'She was very, very sad,' says Bellevue friend

Martha Stewart was silent as she left the courthouse in New York yesterday, but not long afterward, she was on the phone with her friend Charles Simonyi, a former Microsoft engineer in Bellevue.

"She was calm, she was very concerned about Alexis, her daughter, and she was very, very sad," Simonyi said in an interview with The Seattle Times.

Simonyi said he stands by his friend and disagrees with the verdict. He said she'll be fine "in the long run absolutely, but I don't think anyone should underestimate the horrible damage that's already been done at her organization and her terrific work."

"I do feel she's obviously being made an example and I don't think that's made very clear by, for example, the U.S. attorney," Simonyi said.

Simonyi's friendship with Stewart was disclosed in 1997 when the engineer behind some of Microsoft's biggest products told The Times, "Martha and I are good friends. We discuss modern architecture, modern art and the coming cyber-economy. These are subjects Martha knows a lot about, so it is more of a brainstorm than a 'chintz for programs' barter."

Yesterday, Simonyi said that, before the verdict, Stewart was expecting to prevail.

"She was very optimistic, knowing her inner sense, and she fully expected to be exonerated — that wasn't a facade," he said. "So it's a different set of circumstances at this point."

Simonyi declined to discuss whether the outcome was too harsh.

"It's not an issue of proportionality, it's a question of guilt or innocence," he said. "It's not like it's a disproportionate verdict; it's a verdict that maybe is not founded in facts, but that's a matter for appeal."

A Hungarian immigrant and renowned programmer, Simonyi led the development of Word, Excel and other productivity applications that helped build the market for personal computers.

He left Microsoft in 2002 to start Intentional Software, a Bellevue company that's developing advanced programming tools.

A billionaire, Simonyi is also an art collector and patron. In January, he created a $50 million foundation to fund arts, science and education ventures, starting with $10 million for the Seattle Symphony.

Stewart has visited his waterfront mansion and attended Microsoft Chairman Bill Gates' annual CEO Summit, which includes a dinner at the Gates place down the road in Medina.

"She travels in many areas in search of ideas and style and yes, she visited this area many times," Simonyi said.

Stewart has also traveled on Simonyi's yacht. Last year, she told a New Yorker reporter about how they had encountered a U.S. Navy ship near Malta and sent a dinghy to invite its officers over for New Year's Eve cocktails.

Their friendship figured in the trial. Among the evidence introduced by prosecutors was an e-mail Stewart sent to Simonyi in September 2001, two months before she sold her stock in ImClone, the company whose founder Sam Waksal is now serving seven years for insider trading.

Stewart's mail to Simonyi said "imclone is great — sam did pull off a coup," The New York Times reported.

Simonyi said Stewart's friends remain supportive. "I think that people who know Martha will continue to support her," he said.

As for the appeal, Simonyi declined to discuss specifics.

"I think it's just a sad day," he said, "and we can only hope that process will play out in a fairer and more charitable way."

Brier Dudley: 206-515-5687 or bdudley@seattletimes.com