A New Martha Stewart Collection Brand to Be Developed Exclusively for Macy's; Distinctive Home Products to Debut in Fall 2007 Across Multiple Categories

Business Wire, April 6, 2006

CINCINNATI & NEW YORK -- Federated Department Stores, Inc. (NYSE:FD)(NYSE Arca:FD) and Martha Stewart Living Omnimedia, Inc. (MSLO) today announced an agreement to develop an all-new line of Martha Stewart Collection home merchandise exclusively for Macy's. It is expected to debut in fall 2007 in Macy's stores across America, as well as on macys.com.

The Martha Stewart Collection line will encompass a broad range of home goods - including bed and bath textiles, housewares, casual dinnerware, flatware and glassware, cookware, holiday decorating and trim-a-tree items - developed especially for the more upscale, traditional Macy's customer. Macy's also expects to sell other Martha Stewart-branded products, potentially including home furnishings, holiday celebration concepts, bridal registry items and a full assortment of "how-to" books and cookbooks, as well as merchandise in categories new to Macy's, such as outdoor entertainment and holiday-specific food preparation.

Merchandise will be created by the MSLO design team under Martha Stewart's direction and supervision. Macy's will coordinate manufacturing and distribution to its stores and direct-to-customer channels, as well as marketing to consumers.

When launched, the new Martha Stewart Collection line will join a portfolio of high-quality home brands at Macy's that appeal to various lifestyle needs of customers, and that are rooted in long-standing vendor partnerships. The Macy's home assortment will continue to feature a wide variety of status and designer brands, as well as Macy's own private brands, including Charter Club, Hotel Collection, Tools of the Trade and The Cellar.

"Our partnership with Martha Stewart is a big opportunity for Macy's and represents an exciting new direction that will create an enhanced shopping experience and attract new customers to Macy's," said Terry J. Lundgren, Federated's chairman, president and chief executive officer. "This is a clear example of the new and distinctive merchandise that our customers can continue to expect as Macy's emerges as a truly national brand offering our customers fashion and affordable luxury. New product designed by the Martha Stewart team will be available only at Macy's."

"Martha Stewart is widely recognized across America as the genuine authority on home decorating, graceful entertaining, holiday celebrations, weddings and cooking," said Federated Vice Chair Janet E. Grove, who also serves as chairman of Macy's Merchandising Group. "Our research shows that Macy's customers respect Martha Stewart's creativity and taste, and they turn to her for products that express a traditional and updated casual style, consistent with the life that many of our customers aspire to live."

Stated MSLO President and CEO Susan Lyne: "Our new partnership with Macy's gives MSLO broad, upscale distribution in what is truly a premier national fashion retailer, and will create a strong new revenue stream for the company to drive future growth. The introduction of the Martha Stewart Collection will create a new destination for the many millions of consumers who trust the brand to deliver quality, innovation and style."

Martha Stewart, Founder, said, "We are extremely pleased to introduce our new Martha Stewart Collection of home goods at Macy's, the leading upscale home retailer in the U.S. It has been our long-standing goal to provide consumers with beautifully designed, finely manufactured merchandise at great prices in all of the places they shop. MSLO has many thoughtful and creative ideas for contemporary, elegant, and inspired products. We look forward to introducing all of these to Macy's customers next year."

Robin Marino, President of Merchandising, stated: "Martha Stewart is a key influencer in the home market, setting the standard for living well. Our goal is to provide a growing assortment of well-designed Martha Stewart home products in a diversified range of retail channels. This new partnership with Macy's is a key part of this strategy. This venture also makes it possible for MSLO to present an entire collection of products in a way that inspires and teaches how to decorate, how to design, how to coordinate all elements of your home with style."

The first term of the agreement between Federated and MSLO will extend for five years, beginning in 2007, with options for renewal.

About Martha Stewart Living Omnimedia, Inc.

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, Broadcasting, Merchandising, and Internet/Direct Commerce. Martha Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange under the ticker symbol MSO.

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. Actual results for MSLO may differ materially from those projected in these statements, and factors that could cause such divergence are discussed in more detail in MSLO's filings with the Securities and Exchange Commission, in particular under the section entitled "Risk Factors" in MSLO's most recent Annual Report on Form 10-K, which may be accessed through the SEC's World Wide Web site at http://www.sec.gov. MSLO is under no obligation to update any forward-looking statements after the date of this release.