Exhibit 99.1

Martha Stewart Living Omnimedia Reports Third Quarter 2010 Results

— Quarterly Results Reflect Strong Merchandising Performance

— Robust Gains in Internet Advertising Revenue; Continued Stabilization in Print Advertising Sales

NEW YORK, Oct. 27 /PRNewswire-FirstCall/ — Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) today announced its results for the third quarter ended September 30, 2010. The Company reported revenue for the third quarter of $49.7 million.

Charles Koppelman, Executive Chairman and Principal Executive Officer, said, “For the past five years, we have been focused on diversifying and expanding our Merchandising business for long-term growth and we are seeing our efforts bear fruit in this quarter’s results. We are applying the same aggressive mindset to our Broadcasting business with our slate of new programming on Hallmark Channel. Broadcasting has been challenging due largely to the remaining run-off results from syndication in the quarter. Our Internet business continues to perform very well and our Publishing business had a solid quarter.”

Robin Marino, President and Chief Executive Officer of Merchandising, stated: “Merchandising delivered a strong performance in the quarter. Our two newest product lines — Martha Stewart Living at The Home Depot and Martha Stewart Pets at PetSmart — were important contributors and we continue to expand on our offerings with these retailers. Our Martha Stewart Collection at Macy’s and our Martha Stewart Crafts line also registered solid results in the quarter. We feel very positive about our Merchandising business as we look to the fourth quarter and beyond.”

Third Quarter 2010 Summary

Revenues were $49.7 million in the third quarter of 2010, compared to $49.8 million in the third quarter of 2009.

Adjusted EBITDA for the third quarter of 2010 was a loss of $(5.6) million, flat with the prior year period. This year’s third quarter included the positive financial impact of a smaller cash bonus accrual in the quarter compared to last year’s quarter.

Operating loss for the third quarter of 2010 was $(7.9) million, compared to operating loss of $(11.7) million for the third quarter of 2009. This year’s third quarter benefited from both the smaller cash accrual and the absence of any non-cash bonus accrual, which was included in last year’s third quarter.

Net loss per share was $(0.16) for the third quarter of 2010, compared to net loss per share of $(0.22) for the third quarter of 2009.

Third Quarter 2010 Results by Segment

		Three Months Ended, September 30
		(unaudited, in thousands)
		2010				2009
REVENUES
Publishing		$	30,038			$	27,053
Broadcasting			5,795				11,036
Internet			4,280				2,761
Merchandising			9,575				8,931
Total Revenues		$	49,688			$	49,781
ADJUSTED EBITDA
Publishing		$	(266	)		$	(1,457	)
Broadcasting			(3,459	)			1,893
Internet			(576	)			(1,415	)
Merchandising			5,464				4,252
Corporate			(6,739	)			(8,850	)
Total Adjusted EBITDA		$	(5,576	)		$	(5,577	)
OPERATING (LOSS)/INCOME
Publishing		$	(368	)		$	(2,480	)
Broadcasting			(4,074	)			757
Internet			(745	)			(2,070	)
Merchandising			5,501				3,524
Corporate			(8,222	)			(11,412	)
Total Operating Loss		$	(7,908	)		$	(11,681	)

Publishing

Revenues in the third quarter of 2010 were $30.0 million, compared to $27.1 million in the prior year’s third quarter. The increase is primarily due to timing of the Fall issue of Martha Stewart Weddings, which was recognized in the third quarter of 2010 compared to the fourth quarter of 2009.

Adjusted EBITDA was a loss of $(0.3) million in the third quarter of 2010, compared to a loss of $(1.5) million in the prior year’s quarter.

Operating loss was $(0.4) million for the third quarter of 2010, compared to operating loss of $(2.5) million in the third quarter of 2009.

Highlights

•

Martha Stewart Living advertising revenue was up 9% versus the prior year quarter.

•

MSLO’s first digital magazine for the iPad—a special issue of Martha Stewart Living—will launch in mid-November.

•

The Company increased the rate bases for Martha Stewart Living, Everyday Food and Whole Living magazines, effective with the January 2011 issues.

Broadcasting

Revenues in the third quarter of 2010 were $5.8 million, compared to $11.0 million in the third quarter of 2009 due to the absence of TurboChef in this year’s third quarter, lower revenue from the remaining runs of “The Martha Stewart Show” in syndication, lower revenue associated with “Whatever, Martha!,” which was delivered in the third quarter of last year and will be delivered in the fourth quarter of this year, and lower guaranteed radio revenue.

Adjusted EBITDA was a loss of $(3.5) million for the third quarter of 2010 compared to adjusted EBITDA of $1.9 million in the prior year’s third quarter.

Operating loss was $(4.1) million for the third quarter of 2010, compared to operating income of $0.8 million in the third quarter of 2009.

Highlights

•

MSLO launched a slate of programming on Hallmark Channel on September 13, including the sixth season of “The Martha Stewart Show,” and two new series featuring MSLO experts and personalities, “Whatever with Alexis & Jennifer” and “Mad Hungry with Lucinda Scala Quinn.”

•

On September 19, Martha Stewart hosted “Martha Stewart Presents: The Women Who Dress America,” the first in a series of hour-long, primetime interview specials on Hallmark Channel.

•

Martha is also hosting a series of holiday specials on Hallmark Channel; “Tricking and Treating with Martha Stewart” aired on October 10, and “Martha Stewart’s Holiday Open House” is expected to air in December.

•

Chef Emeril Lagasse’s “Fresh Food Fast” has been well received on Food Network’s Cooking Channel; the show premiered on July 10.

Internet

Revenues were $4.3 million in the third quarter of 2010, compared to $2.8 million in the third quarter of 2009, due to strong advertising growth.

Adjusted EBITDA was a loss of $(0.6) million in the third quarter of 2010 compared to a loss of $(1.4) million in the prior year’s quarter.

Operating loss was $(0.7) million in the third quarter of 2010, compared to $(2.1) million in the third quarter of 2009.

Highlights

•

Advertising revenue was up over 50% in the third quarter compared to the prior year’s quarter.

•

According to comScore panel data, unique visitors across MSLO’s websites increased 31% compared to the prior year’s quarter, with page views up 37% over the prior year’s period.

•

“Martha Stewart’s Everyday Food” app for the iPhone and iPod Touch has been downloaded nearly 200,000 times since its mid-February launch; a version of the app launched on HP’s new line of Photosmart wi-fi printers in September.

•

The new “Martha Stewart Makes Cookies” iPad app is expected to launch on November 1, coinciding with the publication of “Holiday Cookies,” a special magazine issue available on newsstands beginning November 1.

Merchandising

Revenues were $9.6 million for the third quarter of 2010, as compared to $8.9 million in the prior year’s third quarter.

Adjusted EBITDA was $5.5 million for the third quarter of 2010, compared to $4.3 million in the prior year’s third quarter.

Operating income was $5.5 million for the third quarter of 2010, compared to operating income of $3.5 million in the third quarter of 2009.

Highlights

•

The Martha Stewart Living line at The Home Depot is performing very well, driven by sales of the new carpet program. The cabinets, countertops and hardware program launched in the quarter and a holiday décor assortment began rolling out in early October.

•

The Martha Stewart Collection at Macy’s demonstrated continued strength led by sales in the soft home category; the lower price point Martha Stewart Essentials program launched successfully in the quarter.

•

Martha Stewart Crafts performed well in the quarter due to expanded distribution, including shipments of seasonal Halloween products into Jo-Ann Fabrics & Crafts, and Martha’s HSN appearance in July.

•

Martha Stewart Pets at PetSmart had a robust debut, led by solid sales of toys, feeding bowls and accessories, and grooming tools; the line is expected to expand in Spring 2011.

•

Chef Emeril Lagasse’s core partnerships, including his All-Clad cookware, his coffee with Timothy’s and his line of appliances with T-Fal, registered strong double-digit growth in wholesale sales in the quarter.

Corporate

Adjusted EBITDA was a loss of $(6.7) million in the third quarter of 2010 compared to a loss of $(8.9) million in the prior year’s quarter. Total Corporate expenses were $(8.2) million in the third quarter of 2010 down from $(11.4) million in the prior year’s quarter.

The Company will host a conference call with analysts and investors on October 27, 2010 at 11:00 a.m. EDT that will be broadcast live over the Internet at www.marthastewart.com/ir, and an archived version will be available through November 11, 2010.

Use of Non-GAAP Financial Information

In addition to using net income to assess the organization’s overall financial health, Company management uses consolidated net income/(loss) before interest income or expense, taxes, depreciation and amortization, impairment, non-cash equity compensation expense and other expense (“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, (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, (v) non-cash impairment charges, which are impacted by macro-economic conditions and do not necessarily reflect operating performance, and (vi) other expense which may include non-operational items.

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 which 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.

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, Internet, and Merchandising. MSLO is listed on the New York Stock Exchange under the ticker symbol MSO.

Forward-Looking Statements

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 include estimates of future financial performance, potential opportunities, expected product line expansions and additions, future acceptability of our content and our businesses, anticipated growth, and other statements that can be identified by terminology such as “may,” “will,” “should,” “could,” “position,” “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 or Emeril Lagasse by consumers, advertisers and business partners; further downturns in national and/or local economies; shifts in our business strategies; a loss of the services of Ms. Stewart or Mr. Lagasse; a loss of the services of other key personnel; a renewed softening of the domestic advertising market; changes in consumer reading, purchasing and/or television viewing patterns; failure to achieve results from Hallmark Channel broadcasting comparable to our expectations; 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; the inability to add to our partnerships or capitalize on existing partnerships; 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 most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission, especially under the heading “Risk Factors.” These reports 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.

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

		2010				2009
REVENUES
Publishing		$	30,038			$	27,053
Broadcasting			5,795				11,036
Internet			4,280				2,761
Merchandising			9,575				8,931
Total revenues			49,688				49,781
OPERATING COSTS AND EXPENSES
Production, distribution and editorial			29,184				29,732
Selling and promotion			14,803				13,232
General and administrative			11,982				16,402
Depreciation and amortization			1,627				2,096
Total operating costs and expenses			57,596				61,462
OPERATING LOSS			(7,908	)			(11,681	)
OTHER (EXPENSE) / INCOME
Interest income/(expense), net			46				(1	)
Loss on sale of fixed asset			(647	)			—
Gain on sale of short-term investments			403				—
Other			(5	)			—
Total other expense			(203	)			(1	)
LOSS BEFORE INCOME TAXES			(8,111	)			(11,682	)
Income tax provision			(475	)			(432	)
NET LOSS		$	(8,586	)		$	(12,114	)
LOSS PER SHARE — BASIC AND DILUTED
Net loss		$	(0.16	)		$	(0.22	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and Diluted			54,487				53,865

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

		2010				2009
REVENUES
Publishing		$	88,901			$	88,938
Broadcasting			26,076				31,859
Internet			12,044				9,543
Merchandising			31,200				26,867
Total revenues			158,221				157,207
OPERATING COSTS AND EXPENSES
Production, distribution and editorial			85,837				87,212
Selling and promotion			42,889				41,569
General and administrative			37,887				43,100
Depreciation and amortization			3,689				5,994
Impairment charge			—				12,600
Total operating costs and expenses			170,302				190,475
OPERATING LOSS			(12,081	)			(33,268	)
OTHER EXPENSE
Interest expense, net			(62	)			(91	)
Loss on sale of fixed asset			(647	)			—
Gain on sale of short-term investments			403				—
Loss on equity securities			—				(547	)
Other			(24	)			(236	)
Total other expense			(330	)			(874	)
LOSS BEFORE INCOME TAXES			(12,411	)			(34,142	)
Income tax provision			(1,289	)			(1,190	)
NET LOSS		$	(13,700	)		$	(35,332	)
LOSS PER SHARE — BASIC AND DILUTED
Net Loss		$	(0.25	)		$	(0.66	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic and diluted			54,416				53,817

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

		September 30,				December 31,
		2010				2009
		(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$	27,238			$	25,384
Short-term investments			14,167				13,085
Receivable — Sale of short-term investment			1,001				—
Accounts receivable, net			39,705				56,364
Inventory			5,285				5,166
Deferred television production costs			6,162				3,788
Other current assets			5,066				5,709
Total current assets			98,624				109,496
PROPERTY, PLANT AND EQUIPMENT, net			14,767				17,268
GOODWILL, net			45,107				45,107
OTHER INTANGIBLE ASSETS, net			46,550				47,070
OTHER NONCURRENT ASSETS, net			11,847				10,850
Total assets		$	216,895			$	229,791
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities		$	26,728			$	26,752
Accrued payroll and related costs			8,538				7,495
Current portion of deferred subscription income			15,935				18,587
Current portion of other deferred revenue			6,132				4,716
Current portion loan payable			1,500				—
Total current liabilities			58,833				57,550
DEFERRED SUBSCRIPTION INCOME			4,626				5,672
OTHER DEFERRED REVENUE			1,803				2,759
LOAN PAYABLE			9,000				13,500
DEFERRED INCOME TAX LIABILITY			4,208				3,200
OTHER NONCURRENT LIABILITIES			3,638				3,290
Total liabilities			82,108				85,971
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY
Class A common stock, $0.01 par value, 350,000 shares authorized: 28,433 and 28,313 shares outstanding in 2010 and 2009, respectively.			284				283
Class B common stock, $0.01 par value, 150,000 shares authorized: 26,568 and 26,690 shares outstanding in 2010 and 2009, respectively.			266				267
Capital in excess of par value			294,304				290,387
Accumulated deficit			(160,305	)			(146,605	)
Accumulated other comprehensive income			1,013				263
			135,562				144,595
Less class A treasury stock — 59 shares at cost			(775	)			(775	)
Total shareholders’ equity			134,787				143,820
Total liabilities and shareholders’ equity		$	216,895			$	229,791

Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Three Months Ended September 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/(loss), depreciation and amortization, and non-cash equity compensation are added back to operating income/(loss).

		2010				2009
ADJUSTED EBITDA
Publishing		$	(266	)		$	(1,457	)
Broadcasting			(3,459	)			1,893
Internet			(576	)			(1,415	)
Merchandising			5,464				4,252
Corporate			(6,739	)			(8,850	)
Adjusted EBITDA			(5,576	)			(5,577	)
NON-CASH EQUITY COMPENSATION
Publishing			33				967
Broadcasting			3				437
Internet			(15	)			163
Merchandising			(50	)			714
Corporate			734				1,727
Total Non-Cash Equity Compensation			705				4,008
DEPRECIATION AND AMORTIZATION
Publishing			69				56
Broadcasting			612				699
Internet			184				492
Merchandising			13				14
Corporate			749				835
Total Depreciation and Amortization			1,627				2,096
OPERATING (LOSS) / INCOME
Publishing			(368	)			(2,480	)
Broadcasting			(4,074	)			757
Internet			(745	)			(2,070	)
Merchandising			5,501				3,524
Corporate			(8,222	)			(11,412	)
Total Operating Loss			(7,908	)			(11,681	)
OTHER INCOME / (EXPENSE)
Interest income/(expense), net			46				(1	)
Loss on sale of fixed asset			(647	)			—
Gain on sale of short-term investments			403				—
Other			(5	)			—
Total other expense			(203	)			(1	)
LOSS BEFORE INCOME TAXES			(8,111	)			(11,682	)
Income tax provision			(475	)			(432	)
NET LOSS		$	(8,586	)		$	(12,114	)

Martha Stewart Living Omnimedia, Inc.
Supplemental Disclosures Regarding Non-GAAP Financial Information
Nine Months Ended September 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/(loss), depreciation and amortization, non-cash equity compensation, and non-cash impairment charges are added back to operating income/(loss).

		2010				2009
ADJUSTED EBITDA
Publishing		$	1,265			$	49
Broadcasting			(1,389	)			4,806
Internet			(1,650	)			(2,879	)
Merchandising			18,824				14,830
Corporate			(21,267	)			(24,611	)
Adjusted EBITDA			(4,217	)			(7,805	)
NON-CASH EQUITY COMPENSATION
Publishing			465				1,219
Broadcasting			217				700
Internet			17				234
Merchandising			635				1,123
Corporate			2,841				3,593
Total Non-Cash Equity Compensation			4,175				6,869
DEPRECIATION AND AMORTIZATION
Publishing			169				186
Broadcasting			748				837
Internet			753				1,461
Merchandising			35				49
Corporate			1,984				3,461
Total Depreciation and Amortization			3,689				5,994
IMPAIRMENT ON MERCHANDISING EQUITY INVESTMENTS			—				12,600
OPERATING (LOSS) / INCOME
Publishing			631				(1,356	)
Broadcasting			(2,354	)			3,269
Internet			(2,420	)			(4,574	)
Merchandising			18,154				1,058
Corporate			(26,092	)			(31,665	)
Total Operating Loss			(12,081	)			(33,268	)
OTHER INCOME / (EXPENSE)
Interest expense, net			(62	)			(91	)
Loss on sale of fixed asset			(647	)			—
Gain on sale of short-term investments			403				—
Loss on equity securities			—				(547	)
Other			(24	)			(236	)
Total other expense			(330	)			(874	)
LOSS BEFORE INCOME TAXES			(12,411	)			(34,142	)
Income tax provision			(1,289	)			(1,190	)
NET LOSS		$	(13,700	)		$	(35,332	)

CONTACT: Katherine Nash, Corporate Communications and Investor Relations, Martha Stewart Living Omnimedia, Inc., +1-212-827-8722, knash@marthastewart.com