Studio Entertainment - The Buena Vista Music Group

The Buena Vista Music Group, which includes Walt Disney Records, Hollywood Records, Lyric Street Records, Mammoth Records and Walt Disney Music Publishing, achieved its targets for revenue growth during the year and made good progress with its strategy for developing its artist roster.

Buena Vista Music Group's mainstream pop music label, Hollywood Records, released the soundtrack to Paramount's Mission: Impossible 2. Featuring tracks from Metallica and Limp Bizkit, the soundtrack achieved multi-platinum status. British pop band BBMak, which recently joined Hollywood Records, released its first album, Sooner or Later, and has already achieved gold status with the help of marketing support from Radio Disney and the Disney Channel. In September, Fastball released The Harsh Light of Day, the follow-up to its 1998 platinum release, All the Pain Money Can Buy. Based on initial orders, The Harsh Light of Day is expected to achieve gold status. And the soundtrack to Touchstone's 10 Things I Hate About You achieved gold status in the U.S., with worldwide sales nearing 1 million units.

SHeDAISY's debut album, The Whole SHeBANG, which was released in 1999 on Buena Vista Music Group's country label, Lyric Street Records, achieved platinum status in 2000 and is on its way to multi-platinum. The album's single, I will...but, reached number two on the country music charts. And Aaron Tippin's new release, People Like Us, debuted in July and has achieved gold status. The first single, Kiss This, reached number one on the country charts.

Walt Disney Records released the soundtrack to the smash hit Tarzan™ in 1999, which received a Grammy for Best Soundtrack Album of the Year in 2000. Phil Collins' song, You'll Be In My Heart, won both an Academy Award and a Golden Globe Award for Best Original Song. The soundtrack for Fantasia/2000 was another major hit for Walt Disney Records, and has remained in the top five of the Billboard Traditional Classics chart since its release in December 1999. Other highlights of 2000 were the release of Disney/Pixar's Toy Story 2 soundtrack, Woody's Roundup, and the soundtrack to Dinosaur, the summer hit from Walt Disney Feature Animation. SHeDAISY unveiled a collection of Christmas tunes, and the Squirrel Nut Zippers' new album, Bedlam Ballroom, was released on the restructured Mammoth Records label. Upcoming Buena Vista Music Group titles include pop sensation Youngstown's follow-up to its successful 1999 debut album, Let's Roll, and an English-language album from Latin Grammy nominee Nydia Rojas. Also hitting the streets this year are soundtracks for 102 Dalmatians; The Emperor's New Groove, featuring music by superstar recording artists Sting and Tom Jones; Pearl Harbor; Paramount's Save the Last Dance; and Atlantis: Return of the Lost Empire.

Buena Vista International

As the international marketplace becomes an increasingly important part of the film business, Buena Vista International, Disney's international film distribution unit, had its best year ever, commanding an impressive 23 percent marketshare.

BVI's success was driven by such hits as Disney/Pixar's Toy Story 2, the top international release in the spring, garnering $238 million at the box office; and Tarzan™, featuring a score that pop star Phil Collins recorded in five languages, helping to propel international box office to more than $275 million.

The Sixth Sense premiered internationally in August 1999, and by the end of 2000 had tallied more than $236 million in BVI-managed territories. It now ranks as the second most-popular BVI live-action release ever, just behind Armageddon.

Gone in 60 Seconds has opened globally with great success, earning in excess of $125 million at the international box office. Other BVI hits include Runaway Bride, with more than $135 million in international box office, and Dinosaur, which is expected to exceed $200 million by January 2001.

In 2001, BVI will be launching the international release of Coyote Ugly, 102 Dalmatians, Remember the Titans, Unbreakable, The Emperor's New Groove and Pearl Harbor.

Buena Vista Home
Entertainment - Domestic

This year, Buena Vista Home Entertainment maintained its top position in the market for the 13th consecutive year, highlighted by the release of best-selling titles such as Tarzan™, The Sixth Sense and Disney/Pixar's Toy Story 2, along with the rollout of the Walt Disney Gold Collection, a special group of Disney animated classics that enables consumers to access these titles at all times.

The smash hit The Sixth Sense was the top-selling DVD in 2000, with more than 2.5 million units shipped. It is now the second best-selling DVD of all time and top rental title of all time.

In addition, sales of The Tigger Movie reached 4 million VHS and DVD units combined in 2000, while The Little Mermaid II: Return to the Sea sold 6 million combined units, Buzz Lightyear of Star Command: The Adventure Begins sold 3 million combined units and An Extremely Goofy Movie sold 2.8 million combined units.

This year promises another outstanding slate from Disney Video Premieres, with Lady and the Tramp II: Scamp's Adventure and the sequel to Hunchback of Notre Dame.

Buena Vista Home
Entertainment - International

BVHEI has distributed more than 10 million DVD units internationally since the format debuted. This burgeoning market helped BVHEI in 2000, with DVD sales doubling between 1999 and 2000. Volume was up 134 percent in Europe and 102 percent in Asia during the year, with Tarzan™, Armageddon and Disney/Pixar's A Bug's Life among the top sellers. In addition, BVHEI continues to lead the international VHS sell-through business.

The company also set a number of international rental records with The Sixth Sense. It is now the U.K.'s number-two rental title of all time and also the top rental title in Italy, Spain and Australia.

Key releases in 2001 include Dinosaur and Disney/Pixar's Toy Story 2. BVHEI also will continue its activities in the video premiere market with The Little Mermaid II: Return to the Sea and Lady and the Tramp II: Scamp's Adventure.

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