Disney Acquires Indian Kids’ Net

MUMBAI/BURBANK, July 25: The Walt Disney Company has entered
into a deal to acquire the Indian kids’ network Hungama TV, and is taking a
stake in Hungama’s current owner, Indian media company UTV Software
Communications.

Launched in September 2004, Hungama is a 24-hour
Hindi-language entertainment cable channel for children. Following the
acquisition, it will be integrated into Disney’s Indian operations. Disney
Channel and Toon Disney/Jetix reach approximately 30 million homes on cable and
satellite in India.

According to reports, Disney is shelling out $30.5 million
for Hungama, and a further $14 million for a 14.9-percent stake in UTV, which
is involved in television and film production and distribution.

''India is a long-term strategic priority for The Walt
Disney Company,” said Andy Bird, the president of Walt Disney International.
“The acquisition of Hungama TV, and the investment in UTV will significantly
advance our presence in India and allow us to develop a strategic relationship
with one of the country's leading integrated media companies.”

He continued, ''Not only will we be acquiring a great
channel asset, The Walt Disney Company will also be able to participate in
UTV's diversified media businesses and bring to UTV our global media and
synergy expertise, including developing and distributing high quality family
friendly content in nearly 200 countries worldwide and expanding related
franchises across film, television, music, merchandise, new media and live
entertainment.”

Zarina Mehta, currently COO of Hungama TV, will work with
the Disney team on the organizational and operational integration of Hungama TV
into Disney's portfolio of kids' channels.

Both transactions are subject to regulatory approval.