NEW YORK, July 27 /PRNewswire-FirstCall/ -- Martha Stewart Living
Omnimedia, Inc. (NYSE: MSO) today announced that Thomas C. Siekman, a current
director, has been named Chairman of the Board, succeeding Jeffrey W. Ubben,
who has chosen to step down as Chairman. Mr. Ubben will remain a director,
and ValueAct Capital, the San Francisco-based investment partnership that
Mr. Ubben co-founded, remains the Company's second largest shareholder.
Mr. Ubben said, "With the Company having weathered a most difficult period
associated with Martha Stewart's personal legal situation, I felt this was the
right time to turn over the Chairmanship to someone who has the skills and,
most importantly, sufficient time available to guide the Board and the Company
forward from this point. I know that Tom's wisdom, judgment and experience
will provide invaluable leadership at the Board level as the Company
perseveres to realize its full potential. My firm and I remain committed to
MSO and its future."
Arthur C. Martinez, former Chairman and Chief Executive Officer of Sears
Roebuck & Co., has stepped down from the Board and his position as Lead
Director. "I have been pleased to contribute to MSO during a period of
uncertainty, and I wish the Company every success in its future endeavors,"
Mr. Martinez said. MSO announced, in addition, that the Lead Director
position will be eliminated.
The Company further announced that the Board has appointed as a director
Charles A. Koppelman, who was proposed by Martha Stewart. Mr. Koppelman
currently serves as Chairman and Chief Executive Officer of CAK Entertainment
Co., a music and entertainment business. From 1990 to 1994, he served first
as Chairman and Chief Executive Officer of EMI Music Publishing and then from
1994 to 1997 as Chairman and Chief Executive Officer of EMI Records Group,
North America. Mr. Koppelman was also a former director of Steve Madden Ltd.,
and served as Chairman of the Board of that company from 2000 to May 2004.
Mr. Siekman said, "MSO is -- and will remain -- a unique company with
enormous resources, and I am delighted to become its Chairman. I look forward
to working with Sharon Patrick, a terrific business leader, and the entire MSO
team of experts as we move forward on the Company's strategic path. We are
all grateful to Jeff for his thoughtful, capable board leadership during the
past 14 months and to Arthur for his invaluable contributions to MSO over the
past three years. We welcome Charles Koppelman, whose expertise in marketing
and branding will be a great benefit to us."
Ms. Patrick said, "We are very pleased that Tom has agreed to increase his
involvement at this important juncture, and we thank Jeff Ubben for helping us
manage through the unprecedented challenges of the past 26 months and look
forward to his future contributions. With the benefit of our new and
continuing directors, we are heartened by the fact that we are supported by a
Board with great depth, quality and perspective. The Company is also deeply
appreciative of the many contributions of Arthur Martinez, and we thank him
for his dedication to MSO over the years."
Mr. Siekman, who has served as a director of MSO since August 2003, brings
more than 30 years of corporate and legal experience, including expertise in
corporate governance, intellectual property, information technology and e-
commerce. Mr. Siekman most recently served as "Of Counsel" to Skadden, Arps,
Slate, Meagher & Flom LLP during 2003. Prior to joining Skadden, Arps, he was
Senior Vice President and General Counsel of Compaq Computer Corporation.
From 1973 to 1998, he served in various capacities with Digital Equipment
Corporation, most recently as Senior Vice President and General Counsel, until
Digital was acquired by Compaq in 1998. He serves on the Boards of Idealab
and Merrimack College, and is past Chairman and Trustee of the New England
The number of MSO Board members is nine, eight of whom are outside
directors, including Rick Boyko, Managing Director of the Virginia
Commonwealth University Adcenter and former Co-President and Chief Creative
Officer of Ogilvy & Mather; Michael Goldstein, Former Chairman and CEO of Toys
"R" Us; Mr. Koppelman; Susan Lyne, former President of ABC Entertainment;
Wenda Harris Millard, Chief Sales Officer of Yahoo! Inc.; Mr. Siekman; Bradley
E. Singer, Chief Financial Officer and Treasurer of American Tower
Corporation; and Mr. Ubben, founder and Managing Partner of VA Partners, LLC.
In addition, the ninth member of the Board is Ms. Patrick, President and Chief
Executive Officer of the Company. The Chairmanship of the Board committees is
as follows: Audit - Brad Singer; Compensation - Jeff Ubben; and Governance
and Nominating - Tom Siekman.
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
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: Media Contact, Elizabeth Estroff of AVP, Corporate
Communications, 212-827-8281, Investor Contact, Howard Hochhauser, VP, Finance
and Investor Relations, 212-827-8530, both of Martha Stewart Living Omnimedia,
/Web site: http://www.marthastewart.com /