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Hallmark Channel Acquires Exclusive License to Domestic Television Rights to Extensive Lifestyle Content from Library of Martha Stewart Living Omnimedia

Announcement of the deal, which underscores the network's commitment to the lifestyle genre generally and the Martha Stewart brand in particular, was made today by Bill Abbott, President and CEO, Hallmark Channels (Hallmark Channel and Hallmark Movie Channel), and Charles A. Koppelman, Executive Chairman of MSLO. Hallmark Channel is a cable television network owned and operated by Crown Media Holdings, Inc. (NASDAQ: CRWN).

Beginning March 29 (11 a.m. - 6 p.m. ET/PT), Hallmark Channel's lineup will include episodes from the library programs "From Martha's Kitchen," "From Martha's Home" and "From Martha's Garden." Other titles in the library, but not yet scheduled, are "Petkeeping with Marc Morrone," early seasons of "Everyday Food," "Martha Stewart Living" and assorted specials. Episodes of the series will also be presented in shorter blocks on Saturdays and Sundays (6 a.m. - 9 a.m. ET/PT) beginning April 3-4.

Hallmark Channel's prime time and weekend schedule will continue to feature its strong slate of popular Hallmark Channel Original Movies starring favorite stars of film and television, as well as specials, "Hallmark Hall of Fame" presentations and beloved acquired series.

"In addition to being genuinely informative and entertaining, this daytime programming block will showcase the diverse creativity that has long defined the Martha Stewart brand," said Abbott. "As we evolve our daytime lineup into a lifestyle and home orientation, this timeless content will serve as the ideal launch pad for and the perfect segue into the premiere of 'The Martha Stewart Show' in its new home on Hallmark Channel."

Koppelman stated: "This new arrangement provides an ideal home for our evergreen and ever popular library of Martha Stewart-branded how-to television programming. The agreement underscores the value of MSLO's library that has been developed over these years. The library includes many popular classics featuring Martha and MSLO's talented experts that our loyal fans as well as newcomers will be delighted to find with this additional programming block on Hallmark Channel."

Hallmark Channel, owned and operated by Crown Media Holdings, Inc. (NASDAQ: CRWN), is a 24-hour basic cable network that provides a diverse slate of high-quality entertainment programming available in high definition (HD) and standard definition (SD) to a national audience of nearly 90 million subscribers. The top tier program service is distributed through more than 5,450 cable systems and communities as well as direct-to-home satellite services across the country. Hallmark Channel consistently ranks among the highest-rated cable networks and is the nation's leading network in providing quality family programming. Hallmark Channel's sibling network is Hallmark Movie Channel, also available in HD and SD, which focuses on the greatest family movies of all time and is currently distributed to 33 million households. For more information, please visit www.hallmarkchannelpress.com. Become a fan of Hallmark Channel on Facebook and Twitter. For the latest news of celebrities doing good, www.CelebrityGoodLife.com.

Martha Stewart Living Omnimedia, Inc. (NYSE: MSO) is a diversified media and merchandising company, inspiring and engaging consumers with unique lifestyle content and distinctive products. The Publishing segment encompasses four 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, recipes, online workshops, community and personalization, as well as wedding-planning tools powered by WeddingWire and digital invitations with pingg.com. The Broadcasting segment produces such programming as the Emmy-winning daily, nationally syndicated television series, "The Martha Stewart Show," and Martha Stewart Living Radio on SIRIUS channel 112 and XM Radio 157. In addition to its media properties, MSLO offers high-quality Martha Stewart products through licensing agreements with carefully selected companies, including the Martha Stewart Collection exclusively at Macy's, the Martha Stewart Living line of home-improvement products at The Home Depot, Martha Stewart Crafts with EK Success at Michaels and independent retailers, Martha Stewart for 1-800-FLOWERS.COM, the forthcoming Martha Stewart Pets line at PetSmart and more. In 2008, Emeril Lagasse joined the Martha Stewart family of brands; MSLO acquired the assets related to Lagasse's media and merchandising business, including television programming, cookbooks, and emerils.com website and his licensed kitchen and food products. For additional information about MSLO, visit http://www.marthastewart.com/.

Become a fan of Martha Stewart on Facebook: www.facebook.com/MarthaStewartLiving

Follow Martha Stewart on Twitter: www.twitter.com/MarthaStewart

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Hallmark Channel
Mark J. Kern, 818-755-2626
mkern@hallmarkchannel.com
Nancy Carr, 818-755-2643
ncarr@hallmarkchannel.com
or
FerenComm for MSLO
Sheila Feren, 212-983-9898
sheilaf@ferencomm.com
or
MSLO
Elizabeth Estroff, 212-827-8281
eestroff@marthastewart.com
Media and Analysts:
Katherine Nash, 212-827-8722
knash@marthastewart.com