become necessary for
the show to go on hiatus until my personal legal situation is resolved. Words
cannot convey my appreciation and admiration for the skills and dedication of
our talented television employees, for the joy and pride I derive from our
work together, and for the immeasurable contributions they have made and will
continue to make. I hope to resume our close collaboration just as soon as I
am able to do so. I also want to express my gratitude for the continuing
support of our millions of dedicated viewers all over the country, and look
forward to rewarding their patience and loyalty in the future."
Heidi Diamond, MSO's President of Television, stated: "Despite the
current challenges, we are fully focused on developing for our loyal audiences
new and special programming that is consistent with our unique "how-to" style
and high quality of television. We are grateful to our distributors,
affiliates, advertisers, and viewers for their continuing support of Martha
Stewart Living Television and our other ongoing television ventures. We could
not be prouder of Martha Stewart Living's body of work -- 11 seasons of
television -- which has received a total of 12 Emmy Awards, including Emmys
for Outstanding Single Camera Photography and Outstanding Service Show won
this past weekend. Our award-winning programming has improved lifestyle in
and around homes for so many, creating a new category of television
programming."
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.
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 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.
SOURCE Martha Stewart Living Omnimedia, Inc.
CONTACT: Investors - Howard Hochhauser, VP Finance and Investor
Relations, +1-212-827-8530, or Media - Elizabeth Estroff, AVP, Corporate
Communications, +1-212-827-8281, both of Martha Stewart Living Omnimedia,
Inc.
Web site: http://www.marthastewart.com
(MSO)
