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Martha Stewart Everyday(TM) Brand Label Available Through Sears Canada Stores,Catalog, and Online

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Sears Canada Inc. (TSX: SCC) and Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) announced the official launch of Martha Stewart Everyday(TM), a comprehensive multi-year program of products for Canadian homes and gardens, to be sold exclusively through Sears Canada's 122 full-line stores, catalog, and internet website at http://www.sears.ca. The launch rolls out in three phases. Today, Sears Canada shoppers will find Martha Stewart Everyday merchandise for the bed, bath and kitchen, including housewares, textiles, and home decor. Beginning in October, for the first time in Canada, the Martha Stewart Everyday Holiday collections will be available. Martha Stewart Everyday Garden patio furniture will follow in the spring of 2004. "We are extremely pleased to be the exclusive retailer of these Martha Stewart Everyday products in Canada," said Mark A. Cohen, Chairman and Chief Executive Officer, Sears Canada Inc. "Sears multi-channel organization will provide Canadians with access to one of the best-known home decor and accessory brands in North America. Additionally, Sears Canada and MSOshare the same core values, with a dedication to high-quality products – trusted for their usefulness, reliability, and style -- at affordable prices," said Cohen. "All of us at MSO are delighted to have Sears Canada as our partner as we make Martha Stewart Everyday available to homemakers throughout Canada," said Sharon Patrick, President and Chief Executive Officer of MSO. "Together, we can ensure that the widest possible audience of Canadian consumers has access to products for their homes inspired by the pages of the Martha Stewart Living magazine and television show as well as MSO's unique 'how to' approach – the foundation of the Martha Stewart Everyday brand label. Sears Canada's nationwide reach, economies of scale, and direct sourcing, combined with MSO's creative, design and production standards, enable us to offer consumers highest value equation for the home featuring the quality, style, and color palettes they are seeking. We look forward to a long and producti partnership of 'turning dreamers into doers.'" Martha Stewart, Founder and Chief Creative Officer of MSO, said, "Today's launch represents the beginning of a wonderful relationship that will bring the unique characteristics of the Martha Stewart Everyday brand to the discerning Sears Canada customer. A wide range of colors, patterns, fabrics, and carefully chosen details -- hallmarks of our distinctive Martha Stewart Everyday collection -- makes it easy to coordinate every part of your home beautifully and affordably." Martha Stewart Everyday Collection Martha Stewart Everyday offers consumers style and quality at affordable prices -- accompanied by innovative packaging that includes practical "how-to" information and inspirational photography. Designed by the experts at MSO, the wide array of Martha Stewart Everyday products enables the consumer to coordinate every element of the home with beauty and elegance. Martha Stewart Everyday comprises several categories, including: • Martha Stewart Everyday Holiday, featuring beautiful, affordable holiday decorating products, from tree ornaments and tabletop decor to wreaths and coordinating gift wrap; • Martha Stewart Everyday Garden, offering a comprehensive program of merchandise for patio, picnic, and beach activities; • Martha Stewart Everyday Decorating, featuring clocks, mirrors, lighting, frames, candles, and candleware; • Martha Stewart Everyday Keeping, featuring organizational goods for the closet, laundry, and pantry; • Martha Stewart Everyday Kitchen, which includes a full range of cookware and tabletop products; • Martha Stewart Everyday Home, featuring bedding, bath, kitchen textiles, and window treatments; About Sears Canada: Sears Canada is a multi-channel retailer with a network of 122 full-line stores, 44 Sears Home stores, over 2,200 catalog merchandise pick-up locations, 144 dealer stores, 14 outlet stores, 51 floor covering centers, 50 auto centers, 110 Sears Travel offices and a nationwide maintenance, repair, and installation network. The Company also publishes Canada's most extensive general merchandise catalog and offers shopping online at http://www.sears.ca. About Martha Stewart Living Omnimedia Inc.: 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.