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Jennifer Lopez and Marc Anthony Disney’s Q1 FY08 as Jasmine and from Disney’s animated feature, Earnings Results Aladdin. page 2

Toy Story Trio Goes 3-D Page 2

New 2008 Blu-ray Initiatives page 3

High School Musical Live Around the World Page 4

ABC Picks Nine Series for Next Season page 5

ESPN, NBA form New China Entity page 5 Q1 FY08 Earnings Results On February 5th, The Company reported earnings for its first fiscal quarter ended December 29, 2007. Diluted earnings per share (EPS) for the quarter were $0.63. EPS in the prior-year quarter, which included gains on sales of our interests 2 premiered on U.S. in in E! Entertainment and Us Weekly, income from the discontinued August 2007 and attracted one of the largest audience ever for operations of the ABC Radio business, and an equity-based any basic-cable telecast with an initial viewership of 18.6 million. compensation plan modification charge that together increased It has now been seen by over 179 million total viewers around earnings by $0.30 per share, were $0.79. the world. Its soundtrack was the #2 album of 2007 in the U.S., achieving global sales of over 6.5 million. “We’ve started off 2008 with another outstanding quarter, marked by strong creative and operational performances,” said Robert A. The first movie,High School Musical, made its debut in January Iger, president and . “These results once 2006 on Disney Channel U.S., and has now been seen by 250 again highlight the quality of our content and our unique ability to million total viewers worldwide. It won two Emmy® Awards, a leverage it across our many businesses and territories.” DGA Award and a Television Critics Association Award, among others. The quadruple platinum soundtrack was the #1 album of For more information, please visit www.disney.com/investors. 2006. It was also the #1 TV movie on DVD for 2006 and became a best-selling series of junior novels and a popular consumer products franchise at mass retailers.

The Walt Disney Company’s $750 Million Medium-Term Note Trio Goes... Issuance Rated ‘A’

On December 3, 2007, Standard & Poor’s Ratings Services assigned its ‘A’ rating to the $750 million issue of 4.7% medium-term notes due 2012 offered by .

All ratings affected by this rating action can be found on Standard & Poor’s public Web site at www.standardandpoors.com.

The Walt Disney is taking the latest advances in digital 3-D technology “to infinity and beyond” with ambitious plans to debut new Disney Digital 3-D™ versions of Disney-’s Toy Story on October 2nd, 2009, and on February 12th, 2010, it was recently announced. Both of these animated features are being newly converted to 3-D in advance of the June 18th, 2010 release of Disney-Pixar’s , which is being Disney’s High School Musical produced as a 3-D motion picture and will represent the state-of- the-art for the genre. Veteran Pixar filmmaker (co- Stars Head to the Big Screen director Toy Story 2) is directing. All principal cast members from Disney’s High School Musical Academy Award®-winning filmmaker (director of – , , , , the first twoToy Story films and for Disney and – will be reunited on the big and Pixar Studios) will personally oversee the creative screen for ’ upcoming ,High side of the 3-D conversions for Toy Story and Toy Story 2 with his School Musical 3: Senior Year, it was recently announced. acclaimed team.

Page 2 Ratatouille and ‘No Country’ High-Definition Successor to Score at the Oscars DVD to Be Showcased in New Cities across North America Ratatouille, the critically acclaimed computer-animated feature from Following overwhelming consumer and media response of Blu-ray Walt Disney Pictures and Pixar technology being the leading format of choice for home entertain- Animation Studios, recently won the ment - Walt Disney Studios Home Entertainment and Panasonic Oscar® for ‘Best Animated Feature Electronics recently announced the official extension of Disney’s Film of the Year’ at the 80th Annual Magical Blu-ray Tour to visit seven additional North American ceremony after re- cities in 2008. ceiving five nominations, the most ever for a Disney/Pixar film. ’s No Country Blu-ray Mall Tour Schedule for Old Men won four MALL LOCATION EVENT DATES Academy Awards including ‘Best Motion Picture of the Year.’ Cool Springs Galleria Nashville, TN February 28 - March 1 North East Mall Hurst, TX March 7-9 Other winners include Daniel Day-Lewis, who won Flat Iron Crossing , CO March 14-16 for Best Actor in Miramax’s There Will Be Blood. UNITY 2008 Convention , IL July 23-27 Javier Bardem won Best Supporting Actor for his work in No Country for Old Men, and Joel And Ethan Coen won Best Director and Best Adapted Screenplay honors, also for No For the Q1 FY08 Walt Disney Studios Home Entertainment Country for Old Men. No Country for Old Men and There Will Be Release Slate, please see Pages 9 and 10. Blood are co-productions with .

For the Q1 FY08 Walt Disney Studios Release Slate, please News from turn to Page 9.

News from

Walt Disney Records Gets the Party Started with 2 Non-Stop Dance Party Walt Disney Studios Home Entertainment Rolls into 2008 threw a full-on non-stop dance party with the with Blu-ray™ release of the Hannah Montana 2 Non-Stop Dance Party CD on January 29, 2008. Walt Disney Studios Home Entertainment (WDSHE) recently announced an exciting new line-up of Blu-ray initiatives in Following up on last summer’s #1 Billboard 200 release: 2008, an ever-expanding Blu-ray slate and new technological- Hannah Montana 2 / Meet two disc set – and on the advancements in bonus feature materials, all which guarantee a phenomenally successful 70-date Best of Both Worlds Tour – the superior high-definition home entertainment experience. Hannah Montana 2 Non-Stop For the first time ever, Disney will begin releasing its treasured Dance Party CD animated classics on Platinum Edition Blu-ray Disc™ launching is a fresh mix of with Sleeping Beauty in the fall of 2008. the complete hits from Disney/Pixar’s Blu-ray Disc will debut the first the Hannah Cine-Explore featuring full motion picture-in-picture (BonusView). Montana Finding Nemo will also feature an all-new enhanced home theater 2 disc, mix in 7.1 surround sound. remixed into one As part of its continued worldwide Blu-ray release strategy, Disney continuous will be announcing the addition of many exciting movie titles to dance their 2008 Blu-ray line-up in North America, Europe and Asia. party mix.

Page 3 News from Disney Theatrical Productions

Live Productions of High School Musical Fill Stages and Arenas Around The World

While on DVD continues to fly off shelves and High School Musical 3 gets ready to roll for the cameras, has audiences flocking to live stage and ice productions around the world in record numbers.

High School Musical On Tour!, which officially opened in Chicago on August 1, 2007, has just announced more domestic dates. By the end of 2008, High School Musical On Tour!, produced by

Disney Theatrical Productions, will Disney’s Continues have played 42 cities in over 60 weeks. Visit www.highschoolmusicalontour.com. to Roar Across the Globe

High School Musical: The Ice Tour, which incorporates both Disney’s The Lion King, now in its eleventh year on Broadway, the story and music from High School Musical and High School continues to dominate the theatrical landscape across the globe. Musical 2, continues to do sell-out business in both the US and With over 45 million audience members worldwide to date, the abroad, reaching over 1.8 million guests around the globe since theatrical life of Disney’s biggest stage hit seems to have no end in its premiere on August 31st. Based upon this success, the US tour sight. will be extended through May of 2009. The Johannesburg production of The Lion King recently concluded On the international front, the show will return to the UK its historic South African run at The Teatro at Montecasino on year. In other territories, the show has completed successful February 17th, marking the closing of the longest-running stage engagements in Italy, Spain and . production in South African history. Visit http://disney.go.com/disneylive/highschoolmusical/. Disney Theatrical Group also recently announced that after an unprecedented six seasons of touring two companies of The Lion King, one of the two record-setting tours would complete its final stop in , WI on March 2. As demand for the production remains strong, the second tour will continue indefinitely. Together the two tours have played to a combined audience of over 10 million people to date since the two tours began.

For more information, visit http://www.lionkingtour.com.

Page 4 News From

News From NBA Forms New China Entity ABC Television Network The National Basketball Association recently announced the ABC Entertainment Picks Up formation of NBA China, a new entity that will conduct all of the Nine Series for Next Season league’s businesses in Greater China.

On February 11th, ABC Entertainment announced pickups for Five strategic partners will invest $253 million to acquire 11% of nine of its most popular shows, returning broadcast television’s the company in preferred equity. The strategic partners are ESPN, most successful fall series. ABC Entertainment ordered episodes Bank of China Group Investment, Legend Holdings Limited, Li Ka of Brothers & Sisters, , Dirty Sexy Money, Shing Foundation and China Merchants Investments. Grey’s Anatomy, Lost, Private Practice, Pushing Daisies, Samantha Who? and Ugly Betty. Tim Chen, the former CEO of Greater China, joined the NBA on October 15, 2007, and will lead the new entity as On average during Fall 2007 (10 complete weeks: 9/24-12/2/07), its CEO. NBA China will be governed by a Board of Directors ABC was the No. 1 network among Adults 18-49, delivering the that will include representatives of the strategic investors as well top position in the key young adult sales demo on 7 of the first 10 as Indiana Pacers owner Herb Simon, Timberwolves weeks of the season and ranking No. 1 during the November Sweep owner Glen Taylor and NBA executives Adam Silver, Deputy for the third consecutive year. In addition, ABC claimed eight of the Commissioner and COO, Heidi Ueberroth, President of Global Top 20 highest-rated TV shows among young adults during the fall, Marketing Partnerships and International Business Operations, and including five of the Top 10 freshman series. Commissioner Stern.

The NBA has interacted with Chinese basketball for decades, including first hosting the Chinese National team in 1985 and regularly providing training for the Team through U.S. coaching clinics, exhibition matches and an invitation to the 2007 NBA Summer League. The NBA currently has relationships with 51 Chinese telecasters including a partnership of more than 20 years with national broadcaster CCTV, has organized hundreds of touring basketball events for fans and currently maintains 16 marketing partnerships with a combination of Chinese-based corporations and U.S.-based multinationals.

ESPN.com Enters Content Agreement with Major League Gaming

ESPN.com, the leading online sports destination, recently announced it has entered a content agreement with Major League Gaming (MLG), the leading professional video game league. ESPN will serve as a primary outlet for news about MLG, providing extensive digital coverage of MLG’s 2008 Pro Circuit Competitions, including exclusive streamed matches, pro player interviews, and scores and stats. Additionally, MLG will host ESPN co-branded online video game tournaments.

Page 5 ESPN Winter X Games 12 News From Sets Records for Exposure Disney Cable Networks Across Multiple Outlets

A record number of fans consumed the extensive Winter Playhouse Disney Gives X Games 12 content featured across ESPN’s many global Preschoolers a Greener ESPN and ABC distribution platforms, including television, Start to the New Year Internet, iPod and more. The multimedia offerings provided complete coverage of the world’s leading winter action sports Playhouse Disney competition, held January 24-27 in Aspen, Colorado, to fans recently announced everywhere. it is joining forces • Television: Winter X Games 12 was ESPN’s most-watched with the Pre- Winter X Games in history. school Learning • Internet: EXPN.com and ESPN360.com offered more than Alliance on 40 hours of live online programming. EXPN.com grew its the biggest daily unique visitors by 288% over the audience recorded ever trial of during the 2006 Winter X Games. educational materials to teach • Mobile - ESPN Mobile TV and ESPN MVP: ESPN Mobile preschoolers about TV offered 25 hours of live Winter X Games 12 coverage. the environment • ESPN International: Winter X Games 12, for the first through play. The time, aired live in Australia, New Zealand, Israel, trial will see 7,300 Africa and the Middle East. The event appeared on ESPN’s nurseries receive a International networks in more than 121 countries and free pack as part of territories in Latin America, the Pacific Rim, the Middle Playhouse Disney’s East and Africa. Playing for the Planet campaign launched earlier • Content was also available on iTunes, Interactive mosaic last year. application on DISH Network and Xbox Live. The move follows new independent research*, which found that 3 out of 4 parents (74%) believe the subject of the environment should be included on the preschool curriculum.

Interstitials regarding the program can be viewed at playhousedisney.co.uk/playingfortheplanet.

*Gfk NOP surveyed 2000 adults via omnibus on the 4th to 6th and 11th to 13th May 2007

News From The Walt Disney Internet Group

Walt Disney Internet Group Acquires iParenting Media

The Walt Disney Internet Group has acquired iParenting Media (www.iParenting.com) in a move that adds to its already strong line-up of family-targeted Web properties within Disney Online, including Disney Family.com, FamilyFun.com and Wondertime.com. With the acquisition, Disney Online gains iParenting’s vast resources, quality content and vibrant community that serves families, young parents and parents-to- be in English and Spanish. iParenting’s content and services will be integrated into Disney’s network of family targeted sites.

Page 6 Disney Parks to Create Attraction based on Pop Culture Phenomenon

Walt Disney Parks and Resorts will create an American Idol attraction that will bring the television and pop culture phenomenon to life at Resort in Florida.

The attraction, slated to debut in late 2008, will be located at Disney’s Hollywood Studios theme park and will follow the model of the high-energy show. Disney guests will be able to experience Stars Live Out Their the challenge of auditioning, the rush of performing on stage in competition, or the thrill of judging the performances in a live Disney Fantasies interactive entertainment setting with all the glitz and glamour of From Never Land to flying carpets to the forested domain of the distinctive American Idol set. an Indian princess, stars travel to their very own Fantasylands in a new round of celebrity images from famed photographer Annie Leibovitz. Stars in the new images include Jennifer Lopez (Jasmine) and husband Marc Anthony (Aladdin), Whoopi Goldberg (Genie), Gisele Bündchen (Wendy Darling), Mikhail Baryshnikov (), (Tinker Bell) and Jessica Biel ().

The new images continue the “Disney Dream Portrait Series” of celebrity photography produced by Leibovitz as Disney Parks extends, through 2008, its “Year of a Million Dreams” celebration on both coasts. Leibovitz’s images capture the transformational power of Disney dreams during a celebration that invites visitors to live out their own Disney dreams as never before at ’s and Florida’s Walt Disney World resorts.

For information about “The Year of a Million Dreams” celebration, visit disneyparks.com.

Disneyland Resort to showcase Innoventions Dream Home

The recently announced a five-year alliance with Microsoft, HP, Life|ware and home builder Taylor Morrison to showcase integrated digital technologies for the home in the immersive, story-telling experiences. The alliance includes the design and development of the new Innoventions Dream Home attraction, a 5,000+ sq. ft. home belonging to the fictional Elias family, scheduled to open in May in Tomorrowland at the Disneyland Resort.

Keeping with Walt’s vision of bringing cutting-edge and inspiring ideas to Tomorrowland, the Innoventions Dream Home will introduce Disneyland guests to newly available technology from the participating companies that will enhance their lives today, while providing them a glimpse of the emerging digital advances they may find in their homes in the future.

Page 7 this season’s must-have gift lists. Sales of Disney video games, book titles and electronics inspired by Disney Channel hits High School Musical and Hannah Montana have been ahead of last year at key retailers and online at DisneyShopping.com. Joining these tween-targeted holiday hits were best-selling toys including Pat Pat Rocket from Disney Channel’s hit Playhouse Disney series Little Studios Names Einsteins, and the Disney Flix VideoCam, each of which sold out Jean-Marcel Nicolai as Senior Vice several times during the 2007 shopping season.

President, Global Production The craze that began with the release of the Disney/Pixar blockbuster, continued driving sales through the 2007 holiday Disney Interactive Studios recently announced the addition of shopping season. More than 53 million die casts have shipped Jean-Marcel Nicolai to its executive team as senior , to date and Cars is now the #1 selling licensed party pattern for global production. He will oversee Disney’s worldwide video game two years running. Lightning McQueen-themed Crocs and Cars- production including the company’s five internal development themed furniture, bedding and room décor were also top sellers in studios, externally developed projects and future expansion. 2007. Cars was the #1 best selling toy property in the US vehicles Nicolai will be based at headquarters in Glendale, Calif. reporting category for 2007, according to the NPD Group. to Graham Hopper, executive vice president and general manager.

Nicolai comes to Disney Interactive Studios after seven years with , the U.S. division of Infogrames Entertainment, where he was responsible for leading and managing five internal studios, external product development, production support and technology development in the dual role of senior vice president, product development and chief technology officer. Under his executive purview, Atari delivered titles such as Test Drive Unlimited, Never Winter Nights, Dragon Ball Z®, and The Matrix: Path of Neo™.

THQ Announces Plans to Launch Disney/Pixar’s WALL-E Across All Major Gaming Systems

THQ recently announced plans to release the WALL-E video game in conjunction with the film’s theatrical debut from Disney/Pixar in the summer of 2008. WALL-E is anticipated to launch across all major gaming systems including the Xbox 360® video game and entertainment system from Microsoft, PLAYSTATION®3 computer entertainment system, PlayStation®2 computer isney s oliday est D ’ 2007 H B entertainment system, PSP® system, Wii™ home video game Sellers Top Consumer Wish Lists system, Nintendo DS™, Windows PC and Mac, as well as wireless devices. Hannah Montana and High School Musical-Themed Video Games, Book Titles and Electronics Join Toys from Cars, WALL-E is expected to release this summer and will mark THQ’s and Little Einsteins as Season’s Most Popular Gifts next installment in the company’s well-established and successful association with Disney/Pixar. With the conclusion of the recent holiday shopping season, tweens and families made it clear that Disney was at the top of

Page 8 Walt Disney Studios Q2 FY08 Release Slate Q2 FY08 Q2 FY07 Title Studio Date Title Studio Date Hannah Montana: Disney 2/1/08 Primeval Hollywood 1/12/07 Best of Both Worlds Bridge to Terabithia Disney 2/16/07 Step Up 2 Touchstone 2/14/08 Wild Hogs Touchstone 3/2/07 City of Men Miramax 2/29/08 The Lookout Miramax 3/30/07 College Road Trip Disney 3/7/08 Disney 3/30/07 Prom Night* Miramax Q2 * Miramax will not distribute domestically.

Walt Disney Studios Home Entertainment Q2 FY08 Release Slate

Q2 FY08 Q2 FY07 Title Date Title Date The Game Plan 1/22/08 The Night Listener 1/9/07 Hannah Montana: One In A Million 1/29/08 1/23/07 Snow Buddies 2/5/08 III 2/6/07 Aristocats: Special Edition 2/5/08 The Prestige 2/20/07 Becoming Jane 2/12/08 Peter Pan 3/6/07 Gone Baby Gone 2/12/08 101 Dalmations 3/4/08 No Country for Old Men 3/11/08 Dan in Real Life 3/11/08 Enchanted 3/18/08

Page 9 Walt Disney Studios Blu ray Release Schedule Day and date release with DVD North America

Title Banner Date The Rock January 8 January 8 The Game Plan Walt Disney Pictures January 22 Crimson Tide Hollywood Pictures February 5 Gone Baby Gone Miramax February 12 Becoming Jane Miramax February 12 The Rookie Walt Disney Pictures March 4 Dan In Real Life Touchstone Pictures March 11 Enchanted Walt Disney Pictures March 18 Hidalgo Touchstone Pictures spring 2008 Coyote Ugly: The Double Shot Edition Touchstone Pictures spring 2008 Unbreakable Touchstone Pictures spring 2008 The Chronicles of Narnia: The Lion, The Witch and The Wardrobe Walt Disney Pictures spring 2008 National Treasure: Collector’s Edition Walt Disney Pictures spring 2008 Europe/Australia

Title Banner Date The Recruit Touchstone Pictures January 2008 Dark Water Touchstone Pictures February 2008 Underdog Walt Disney Pictures February 2008 Starsky & Hutch February 2008 Coyote Ugly Touchstone Pictures March 2008 The Rookie Walt Disney Pictures March 2008 Hidalgo Touchstone Pictures April 2008 Gone Baby Gone Miramax April 2008 Signs Touchstone Pictures May 2008 There Will Be Blood Miramax May 2008 Shall We Dance Miramax May 2008 Ladder 49 Touchstone Pictures May 2008 The Chronicles of Narnia: The Lion, The Witch and The Wardrobe Walt Disney Pictures May 2008 National Treasure: Collector’s Edition Walt Disney Pictures May 2008 The Game Plan Walt Disney Pictures summer 2008 Unbreakable Touchstone Pictures summer 2008

Title Banner Date Hollywoodland Miramax February 2008 The Rookie Walt Disney Pictures April 2008 Hidalgo Touchstone Pictures April 2008 Meet The Robinsons Walt Disney Pictures April 2008 Starsky & Hutch Buena Vista April 2008 The Chronicles of Narnia: The Lion, The Witch and The Wardrobe Walt Disney Pictures May 2008 Coyote Ugly Touchstone Pictures May 2008 National Treasure: Collector’s Edition Walt Disney Pictures May 2008 Unbreakable Touchstone Pictures summer 2008 Signs Touchstone Pictures summer 2008

Page 10 12/29/2008 12/30/2007 6/30/2008 7/1/2007 # Subscribers # Subscribers # Nielsen Households # Nielsen Households (in millions) (in millions) (in millions) (in millions) (a) 94.8 89.7 ESPN 96.7 92.3 United Kingdom 8.9 8.8 ESPN2 96.3 91.8 France 4.3 1.9 ESPN Classic 62.8 64.4 Germany (k) 2.4 2.4 ESPNEWS 63.0 54.3 full-time Italy 4.3 3.8 Other Cable Properties Spain 2.0 2.1 6/30/2008 7/1/2007 Portugal 0.3 0.3 # Nielsen Households # Nielsen Households (in millions) (in millions) Middle East (e) 0.4 0.3 Scandinavia (d) 4.2 3.2 A & E Channel 96.1 91.6 South Africa (i) 1.5 1.3 Lifetime Channel 96.3 91.8 Poland (j) 2.4 1.3 The History Channel 95.3 91.1 Turkey 0.9 N/A E! Entertainment (k) 0.0 89.4 Asia (b) 2.3 2.1 A & E International (c) 93.0 76.0 Australia (g) 2.7 3.0 67.6 58.5 India (h) 5.2 3.4 Lifetime Movie Channel 58.3 52.2 Taiwan 5.7 5.4 SOAPnet 67.4 55.8 Japan (f) 3.9 4.7 Style (k) 0.0 44.2 Korea (l) 2.5 - Biography 47.3 41.2 Latin America (c) 17.3 11.3 History Int’l 46.9 40.8 Int’l Sub-Total 71.2 55.3 Lifetime Real Women (c) 9.3 16.1 Worldwide Total 166.0 145.0

ABC Family Channels 3/31/2008 4/1/2007 # Subscribers # Subscribers (in millions) (in millions) ABC Family 95.3 91.0 Jetix Europe (c) 50.6 46.2 Jetix 18.9 14.6 Latin America (c)

(a) Nielsen households; International Disney Channels reflect reported subscribers. (b) Includes Brunei, Cambodia, Hong Kong, Indonesia, Malaysia, Palau, Papua New Guinea, Singapore, Thailand, and Vietnam. (c) Not tracked by Nielsen (d) Channel launched 28 February 2003. Includes Sweden, Norway and , Aug ‘05 launched on Teledenmark, Canal Digital, and in Finland (e) Estimated data (f) Channel launched 18 Nov 2003. (g) Numbers include New Zealand territory following launch in December 03. (h) Channel launched 17 Dec 04. (i) Channel launched 25 September 2006 (j) Channel launched 02 December 2006. (k) E! was sold on 11/21/06. Style is part of E! consolidated networks. (l) Korea separately stated from Japan starting FY’08

Page 11 Please note: This newsletter has been prepared by the Investor Relations group of The Walt Disney Company solely for the information of shareholders of the company. It is not intended to be a recommendation with respect to any particular investment decision. All information contained in this newsletter is presented as of the date indicated below, and the company assumes no duty to confirm, revise or update the information. Certain statements in this newsletter may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are made on the basis of the views and assumptions of the management of The Walt Disney Company regarding future events and business performance as of the time the statements are made and it does not undertake any obligation to update these statements. Actual results may differ materially from those expressed or implied. Such differences may result from actions taken by the company, including restructuring or strategic initiatives (including capital investments or asset acquisitions or dispositions), as well as from developments beyond the company’s control, including: adverse weather conditions or natural disasters; health concerns; international, political or military developments; technological developments; and changes in domestic and global economic conditions, competitive conditions and consumer preferences. Such developments may affect assumptions regarding the operations of the business of The Walt Disney Company including, among other things, the performance of the company’s theatrical and home entertainment releases, expenses of providing medical and pension benefits, and demand for products and performance of some or all company businesses either directly or through their impact on those who distribute our products. Additional factors that may affect results are set forth in the Annual Report on Form 10-K of The Walt Disney Company for the year ended September 29, 2007 under the heading “Item 1A—Risk Factors“and subsequent filings. Reconciliations of non-GAAP financial measures to equivalent GAAP financial measures are available on Disney’s Investor Relations website.

February 28, 2008 – Burbank, CA

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