Consumer Products

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Disney Store

Disney Stores are powerful "brand ambassadors" for Disney. Some 250 million guests around the world visit these entertainment retail outlets each year, making them a critical interface between Disney and consumers. As part of Disney Consumer Products' strategy to transform the Disney Store into a highly effective retail environment and brand statement, two completely redesigned stores were unveiled in Cherry Hill, N.J., and Costa Mesa, Calif. The all-new store design showcases merchandise in an engaging and contemporary fashion, and keeps pace with evolving retail trends. Technological elements - including a front-of-store media wall that engages guests with Disney programming, and interactive kiosks that bring Disney's online shopping, travel planning and entertainment directly to shoppers - set the stage for Disney Store in the 21st century.

Andrew P. Mooney President, Disney Consumer Products Worldwide

Disney Store also continues to focus on introducing all-new, innovative merchandise such as its comprehensive line of 102 Dalmatians products unveiled in late 2000. Additionally, Disney Store's approach for the future creates a "one-stop shopping headquarters" dedicated to seasonal shopping and gift-giving for such key family events as Christmas, Valentine's Day, the back-to-school season and Halloween. Disney Interactive The significant growth and ever-increasing popularity of PC and video games helped Disney Interactive achieve robust growth in 2000. In fact, Disney Interactive had the top-selling family PC game in North America with Who Wants to Be a Millionaire. Software sales for the Game Boy Color platform also were strong throughout the year, with hit titles that included Disney/Pixar's A Bug's Life, Tarzan™, Dinosaur and Winnie the Pooh.

In 2001, Disney Interactive will spur growth from Disney's film properties with multi-platform product releases for 102 Dalmatians, The Emperor's New Groove and Atlantis: The Lost Empire.

Disney Interactive also debuted in the sports category with ESPN: The Games, covering a wide range of sports titles and leveraging the strength of the ESPN brand. In addition, Disney Interactive will unveil breakthrough 3-D technology with Mickey's Speedway USA, a brand-new Mickey Mouse racing game developed in conjunction with Nintendo.

Disney Interactive also intends to focus on product development for the next generation of gaming consoles, particularly PlayStation2, Game Boy Advance and Nintendo's new Gamecube. Publishing This year, some 375 million Disney titles will be published globally, making Disney one of the largest children's publishers in the world. The billionth copy of Micky Maus magazine was sold in Germany in 2000. In addition, Disney Publishing Worldwide saw substantial advertising sales growth for its U.S. magazine unit. In January, Disney Publishing began its multi-year licensing relationship with Random House, which joins a prestigious list of licensees that includes a.o. Kodansha, Hachette, Mondadori, Penguin and Egmont. Disney Publishing has become an increasingly important source of content that can be successfully adapted to other Disney entertainment platforms. For example, Cheetah Girls, a story of four African-American girls who aspire to become recording artists, is currently in development as a program for Disney Channel, produced by Whitney Houston, and is one of several Disney Publishing properties that are either on the air or in development for Disney Channel.

For 2001, Disney Publishing is focusing on at-home learning programs. A new developmental book program, Disney's Smart Steps, will roll out worldwide for infants to children age three. In addition, a new card program called Disney's Photo Safari, featuring animals and habitats on more than 1,200 cards, will debut globally, along with a learning series for preschoolers, Disney's Wonderful World of You.

New book titles from acclaimed authors Rosemary Wells, Jules Feiffer and Academy Award-winner Julie Andrews are due from Hyperion Books for Children. Meanwhile, Disney's African-American imprint, Jump at the Sun, will publish Diary of a Light-Skinned Boy, a novel for teens by best-selling author E. Lynn Harris.

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