FORM 8-K

Table of Contents

Table of Contents

Table of Contents

Table of Contents

EXHIBIT 99.1

MARTHA STEWART LIVING OMNIMEDIA, INC.

ANNOUNCES SECOND QUARTER 2007 REVENUE UP 7.7%

Advertising Revenue in the Publishing Group Grew 23%;

Merchandising Initiatives on Track for Strong Second Half 2007

NEW YORK, New York, August 1, 2007 – Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) today announced its results for the second quarter, showing revenue up 7.7% to $73.4 million, including 23.1% growth in ad revenue for the company’s Publishing segment. Excluding non-recurring items, the loss was $(0.09) in the current period compared to a $(0.07) loss in the prior year period.

President and Chief Executive Officer Susan Lyne said: “In the second quarter of 2007, we continued to deliver solid, near-term gains and made strategic adjustments to accelerate the company’s long-term expansion. We’re on track to return to profitability this year and foresee a strong second half. Advertising sales are thriving and our Martha Stewart Collection exclusively at Macy’s is currently rolling into stores. To improve our long-term adjusted EBITDA performance, we are reallocating some of our investment in Publishing to Internet.

“Advertising revenue is growing across our business segments. Publishing was particularly strong with a 23% increase; advertising revenue growth exceeded page growth, a significant trend that continues from previous quarters. We also struck an agreement to publish 10 books over the next five years with Clarkson Potter/Publishers, a deal that is already contributing to our financial performance.

“Our Merchandising initiatives are all moving along well. In the second quarter, we launched our Martha Stewart Crafts line at more than 900 Michaels arts and crafts stores and on marthastewartcrafts.com. The initial performance of the line has been solid, and we will be broadening our distribution to independent retailers this fall.

“We recruited Wenda Harris Millard, former Chief Sales Officer of Yahoo! and a founder of DoubleClick, to leverage our media assets in the newly created position of President, Media. We now have in place the right people and the right strategy to achieve our near and long-term objectives.”

Second Quarter 2007 Summary

Revenues rose 7.7% to $73.4 million, compared to $68.2 million for the second quarter of 2006. The second-quarter results benefited from ad revenue growth and the Clarkson Potter deal.

Operating loss for the second quarter was $(7.8) million, compared to $(1.8) million for the second quarter of 2006, due to previously discussed investments in the Internet and Merchandising segments and a decline in sales at Kmart. The Merchandising group is now fully staffed in advance of new product launches in the second half. The results for the current period include $2.2 million ($0.04) of non-recurring separation costs (cash and non-cash equity compensation); the prior year included a one-time newsstand expense reduction adjustment of $3.2 million ($0.06 per share) related to the settlement of certain newsstand-related fees. Excluding these items, operating loss would have been a loss of $(5.5) million compared to a loss of $(5.0) million in the prior year period.

Adjusted EBITDA loss for the second quarter of 2007 was a loss of $(0.8) million, including non-recurring cash separation costs of $1.3 million. This compares to adjusted EBITDA of $3.2 million in the prior year period. Excluding $1.3 million of non-recurring cash employee separation costs in the current period and the $3.2 million reduction in newsstand-related fees in the prior year period, adjusted EBITDA would have been $0.6 million in the current period compared to breakeven in the prior year period.

Loss per share from continuing operations was $(0.13) for the second quarter of 2007, compared to $(0.01) for the second quarter of 2006. Excluding non-recurring items, the loss was $(0.09) in the current period compared to a $(0.07) loss in the prior year period.

Second Quarter 2007 Results by Segment

Publishing

Revenues in the second quarter of 2007 rose 16% to $47.5 million from $40.9 million, driven by ongoing growth in advertising revenue due to a greater number of ad pages at higher rates. Pages increased 12% at Martha Stewart Living and 22% at Everyday Food, while total ad revenue rose 23% in the quarter. The Clarkson Potter agreement also contributed to results for the quarter.

Operating income was $5.1 million for the second quarter of 2007, compared to $6.1 million in the second quarter of 2006.

Adjusted EBITDA was $6.8 million, compared to an adjusted EBITDA of $6.9 million in the second quarter of 2006. The results for the current period included $1.0 million of non-recurring cash separation costs for a senior executive. The prior year included a one-time newsstand expense reduction adjustment of $3.2 million related to the settlement of certain newsstand-related fees. Excluding these items, adjusted EBITDA would have been $7.8 million in the current period and $3.7 million in the prior year period, an increase of $4.1 million. This increase is driven by growth in ad pages and rates in Living, Everyday Food and a new book deal with Clarkson Potter. The current period included an investment of $2.0 million in Blueprint magazine.

Highlights

•

Publishing remains a key growth category. Advertising revenue rose 23.1% to $27.8 million. Ad revenue growth continues to exceed page growth, a strong and consistent trend from last year that is continuing through 2007. The March, June, August and September issues of Living, the company’s flagship magazine, are the largest issues for those months since 2002.

•

The company announced an agreement with Clarkson Potter/Publishers to publish 10 books over a five-year period, beginning this fall with Martha Stewart Living Cookbook Volume I: The Original Classics and Martha Stewart Living Cookbook Volume II: The New Classics. This important deal helps MSO achieve near- and long-term margin objectives. The leading lifestyle and cookbook publisher, Clarkson Potter has been publishing best-selling Martha Stewart books since Entertaining in 1982.

Merchandising

Revenues were $10.4 million for the second quarter of 2007, as compared to $10.9 million in the prior year’s second quarter. The current quarter included revenue from new partnerships, including the Martha Stewart Crafts line at Michaels and on marthastewartcrafts.com, the Martha Stewart Colors paint palette at Lowe’s, and the Martha Stewart Rugs program with Safavieh. The increases were offset by declining sales of Martha Stewart Everyday product at Kmart.

Operating income was $3.5 million for the second quarter of 2007, compared to $5.1 million in the second quarter of 2006. The reduction in operating income was due largely to the decline in sales of product at Kmart and an anticipated investment in staff. The company is now fully staffed for second-half launches.

Adjusted EBITDA was $3.9 million for the second quarter of 2007, compared to $5.6 million in the prior year’s second quarter.

Highlights

•

The company launched its introductory Martha Stewart Crafts line of paper-based crafting and storage products on May 1, which is delivering solid results. The line, which features more than 650 SKUs, is available exclusively in more than 900 Michaels arts and crafts stores in the United States and Canada and on marthastewartcrafts.com. The line will be rolling out to independent craft retailers this fall, and more broadly in 2008.

	•		The Martha Stewart Collection exclusively at Macy’s is rolling into stores and will officially launch with an extensive marketing campaign on September 10. The line encompasses a broad range of home goods—including bed and bath textiles, housewares, casual dinnerware, flatware and glassware, cookware, holiday decorating, and tree-trimming items.

	•		The company continues to expand its home decorating portfolio with the launch of Martha Stewart Floor Designs™ with FLOR™ on July 15, followed by Martha Stewart Rugs, and the portable lighting component of the Martha Stewart Lighting line in fall 2007. The rugs and lighting products will be available at Macy’s, as well as at independent retailers. The carpet tiles are available online at flor.com.

Internet

Revenues rose 12% year-over-year to $5.2 million in the second quarter of 2007 from $4.6 million in the second quarter of 2006, driven by 17% growth in ad revenue.

Operating loss was $(2.1) million in the second quarter of 2007, compared with breakeven in the second quarter of 2006. Increased revenue was more than offset by higher expenses associated with the new platform, including higher technology and staffing costs.

Adjusted EBITDA loss was $(1.7) million in the second quarter of 2007, compared to adjusted EBITDA income of $0.1 million in the second quarter of 2006.

Highlights

	•		Traffic on the new website increased modestly, from 36.5 million page views/month in prior year to 38.0 million page views/month this quarter. To ramp traffic, the company is focusing on two key initiatives: significantly increasing the amount of content on the site; and focusing on search engine optimization.

	•		One of the priorities is to reset the development road map to take advantage of the company’s assets—brand awareness, unique content and engaged consumer base—to build a significant digital business.

Broadcasting

Revenues in the second quarter of 2007 were $10.4 million, down from $11.8 million in the second quarter of 2006. The prior year’s quarter included revenue from the cable distribution of the show. The conclusion of a cable agreement along with the erosion of the daytime television audience were partially offset by high-margin product integration revenue.

Operating loss was $(0.9) million for the second quarter of 2007, compared to operating income of $0.4 million in the second quarter of 2006. Results included a $0.9 million ($0.02 per share) non-cash compensation expense associated with the amortization of the last tranche of a warrant granted in connection with the production of a syndicated TV program.

Adjusted EBITDA was $1.1 million for the second quarter of 2007, compared to $1.2 million in the prior year’s second quarter. The decline in revenue was partially offset by an increase in high-margin product integrations which, combined with cost controls, allowed the segment to deliver approximately flat adjusted EBITDA.

Highlights

	•		The second season of The Martha Stewart Show wrapped in June and preparations are underway for the third season, which begins in September and will be broadcast in more than 95 percent of the United States.

	•		The company announced a distribution deal with the DIY Network for a new half-hour series. The Martha Stewart Crafts TV show is a “best of” compilation of “how-to” segments about scrapbooking, handmade gifts, paper cards, decoupage, glittering, framing, rubber-stamping and more. Set to premiere on Thanksgiving Day, the initial 39 episodes will be culled from MSO’s original lifestyles series, Martha Stewart Living.

Corporate Expenses

Corporate expenses, including depreciation and amortization and non-cash equity compensation were $(13.3) million, compared to $(13.4) million in the prior year’s quarter. Adjusted EBITDA was a loss of $(10.9) in the current period, compared to a loss of $(10.7) million in the prior year period. The current period includes $0.4 million of cash and $0.4 of non-cash separation costs related to the departure of a corporate employee. Excluding the current period cost, adjusted EBITDA would have been $(10.5) in the current period, compared to $(10.7) million in the prior year period.

Trends and Outlook

Howard Hochhauser, Chief Financial Officer, commented: “We are well-positioned at the close of the second quarter, and highly encouraged that ad revenue growth across our media business segments continues to be strong.

“We have returned to growth armed with a strong balance sheet, and are actively evaluating how best to deploy our capital. To this end, we anticipate moving certain spending from Publishing to Internet. Our financial strength, marked by our substantial free cash flow-generating characteristic and our strong balance sheet, gives us the flexibility to execute on our strategy.

“As we look ahead to the coming quarters, we are maintaining our full-year revenue guidance in the range of $330.0 — $340.0 million, operating income guidance in the range of $9.5 — $12.5 million and adjusted EBITDA guidance in the range of $34.0 — $37.0 million.

“For the third quarter of 2007, we are expecting revenue in the range of $68.0 — $70.5 million, operating loss in the range of $(7.5) — $(8.5) million and adjusted EBITDA loss in the range of $(2.5) — $(3.5) million, including an investment of $2.0 million in Blueprint magazine.”

Use of Non-GAAP Financial Information

In addition to using net income to assess the organization’s overall financial health, Company management uses net income before interest, taxes, depreciation, amortization and non-cash equity compensation (“adjusted EBITDA”), a non-GAAP financial measure, to evaluate the performance of our businesses on a real-time basis. Adjusted EBITDA is considered an important indicator of operational strength, is a direct component of the Company’s annual compensation program, and is a significant factor in helping our management determine how to allocate resources and capital. Adjusted EBITDA is used in addition to and in conjunction with results presented in accordance with GAAP. Management considers adjusted EBITDA to be a critical measure of operational health because it captures all of the revenue and ongoing operating expenses of our businesses without the influence of (i) interest charges, which result from our capital structure, not our ongoing business efforts, (ii) taxes, which relate to the overall organizational financial return, not that of any one business, (iii) the capital expenditure costs associated with depreciation and amortization, which are a function of historical decisions on infrastructure and capacity, and (iv) the cost of non-cash equity compensation which, as a function of our stock price, can be highly variable, is not necessarily an indicator of current operating performance for any individual business unit, and is amortized over the appropriate period.

Adjusted EBITDA provides a means to directly evaluate the ability of our business operations to generate returns on a real-time basis. We provide disclosure of adjusted EBITDA because we believe it is useful for investors to have means to assess our performance as we do. While adjusted EBITDA is a customized non-GAAP measure, it also provides a means to analyze, value and compare our operating capabilities to those of companies with whom we compete, many of which have different compensation plans, depreciation and amortization costs, capital structures and tax burdens. But please note that our non-GAAP results may differ from similar measures used by other companies, even if similar terms are used to identify such measures.

A limitation of adjusted EBITDA is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues for our overall organization. Management evaluates the costs of such tangible and intangible assets through other financial measures such as capital expenditures. Management also evaluates the cost of capitalized tangible and intangible assets by analyzing returns provided on the capital dollars deployed. A further limitation of adjusted EBITDA is that it does not include stock compensation expense related to our workforce. Adjusted EBITDA should be considered in addition to, and not as a substitute for, net income or other measures of financial performance reported in accordance with GAAP.

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. Martha Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange under the ticker symbol MSO.

The Company will host a conference call with analysts and investors on August 1^st, at 10:00 a.m. ET that will be broadcast live over the Internet at www.marthastewart.com/ir.

###

We have included in this press release 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: adverse reactions to publicity relating to Martha Stewart by consumers, advertisers and business partners; downturns in national and/or local economies; shifts in our business strategies; a loss of the services of Ms. Stewart; a loss of the services of other key personnel; 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission, especially under the heading “Risk Factors”, 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.

CONTACT: Investors – Howard Hochhauser, Chief Financial Officer, of Martha Stewart Living Omnimedia, Inc., 212-827-8530; Media – Diana Pearson, SVP, Corporate Communications and Media Relations, of Martha Stewart Living Omnimedia, Inc., 212-827-8915.

Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Three Months Ended, June 30,
(unaudited, in thousands, except per share amounts)


	2007			2006			% change
REVENUES

Publishing	$	47,478		$	40,888			16.1	%
Merchandising		10,352			10,891			-4.9	%
Internet		5,183			4,634			11.8	%
Broadcasting		10,433			11,757			-11.3	%

Total revenues		73,446			68,170			7.7	%


OPERATING COSTS AND EXPENSES

Production, distribution and editorial		38,881			35,498			-9.5	%
Selling and promotion		22,172			14,787			-49.9	%
General and administrative		17,920			17,447			-2.7	%
Depreciation and amortization		2,263			2,236			-1.2	%

Total operating costs and expenses		81,236			69,968			-16.1	%


OPERATING LOSS		(7,790	)		(1,798	)	nm

Interest income, net		775			1,356			-42.8	%
Legal settlement		432			—		nm


LOSS BEFORE INCOME TAXES		(6,583	)		(442	)	nm

Income tax provision		(154	)		(229	)	nm


LOSS FROM CONTINUING OPERATIONS BEFORE LOSS
FROM DISCONTINUED OPERATIONS		(6,737	)		(671	)	nm


Loss from discontinued operations		—			(499	)	nm


NET LOSS	$	(6,737	)	$	(1,170	)	nm


LOSS PER SHARE – BASIC AND DILUTED
Loss from continuing operations	$	(0.13	)	$	(0.01	)
Loss from discontinued operations		(0.00	)		(0.01	)

Net loss	$	(0.13	)	$	(0.02	)


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted		52,386			51,176

Martha Stewart Living Omnimedia, Inc.
Consolidated Statements of Operations
Six Months Ended June 30,
(unaudited, in thousands, except per share amounts)


	2007			2006			% change
REVENUES
Publishing	$	88,096		$	77,176			14.1	%
Merchandising		23,952			22,418			6.8	%
Internet		8,713			7,582			14.9	%
Broadcasting		19,389			23,077			-16.0	%

Total revenues		140,150			130,253			7.6	%


OPERATING COSTS AND EXPENSES

Production, distribution and editorial		78,609			68,247			-15.2	%
Selling and promotion		42,403			31,781			-33.4	%
General and administrative		35,239			35,269			0.1	%
Depreciation and amortization		4,241			4,444			4.6	%

Total operating costs and expenses		160,492			139,741			-14.8	%


OPERATING LOSS		(20,342	)		(9,488	)	nm

Interest income, net		1,547			2,402			-35.6	%
Legal settlement		432			—		nm


LOSS BEFORE INCOME TAXES		(18,363	)		(7,086	)	nm

Income tax provision		(243	)		(296	)	nm


LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS		(18,606	)		(7,382	)	nm


Loss from discontinued operations		—			(622	)	nm


NET LOSS	$	(18,606	)	$	(8,004	)	nm


LOSS PER SHARE – BASIC AND DILUTED
Loss from continuing operations	$	(0.36	)	$	(0.14	)
Loss from discontinued operations		—			(0.01	)

Net loss	$	(0.36	)	$	(0.16	)


WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted		52,382			51,192

Martha Stewart Living Omnimedia, Inc.
Consolidated Balance Sheets
(in thousands, except per share amounts)


	June 30,			December 31,
	2007			2006
	(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	36,571		$	28,528
Short-term investments		45,304			35,321
Accounts receivable, net		45,007			70,319
Inventories, net		5,114			4,448
Deferred television production costs		4,844			4,609
Income taxes receivable		482			482
Other current assets		2,592			3,857

Total current assets		139,914			147,564

PROPERTY, PLANT AND EQUIPMENT, net		18,055			19,616
INTANGIBLE ASSETS, net		53,605			53,605
OTHER NONCURRENT ASSETS		8,401			7,262

Total assets	$	219,975		$	228,047


LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$	23,702		$	28,053
Accrued payroll and related costs		13,882			13,646
Income taxes payable		1,946			1,011
Current portion of deferred subscription income		26,687			28,884
Current portion of deferred royalty revenue		7,245			3,159

Total current liabilities		73,462			74,753


DEFERRED SUBSCRIPTION REVENUE		9,124			10,032
DEFERRED REVENUE		13,163			9,845
OTHER NONCURRENT LIABILITIES		2,244			2,460

Total liabilities		97,993			97,090


COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS’ EQUITY
Class A common stock, $0.01 par value, 350,000 shares authorized: 26,608 and 26,109 shares issued in 2007 and 2006, respectively		266			261
Class B common stock, $0.01 par value, 150,000 shares authorized: 26,722 and 26,791 shares outstanding in 2007 and 2006, respectively		268			268
Capital in excess of par value		267,479			257,014
Accumulated deficit		(145,256	)		(125,811	)

		122,757			131,732

Less class A treasury stock – 59 shares at cost		(775	)		(775	)

Total shareholders’ equity		121,982			130,957

Total liabilities and shareholders’ equity	$	219,975		$	228,047

Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Three Months Ended June 30,
(unaudited, in thousands)

The following table presents segment and consolidated financial information, including a reconciliation of operating income/(loss), a GAAP measure, and adjusted EBITDA, a non-GAAP measure. In order to reconcile adjusted EBITDA to operating income, depreciation and amortization and non-cash equity compensation are added back to operating income/(loss).


	2007			2006
ADJUSTED EBITDA
Publishing	$	6,779		$	6,905
Merchandising		3,902			5,610
Internet		(1,705	)		110
Broadcasting		1,126			1,238

Adjusted EBITDA before Corporate Expenses		10,102			13,863
Corporate Expenses		(10,889	)		(10,690	)

Adjusted EBITDA		(787	)		3,173


NON-CASH EQUITY COMPENSATION
Publishing		1,434			708
Merchandising		355			238
Internet		90			36
Broadcasting		1,160			59
Corporate Expenses		1,701			1,694

Total Non-Cash Equity Compensation		4,740			2,735


DEPRECIATION AND AMORTIZATION
Publishing		295			135
Merchandising		97			254
Internet		349			68
Broadcasting		837			755
Corporate Expenses		685			1,024

Total Depreciation and Amortization		2,263			2,236


OPERATING INCOME (LOSS)
Publishing		5,050			6,062
Merchandising		3,450			5,118
Internet		(2,144	)		6
Broadcasting		(871	)		424

Operating Income before Corporate Expenses		5,485			11,610
Corporate Expenses		(13,275	)		(13,408	)

Total Operating Loss		(7,790	)		(1,798	)

Interest income, net		775			1,356
Legal settlement		432			—


LOSS BEFORE INCOME TAXES		(6,583	)		(442	)

Income tax provision		(154	)		(229	)
LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS		(6,737	)		(671	)


Loss from discontinued operations		—			(499	)


NET LOSS	$	(6,737	)	$	(1,170	)

Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Six Months Ended June 30,
(unaudited, in thousands)


	2007			2006
ADJUSTED EBITDA
Publishing	$	9,157		$	7,746
Merchandising		11,134			12,334
Internet		(3,978	)		159
Broadcasting		1,776			1,886

Adjusted EBITDA before Corporate Expenses		18,089			22,125
Corporate Expenses		(21,318	)		(21,462	)

Adjusted EBITDA		(3,229	)		663


NON-CASH EQUITY COMPENSATION
Publishing		2,219			1,418
Merchandising		715			515
Internet		164			53
Broadcasting		7,046			279
Corporate Expenses		2,728			3,442

Total Non-Cash Equity Compensation		12,872			5,707


DEPRECIATION AND AMORTIZATION
Publishing		588			319
Merchandising		193			508
Internet		505			103
Broadcasting		1,699			1,500
Corporate Expenses		1,256			2,014

Total Depreciation and Amortization		4,241			4,444


OPERATING INCOME (LOSS)
Publishing		6,350			6,009
Merchandising		10,226			11,311
Internet		(4,647	)		3
Broadcasting		(6,969	)		107

Operating Income before Corporate Expenses		4,960			17,430
Corporate Expenses		(25,302	)		(26,918	)

Total Operating Loss		(20,342	)		(9,488	)
Interest income, net		1,547			2,402
Legal settlement		432			—

LOSS BEFORE INCOME TAXES		(18,363	)		(7,086	)

Income tax provision		(243	)		(296	)


LOSS FROM CONTINUING OPERATIONS BEFORE LOSS FROM DISCONTINUED OPERATIONS		(18,606	)		(7,382	)
Loss from discontinued operations		—			(622	)


NET LOSS	$	(18,606	)	$	(8,004	)

Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Guidance Reconciliation
(in millions)

Third Quarter Guidance Reconciliation


	Guidance Range
Adjusted EBITDA	$	(3.5	)	–	$	(2.5	)
Depreciation and Amortization		(1.5	)			(1.5	)
Non-Cash Equity Compensation		(3.5	)			(3.5	)

Operating Loss		(8.5	)	–		(7.5	)

Interest Income		1.0				1.0

Pre-tax Loss		(7.5	)	–		(6.5	)

Income Taxes		—				—

Net Loss		(7.5	)	–		(6.5	)

Loss Per Share	$	(0.14	)	–	$	(0.13	)

Avg. Diluted Shares Outstanding		52.0				52.0

Full Year 2007 Guidance Reconciliation


	Guidance Range
Adjusted EBITDA	$	34.0		–	$	37.0
Depreciation and Amortization		(6.5	)			(6.5	)
Non-Cash Equity Compensation		(18.0	)			(18.0	)

Operating Income		9.5		–		12.5

Interest Income		4.0				4.0

Pre-tax Income		13.5		–		16.5

Income Taxes		—				—

Net Income		13.5		–		16.5

Earnings Per Share	$	0.26		–	$	0.32

Avg. Diluted Shares Outstanding		52.0				52.0


DELAWARE	001-15395	52-2187059

(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


11 WEST 42ND STREET NEW YORK, NY		10036

(Address of Principal Executive Offices)		(Zip Code)


Item 2.02. Results of Operations and Financial Condition
Item 9.01 Financial Statements and Exhibits
SIGNATURES
INDEX OF EXHIBITS
EX-99.1: PRESS RELEASE


	MARTHA STEWART LIVING OMNIMEDIA, INC. (Registrant)
Date: August 1, 2007	By:	/s/ John R. Cuti
		John R. Cuti
		Secretary and General Counsel

Description

Martha Stewart Living Omnimedia, Inc. Press Release dated August 1, 2007.