In 2001, Walt Disney International continued to focus on developing new business opportunities outside the U.S., leveraging the Disney brand to enhance international growth, strengthening the organization in regions that are strategically advantageous and consolidating back-office activities to drive efficiency.

Walt Disney International helped drive the expansion of the incredibly successful Disney Mobile service across several Asian markets. Disney Mobile is a branded entertainment and information subscription service that was first launched on the NTT DoCoMo platform in Japan, where it now has more than 2 million subscribers. In addition to providing a great entertainment platform, Disney Mobile has proved to be an excellent synergy vehicle across Disney's other operating segments. Over the course of the past year, Disney Mobile in Japan was used with great success to promote the theatrical release of Walt Disney Pictures' Dinosaur, as well as to drive additional sales volume at the Disney Stores. Disney Mobile is now available on J Phone and KDD in Japan, expanding its reach to 100 percent of the market. Disney Mobile will be launched in Taiwan and Hong Kong in early 2002.

Walt Disney International and Walt Disney Internet Group brought Disney.com to China through a licensing agreement with SeaRainbow Holding Corporation. Disney.com.cn provides Disney entertainment and news to more than 20 million Internet users in China, 24 hours a day, seven days a week.

Walt Disney International continued to focus on opportunities to promote Disney products across all of the company's operating segments. For major theatrical and home video releases such as the animated feature Atlantis: The Lost Empire, and the DVD premiere of Snow White and the Seven Dwarfs, Walt Disney International worked with each operating segment to ensure that promotional and product support was present. In France, Walt Disney International successfully executed the Disney Planet Promotion with French retailer Geant. The promotion created a single point of sale at more than 4,800 Geant retail locations across France for dozens of Disney's consumer, film and theme park products.

Walt Disney International collaborated with Disney's Media Networks organization to launch Disney Channel in Brazil and Radio Disney in Argentina. Disney Channel and Radio Disney are key drivers of the Disney brand and provide an important connection with the consumer in these markets. Radio Disney is an efficient vehicle for building the Disney brand outside of the U.S. and it is expected to expand quickly across Latin America and into Europe and Asia Pacific.

Walt Disney International worked closely with Disney Consumer Products to establish direct-to-retail agreements with key international retailers. In 2001, direct-to-retail agreements were signed with five key European retailers, including Tesco, H&M and C&A.

Walt Disney International expanded to include a country manager to oversee Poland. This market will now operate through an integrated organizational model similar to the one currently used in Latin America. The country manager will lead an integrated sales, marketing, retail and finance organization to drive brand development and revenue growth in this market.

Walt Disney International also has been at the forefront of driving cost efficiencies. Consolidation of Disney's real estate portfolio in Hong Kong, France, Germany, Mexico, Brazil and Argentina is complete. The process of consolidating accounting operations has begun, and the number of legal entities within each country also is being reduced.