ABC Upfront presentAtion

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Disney tAkes Control of north AmeriCAn

Disney stores

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June 27

stUDio rolls oUt

AnimAtion slAte

throUgh 2012page 2

Disney’s Q2 fy08eArnings resUlts

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CAmp roCk set for WorlDWiDe roll oUt

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Shareholders of The Walt Disney Company at the 2008 Annual Meeting elected all 12 members of the Board of Directors and supported Board recommendations on the Company’s auditor and stock and executive compensation plans.

On May 6, 2008, The Walt Disney Company reported earnings for the second fiscal quarter and six months ended March 29, 2008. Diluted earnings per share (EPS) for the second quarter increased to $0.58, compared to $0.44 in the prior-year quarter. Earnings per share from continuing operations in the prior-year quarter totaled $0.43.

For the six-month period, diluted EPS was $1.21. EPS for the prior-year six month period, which included gains on sales of our interests in E! Entertainment and Us Weekly, income from the discontinued operations of the ABC Radio business, and an equity-based compensation plan modification charge, which were all recognized in the first quarter of fiscal 2007, were $1.24. Excluding these items, EPS for the six-month period increased 30% to $1.21 from $0.93 in the prior-year six months.

“We had an outstanding quarter financially and creatively at The Walt Disney Company,” said Robert A. Iger, president and chief executive officer. “This performance demonstrates how The Disney Difference gives us a critical and sustainable market advantage. That difference centers on our proven ability to create high-quality content across our wide-ranging distribution and promotional platforms, allowing us to leverage our hits and grow our company.”

For further details, including reconciliations of non-GAAP measures to their GAAP equivalents, please visit www.disney.com/investors.

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Q2 FY08earnings results

Swinging into theatres November 26th, is Walt Disney Pictures’ feature

animation, Bolt.

Shareholders Re-Elect All 12 Directors at The Walt Disney

Company Annual Meeting

the Walt DisneY stuDios rolls out slate oF 10 neW animateD motion pictures through 2012

The Walt Disney Studios recently unveiled a diverse and ambitious slate of 10 new animated feature films from Walt Disney and Pixar Animation Studios to be released through the year 2012.

The line-up includes new films from Disney and Pixar’s accomplished team of filmmakers, and features vocal performances by top celebrity talents. The roster of new animated features includes six new films from Pixar Animation Studios, four from Walt Disney Animation Studios, and the first four in a series of direct-to-DVD films featuring Disney Fairies from DisneyToon Studios.

Starting later this year with the release of Disney’s Bolt, with the exception of Princess and the Frog, all Disney and Pixar animated

features will be presented in state-of-the-art Disney Digital 3-D™. Additionally, newly converted 3-D versions of the beloved classics, Toy Story and Toy Story 2, are set

to debut in 2009 and 2010 respectively.

RELEASE SCHEDULE 2008 - 2012:

WALL•E(Domestic Release Date: June 27th, 2008)Pixar Animation StudiosDirector/Screenwriter: Andrew StantonVoice Talent: Fred Willard, Jeff Garlin, Sigourney Weaver, JohnRatzenberger, Kathy Najimy

BOLT(Domestic Release Date: Nov. 26th, 2008, Disney Digital 3-D™)Walt Disney Animation StudiosDirectors: Chris Williams, Byron HowardVoice Talent: John Travolta, Miley Cyrus, Susie Essman

TINKER BELL(Disney DVD and Blu-ray Release Date: Oct. 28th, 2008)DisneyToon StudiosDirector: Bradley Raymond

UP (Domestic Release Date: May 29th, 2009, Disney Digital 3-D™)Pixar Animation StudiosDirector: Pete DocterVoice Talent: Ed Asner, Christopher Plummer, John Ratzenberger, Jordan Nagai

TOY STORY in 3-D (Domestic Release Date: Oct. 2nd, 2009)Pixar Animation StudiosDirector: John LasseterVoice Talent: Tom Hanks, Tim Allen, Don Rickles, Jim Varney, Wallace Shawn, John Ratzenberger

THE PRINCESS AND THE FROG(Domestic Release Date: Christmas 2009)Walt Disney Animation StudiosDirectors: John Musker, Ron ClementsVoice Talent: Anika Noni Rose, Keith David, Jenifer Lewis, John Goodman

TINKER BELL NORTH OF NEVER LAND*(Disney DVD and Blu-ray Release Date: 2009)DisneyToon StudiosDirector: Klay Hall

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2009

2010

2012

2011

* indicates a working title

TOY STORY 2 in 3-D(Domestic Release Date: Feb. 12th, 2010)Pixar Animation StudiosDirector: John LasseterVoice Talent: Tom Hanks, Tim Allen, Joan Cusack, Kelsey Grammer, Don Rickles, Estelle Harris, Jim Varney, Wallace Shawn, John Ratzenberger

TOY STORY 3(Domestic Release Date: June 18th, 2010, Disney Digital 3-D™)Pixar Animation StudiosDirector: Lee UnkrichVoice Talent: Tom Hanks, Tim Allen, Joan Cusack, Don Rickles, Wallace Shawn, Estelle Harris, John Ratzenberger, Ned Beatty

RAPUNZEL(Domestic Release Date: Christmas 2010, Disney Digital 3-D™)Walt Disney Animation StudiosDirectors: Glen Keane, Dean Wellins

TINKER BELL A MIDSUMMER STORM*(Disney DVD and Blu-ray Release Date: 2010)DisneyToon StudiosDirector: Carolyn Gair

NEWT (Domestic Release Date: Summer 2011, Disney Digital 3-D™)Pixar Animation StudiosDirector: Gary Rydstrom

THE BEAR AND THE BOW (Domestic Release Date: Christmas 2011, Disney Digital 3-D™)Pixar Animation StudiosDirector: Brenda ChapmanVoice Talent: Reese Witherspoon, Billy Connolly, Emma Thompson

TINKER BELL A WINTER STORY* (Disney DVD and Blu-ray Release Date: 2011)DisneyToon StudiosProducer: Sean Lurie

CARS 2(Domestic Release Date: Summer 2012, Disney Digital 3-D™)Pixar Animation StudiosDirector: Brad Lewis

KING OF THE ELVES (Domestic Release Date: Christmas 2012, Disney Digital 3-D™)Walt Disney Animation StudiosDirectors: Aaron Blaise, Robert Walker

2008

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the Walt DisneY stuDios launch

The Walt Disney Studios is launching Disneynature, a prestigious new production banner that will literally go to the ends of the earth to produce major big screen nature documentaries, Walt Disney Studios chairman Dick Cook announced.

Disney veteran Jean-Francois Camilleri, who has served as senior vice president and general manager for Walt Disney Studios Motion Pictures France, will head the new unit, which will be based in France.

Among the first films to be released domestically under the new label will be Earth, from award-winning British producer/director Alastair Fothergill, whose credits include the landmark Planet Earth series for the BBC and The Discovery Channel and The Blue Planet. Earth, which is produced by BBC Worldwide and Greenlight Media and co-directed by Mark Linfield, will take us on a tour of our home planet as we’ve never seen it before. It will be narrated by renowned actor James Earl Jones and will premiere theatrically on Earth Day, April 22, 2009. The film will also be released under the Disneynature banner in Latin America.

Among the other Disneynature projects currently in development or production are:

C The Crimson Wing: Mystery of the Flamingos Worldwide roll-out begins December 2008

C Oceans Domestic release 2010

C Orangutans: One Minute to Midnight Worldwide release 2010

C Big Cats Worldwide release 2011

C Naked Beauty: A Love Story that Feeds the Earth Worldwide release 2011

C Chimpanzee Worldwide release 2012

For more updates go to http://www.disney.com/nature (domestic) and http://www.disneynature.com (international).

For the Q3 FY08 Walt Disney Studios Release Slate, please turn to page 12.

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Disney Live! Presents Three Classic Fairy Tales Worldwide

The time-honored stories of Snow White and the Seven Dwarfs, Cinderella and Beauty and the Beast will spring from the storybooks and onto the stage in Disney Live! presents Three Classic Fairy Tales, it was recently announced.

The first Disney Live! show will debut in Asia. It will make its debut at the Shanghai Oriental Art Center in Shanghai on Tuesday, May 27 and then continue to Beijing and nine other cities in China before heading to other destinations throughout Asia.

For Walt Disney Studios Home Entertainment Release Slates, please turn to Page 12.

The Lion King Receives 3 Moliere Awards

The Lion King (‘Le Roi Lion’) received three Moliere Awards (France’s Tony Award) on Tuesday, April 29 for Best Musical, Best Costumes and Best Lighting for the French production, which is playing at the Théâtre Mogador in Paris. Le Roi Lion has been seen by 350,000 spectators in seven months, and has extended its run through August 3rd. It was also announced that new season begins August 19th, also at the Théâtre Mogador.

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neW fAll series

Life on Mars is based on the BBC series created by Matthew Gra-ham, Tony Jordan and Ashley Pharoah. The series revolves around Sam Tyler, a modern-day police detective who, after a car crash, mysteriously finds himself transported back to 1973 and still work-ing as a detective.

Life on Mars stars Jason O’Mara as Sam Tyler, Rachelle LeFevre as Annie Cartwright, Colm Meaney as Gene Hunt, Stephanie Ja-cobsen as Maya, Lenny Clarke as George Randall, Patrick Wenk-Wolff as Colin Raimes and Richard Benjamin as Milton Kornboll. The series is produced by Twentieth Century Fox Television and ABC Studios.

Opportunity Knocks is a new show that breaks the mold of typical game and reality shows. The show takes the action of a game show directly into contestants’ homes, set-ting up shop in a family’s front lawn. The host, JD Roth, poses trivia questions to family members based directly on their lives, each other and articles found in and around their home. If they’re able to prove they know their family inside and out, they’ll win the prizes of their dreams. Opportunity Knocks is produced by Katalyst Films and 3 Ball Productions.

monDAy

8:00 p.m. “Dancing with the Stars”9:30 p.m. “Samantha Who?” 10:00 p.m. “Boston Legal”

tUesDAy

8:00 p.m. “Opportunity Knocks” 9:00 p.m. “Dancing with the Stars the Results Show”10:00 p.m. “Eli Stone”

WeDnesDAy

8:00 p.m. “Pushing Daisies” 9:00 p.m. “Private Practice” 10:00 p.m. “Dirty Sexy Money”

thUrsDAy

8:00 p.m. “Ugly Betty”9:00 p.m. “Grey’s Anatomy”10:00 p.m. “Life on Mars”

friDAy

8:00 p.m. “Wife Swap”9:00 p.m. “Supernanny” 10:00 p.m. “20/20”

sAtUrDAy

8:00 p.m. “Saturday Night College Football”

sUnDAy

7:00 p.m. “America’s Funniest Home Videos”8:00 p.m. “Extreme Makeover: Home Edition”9:00 p.m. “Desperate Housewives”10:00 p.m. “Brothers & Sisters”

ABC’s fall primetime schedule is as follows (all times listed are Eastern, with new shows in blue bold):

Unveils 2008-09 primetime sCheDUle

Hallmark Channel Acquires99-Picture Slate of ClassicFamily Disney Movies From

Disney-ABC Domestic Television

Hallmark Channel has acquired the rights to 99 family-friendly movies from Disney-ABC Domestic Television, it was recently announced.

The newly acquired movies will play on Hallmark Channel and on its sibling channel, Hallmark Movie Channel -- a new 24-hour channel which airs the greatest family movies of all time. The expansive list of baby boomer favorites includes Disney’s The Shaggy Dog, Flubber, Old Yeller, The Parent Trap, The Incredible Journey, The Princess Diaries, Freaky Friday, The Santa Clause, Bedknobs and Broomsticks, That Darn Cat, The Love Bug, Mighty Joe Young, Babes in Toyland, The Cat from Outer Space, Gus, Return to Snowy River, Snowball Express, White Fang, The Apple Dumpling Gang and Swiss Family Robinson.

Disney Increases Strategic Investment in UTV

UTV Software Communications Limited (UTV) and The Walt Disney Company announced in February that Disney’s subsidiary The Walt Disney Company (Southeast Asia) Pte. Ltd. would increase its strategic investment in UTV, subject to UTV shareholder and regulatory approvals. Disney’s investment further establishes its entry into the Indian market through UTV and complements its fast-growing Disney-branded businesses and long-held joint-venture in ESPN STAR Sports. In July 2006, Disney acquired Hungama TV, a leading Indian children’s television channel, and took an initial equity interest in UTV.

With this investment, Disney increased its stake in UTV to 32.1% on a fully diluted share capital basis. Disney’s investment is worth approximately USD 200 million. Ronnie Screwvala and certain entities with which he is affiliated (the “Promoter Group”) increased their shareholding in UTV to 32.1% through issue of warrants. Disney’s investment will be made through a preferential allotment of new UTV shares. In addition, Disney will make an open tender offer to the UTV shareholders as required under Indian securities regulations and as was detailed in a public announcement made to UTV shareholders.

In connection with its UTV investment, Disney will invest approximately USD 30 million for a 15% stake in UTV Global Broadcasting Limited (“UGBL”). UGBL, through its subsidiaries, has launched two youth entertainment channels under the Bindass brand and The World Movie channel, and a UTV Hindi Movies channel. UTV will also invest USD 60 million in UGBL for a 75% stake, while the remaining shares will continue to be held by the Promoter Group.

The Walt Disney Company’sMedia Networks To Develop

Emerging Media andAdvertising Research Lab

The Media Networks division of The Walt Disney Company an-nounced the development of an emerging media and advertising research lab – the most comprehensive of its kind -- in conjunction with Professor Duane Varan, a global authority on the future of television and advertising.

Developed to better understand the emotional drivers of audience behavior and physiological reactions to advertis-ing, this state-of-the-art research lab will utilize sound empirical research methods to test traditional and alterna-tive models for advertising. The facil-ity will conduct year-round tests using the most advanced research techniques – including biometric measurement tools -- to evaluate engagement and emotional responses to advertising across media platforms.

Professor Duane Varan

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Disney’s The Apple Dumpling Gang, starring Tim Conway and Don Knotts, will air on Hallmark Movie Channel.

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Disney CABle netWorks

Disney’s Camp Rock Set for Worldwide Roll Out

In an unprecedented, far-reaching cross-platform rollout, the Disney-ABC Television Group recently announced that Disney’s Camp Rock, a celebratory, song and dance-filled Disney Channel Original Movie for kids and families, will premiere on Disney Channel, the ABC Television Network (as part of the “Wonderful World of Disney” franchise), ABC Family, Radio Disney and Disney.com in Disney XD, Friday, June 20 through Monday, June 23 in the U.S. It will also premiere on Family Channel Canada and on Quebec’s VRAK.TV (dubbed in French) on Friday, June 20 and on Disney Channels around the world beginning in August.

The Camp Rock soundtrack will release Tuesday, June 17 from Walt Disney Records and the DVD, with exclusive bonus features, will release around the world beginning Tuesday, August 19 from Walt Disney Studios Home Entertainment.

Starring Platinum-certified Hollywood Records recording artists and Top 40 and Radio Disney hit-makers Jonas Brothers (Joe, Kevin and Nick) and singer/songwriter/actress Demi Lovato (of Disney Channel’s As the Bell Rings), Camp Rock is the story of a talented yet unsure teen who yearns to share her songs with the world, and of a tempestuous young superstar who’s lost his passion for music and is sent packing by his band mates. Together, at a camp for aspiring young music artists, they learn to believe in themselves and to value the freedom to be who they really want to be.

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espn anD time Warner cable

bring espn Deportes to more

than one million Digital cable customers in los angeles

Underlining their commitment to serving the Hispanic community, ESPN and Time Warner Cable recently announced the addition of 24-hour Spanish-language network ESPN Deportes to Time Warner Cable’s most penetrated level of digital cable service in Los Angeles, beginning immediately. With this launch, ESPN Deportes is now available on Time Warner Cable’s Variety Tier, which reaches more than 1 million digital customers in the Los Angeles area.

ESPN Deportes offers unparalleled Spanish-language sports programming, featuring more than 1800 live and/or original hours of sports programming presented annually. In addition, ESPN Deportes creates branded entertainment outside of the network’s traditional event and sports news genres. In 2006, the network brought Dominoes to the television screen with its telecast of the World Domino Tournament and much more.

Verizon Wireless and ESPN Launch ESPN Radio Channel

Exclusively on V CAST Mobile TV

ESPN and Verizon Wireless, the builder and owner of the nation’s most reliable wireless voice and data network, recently launched a mobile simulcast of ESPN Radio, exclusively on Verizon Wireless’ V CAST Mobile TV service. The ESPN Radio channel will join ESPN Mobile TV on V CAST Mobile TV, and gives customers access to popular radio programming, including SportsCenter AM, GameNight and The Pulse.

ESPN Radio, the nation’s largest sports radio network, offers fans expert analysis and commentary on shows such as Mike and Mike in the Morning, The Mike Tirico Show and The Herd with Colin Cowherd, in addition to the popular Pardon the Interruption and Around the Horn. Now, fans will be able to take these shows when they are on-the-go through V CAST Mobile TV.

ESPN Acquires Girls’ High School Basketball Site Hoopgurlz.com

ESPN recently announced that it has acquired HoopGurlz.com – the foremost girls’ basketball site on the Internet. HoopGurlz.com is the only website in the country that is solely dedicated to the coverage of high-school girls’ basketball and women’s college-basketball prospects on a national basis.

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Playhouse Disney Channel Launched in Latin America

Disney & ESPN Media Networks Latin America recently announced the launch of their new Playhouse Disney Channel in Latin America, with programming especially designed for preschoolers, available 24 hours a day, seven days a week. Playhouse Disney Channel thus joins existing Disney Channel and Jetix cable channels, present in 19 countries in the region, to provide entertainment for the entire family.

As from June 1, Playhouse Disney Channel will be offered in the basic subscription package offered by Cablevisión, Multicanal and Teledigital, and will have three feeds in Latin America: the North feed (Caribbean countries, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Dominican Republic and Venezuela), the South feed (Argentina, Bolivia, Chile, Paraguay and Peru), both in Spanish; and the Brazil feed – in Portuguese.

club penguin

expanDs service in uK

Club Penguin, the fun-filled, kids’ online phenomenon is expanding the services it offers in the UK, with a new office in Brighton dedicated to providing additional player support and moderation for the popular virtual world - the first time Club Penguin has offered local support to players outside North America.

The UK team will work with the existing Club Penguin team to nurture the global community of players and listen to kids’ views about how the game should evolve. The expansion of services means Club Penguin players in the United Kingdom will receive more timely and responsive customer support and the ability to pay in local currency. The locally-based moderators will also be better positioned to protect the interests and online safety of children in the UK.

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Announces 2008 Summerand Fall Schedule

Paul Lee, president, ABC Family, recently outlined ABC Family’s 2008 Summer and Fall schedule. Scheduled to debut this summer are new original series including The Middleman and The Secret Life of the American Teenager. In addition to the summer series, ABC Family will premiere Samurai Girl, a special event premiering with six hours over three nights this Fall, and has ordered a third season of Lincoln Heights and Kyle XY and a second season of Greek. The 11th annual 25 Days of Christmas event will feature an original movie and special as well as the basic cable premieres of The Chronicles of Narnia and Cars.

The Middleman (above) and The Secret Life of the American Teenager (below) premiere this summer on ABC Family.

Disney-ABC Television Group and MobiTV Partner to Offer Disney

Channel To Mobile Television Viewers

Disney-ABC Television Group and MobiTV, Inc., the leader in mobile and broadband entertainment services, recently announced a content licensing agreement under which MobiTV will offer Disney Channel to MobiTV service subscribers. The same content and programming as seen on cable and satellite television is now available to MobiTV service subscribers on their enabled wireless handsets via MobiTV’s carrier partners.

Now available through a dedicated channel on MobiTV’s wireless television subscription service, Disney Channel on MobiTV is live, linear programming featuring full-length episodes of hit Disney Channel series Hannah Montana and Phineas and Ferb, as well as films from the wildly popular Disney Channel Original Movie franchise. The service also includes Playhouse Disney, a daily morning programming block for preschoolers and their caregivers featuring a wide array of content, including the critically-acclaimed series Bunnytown, Handy Manny and Mickey Mouse Clubhouse.

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philippe gas to assume top Duties at euro DisneY

Euro Disney S.C.A. recently announced the nomination of Philippe Gas to the position of President of Euro Disney S.A.S., the management company of Euro Disney S.C.A. and Euro Disney Associes S.C.A., the operator of Disneyland® Resort Paris. Philippe will take over the responsibilities of Karl Holz who has been appointed President, New Vacation Operations, Walt Disney Parks and Resorts.

Philippe’s appointment will be effective on September 1, 2008. He will transition into this new role over the summer, working closely with Karl to ensure continued commitment to the Company’s long term strategic priorities: driving results towards profitability, providing a high-quality guest experience and developing our cast members.

Philippe Gas, 44 and a 17-year Disney veteran, has extensive experience with both Euro Disney and Walt Disney Parks & Resorts worldwide.

‘It’s A Small World’ Debutsat Hong Kong Disneyland

Hong Kong Disneyland recently unveiled its very own, unique version of the classic Disney attraction “it’s a small world,” marking yet another milestone in the Resort’s young history. Promoting the themes of mutual understanding, peace, love and friendship, “it’s a small world” takes guests on a leisurely boat journey across the continents of the world, inviting them to re-discover the world through the eyes of a child. Audio-Animatronics® dolls of singing children dressed in their colorful costumes, Disney character dolls, world-famous landmarks and unique Asian elements combine to offer a wonderful experience.

Tower of Terror™ Debuts at Disneyland Resort Paris

The Twilight Zone Tower of Terror™, one of Disney’s most popular attractions worldwide, recently launched at Disneyland Resort Paris. Guests plunged faster than the speed of gravity in this 13-story drop based on a “lost episode” of The Twilight Zone®, the spooky cult television series that ran from 1959 to 1964.

First-Ever Disney ParksChief Magic Official Inducted

Disney Parks and CareerBuilder.com recently announced that Justin Muchoney from Seven Fields, Pa. has been named the first-ever Disney Parks Chief Magic Official (CMO) -- emerging victorious from a field of 1,300 candidates nationwide.

As CMO, Muchoney will first go through Disney’s Traditions Training where he will learn the ins and outs of being a Cast Member as he creates magical experiences for guests, participate in special events and work behind the scenes with the Walt Disney Imagineers as part of the “Year of a Million Dreams” throughout the next year.

For information regarding the search for the CMO, please visit http://www.DreamCMO.com.

Disney’s ‘Year of a Million Dreams’ Continues with

Launch of Toy Story Mania!Guests don 3-D glasses and enter the world of Woody, Buzz and other favorite Toy Story characters in ‘Toy Story Mania!’ which recently made its debut as part of Disney’s “Year of a Million Dreams” at Disney’s Hollywood Studios.

Inspired by the Disney-Pixar films Toy Story and Toy Story II, ‘Toy Story Mania!’ is a high-energy, immersive adventure that puts guests right in the action.

Disneyland Resort also welcomes ‘Toy Story Mania!’

when the attraction debuts in late June at Disney’s

California Adventure.

the Walt DisneY companY

taKes control oF DisneY stores in north america

The Walt Disney Company recently announced that it has acquired the Disney Store chain in North America from subsidiaries of The Children’s Place Retail Stores, Inc. After the transaction, which consisted of an asset purchase by Disney’s subsidiaries through the bankruptcy and insolvency proceedings of Hoop Retail Stores, LLC in Delaware and Hoop Canada, Inc. in Canada, Disney plans to operate approximately 220 Disney Stores in the United States and Disney Stores in Canada, with the actual number of acquired stores dependent upon the outcome of negotiations with landlords.

Prince Caspian Product Line Available to Fans Everywhere

The timeless and fascinating Narnia series has been captivating fans and collectors for over 50 years, and on May 16th Walt Disney Pictures and Walden Media are bringing the world of Narnia back to the big screen with the release of The Chronicles of Narnia: Prince Caspian. In conjunction with the film release, Disney Consumer Products announced an all new exciting product line which focuses on quality and authenticity. The toy range has impressive detail and industry leading points of articulation and features.

Miley Cyrus Signs Deal with Disney Book Group

Disney Book Group has acquired world rights to the first ever book from teen superstar Miley Cyrus, star of the international hit Disney Channel series Hannah Montana. Miley will share her inspiring story, spanning from her Southern roots in Tennessee to the excitement of her record-setting triumphs in TV, music and film. Notably, Miley will reveal how her solid relationship with her family, especially her mother Leticia, helps her navigate the spotlight and encourages her to contribute and connect to the world in a variety of ways and grow up happy and well-rounded. The book, featuring never-before-seen photos, family stories, and a look at her inner circle of loved ones, will be published in early spring 2009.

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Toys Powered By Clickables™

The Disney Fairies franchise will fly to new heights in 2008 as Disney introduces a breakthrough concept in next-generation Internet-connectivity with Disney Fairies™ toys featuring Clickables™ technology. Developed as an exclusive collaboration between Disney and Techno Source, a leader in electronic toys and games, the Clickables technology enables girls to extend their virtual playtime in Disney Fairies Pixie Hollow, Disney’s latest online virtual world, with friends offline, into the real world, with patent-pending technology.

Techno Source is an award-winning toy company with a solid reputation for delivering innovative electronic toys and games that feature top-tier licensed brands at aggressive price points. The collections will be available at retail this fall in conjunction with the animated release of Tinker Bell on Disney DVD.

Rooms To Go Makes Room for Pop Superstar Hannah Montana

Rooms To Go, America’s #1 furniture company, has partnered with Disney to launch a line of children’s furniture inspired by Miley Cyrus’ hit television character, pop star Hannah Montana. The Disney Hannah Montana furniture collection is now exclusively available at all Rooms To Go stores as well as online at www.roomstogo.com. The collection will be available at other regional specialty retailers during the Fall of 2008.

Rooms To Go has maintained a successful and exclusive partnership with Disney for three years and has produced furniture collections based on hit Disney properties such as Winnie the Pooh, Pirates of the Caribbean, Cars and Disney Princesses. A collection inspired by the mega-hit High School Musical is forthcoming.

Above, a Disney Fairies Clickables Bracelet.

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Disney Interactive Studios Agrees to Acquire China-Based Video Game

Software Developer Gamestar

Disney Interactive Studios recently announced an agreement to acquire Gamestar, one of China’s leading independent video game software developers. With locations in Shanghai and Wuhan, Gamestar has a six-year track record producing high quality art and technology solutions for interactive entertainment software development.

Gamestar would become the sixth studio in Disney Interactive Studios’ growing international portfolio of creative centers of excellence. Disney’s previous acquisition was Warren Spector’s Junction Point Studios, based in Austin, Texas, acquired in July 2007.

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Disney Corporate ResponsibilityRecord Participation in Disney’s

Environmentality Challenge

A record number of kids worldwide participated in this year’s Disney’s Environmentality Challenge, a friendly competition among fifth grade classes to develop solutions for critical environmental issues.

Around 150,000 kids in the United States, Cayman Islands and Hong Kong, the three locales where the challenge takes place, were asked to identify and develop solutions for local environmental problems. The challenge builds educational curriculum into the project, giving kids the opportunity to learn the same content as other fifth graders in an interactive and fun way.

Disney’s Environmentality Challenge is part of a broader company outreach program that seeks to help kids and families become better stewards of the environment. The Environmentality Challenge is backed by several state and federal agencies in California and Florida, including representatives from the U.S. Fish and Wildlife Service, the Environmental Protection Agency, and state departments of education, environment, and food and agriculture.

To date, more than one and a half million students worldwide have taken Disney’s Environmentality Challenge.

Disney & Stremicks Heritage Foods Launch New Milk

Beverage Line Disney Consumer Products and Stremicks Heritage Foods™ recently announced a new milk beverage line that meets Disney’s new food guidelines, while also providing critical nutrients for families and children. Available in U.S. grocery stores now, Disney Little Einsteins Milk is rBST hormone-free and enriched with 32mg of omega-3 DHA per serving to support brain and eye development and the heart’s health through every stage of life. It is the first Disney-branded refrigerated dairy beverage to launch since Disney announced its food guidelines in 2006. Disney Little Einsteins milk is the first product line to launch as part of a series of healthy dairy and non-dairy beverages currently in development by Disney and Heritage.

Q3 FY08 Q3 FY07 Title Studio Date Title Studio Date

WAlt Disney stUDios Q3 fy08 releAse slAte

page 12

Diving Bell & The Butterfly 4/29/08 The Queen 04/24/07 National Treasure 2: Book of Secrets 5/20/08 Deja Vu 04/24/07Jungle Book II 6/17/08 Apocalypto 05/22/07 Primeval 06/12/07 Many Adventures Of 06/19/07 Winnie The Pooh Bridge To Terabithia 06/19/07

Q3 FY08 Q3 FY07 Title Date Title Date

WAlt Disney stUDios home entertAinmentQ3 fy08 releAse slAte

Hoax Miramax 4/6/07The Invisible Hollywood 4/27/07The Golden Door Miramax 5/25/07Pirates of the Disney 5/25/07Caribbean: At World’s EndEagle vs. Shark Miramax 6/15/07Ratatouille Disney 6/29/07* Miramax will not distribute domestically.

Prom Night* Miramax 4/11/08 Smart People Miramax 4/11/08The Chronicles of Disney 5/16/08Narnian:Prince Caspian Reprise Miramax 5/16/08Wall-E Disney/Pixar 6/27/08

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ESPN 96.3 93.1ESPN2 96.0 92.6ESPN Classic 62.5 65.1ESPNEWS 63.4 full-time 56.4 full-time

United States (a) 95.1 90.7United Kingdom 9.0 8.8France 4.6 2.1Germany 2.4 2.4Italy 4.3 4.0Spain 2.0 2.1Portugal 0.3 0.3Middle East (e) 0.4 0.3Scandinavia (d) 4.3 3.4South Africa (i) 1.5 1.4Poland (j) 2.5 1.7Turkey 0.9 N/AAsia (b) (l) 3.0 2.2Australia (g) (l) 2.3 2.6India (h) 6.0 4.2Taiwan 5.7 5.6Japan (f) 4.0 4.8Korea (k) 2.4 N/ALatin America (c) 18.6 13.5Int’l Sub-Total 74.2 59.4Worldwide Total 169.3 150.1

3/29/2008# Subscribers(in millions)

3/31/2007# Subscribers(in millions)

3/31/2007# Nielsen Households

(in millions)

3/29/2008# Nielsen Households

(in millions)

other cable properties

A & E Channel 96.2 92.4Lifetime Channel 96.5 92.7The History Channel 95.6 91.9A & E International (c) 95.7 79.4Toon Disney 68.6 60.6Lifetime Movie Channel 58.8 54.0SOAPnet 68.7 58.9Biography 47.1 42.8History Int’l 46.8 42.5Lifetime Real Women (c) 10.0 16.9

3/31/2007# Nielsen Households

(in millions)

3/29/2008# Nielsen Households

(in millions)

abc FamilY channels

ABC Family 95.7 91.9Jetix Europe (c) 52.7 49.0Jetix 18.6 13.7Latin America (c)

3/29/2008# Subscribers(in millions)

3/31/2007# Subscribers(in millions)

(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; note that as of FY2007, Philippines and Korea are being reported by Australia and Japan, respectively.(c) Not tracked by Nielsen (d) Channel launched 28 February 2003. Includes Sweden, Norway and Denmark, Aug ‘05 launched on Teledenmark, Canal Digital, and in Finland(e) Estimated data (f) Channel launched 18 Nov 2003. As of FY’07, Korea is now being reported by Japan. (g) Numbers include New Zealand territory following launch in December 03. As of FY’07, Phillipines is now being reported by Australia.(h) Channel launched 17 Dec 04. (i) Channel launched 25 September 2006 (j) Channel launched 02 December 2006; subs number based on best estimate until Polish platforms publish official numbers(k) Korea separately stated from Japan starting FY’08 (l) Philippines is now included in Asia, whereas it was part of Australia in FY07.

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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.

June 6, 2008 – Burbank, CA

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