Disney Revamps Studio, Sheds 650 Positions

BURBANK, July 19: The Walt Disney Company has confirmed
plans for a revamp of its movie studio, shifting to a greater emphasis on
Disney-branded releases and eliminating about 650 jobs, with Nina Jacobson, the
president of Walt Disney Motion Pictures Group, set to leave the studio.

Walt Disney Studios plans to produce and distribute about
ten Disney live-action and animated films a year and two to three Touchstone
films a year. In making the announcement, Chairman Dick Cook noted,
"Disney is the number-one name in filmed entertainment around the world.
It's the name on the door, it's what we do best, and when we do it right, not
only do moviegoers of all ages benefit from the finest in quality
entertainment, but it lifts the entire company as well. The depth and breadth
of great Disney movies range from Pirates of the Caribbean to Cars
to The Chronicles of Narnia, and
we look to expand our global reach even more."

The development and production of live-action features will
now be overseen by Oren Aviv as president of production for Walt Disney
Pictures. "Oren is an amazing talent and has been a key player in
reshaping our Disney films with many, many successes," continued Cook.
"In fact, National Treasure was a
winning, original idea which he conceived and realized on film. In his new
role, we look forward to capitalizing on his great taste as well as his
creative vision." Aviv was most recently president of marketing and chief
creative officer of The Walt Disney Studios.

The Walt Disney Studios has also restructured several of its
business units under two global organizations: Buena Vista Worldwide Marketing
and Distribution, and Buena Vista Worldwide Home Entertainment. Mark Zoradi has
been appointed president of Walt Disney Motion Pictures Group and will oversee
the distribution and marketing of all Disney and Touchstone Pictures films
worldwide. Robert Chapek has been
named president of Buena Vista Worldwide Home Entertainment, and will oversee
the worldwide distribution and marketing of all the studio's films on home
entertainment platforms. "The consolidation of global marketing and
distribution is extremely important as we continue to adapt to the vastly
changing world,” Cook added.

Referring to the 650 layoffs worldwide, Cook noted,
"Cutbacks such as these are difficult on so many levels, and we will do
everything in our power to make the transition as smooth as possible.”

Walt Disney Feature Animation, Pixar Studios, Miramax Films
(led by Daniel Battsek), Buena Vista Music Group and Buena Vista Theatrical
Productions will not be affected by this reorganization.