Martha Stewart Living Omnimedia, Inc. Teams with EK Success, LTD & GTCR Golder Rauner, LLC to Create Martha Stewart Crafts(TM)

NEW YORK, Jan. 5 /PRNewswire-FirstCall/ -- Martha Stewart Living Omnimedia, Inc. announced today that it is entering into a relationship with EK Success, LTD and GTCR Golder Rauner, LLC to manufacture, market and sell Martha Stewart Crafts(TM) products. The Martha Stewart Crafts line will include a wide range of craft products to provide consumers with a one-stop shop for their crafting needs. The first Martha Stewart Crafts products introduced will be paper-based craft and scrapbooking merchandise which are expected to roll out in the fourth quarter of 2006 or the first quarter of 2007. Terms of the deal include a licensing agreement, as well as an equity stake in the venture, the value of which is contingent on certain performance thresholds.

Martha Stewart Crafts products will be sold in the major craft chains and in numerous independent craft stores throughout the country, as well as on the internet at http://www.marthastewart.com/. The website will feature Martha Stewart Crafts tools, templates, and paper products as well as MSLO's inventive scrapbooking content and ideas to inspire and guide consumers through the creation of their own projects.

EK Success is a creative consumer products company with the leading market position in the fast-growing $3.0 billion scrapbooking segment of the U.S. craft industry. EK Success markets products such as stickers, multi- dimensional embellishments, tools, albums, punches and pens for use in scrapbooking and related paper crafts, such as card making and invitation creation. The company has a demonstrated history of consistent, successful product innovation, having won over 40 design and reader's choice awards since 2002. In December 2005, EK Success announced that it had entered into a definitive agreement to be acquired by GTCR Golder Rauner LLC, one of the nation's leading private equity firms.

"Scrapbooking has taken hold across every demographic, and we are thrilled to be partnering with the industry leader, EK Success," said Robin Marino, President of Merchandising at Martha Stewart Living Omnimedia. "MSLO has both how-to expertise and deep archives in the craft arena, and we look forward to creating inspired, high-quality products in what is clearly a growth industry."

According to Chris Skinner, CEO of EK Success, "Martha Stewart and her team of experts have had enormous influence on collecting and crafts in America. They are the ultimate source of creative inspiration and practical information on how to create handmade, homemade crafts. It is a pleasure to pair our marketing, education, product development and retail distribution expertise with such a trusted brand. We look forward to working with them in this partnership."

GTCR Principal Vince Hemmer added, "Martha Stewart Crafts will be a powerful name in the crafts industry. The collaboration with MSLO gives EK the opportunity to expand its leadership position in the paper-based crafts industry. The combination of EK's and MSLO's expertise and knowledge will further strengthen EK's product offerings and market position."

Stated MSLO Founder Martha Stewart: "Scrapbooking and crafts have always been hobbies of mine -- and ones that we have been teaching people how to do through our magazines and television shows for years. Whether it's to document a special event, such as a wedding or a child's first birthday, or to preserve a family's prized photographs, scrapbooking appeals to everyone. It is a pleasure to partner with EK Success, a company that shares our commitment to developing innovative and creative products."

Susan Lyne, MSLO's President and CEO, stated: "This venture breaks new ground for MSLO, expanding our product offerings and distribution channels. We look forward to exploring additional opportunities with GTCR in the large and expanding market for craft products of all kinds."

About MSLO

Martha Stewart Living Omnimedia, Inc. (MSLO) is a leading provider of original "how-to" information, inspiring and engaging consumers with unique lifestyle content and high-quality products. MSLO is organized into four business segments: Publishing, Television, Merchandising, and Internet/Direct Commerce. Martha Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange under the ticker symbol MSO.

About EK Success

Established in 1978 by Jamil Ezra, who currently serves as Chairman, EK Success is a creative consumer products company with the leading market position in the fast growing $3.0 billion scrapbooking segment of the U.S. craft industry. With the help of Joseph Ezra -- President -- and Kamil Shashoua -- Vice President -- the Company now has more than 6,000 products in its lineup. EK Success designs and markets some of the craft industry's most respected brands of stickers, multi-dimensional embellishments, punches and pens for use in scrapbooking and related paper crafts, such as card making and invitation creation. EK has a demonstrated history of consistent successful product innovation, having won over 40 design and reader's choice awards since 2002. EK Success recently entered into a definitive agreement to be acquired by GTCR Golder Rauner LLC, one of the nation's leading private equity firms.

About GTCR Golder Rauner LLC

Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $6 billion of equity capital invested in a wide range of companies and industries. More information can be found at http://www.gtcr.com/.

This press release includes 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 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.