Disney Predicts $26 Billion in Retail Revenues

NEW YORK, June 19: Speaking at the Licensing Show in New
York today, Andy Mooney, the chairman of Disney Consumer Products (DCP),
announced that the company is on track to bring in $26 billion in retail sales
this year, a 13-percent gain on fiscal 2006.

"Given the rich breadth of entertainment and content
generating from across the company, there is no better time for licensees and
retailers to be aligned with The Walt Disney Company than now," said
Mooney. "The breakout success of tween and preschool programming on Disney
Channel and the slate of powerful films have enabled us to balance out our
licensing portfolio across age segments and make an impact at retail 365 days a
year."

Driving this growth are global retail sales of licensed
merchandise for classic franchises such as Disney Princess, Mickey Mouse and
Winnie the Pooh; new franchises such as Disney/Pixar's Cars, Pirates of the
Caribbean and Disney Fairies; and new tween franchise opportunities with Disney
Channel fare like High School Musical and Hannah Montana.

Reflecting the importance of the tween market, DCP opened
Licensing Show with an appearance by Miley Cyrus, star of Hannah Montana. Retail sales figures for its tween business are on
track to reach $400 million globally this year. Key releases include a special
line of High School Musical
merchandising launching at Wal-Mart for back-to-school this fall supported by a
52-week sponsorship on Disney Channel. This summer, Miley Cyrus releases a
brand new 2-CD set, Hannah Montana 2/Meet
Miley Cyrus; a new DVD, Hannah
Montana Pop Star, and embarks on a 50+ city
tour kicking off this October. At retail, the franchise will expand this fall
from apparel, stationery and home decor into a line of footwear from Payless
Shoes and an expanded line of youth electronics including an LCD TV and a line
of professional electric and acoustic guitars. Additionally, both franchises
boast comprehensive publishing programs. Worldwide sales of High
School Musical books are well over 4.5
million copies. A total of 10 titles will be in stores in time for the August
premiere of High School Musical 2
and 20 more titles are in development through Spring 2008. Hannah
Montana books launched in the U.S. in
September with almost 2.5 million copies sold to date. Six junior novels are
currently out with three new books releasing this fall. Six more titles will
publish in Spring 2008 as well as an original fiction series. New videogame
titles are also set to release this fall, among them High School Musical:
Makin' the Cut on Nintendo DS, Hannah Montana: Music Jam on Nintendo DS and
Hannah Montana: Spotlight World Tour on Wii from Nintendo.

Skewing younger, the Disney Princess franchise is on track for a 14 percent increase over
the prior year, with an expected $4 billion in global retail sales company
wide. Disney Princess introduces
a new Disney Video Premiere DVD release this fall—Enchanted
Tales: Follow Your Dreams. An assortment of
more than 1,500 glimmering pink and gold products with a "Season of
Enchantment" theme will accompany the DVD release. Disney will also
re-brand its multimillion selling line of Disney Princess books as part of this
theme. To date over 2,000 Disney Princess book titles are published worldwide
while Disney Princess magazines are enjoyed in 72 countries and 27 languages.
Disney will also release its first console video game created specifically for
young girls, Disney Princess: Worlds of Enchantment for Wii from Nintendo and
the Sony PlayStation 2 computer entertainment system and Disney Princess:
Magical Jewels for Nintendo DS.

Launched as a Disney franchise a year ago, retail sales of
Disney Fairies merchandise are set to surpass $800 million this year. The
franchise is supported by a website, www.disneyfairies.com, which attracts more
than a million daily unique visitors. Disney Fairies books are now published in
51 countries and in 33 languages and have sold over 5 million copies around the
world. Disney will launch Fairy Haven and the Quest for the Wand by Gail Carson Levine, illustrations by David
Christiana, in the U.S. this summer and worldwide this fall. The book is the
global sequel to the worldwide best seller Fairy Dust and the Quest
for the Egg. Additionally, Disney
Fairies magazine is currently available in
24 countries with plans to launch in 11 more by 2008; over 2.6 million copies
of the magazine have sold globally.

Disney has grown its presence in the boys’ segment with Cars and Pirates of the Caribbean. Cars
has generated $2 billion in global retail sales with a mix of toys,
electronics, home furnishings, apparel, video games and publishing. The Pirates
of the Caribbean franchise has crossed the
$1 billion retail sales mark with fashion and lifestyle products and original
content from Disney Publishing Worldwide and Disney Interactive Studios.

For the preschool set, Mickey Mouse Clubhouse, Little Einsteins and My Friends Tigger & Pooh will see products rolling out globally in 2007 and
2008. Books have just released in the U.S.