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NEW YORK, Aug. 2 /PRNewswire-FirstCall/ -- Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) has invested $10 million cash in an entity that acquired Wilton Industries, Inc. and Dimensions Holdings, LLC, announced MSLO President and CEO Susan Lyne. The deal broadens the media and merchandising company's footprint in the crafts market, paving the way for additional licensed Martha Stewart branded crafts products, including food crafts, party favors and weddings.

MSLO co-invested with GTCR Golder Rauner, LLC, one of the nation's leading private equity firms, in Wilton Products, Inc., an entity that already owns EK Success and just acquired two additional crafts companies, Wilton Industries, Inc. and Dimensions Holdings, LLC. The newly combined business has been renamed Wilton Products, Inc., and will be headquartered in Woodridge, Illinois.

MSLO had a preexisting relationship with EK Success and GTCR Golder Rauner. With the new investment, MSLO restructured its existing ownership stake on more favorable terms.

EK Success manufactures, markets and sells the new Martha Stewart Crafts line of paper-based crafting and storage products. The line launched in May exclusively in more than 900 Michaels arts and crafts stores in the United States and Canada and on marthastewartcrafts.com/crafts (http://www.marthastewart.com/crafts). It will be rolling out to independent retailers in the fall.

"I'm enormously proud of our Martha Stewart Crafts line and delighted with the response to it. I'm looking forward to working with Wilton, which represents a tremendous number of opportunities in baking, cake decorating and crafts," said MSLO Founder Martha Stewart.

"This is a great opportunity for us to put our balance sheet to work," stated Ms. Lyne. "We are excited to roll out these additional crafts lines and, by restructuring our existing ownership interest in this larger crafts entity, we are able to participate in a more meaningful way in the value creation associated with our brand."

Robin Marino, President of Merchandising for MSLO, added: "Expansion of our crafts line enables us to serve millions of customers inspired by Martha Stewart to create and celebrate special occasions beautifully. We look forward to working with Wilton to expand our distribution and answer the needs of our passionate crafting constituency."

About Martha Stewart Living Omnimedia, Inc.

Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) is a diversified media and merchandising company, inspiring and engaging consumers with unique content and distinctive products. The Publishing segment encompasses five magazines, including the company's flagship publication, Martha Stewart Living, periodic special issues and books. The marthastewart.com website provides consumers with instant access to MSLO's multimedia library, search and find capabilities, and more. The Broadcasting division produces the Emmy-winning daily, national syndicated program, "The Martha Stewart Show" and Martha Stewart Living Radio, channel 112 on SIRIUS Satellite Radio. In addition to its media properties, MSLO offers beautiful, practical and superior quality Martha Stewart products through licensing agreements with carefully selected companies. For additional information, visit www.marthastewart.com.

About Wilton Industries

Wilton Industries, based in Woodridge, Illinois, has successfully united three distinctive consumer products companies whose strategic focus is product innovation and quality. The three divisions are Wilton Enterprises, Copco, and The Weston Gallery. The company's best-known division and preferred brand for over 50 years, Wilton Enterprises, sells cake baking and decorating items in more than 100 countries. Wilton's Copco division is the leading manufacturer of teakettles, and The Weston Gallery unit is a full-line picture frame supplier to the retail industry. For more information go to www.wilton.com.

About Dimensions

Dimensions is a leading designer, producer, and distributor of premium quality craft and hobby products for adults and children. Based in Reading, Pennsylvania, the company participates in the large, fragmented, steady-growth craft and hobby industry. Dimensions' offering includes needlecraft, paint-by-number, kid's activity beading, rubber stamping, scrapbooking, and card making products, most of which are sold in kits or marketed in coordinated themes.

About EK Success

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 designs and markets some of the craft industry's most respected brands of stickers, multi-dimensional embellishments, punches and writing utensils for use in scrapbooking and related paper crafts, such as card making and invitation creation. These include ZIG(R) Memory System(R), Sticko(R), Paper Shapers(R), Jolee's Boutique(R), HERMA(R) and Cutter Bee(R). The Company has a demonstrated history of consistent, successful product innovation, having won over 40 design and reader's choice awards since 2002. For more information go to www.eksuccess.com.

About GTCR

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 $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.

First Call Analyst:
FCMN Contact: DPearson@marthastewart.com

Source: Martha Stewart Living Omnimedia, Inc.

CONTACT: Diana Pearson, +1-212-827-8915, dpearson@marthastewart.com, or
Elizabeth Estroff, +1-212-827-8281, Eestroff@marthastewart.com, both of Martha
Stewart Living Omnimedia, Inc.

Web site:

http://www.marthastewart.com/
http://www.wilton.com/
http://www.eksuccess.com/
http://www.gtcr.com/

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Profile: Media News