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Macy's to Launch Martha Stewart Line POSTED April 7, 2006 NEW YORK -- Federated Department Stores and Martha Stewart Living Omnimedia announced an agreement to develop an all-new line of Martha Stewart Collection home merchandise exclusively for Macy's. It is expected to debut in fall 2007 in Macy's stores across America, as well as on macys.com. The Martha Stewart Collection line will encompass a broad range of home goods -- including bed and bath textiles, housewares, casual dinnerware, flatware and glassware, cookware, holiday decorating and trim-a-tree items -- developed especially for the more upscale, traditional Macy's customer. Macy's also expects to sell other Martha Stewart-branded products, potentially including home furnishings, holiday celebration concepts, bridal registry items and a full assortment of "how-to" books and cookbooks, as well as merchandise in categories new to Macy's, such as outdoor entertainment and holiday-specific food preparation. Merchandise will be created by the MSLO design team under Martha Stewart's direction and supervision. Macy's will coordinate manufacturing and distribution to its stores and direct-to-customer channels, as well as marketing to consumers. When launched, the new Martha Stewart Collection line will join a portfolio of high-quality home brands at Macy's that appeal to various lifestyle needs of customers, and that are rooted in long-standing vendor partnerships. The Macy's home assortment will continue to feature a wide variety of status and designer brands, as well as Macy's own private brands, including Charter Club, Hotel Collection, Tools of the Trade and The Cellar. "Our partnership with Martha Stewart is a big opportunity for Macy's and represents an exciting new direction that will create an enhanced shopping experience and attract new customers to Macy's," said Terry Lundgren, Federated's chairman, president and chief executive officer. "This is a clear example of the new and distinctive merchandise that our customers can continue to expect as Macy's emerges as a truly national brand offering our customers fashion and affordable luxury. New product designed by the Martha Stewart team will be available only at Macy's." "Martha Stewart is widely recognized across America as the genuine authority on home decorating, graceful entertaining, holiday celebrations, weddings and cooking," said Federated Vice Chair Janet E. Grove, who also serves as chairman of Macy's Merchandising Group. "Our research shows that Macy's customers respect Martha Stewart's creativity and taste, and they turn to her for products that express a traditional and updated casual style, consistent with the life that many of our customers aspire to live. "We are extremely pleased to introduce our new Martha Stewart Collection of home goods at Macy's, the leading upscale home retailer in the U.S," said Martha Stewart. "It has been our long-standing goal to provide consumers with beautifully designed, finely manufactured merchandise at great prices in all of the places they shop. MSLO has many thoughtful and creative ideas for contemporary, elegant, and inspired products. We look forward to introducing all of these to Macy's customers next year." Stewart currently has a line of home products and accessories in K-Mart stores called Martha Stewart Everyday.

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