Consider some of the great product that is currently flowing through our creative pipelines. At Disney Consumer Products, there are some wonderful projects underway. There's the incredible Baby Einstein™ line of products for young children. We purchased Baby Einstein in 2001 for roughly $25 million and in 2004 alone, it generated more operating income than the entire purchase price. This spectacular return on our investment is due to the quality toys and other merchandise that are produced under this brand. They are clever and innovative and dance in my mind for future grandchildren.

Consumer Products’ publishing division has also come up with some stellar products...in one case, literally, with Peter and the Starcatchers by Dave Barry and Ridley Pearson, which is the brilliant and suspenseful telling of how Peter Pan, the Lost Boys, Tinker Bell, Captain Hook and all the rest got to Never Land. Also, the action magazine W.I.T.C.H. debuted in 2004 to popular and critical acclaim.

Next year, Disney Publishing will be coming out with Fairy Dust and the Quest for the Egg, by renowned author Gail Carson Levine. We expect this to be more than just an enchanting book, since our plans are to follow it with the creation of a whole new product line, called Disney Fairies. Just as the Disney Princess line has capitalized on the love affair that girls have for our animated royalty, so too will Disney Fairies build on their affinity for Tinker Bell and all of her tiny fairy friends. We believe that, like Disney Princesses, the retail potential is enormous.

continue to part VII of Letter to Shareholders >>

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Disney Publishing's upcoming release of Fairy Dust and the Quest for the Egg by Gail Carson Levine will mark the beginning of an entirely new character franchise and product line, Disney Fairies, featuring Tinker Bell and her friends.