The Walt Disney Company is built upon a rich heritage of conservation that Walt Disney him- self first initiated more than 60 years ago. Walt’s interest in conservation was first evident in his production of landmark nature films and subsequently, in his progressive ideas to incorporate sustainability into original plans for the Walt Disney World Resort. As the world’s leading family entertainment company, we have a responsibility to build on this legacy by remaining committed to the highest standards of corporate responsibility, which includes a continual focus on environmental issues.

Leading this effort is Disney’s Environmentality™, an initiative that began 16 years ago and thrives today as a Company-wide effort that promotes environmental initiatives throughout our various businesses. Accordingly, Disney’s core values incorporate our emphasis on creating a positive impact on the environment and on the communities in which we work.

In order to realize these goals and to further advance the mission of Disney’s Environmentality, we hosted the inaugural Environmentality Summit this year, bringing together more than 50 of Disney’s environmental leaders to encourage solutions-oriented discussions about environmental issues. The Summit fostered new and innovative business partnerships and identified additional opportunities that help Disney save money by being environmentally responsible.

Overall, we are making great strides in a number of critical areas, including energy management and wildlife conservation. In 2006, we signifi cantly reduced energy consumption by nearly 57 million kilowatt hours at the Walt Disney World Resort and generated savings of more than $1.8 million. To date, we have saved more than $8 million through energy conservation initiatives that have been implemented at the Resort.

Our work in the area of wildlife conservation is equally notable. The Disney Wildlife Conservation Fund achieved $10 million in total donations since the Fund was established in 1998. These donations have supported more than 500 projects worldwide. Additionally, Disney directly sponsored an effort to reintroduce white rhinos in Africa by sending two rhinos born at Disney’s Animal Kingdom to the Ziwa Sanctuary in Uganda. Our dedicated Disney’s Animal Programs staff has nurtured the animals in their care, leading to the births of more than 2,600 mammals, birds, reptiles, and amphibians at the Walt Disney World Resort.

Our Cast Members and employees contribute to environmental stewardship throughout the Company and I am proud to highlight many of their efforts within the pages of this publication. Organizations around the world have recognized Disney for our steadfast commitment to sustainable business practices. Since 1993, our Company has been honored with more than 100 environmental and conservation awards; most recently the U.S. Environmental Protection Agency presented Disney with a WasteWise Gold Achievement Award for Paper Reduction.

If you are a Disney Cast Member, there are myriad ways that you can become personally involved, and as a Disney shareholder, you can help conserve resources by signing up to receive your Disney proxy materials electronically. Simply visit www.Environmentality.com for more information. During more than six decades of work on behalf of the environment, our Company has seen how individual actions really do add up to something quite significant.

We hope you enjoy this edition of Disney’s Enviroport, and remember that you too can help protect our planet!

Thomas O. Staggs
Senior Executive Vice President and Chief Financial Officer,
The Walt Disney Company