TROY, Mich., June 13, 2001 - The Martha Stewart Everyday® (MSE) brand continues to expand with the debut of 314 Everyday Keeping products now available exclusively at Kmart stores nationwide, online at BlueLight.com, and through marthastewart.com. This newest category assortment offers basic essentials for easy organization of America’s kitchens, pantries, laundry rooms, and closets.

Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) and Kmart (NYSE: KM) continue to combine efforts to offer innovative, high-quality merchandise for everyday use at affordable prices. Customers will instantly recognize the signature style and color palette of the MSE brand, as well as its unique packaging highlighting the brand’s authoritative ''how-to'' information. With the addition of Keeping, MSO and Kmart have now unveiled the fifth of MSO’s core content areas under the MSE brand name, bringing more than 4,500 items and an assortment of live indoor and outdoor plants to mass retail for every room of the home and the garden. Other MSO core content areas and related product categories currently offered at Kmart include coordinated bed and bath, and interior latex-based paint programs in the home area; outdoor garden furniture, tools and live plants in the garden area; housewares and kitchen textiles in the cooking and entertaining area; and baby products in MSO’s baby and kid core content arena.

''We are extremely excited about our new Keeping collection. The products we have created are inordinately functional, attractive and practical and, from our point of view, give consumers all that’s needed to accomplish the many organizing requirements to keep a well run home and to simplify their lives.'' said Martha Stewart, Chairman and CEO, Martha Stewart Living Omnimedia, Inc.

''We are excited to provide our shoppers with this new Keeping category that seamlessly leverages our successful Martha Stewart Everyday brand,'' said Chuck Conaway, Chairman and CEO, Kmart Corporation. ''Our customers will appreciate these stylish, durable and affordable products that will help moms everywhere to easily organize every aspect of their active families and busy home lives.''

Martha Stewart and the MSO’s team of keeping and design experts worked with Kmart’s top merchants and leading housewares suppliers to create the MSE Keeping assortments and product designs.

Closet Organization/Clotheskeeping

The clotheskeeping assortment presents hangers, shoe racks, and other garment care products offered at good, better, and best price points with corresponding quality distinctions. Hangers come in plastic, chrome, wood and cedar for careful hanging of suits, skirts, trousers, and shirts. Soft-sided storage bags, made of clear heavy-duty vinyl, allow for easy visibility of stored items for the closet, under the bed or in the attic. Chrome hooks, available individually or in multiple-hook units, also help maximize storage space.

To unclutter the closet, the Keeping assortment offers a comprehensive selection of high-end chrome- and epoxy- coated metal shoe racks, as well as four-tier accessory racks. Frosted plastic and corrugated cardboard boxes provide additional storage solutions, as well as long-term storage for any and all household items. With the help of MSE’s precision label maker, contents can be clearly marked for easy access.

Laundry Room

MSO and Kmart believe that the domestic art of washing and ironing is actually enjoyable when using the right tools. The Keeping collection includes six ironing boards all with important features and benefits including the Oversize Board and the Tailor’s Ironing Board. The Tailor’s Ironing Board features an electrical outlet, a shelf for ironed and folded laundry, and an iron rest. The ironing surfaces on these boards are oversized per Martha’s specifications to accommodate larger items such as sheets and draperies. Ironing board pads and covers with standard, stain-and scorch-resistant, and extra-thick features are available in thirteen patterns that coordinate with other MSE merchandise.

Additional laundry care products include canvas and metal laundry sorters, baskets, hampers, and nylon and cotton bags for storage and transport. For the homekeeper who prefers the dried-on-the-line freshness, the collection offers laundry clothespin bags and clothespins.

Kitchen and Pantry Organization

Working in an organized area where utensils and ingredients are easy to find makes time spent in the kitchen fun and effortless. Drawer organizers keep utensils, flatware and miscellaneous contents neatly in drawers. A variety of airtight glass and plastic storage containers featuring the signature MSE green lids keep dry food within reach. Pitchers and bottles also have been designed to save space and preserve food and beverages.

Organizing cabinets and drawers with a decorative touch is easy with 30 different patterns and colors of adhesive and non-adhesive shelf papers. And, MSE’s exclusive tall kitchen waste cans, in both stainless steel and plastic, are there for cleaning up after the meal.

Chrome shelving units utilize every nook and cranny of the kitchen or pantry and are available in three- and five-shelf units. The Chrome Portable Island gives a small kitchen additional counter and food-preparation space, and the Baker’s Rack restores order while keeping frequently used tools on hand. These multifunctional units have adjustable shelves and also may be used in the den or in any closet of the house. Coordinating accessories include a modular bottle rack, a spice rack, an oil and vinegar caddy, a sponge and soap holder, a dish rack, a corner shelf, and a stainless steel utensil holder.

In-Store Displays and Product Packaging

Kmart stores will showcase the MSE Keeping products within the hard home department on special displays that have been designed to highlight the merchandise features and benefits. The bold and inventive packaging will include the signature ''how-to'' information, which educates and informs the customer about the merchandise and its function.

At Home Convenience with BlueLight.com

Most of the products in the Keeping collection also will be available on Kmart’s Web site, BlueLight.com. BlueLight.com offers customers the convenience of shopping from home or work, any time of the day. In addition, customers can have products from the Keeping collection shipped directly to their homes or gift-wrapped and sent as gifts. Anything purchased on BlueLight.com can be returned at any of the more than 2,100 Kmart stores nationwide.

Advertising Support

The Keeping launch will be supported by the ''Martha Stewart Everyday Space Program'' print advertising campaign. The ads will illustrate a way to organize and maintain all the spaces in one’s home. An eight-page ad in Martha Stewart Living launches the campaign, supported by a feature in Kmart’s June 17 Sunday circular distributed to 70 million households across the country. In August, timed for the back-to-school shopping season, a second round of the campaign will launch on TV, in newspaper circulars, and in an eight-page advertisement in Martha Stewart Kids, a special-issue publication from MSO. The Keeping launch will be promoted online through an exclusive e-mail alert to BlueLight.com shoppers and rotating banners on the BlueLight.com Internet Service that boasts more than 6.6 million users.

Martha Stewart Living Omnimedia, Inc. is an integrated content company consisting of four business segments. The Company’s Publishing segment includes Martha Stewart Living, Martha Stewart Weddings, and Martha Stewart Baby magazines; books written by Martha Stewart and the editors of Martha Stewart Living; and the syndicated askMartha newspaper columns and radio show. The Internet/Direct Commerce segment consists of the Company’s high-end catalog, Martha by Mail, and marthastewart.com, which includes the online Martha by Mail store and marthasflowers, and eight linked content and community channels. This segment also includes The Wedding List, a wedding registry and gift business. The Television segment includes a nationally syndicated, daily one-hour television program, ''Martha Stewart Living''; a daily cable television program, ''from Martha’s Kitchen'', on the Food Network; weekly appearances on CBS’s ''The Early Show'' broadcast; and periodic network primetime television specials. The Merchandising segment includes strategic partnerships through which merchandise designed by the Company’s in-house creative experts is distributed and/or sold through Kmart, Sherwin-Williams, P/Kaufmann, and Zellers. Martha Stewart Living Omnimedia, Inc. is listed on the New York Stock Exchange under the ticker symbol MSO.

Kmart Corporation is a near-$40 billion company that serves America with more than 2,100 Kmart and Kmart Supercenter retail outlets. Kmart donates $35 million each year to support its hometowns and local non-profit organizations. Kmart associates also provide their most valuable resource - time - everyday in their local communities. In addition to serving all 50 states, Kmart operations extend to the Caribbean Islands and Asia Pacific. More information about Kmart is available on the World Wide Web at www.bluelight.com under the ''About Kmart'' section.

Based in San Francisco, BlueLight.com is an independent company majority owned by Kmart Corporation. Formed to leverage the substantial assets of the nation’s second-largest discount retailer, BlueLight.com’s goal is to meet the online shopping needs of the more than 30 million Americans who shop at Kmart every week. BlueLight.com represents Kmart’s BlueLight brand online by rewarding customers with nationally recognized products at unprecedented values. BlueLight.com was formed in 1999 by Kmart Corporation (NYSE: KM) and SOFTBANK Venture Capital with investments by Martha Stewart Living Omnimedia, Inc. (NYSE: MSO). BlueLight.com visuals are available online at ftp1.bluelight.com